-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B+IHO8n4Ch3bbcuqDqu2PlIIpp7miN3wPgZQbUOiRxtdPvSv8glnc5dA8pZNuk3S Tl4P9n7/9dhR0cIVxe2bpQ== 0000891804-10-001822.txt : 20100506 0000891804-10-001822.hdr.sgml : 20100506 20100506133248 ACCESSION NUMBER: 0000891804-10-001822 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100228 FILED AS OF DATE: 20100506 DATE AS OF CHANGE: 20100506 EFFECTIVENESS DATE: 20100506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND INC CENTRAL INDEX KEY: 0000878198 IRS NUMBER: 363777458 STATE OF INCORPORATION: MN FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06383 FILM NUMBER: 10805752 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 W WACKER CITY: CHICAGO STATE: IL ZIP: 60606 N-CSR 1 num.txt NUM UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6383 --------------------- Nuveen Michigan Quality Income Municipal Fund, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: February 28 ------------------ Date of reporting period: February 28, 2010 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. [LOGO] NUVEEN INVESTMENT Closed-End Funds - -------------------------------------------------------------------------------- Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Annual Report February 28, 2010 - -------------------------------------------------------------------------------- - ------------------------- ------------------------- ------------------------ -------------------------- NUVEEN MICHIGAN NUVEEN MICHIGAN NUVEEN MICHIGAN NUVEEN OHIO QUALITY INCOME PREMIUM INCOME DIVIDEND ADVANTAGE QUALITY INCOME MUNICIPAL FUND, INC. MUNICIPAL FUND, INC. MUNICIPAL FUND MUNICIPAL FUND, INC. NUM NMP NZW NUO
- ------------------------- ------------------------- ------------------------ NUVEEN OHIO NUVEEN OHIO NUVEEN OHIO DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND 3 NXI NBJ NVJ FEBRUARY LIFE IS COMPLEX. Nuveen makes things e-simple. It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! WWW.INVESTORDELIVERY.COM If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS If you receive your Nuveen Fund dividends and statements directly from Nuveen. [LOGO] NUVEEN INVESTMENTS Chairman's Letter to Shareholders [PHOTO OF ROBERT P. BREMNER] DEAR SHAREHOLDER, The economic environment in which your Fund operates reflects continuing but uneven economic recovery. The U.S. and other major industrial countries are experiencing steady but comparatively low levels of economic growth, while emerging market countries are seeing a resumption of relatively strong economic expansion. The largest source of economic uncertainty is the potential impact of steps being considered by many governments to counteract the extraordinary governmental spending and credit expansion carried out to deal with the financial and economic crisis of 2008. Consequently, the implications for future tax rates, government spending, interest rates and the pace of economic recovery in the U.S. and other leading economies are extremely difficult to predict at the present time. The long term health of the global economy depends on restoring some measure of fiscal discipline around the world, but since all of the corrective steps require economic pain, it is not surprising that governments are reluctant to undertake them. In the near term, governments remain committed to furthering economic recovery and realizing a meaningful reduction in their national unemployment rates. Such an environment should produce continued economic growth and, consequently, attractive investment opportunities. Over the longer term, the larger uncertainty mentioned earlier carries the risk of unexpected potholes in the road to sustained recovery. For this reason, Nuveen's investment management teams are working hard to balance return and risk by building well-diversified portfolios, among other strategies. I encourage you to read the following commentary on the management of your Fund. As always, I also encourage you to contact your financial consultant if you have any questions about your Nuveen Fund investment. Over the last twelve months, the Nuveen leveraged municipal closed-end funds continued to make progress in refinancing their auction rate preferred shares (ARPS). By the fall of 2009, all of the Nuveen taxable closed-end Funds had completed redemption of their ARPS at par value. As of March 31, 2010, approximately 40% of the municipal ARPS issued by the Nuveen Funds also had been redeemed. Please consult the Nuveen web site for the most recent information on this issue and all recent developments on your Nuveen Funds at: www.nuveen.com. On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Robert P. Bremner Robert P. Bremner Chairman of the Board and Lead Independent Director April 19, 2010 Nuveen Investments 1 Portfolio Manager's Comments Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) Nuveen Michigan Dividend Advantage Municipal Fund (NZW) Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) Nuveen Ohio Dividend Advantage Municipal Fund (NXI) Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) PORTFOLIO MANAGER DANIEL CLOSE DISCUSSES ECONOMIC AND MUNICIPAL MARKET CONDITIONS AT BOTH THE NATIONAL AND STATE LEVELS, KEY INVESTMENT STRATEGIES, AND THE TWELVE-MONTH PERFORMANCE OF THE NUVEEN MICHIGAN AND OHIO FUNDS. DAN, WHO JOINED NUVEEN IN 2000, ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR THESE SEVEN FUNDS IN 2007. WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING THE TWELVE-MONTH REPORTING PERIOD ENDED FEBRUARY 28, 2010? During this reporting period, municipal bond prices generally rose as strong cash flows into municipal bond funds combined with tighter supply of new tax-exempt issuance to provide favorable supply and demand conditions. As the period began, there continued to be considerable downward pressure on the economy, and both the Federal Reserve (Fed) and the federal government continued their efforts to improve overall economic conditions. The Fed kept the benchmark fed funds rate in a target range of zero to 0.25% after cutting it to its record low level in December 2008. In February 2009, the federal government passed a $787 billion economic stimulus package. At its meeting in March 2010 (after the close of this reporting period), the Fed pledged to keep the fed funds rate "exceptionally low" for an "extended period." In recent months, these and other measures taken by the Fed and the government to ease the economic recession have produced some incipient signs of improvement. In the fourth quarter of 2009, the U.S. gross domestic product (GDP) grew at an annualized rate of 5.6%, the fastest pace in six years. This was the second quarter in a row that the economy posted positive growth, following four quarters of contraction. Housing prices also provided a bright spot between May 2009 and January 2010 by recording nine consecutive months of positive returns (on a seasonally adjusted basis) after three years of decline. At the same time, inflation remained relatively tame, as the Consumer Price CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN. 2 Nuveen Investments Index (CPI) rose 2.1%. The core CPI (which excludes food and energy) rose 1.3% over the year, within the Fed's unofficial objective of 2.0% or lower for this measure. Since the recession began in December 2007, the U.S. economy has lost a total of 8.4 million jobs, the biggest decline since the Great Depression. While labor markets remained weak, recent months saw a slight improvement. As of February 2010, the national unemployment rate was 9.7%, up from 8.2% in February 2009 but down from the 26-year high of 10.1% in October 2009. Municipal market conditions began to show general signs of improvement throughout most of the period. This trend was bolstered by the reduced supply of tax-exempt municipal debt in the marketplace, due in part to the introduction of the Build America Bond program in April 2009. Build America Bonds are a new class of taxable municipal debt created as part of the February 2009 economic stimulus package. These bonds currently offer municipal issuers a federal subsidy equal to 35% of the security's interest payments and therefore provide issuers with an attractive alternative to traditional tax-exempt debt. Between April 2009 and the end of this reporting period, taxable Build America Bonds issuance totaled $78.2 billion, accounting for 20% of new bonds issued in the municipal market during that time. Over the twelve months ended February 28, 2010, municipal bond issuance nationwide--both tax-exempt and taxable--totaled $423.1 billion, an increase of 7.3% compared with the twelve-month period ended February 28, 2009. Demand for tax-exempt bonds remained strong during this period and, combined with lower tax-exempt supply, provided support for municipal bond prices. HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN MICHIGAN AND OHIO DURING THIS PERIOD? Despite slight improvements in selected areas over the past twelve months, Michigan's state economy continued to rank as one of the weakest in the country. Michigan's unemployment rate remained the nation's highest, as employment declined across all sectors except education and health services. Construction, manufacturing, professional and business services, and information services all registered double-digit job losses. As of February 2010, Michigan's jobless rate was 14.1%, up from 12.0% in February 2009. In addition to employment concerns, Michigan continued to experience declining home values and a high foreclosure rate, which in turn impacted consumer spending, property taxes, and state and local revenues. According to the Standard & Poor's (S&P)/Case-Shiller home price index of 20 major metropolitan areas, housing prices in Detroit fell 7.4% during the twelve months ended January 2010, compared with a drop of 21.7% for the twelve months ended January 2009. As of February 2010, Moody's, S&P and Fitch rated Michigan general obligation (GO) debt at Aa3, AA-, and A+, respectively. These Nuveen Investments 3 ratings reflected Fitch's downgrade of Michigan GOs to A+ from AA- in July 2009. All three rating agencies carried a stable outlook for Michigan GOs. During the twelve months ended February 28, 2010, municipal issuance in Michigan totaled $6.3 billion, a decrease of 31% compared with the twelve months ended February 2009. Ohio continued to rank in the bottom tier of states in terms of economic growth, with an economy that has contracted since 2006. However, tentative signs suggest that this trend may be easing to some degree. The housing outlook for the state has generally improved, as the downturn in home values moderated in recent months. According to the S&P/Case-Shiller home price index of 20 major metropolitan areas, housing prices in Cleveland rose 0.2% during the twelve months ended January 2010, compared with an average decline of 0.7% nationally. Like Michigan, employment in Ohio remained less diversified than that of the nation as a whole, with heavier dependence on the manufacturing sector than seen nationally. As of February 2010, Ohio's unemployment rate was 10.9%, the highest since September 1983, up from 9.1% in February 2009. While Ohio is relying on service industries to provide some growth, those industries have been hampered by slowing population trends. Since 2005, net outmigration from the state has topped 30,000 each year. As of February 2010, Moody's, S&P and Fitch rated Ohio general obligation debt at Aa2, AA+, and AA, respectively. These ratings reflected the June 2009 downgrades to Aa2 from Aa1 by Moody's and to AA from AA+ by Fitch. Moody's listed the outlook for Ohio GOs as stable, while S&P and Fitch revised their outlooks to negative as of September 2009 and June 2009, respectively. For the twelve months ended February 28, 2010, municipal issuance in Ohio totaled $12.3 billion, an increase of approximately 2% compared with the twelve months ended February 2008. WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THIS REPORTING PERIOD? As previously mentioned, the availability of new tax-exempt supply declined during this period, due in part to the introduction of taxable Build America Bonds in April 2009. During the twelve months ended February 28, 2010, Build America Bonds comprised approximately 19% of new municipal supply in Ohio, which ranked as the seventh largest user of these bonds among the 50 states. In Michigan, where municipal issuance was already down 31% from the same period a year earlier, Build America Bonds represented more than 22% of new municipal supply for the period. Since interest payments from Build America Bonds represent taxable income, we do not view these bonds as good investment opportunities for the tax-exempt Michigan and Ohio Funds. 4 Nuveen Investments Given the constrained supply of new tax-exempt municipal bonds in the primary market, we turned to the secondary market to find attractive value opportunities. We continued to take a bottoms-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. During this period, all three of the Michigan Funds purchased uninsured health care bonds as well as general obligation credits representing issuers in the southeast Michigan corridor. Although we had previously de-emphasized bonds issued in this area of Michigan due to the region's economic problems, we believed that, on a risk-adjusted basis, these bonds now offered good value. For this reason, we selectively added these credits in sizable amounts for the first time in a long while. In all four of the Ohio Funds, we purchased uninsured health care bonds. Tax-exempt supply was usually more plentiful in the health care sector because hospitals generally do not qualify for the Build America Bond program and so must continue to issue bonds in the tax-exempt municipal market. NXI, NBJ and NVJ also added an additional dedicated tax bond issued for the Delaware County library as well as industrial development bonds. Cash for new purchases during this period was generated largely by maturing or called bonds. In addition, the Michigan Funds took advantage of opportunities to sell several issues where we had credit concerns, including bonds issued for a continuing care retirement center, health care facilities and charter schools. In the Ohio Funds, we also sold a health care issue due to deteriorating credit. All of these Funds continued to use inverse floating rate securities.(1) We employ inverse floaters as a form of leverage for a variety of reasons, including duration(2) management, income enhancement and total return enhancement. (1) An inverse floating rate security, also known as an inverse floater, is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. (2) Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. Nuveen Investments 5 HOW DID THE FUNDS PERFORM? Individual results for these Nuveen Michigan and Ohio Funds, as well as relevant index and peer group information, are presented in the accompanying table. AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED 2/28/10
1-YEAR 5-YEAR 10-YEAR - ------------------------------------------------------------------------------------------ MICHIGAN FUNDS NUM 14.83% 3.98% 6.60% NMP 14.22% 3.86% 6.59% NZW 17.70% 3.82% N/A Standard & Poor's (S&P) Michigan Municipal Bond Index(3) 11.94% 4.01% 5.69% Standard & Poor's (S&P) National Municipal Bond Index(4) 11.20% 4.32% 5.77% Lipper Michigan Municipal Debt Funds Average(5) 17.17% 3.51% 6.90% OHIO FUNDS NUO 16.76% 4.58% 6.46% NXI 15.46% 4.84% N/A NBJ 18.91% 4.44% N/A NVJ 15.73% 4.95% N/A Standard & Poor's (S&P) Ohio Municipal Bond Index(3) 14.79% 3.89% 5.48% Standard & Poor's (S&P) National Municipal Bond Index(4) 11.20% 4.32% 5.77% Lipper Other States Municipal Debt Funds Average(5) 19.01% 4.11% 6.62% - ------------------------------------------------------------------------------------------
For the twelve months ended February 28, 2010, the total returns on common share net asset value (NAV) for all of the Michigan Funds exceeded the return for the Standard & Poor's (S&P) Michigan Municipal Bond Index, all of the Ohio Funds outperformed the S&P Ohio Municipal Bond Index, and all seven Funds surpassed the return on the S&P National Municipal Bond Index. NZW outperformed the average return for the Lipper Michigan Municipal Debt Funds Average, while NUM and NMP trailed this measure. Among the Ohio Funds, NBJ performed in line with the Lipper Other States Municipal Debt Funds Average and NUO, NXI and NVJ lagged the group average. Shareholders should note that the performance of the Lipper Other States Municipal Debt Funds Average represents the overall average of returns for funds from ten different states with a wide variety of municipal market conditions. Key management factors that influenced the Funds' returns during this period included yield curve and duration positioning, credit exposure and sector allocation. In addition, leverage was an important positive factor affecting the Funds' performances over this period. The impact of leverage is discussed in more detail on page seven. During this period, yields on tax-exempt bonds generally declined and bond prices rose, especially at the longer end of the municipal yield curve. As a result, longer-term bonds generally outperformed credits with shorter maturities. Overall, duration and yield curve positioning proved positive for the performances of these Funds, with the exception of NVJ. In general, the Funds were underexposed to the underperforming Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. (3) The Standard & Poor's (S&P) Michigan and Ohio Municipal Bond Indexes are unlever-aged, market value-weighted indexes designed to measure the performance of the investment-grade municipal bond markets in Michigan and Ohio, respectively. These indexes do not reflect any initial or ongoing expenses and are not available for direct investment. (4) The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the investment-grade U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment. (5) The Lipper Michigan Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 4 funds; 5-year, 4 funds; and 10-year, 3 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. (6) The Lipper Other States Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 43 funds; 5-year, 43 funds; and 10-year, 20 funds. The performance of the Lipper Other States category represents the overall average of returns for funds from ten different states with a wide variety of municipal market conditions. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. 6 Nuveen Investments short end of the yield curve and had heavier weightings in the longer part of the curve, which had a positive impact on performance. While duration and yield curve positioning played an important role in performance during this twelve-month period, credit exposure also had a significant impact. The demand for municipal bonds increased during this period, driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for additional risk. At the same time, the supply of new tax-exempt municipal securities declined. As investors bid up municipal bond prices, bonds rated BBB or below and non-rated bonds generally outperformed those rated AAA. In this environment, the Funds' performances benefited from their allocations of lower quality credits. Given their underweightings in BBB and non-rated bonds, the Michigan Funds were more constrained in their opportunities to take advantage of this environment. However, as a Dividend Advantage Fund, NZW had a heavier weighting to sub-investment-grade bonds, which boosted its performance for the twelve months. Holdings that generally contributed positively to the Fund's performance included industrial development revenue (IDR) and health care bonds. While the three Michigan Funds were underweighted in health care, all four Ohio Fund benefited from overweightings in this sector. Revenue bonds as a whole performed well, with housing, transportation and public utilities among the sectors also outperforming the general municipal market for this period. In addition, zero coupon bonds and lower-rated tobacco bonds were among the strongest performers. Pre-refunded bonds, which are typically backed by U.S. Treasury securities, performed especially poorly on a relative basis during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. The Michigan and Ohio Funds were generally overweighted in pre-refunded bonds, with NUM, NXI and NVJ having the heaviest exposures and NMP and NBJ the smallest allocations. Many general obligation and other tax-supported bonds also failed to keep pace with the overall municipal market, while education, water and sewer, leasing and resource recovery trailed the other revenue sectors for the twelve months. The Funds generally had lower weightings in tax-supported bonds than the market as a whole, which lessened the negative impact from this sector. IMPACT OF THE FUNDS' LEVERAGE STRATEGIES ON PERFORMANCE One important factor impacting the returns of these Funds relative to the comparative indexes was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total returns for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when bond prices generally are rising. Nuveen Investments 7 Leverage made a significant positive contribution to the performance of these Funds over this reporting period. RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE Shortly after their inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create financial leverage. As noted in the past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February 2008. This means that these auctions have "failed to clear," and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short-term rates at multigenerational lows, those maximum rates also have been low. One continuing implication for common shareholders from the auction failures is that each Fund's cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund's common share earnings likely have been incrementally lower at times than they otherwise might have been. As noted in past shareholder reports, the Nuveen funds' Board of Directors/Trustees authorized several methods to refinance a portion of the Nuveen funds' outstanding ARPS. Some Funds have invested in tender option bonds (TOBs), also known as floating rate securities. The amount of TOBs that a Fund may use varies according to the composition of each Fund's portfolio. Some Funds have a greater ability to use TOBs than others. As of February 28, 2010, some Funds have issued Variable Rate Demand Preferred Shares (VRDP), but these issuances have been limited since it has been difficult to find liquidity providers on economically viable terms given the constrained credit environment. Some Funds have issued MuniFund Term Preferred Shares (MTP), a fixed-rate form of preferred stock with a mandatory redemption period of five years. While all these efforts have reduced the total amount of outstanding ARPS issued by the Nuveen funds, the Funds cannot provide any assurance on when the remaining outstanding ARPS might be redeemed. 8 Nuveen Investments As of February 28, 2010, the amount of ARPS redeemed by the Funds are as shown in the accompanying table. AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMED PREFERRED SHARES - -------------------------------------------------------------------------------- NUM $6,675,000 7.1% NMP $2,300,000 4.1% NZW $1,725,000 10.8% NUO $4,000,000 5.2% NXI $2,000,000 6.5% NBJ $2,400,000 10.0% NVJ $1,000,000 6.1% - -------------------------------------------------------------------------------- During January 2010, NZW and NVJ filed with the Securities and Exchange Commission (SEC) a registration statement seeking to register MTP. These registration statements, declared effective by the SEC, enable the Funds to issue to the public shares of MTP to refinance all or a portion of their ARPS. The issuance of MTP by these Funds is subject to market conditions. There is no assurance that these MTP shares will be issued. Subsequent to the reporting period, NXI and NBJ filed with the SEC a registration statement seeking to register MTP. These registrations statements, declared effective by the SEC, are subject to the terms and conditions as noted in the preceding paragraph. As of February 28, 2010, 80 out of the 84 Nuveen closed-end municipal funds that had issued ARPS have redeemed, at par, all or a portion of these shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS redemptions to approximately $3.0 billion of the original approximately $11.0 billion outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps. Nuveen Investments 9 Common Share Dividend and Share Price Information During the twelve months ended February 28, 2010, each of the seven Nuveen Michigan and Ohio Funds had three increases in their monthly dividends. NUO, NXI and NVJ also had an additional dividend increase that was declared just prior to the start of this reporting period and took effect in March 2009. Due to normal portfolio activity, common shareholders of NXI received a net ordinary income distribution of $0.0094 per share at the beginning of December 2009. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of February 28, 2010, all of the Funds in this report had positive UNII balances for both tax and financial statement purposes. COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION As of February 28, 2010, and the since inception of the Funds' repurchase program the following Funds have cumulatively repurchased common shares as shown in the accompanying table. COMMON SHARES % OF OUTSTANDING FUND REPURCHASED COMMON SHARES - -------------------------------------------------------------------------------- NUM 153,900 1.3% NMP 137,100 1.8% NZW 12,200 0.6% NUO -- -- NXI 600 0.0%* NBJ -- -- NVJ 1,700 0.1% - -------------------------------------------------------------------------------- * Rounds to less than 0.1%. 10 Nuveen Investments During the twelve-month reporting period, the following Funds repurchased common shares at a weighted average price and a weighted average discount per common share as shown in the accompanying table. WEIGHTED AVERAGE WEIGHTED AVERAGE COMMON SHARES PRICE PER SHARE DISCOUNT PER SHARE FUND REPURCHASED REPURCHASED REPURCHASED - -------------------------------------------------------------------------------- NUM 153,900 $11.54 18.15% NMP 110,400 $11.50 17.11% NZW 12,200 $12.15 13.24% - -------------------------------------------------------------------------------- As of February 28, 2010, the Funds' common share prices were trading at (-) discounts to their common share NAVs as shown in the accompanying table. 2/28/10 TWELVE-MONTH AVERAGE FUND (-)DISCOUNT (-)DISCOUNT - -------------------------------------------------------------------------------- NUM -12.51% -15.19% NMP -13.19% -15.76% NZW -12.34% -14.19% NUO -3.53% -7.59% NXI -4.42% -8.70% NBJ -6.04% -9.14% NVJ -0.85% -7.64% - -------------------------------------------------------------------------------- Nuveen Investments 11 NUM Performance OVERVIEW | Nuveen Michigan Quality Income Municipal Fund, Inc. | as of February 28, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 12.94 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.79 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -12.51% - -------------------------------------------------------------------------------- Market Yield 6.12% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.88% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $170,983 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.89 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.38 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 29.40% 14.83% - -------------------------------------------------------------------------------- 5-Year 0.27% 3.98% - -------------------------------------------------------------------------------- 10-Year 6.10% 6.60% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 37.7% - -------------------------------------------------------------------------------- U.S. Guaranteed 17.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 12.2% - -------------------------------------------------------------------------------- Utilities 10.1% - -------------------------------------------------------------------------------- Health Care 9.2% - -------------------------------------------------------------------------------- Water and Sewer 7.3% - -------------------------------------------------------------------------------- Other 6.4% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 40% AA 28% A 25% BBB 5% BB or Lower 1% N/R 1% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Mar 0.0555 Apr 0.0555 May 0.0585 Jun 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0620 Oct 0.0620 Nov 0.0620 Dec 0.0660 Jan 0.0660 Feb 0.0660 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 3/01/09 10.41 10.06 9.86 10.27 10.35 10.69 10.65 10.78 11.01 11.27 11.52 11.51 11.65 11.68 11.68 11.52 11.50 11.45 11.62 11.62 11.72 12.09 12.41 12.34 12.45 12.48 12.63 12.92 12.95 13.01 13.07 12.95 13.07 12.96 12.88 12.78 12.88 12.71 12.66 12.67 12.91 12.81 12.65 12.49 12.75 12.86 12.87 12.83 12.81 13.04 12.94 12.85 12.94 2/28/10 12.94 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 12 Nuveen Investments NMP Performance OVERVIEW | Nuveen Michigan Premium Income Municipal Fund, Inc. | as of February 28, 2010 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 26% AA 26% A 39% BBB 7% BB or Lower 2% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Mar 0.0530 Apr 0.0530 May 0.0565 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0610 Oct 0.0610 Nov 0.0610 Dec 0.0640 Jan 0.0640 Feb 0.0640 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 3/01/09 10.40 10.00 9.76 10.12 10.19 10.44 10.40 10.52 10.75 10.94 11.18 11.19 11.37 11.56 11.49 11.23 11.08 11.20 11.29 11.33 11.42 11.60 11.96 11.92 11.95 12.06 12.27 12.43 12.51 12.70 12.63 12.58 12.57 12.29 12.34 12.25 12.27 12.13 12.13 12.33 12.32 12.32 12.15 12.13 12.27 12.33 12.31 12.36 12.32 12.43 12.46 12.46 12.50 2/28/10 12.50 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 12.50 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.40 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -13.19% - -------------------------------------------------------------------------------- Market Yield 6.14% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.91% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $109,619 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.36 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.58 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 27.06% 14.22% - -------------------------------------------------------------------------------- 5-Year 0.89% 3.86% - -------------------------------------------------------------------------------- 10-Year 6.71% 6.59% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 38.9% - -------------------------------------------------------------------------------- Tax Obligation/Limited 14.0% - -------------------------------------------------------------------------------- Water and Sewer 11.9% - -------------------------------------------------------------------------------- Utilities 10.2% - -------------------------------------------------------------------------------- Health Care 8.9% - -------------------------------------------------------------------------------- U.S. Guaranteed 8.3% - -------------------------------------------------------------------------------- Other 7.8% - -------------------------------------------------------------------------------- Nuveen Investments 13 NZW Performance OVERVIEW | Nuveen Michigan Dividend Advantage Municipal Fund | as of February 28, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 12.43 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.18 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -12.34% - -------------------------------------------------------------------------------- Market Yield 6.18% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.97% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $29,127 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.66 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.48 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 22.58% 17.70% - -------------------------------------------------------------------------------- 5-Year 0.95% 3.82% - -------------------------------------------------------------------------------- Since Inception 3.54% 5.56% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 32.6% - -------------------------------------------------------------------------------- U.S. Guaranteed 14.1% - -------------------------------------------------------------------------------- Utilities 12.6% - -------------------------------------------------------------------------------- Tax Obligation/Limited 11.1% - -------------------------------------------------------------------------------- Health Care 9.8% - -------------------------------------------------------------------------------- Water and Sewer 9.7% - -------------------------------------------------------------------------------- Other 10.1% - -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 41% AA 22% A 26% BBB 5% BB or Lower 1% N/R 5% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Mar 0.0555 Apr 0.0555 May 0.0565 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0620 Oct 0.0620 Nov 0.0620 Dec 0.0640 Jan 0.0640 Feb 0.0640 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 3/01/09 10.45 10.21 10.00 10.16 10.15 10.36 10.38 10.76 11.09 11.18 11.66 11.61 11.45 11.30 11.47 10.97 11.08 11.00 11.26 11.20 11.30 11.50 12.19 12.25 11.94 12.21 12.06 12.35 12.44 12.64 12.67 12.49 12.61 12.36 12.35 12.25 12.32 12.04 12.10 12.22 12.29 12.27 12.07 12.05 12.17 12.25 12.18 12.21 12.36 12.48 12.28 12.23 12.43 2/28/10 12.43 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 14 Nuveen Investments NUO Performance OVERVIEW | Nuveen Ohio Quality Income Municipal Fund, Inc. | as of February 28, 2010 CREDIT QUALITY (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 30% AA 29% A 28% BBB 8% N/R 5% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Mar 0.0575 Apr 0.0575 May 0.0645 Jun 0.0645 Jul 0.0645 Aug 0.0645 Sep 0.0680 Oct 0.0680 Nov 0.0680 Dec 0.0740 Jan 0.0740 Feb 0.0740 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 3/01/09 13.01 12.03 12.01 12.16 12.46 12.74 13.13 12.99 13.10 13.43 13.50 13.82 13.87 13.95 13.71 13.76 13.71 13.71 13.69 13.65 13.70 13.73 13.90 13.85 14.02 14.48 14.47 14.87 15.04 14.93 14.99 15.30 14.92 14.35 14.65 14.52 14.63 14.34 14.40 14.63 14.96 15.02 15.45 15.70 16.00 16.03 15.78 15.62 15.65 15.77 15.84 15.45 15.58 2/28/10 15.58 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.58 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 16.15 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -3.53% - -------------------------------------------------------------------------------- Market Yield 5.70% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.39% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $157,439 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.92 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.14 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 27.57% 16.76% - -------------------------------------------------------------------------------- 5-Year 2.81% 4.58% - -------------------------------------------------------------------------------- 10-Year 5.87% 6.46% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 26.7% - -------------------------------------------------------------------------------- Health Care 15.2% - -------------------------------------------------------------------------------- U.S. Guaranteed 14.3% - -------------------------------------------------------------------------------- Tax Obligation/Limited 10.9% - -------------------------------------------------------------------------------- Education and Civic Organizations 10.2% - -------------------------------------------------------------------------------- Utilities 5.6% - -------------------------------------------------------------------------------- Consumer Staples 5.2% - -------------------------------------------------------------------------------- Other 11.9% - -------------------------------------------------------------------------------- Nuveen Investments 15 NXI Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund | as of February 28, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 14.48 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 15.15 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -4.42% - -------------------------------------------------------------------------------- Market Yield 5.80% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.54% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $64,290 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.12 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.79 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 26.70% 15.46% - -------------------------------------------------------------------------------- 5-Year 3.42% 4.84% - -------------------------------------------------------------------------------- Since Inception 5.38% 6.43% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- U.S. Guaranteed 23.4% - -------------------------------------------------------------------------------- Tax Obligation/General 17.3% - -------------------------------------------------------------------------------- Health Care 13.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 12.3% - -------------------------------------------------------------------------------- Utilities 6.9% - -------------------------------------------------------------------------------- Education and Civic Organizations 6.3% - -------------------------------------------------------------------------------- Housing/Multifamily 6.2% - -------------------------------------------------------------------------------- Other 14.5% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments) [PIE CHART] AAA/U.S. GUARANTEED 38% AA 23% A 21% BBB 11% N/R 7% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2) [BAR CHART] Mar 0.0570 Apr 0.0570 May 0.0620 Jun 0.0620 Jul 0.0620 Aug 0.0620 Sep 0.0640 Oct 0.0640 Nov 0.0640 Dec 0.0700 Jan 0.0700 Feb 0.0700 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 3/01/09 12.16 11.80 11.80 11.80 12.05 11.83 12.14 12.15 12.31 12.44 12.71 12.63 12.79 13.01 12.92 12.84 12.52 12.82 12.79 12.95 13.18 13.25 13.12 13.33 13.23 13.39 13.65 13.87 14.57 14.30 14.46 14.41 13.94 13.27 13.75 13.84 13.84 13.80 13.40 13.66 13.95 13.84 13.89 14.05 14.08 14.01 14.19 14.22 14.50 14.43 14.54 14.60 14.48 2/28/10 14.48 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders net ordinary income distributions in December 2009 of $0.0094 per share. 16 Nuveen Investments NBJ Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund 2 | as of February 28, 2010 CREDIT QUALITY (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 28% AA 21% A 25% BBB 15% N/R 11% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Mar 0.0545 Apr 0.0545 May 0.0580 Jun 0.0580 Jul 0.0580 Aug 0.0580 Sep 0.0630 Oct 0.0630 Nov 0.0630 Dec 0.0690 Jan 0.0690 Feb 0.0690 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 3/01/09 11.45 11.13 10.93 11.04 11.35 11.51 11.45 11.39 11.54 11.85 11.91 11.99 12.13 12.30 12.22 12.14 11.77 11.84 11.97 12.14 12.10 12.12 12.63 12.91 12.83 12.83 12.81 13.13 13.40 13.58 13.45 13.70 13.57 12.66 13.09 13.06 13.36 13.11 13.04 13.04 13.49 13.43 13.43 13.70 13.60 13.84 14.03 14.40 14.00 13.97 14.06 14.00 13.85 2/28/10 13.85 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 13.85 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.74 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -6.04% - -------------------------------------------------------------------------------- Market Yield 5.98% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.81% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $46,000 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.75 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.57 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 26.62% 18.91% - -------------------------------------------------------------------------------- 5-Year 2.77% 4.44% - -------------------------------------------------------------------------------- Since Inception 4.75% 5.95% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 29.9% - -------------------------------------------------------------------------------- Health Care 18.1% - -------------------------------------------------------------------------------- U.S. Guaranteed 11.4% - -------------------------------------------------------------------------------- Tax Obligation/Limited 10.1% - -------------------------------------------------------------------------------- Education and Civic 8.0% - -------------------------------------------------------------------------------- Organizations Industrials 7.5% - -------------------------------------------------------------------------------- Utilities 6.6% - -------------------------------------------------------------------------------- Other 8.4% - -------------------------------------------------------------------------------- Nuveen Investments 17 NVJ Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund 3 | as of February 28, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.20 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 15.33 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -0.85% - -------------------------------------------------------------------------------- Market Yield 5.76% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.48% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $33,062 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.73 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.90 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 34.62% 15.73% - -------------------------------------------------------------------------------- 5-Year 4.16% 4.95% - -------------------------------------------------------------------------------- Since Inception 5.89% 6.45% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- U.S. Guaranteed 25.1% - -------------------------------------------------------------------------------- Tax Obligation/General 23.4% - -------------------------------------------------------------------------------- Health Care 14.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 9.3% - -------------------------------------------------------------------------------- Utilities 5.3% - -------------------------------------------------------------------------------- Industrials 4.8% - -------------------------------------------------------------------------------- Consumer Staples 4.6% - -------------------------------------------------------------------------------- Other 13.4% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 45% AA 17% A 22% BBB 12% N/R 4% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Mar 0.0590 Apr 0.0590 May 0.0635 Jun 0.0635 Jul 0.0635 Aug 0.0635 Sep 0.0670 Oct 0.0670 Nov 0.0670 Dec 0.0730 Jan 0.0730 Feb 0.0730 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 3/01/09 11.92 11.50 11.95 12.50 12.33 12.16 12.25 12.39 12.95 12.86 12.89 12.94 12.94 13.40 13.27 13.30 13.63 13.72 13.40 13.38 13.37 13.44 13.36 13.68 13.60 13.84 13.69 14.00 14.20 14.12 14.20 14.36 14.30 13.55 13.62 13.50 13.63 13.60 13.80 13.95 14.30 14.36 14.48 14.15 14.73 14.70 15.00 15.05 15.10 14.95 15.14 15.15 15.20 2/28/10 15.20 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 18 Nuveen Investments NUM NMP NZW | Shareholder Meeting Report | | The annual meeting of shareholders was held in the offices of Nuveen Investments on November 30, 2009; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting for NMP, NZW, NUO, NXI, NBJ and NVJ was subsequently adjourned to January 12, 2010; the meeting for NUO and NBJ was additionally adjourned to March 23, 2010.
NUM NMP NZW - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For -- -- -- -- 993,808 425 Against -- -- -- -- 65,551 33 Abstain -- -- -- -- 43,319 3 Broker Non-Votes -- -- -- -- 306,574 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- 1,409,252 461 ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES. For -- -- -- -- 1,002,527 428 Against -- -- -- -- 58,650 33 Abstain -- -- -- -- 41,501 -- Broker Non-Votes -- -- -- -- 306,574 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- 1,409,252 461 ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 3,991,905 1,344 -- -- Against -- -- 352,972 221 -- -- Abstain -- -- 198,423 3 -- -- Broker Non-Votes -- -- 1,069,061 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 5,612,361 1,568 -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 3,958,211 1,344 -- -- Against -- -- 368,951 221 -- -- Abstain -- -- 216,138 3 -- -- Broker Non-Votes -- -- 1,069,061 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 5,612,361 1,568 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For -- -- 4,014,880 1,412 -- -- Against -- -- 317,423 150 -- -- Abstain -- -- 210,997 6 -- -- Broker Non-Votes -- -- 1,069,061 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 5,612,361 1,568 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- 4,000,871 1,344 -- -- Against -- -- 316,686 219 -- -- Abstain -- -- 225,743 5 -- -- Broker Non-Votes -- -- 1,069,061 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 5,612,361 1,568 -- -- ====================================================================================================================================
Nuveen Investments 19 NUM NMP NZW | Shareholder Meeting Report (continued)
NUM NMP NZW - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 9,896,861 1,522 5,337,324 1,168 -- -- Withhold 316,435 540 275,037 400 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,213,296 2,062 5,612,361 1,568 -- -- ==================================================================================================================================== Robert P. Bremner For 9,895,264 1,522 5,342,390 1,168 1,328,552 429 Withhold 318,032 540 269,971 400 80,700 32 - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,213,296 2,062 5,612,361 1,568 1,409,252 461 ==================================================================================================================================== Jack B. Evans For 9,889,153 1,522 5,322,367 1,168 1,334,532 429 Withhold 324,143 540 289,994 400 74,720 32 - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,213,296 2,062 5,612,361 1,568 1,409,252 461 ==================================================================================================================================== William C. Hunter For -- 1,522 -- 1,168 -- 429 Withhold -- 540 -- 400 -- 32 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,062 -- 1,568 -- 461 ==================================================================================================================================== David J. Kundert For 9,890,901 1,522 5,362,143 1,168 -- -- Withhold 322,395 540 250,218 400 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,213,296 2,062 5,612,361 1,568 -- -- ==================================================================================================================================== William J. Schneider For -- 1,522 -- 1,168 -- 429 Withhold -- 540 -- 400 -- 32 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,062 -- 1,568 -- 461 ==================================================================================================================================== Judith M. Stockdale For 9,892,135 1,522 5,367,550 1,168 -- -- Withhold 321,161 540 244,811 400 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,213,296 2,062 5,612,361 1,568 -- -- ==================================================================================================================================== Carole E. Stone For 9,897,216 1,522 5,343,770 1,168 -- -- Withhold 316,080 540 268,591 400 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,213,296 2,062 5,612,361 1,568 -- -- ==================================================================================================================================== Terence J. Toth For 9,892,880 1,522 5,366,887 1,168 -- -- Withhold 320,416 540 245,474 400 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,213,296 2,062 5,612,361 1,568 -- -- ====================================================================================================================================
20 Nuveen Investments NUO | NXI | NBJ |
NUO NXI NBJ - --------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class - --------------------------------------------------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 4,920,992 1,656 1,974,752 640 1,521,947 713 Against 315,067 330 83,424 26 71,278 33 Abstain 231,469 9 166,631 -- 103,065 -- Broker Non-Votes 1,414,225 376 665,003 -- 414,866 -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,881,753 2,371 2,889,810 666 2,111,156 746 ================================================================================================================================= TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES. For 4,938,849 1,661 1,983,198 643 1,523,292 729 Against 283,367 325 77,801 23 68,188 17 Abstain 245,311 9 163,808 -- 104,810 -- Broker Non-Votes 1,414,226 376 665,003 -- 414,866 -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,881,753 2,371 2,889,810 666 2,111,156 746 ================================================================================================================================= TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 4,887,959 1,656 -- -- -- -- Against 323,577 329 -- -- -- -- Abstain 255,992 10 -- -- -- -- Broker Non-Votes 1,414,225 376 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,881,753 2,371 -- -- -- -- ================================================================================================================================= TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 4,882,001 1,656 -- -- -- -- Against 320,137 329 -- -- -- -- Abstain 265,389 10 -- -- -- -- Broker Non-Votes 1,414,226 376 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,881,753 2,371 -- -- -- -- ================================================================================================================================= TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For 4,861,914 1,652 -- -- -- -- Against 339,849 333 -- -- -- -- Abstain 265,764 10 -- -- -- -- Broker Non-Votes 1,414,226 376 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,881,753 2,371 -- -- -- -- ================================================================================================================================= TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For 4,887,938 1,655 -- -- -- -- Against 306,388 331 -- -- -- -- Abstain 273,201 9 -- -- -- -- Broker Non-Votes 1,414,226 376 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,881,753 2,371 -- -- -- -- =================================================================================================================================
Nuveen Investments 21 NUO | Shareholder Meeting Report (continued) NXI | NBJ |
NUO NXI NBJ - --------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class - --------------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 6,305,259 998 -- -- -- -- Withhold 564,042 667 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,869,301 1,665 -- -- -- -- ================================================================================================================================= Robert P. Bremner For 6,395,821 998 2,706,459 432 1,978,121 330 Withhold 473,480 667 183,351 234 125,741 122 - --------------------------------------------------------------------------------------------------------------------------------- Total 6,869,301 1,665 2,889,810 666 2,103,862 452 ================================================================================================================================= Jack B. Evans For 6,401,810 998 2,705,459 432 1,967,971 330 Withhold 467,491 667 184,351 234 135,891 122 - --------------------------------------------------------------------------------------------------------------------------------- Total 6,869,301 1,665 2,889,810 666 2,103,862 452 ================================================================================================================================= William C. Hunter For -- 998 -- 432 -- 330 Withhold -- 667 -- 234 -- 122 - --------------------------------------------------------------------------------------------------------------------------------- Total -- 1,665 -- 666 -- 452 ================================================================================================================================= David J. Kundert For 6,396,301 998 -- -- -- -- Withhold 473,000 667 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,869,301 1,665 -- -- -- -- ================================================================================================================================= William J. Schneider For -- 998 -- 432 -- 330 Withhold -- 667 -- 234 -- 122 - --------------------------------------------------------------------------------------------------------------------------------- Total -- 1,665 -- 666 -- 452 ================================================================================================================================= Judith M. Stockdale For 6,404,428 998 -- -- -- -- Withhold 464,873 667 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,869,301 1,665 -- -- -- -- ================================================================================================================================= Carole E. Stone For 6,395,173 998 -- -- -- -- Withhold 474,128 667 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,869,301 1,665 -- -- -- -- ================================================================================================================================= Terence J. Toth For 6,404,496 998 -- -- -- -- Withhold 464,805 667 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Total 6,869,301 1,665 -- -- -- -- =================================================================================================================================
22 Nuveen Investments NVJ |
NVJ - ---------------------------------------------------------------------------------------- Common and Preferred Preferred shares voting shares voting together together as a class as a class - ---------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 1,076,486 408 Against 118,430 19 Abstain 50,359 -- Broker Non-Votes 357,887 -- - ---------------------------------------------------------------------------------------- Total 1,603,162 427 ======================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES. For 1,082,830 408 Against 105,152 19 Abstain 57,293 -- Broker Non-Votes 357,887 -- - ---------------------------------------------------------------------------------------- Total 1,603,162 427 ======================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ---------------------------------------------------------------------------------------- Total -- -- ======================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ---------------------------------------------------------------------------------------- Total -- -- ======================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ---------------------------------------------------------------------------------------- Total -- -- ======================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICIES PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ---------------------------------------------------------------------------------------- Total -- -- ========================================================================================
Nuveen Investments 23 NVJ | Shareholder Meeting Report (continued)
NVJ - ---------------------------------------------------------------------------------------- Common and Preferred Preferred shares voting shares voting together together as a classs as a class - ---------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For -- -- Withhold -- -- - ---------------------------------------------------------------------------------------- Total -- -- ======================================================================================== Robert P. Bremner For 1,476,330 297 Withhold 126,832 130 - ---------------------------------------------------------------------------------------- Total 1,603,162 427 ======================================================================================== Jack B. Evans For 1,476,030 297 Withhold 127,132 130 - ---------------------------------------------------------------------------------------- Total 1,603,162 427 ======================================================================================== William C. Hunter For -- 297 Withhold -- 130 - ---------------------------------------------------------------------------------------- Total -- 427 ======================================================================================== David J. Kundert For -- -- Withhold -- -- - ---------------------------------------------------------------------------------------- Total -- -- ======================================================================================== William J. Schneider For -- 297 Withhold -- 130 - ---------------------------------------------------------------------------------------- Total -- 427 ======================================================================================== Judith M. Stockdale For -- -- Withhold -- -- - ---------------------------------------------------------------------------------------- Total -- -- ======================================================================================== Carole E. Stone For -- -- Withhold -- -- - ---------------------------------------------------------------------------------------- Total -- -- ======================================================================================== Terence J. Toth For -- -- Withhold -- -- - ---------------------------------------------------------------------------------------- Total -- -- ========================================================================================
24 Nuveen Investments Report of Independent Registered Public Accounting Firm THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. NUVEEN MICHIGAN DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 3 We have audited the accompanying statement of assets and liabilities, including the portfolios of investments, of Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Michigan Dividend Advantage Municipal Fund, Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend Advantage Municipal Fund, Nuveen Ohio Dividend Advantage Municipal Fund 2, and Nuveen Ohio Dividend Advantage Municipal Fund 3 (the Funds) as of February 28, 2010, and the related statements of operations, changes in net assets, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of February 28, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Michigan Dividend Advantage Municipal Fund, Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend Advantage Municipal Fund, Nuveen Ohio Dividend Advantage Municipal Fund 2, and Nuveen Ohio Dividend Advantage Municipal Fund 3 at February 28, 2010, and the results of their operations, the changes in their net assets, and the financial highlights for each of the periods indicated therein in conformity with US generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois April 23, 2010 Nuveen Investments 25 NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 2.1% (1.4% OF TOTAL INVESTMENTS) $ 4,000 Michigan Tobacco Settlement Finance Authority, Tobacco Settlement 6/18 at 100.00 Baa3 $ 3,674,480 Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 3.1% (2.1% OF TOTAL INVESTMENTS) 1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 N/R 1,688,926 Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.500%, 9/01/17 - AMBAC Insured 1,500 Michigan Higher Education Student Loan Authority, Revenue Bonds, No Opt. Call AA 1,487,580 Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured (Alternative Minimum Tax) 1,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, 9/12 at 100.00 AA 1,006,300 Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax) 1,115 Michigan Technological University, General Revenue Bonds, Series 10/13 at 100.00 A1 1,135,873 2004A, 5.000%, 10/01/22 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,300 Total Education and Civic Organizations 5,318,679 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 13.9% (9.2% OF TOTAL INVESTMENTS) 2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/10 at 100.00 BB- 2,029,887 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 4,100 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 4,019,476 Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39 4,075 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 4,019,580 Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 2,500 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 2,608,750 Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%, 6/01/39 - AGC Insured 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/10 at 101.00 BBB 1,004,670 Refunding Bonds, Memorial Healthcare Center Obligated Group, Series 1999, 5.875%, 11/15/21 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: 1,500 5.000%, 5/15/26 5/15 at 100.00 Baa3 1,313,205 55 5.000%, 5/15/34 5/15 at 100.00 Baa3 43,209 1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 1,357,552 Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 11/11 at 100.00 A1 5,154,379 Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - NPFG Insured 2,195 University of Michigan, Medical Service Plan Revenue Bonds, No Opt. Call AA+ 2,185,649 Series 1991, 0.000%, 12/01/10 - ----------------------------------------------------------------------------------------------------------------------------------- 24,775 Total Health Care 23,736,357 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 2.7% (1.8% OF TOTAL INVESTMENTS) 2,675 Michigan Housing Development Authority, FNMA Limited Obligation 12/20 at 101.00 AAA 2,809,285 Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative Minimum Tax) 215 Michigan Housing Development Authority, Rental Housing Revenue 4/10 at 100.50 AA 215,350 Bonds, Series 1999A, 5.300%, 10/01/37 - NPFG Insured (Alternative Minimum Tax) 1,300 Michigan Housing Development Authority, Rental Housing Revenue 7/15 at 100.00 AAA 1,324,544 Bonds, Series 2006D, 5.125%, 4/01/31 - AGM Insured (Alternative Minimum Tax) 200 Michigan Housing Development Authority, Rental Housing Revenue 10/18 at 100.00 AA 207,694 Bonds, Series 2009A, 5.700%, 10/01/39 - ----------------------------------------------------------------------------------------------------------------------------------- 4,390 Total Housing/Multifamily 4,556,873 - ----------------------------------------------------------------------------------------------------------------------------------- MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,250 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB 1,217,038 Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 - -----------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 57.0% (37.7% OF TOTAL INVESTMENTS) $ 1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AA- $ 1,030,670 Michigan, General Obligation Refunding Bonds, Series 2002, 5.000%, 5/01/25 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 2001: 2,500 5.000%, 5/01/21 5/11 at 100.00 AA- 2,607,875 3,200 5.000%, 5/01/29 5/11 at 100.00 AA- 3,215,808 1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 1,044,630 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 1,320 Bridgeport Spaulding Community School District, Saginaw County, 5/12 at 100.00 AA- 1,439,592 Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/16 2,110 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/13 at 100.00 AA- 2,297,537 Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/20 1,000 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/15 at 100.00 AA- 1,038,590 Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 - NPFG Insured 2,319 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/17 at 100.00 AA- 2,233,730 Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 8.044%, 5/01/32 - NPFG Insured (IF) 1,215 Charter County of Wayne, Michigan, General Obligation Limited Tax 12/19 at 100.00 A 1,275,045 Building Improvement Bonds, Series 2009, 6.750%, 11/01/39 2,000 Detroit City School District, Wayne County, Michigan, General No Opt. Call AA- 2,242,140 Obligation Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC Insured 700 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax 4/10 at 100.00 A 700,847 General Obligation Building Authority Stadium Bonds, Series 1997, 5.500%, 2/01/17 - FGIC Insured 285 East Grand Rapids Public Schools, County of Kent, State of 5/11 at 100.00 AA 286,747 Michigan, General Obligation Bonds, Series 2001, Refunding, 5.125%, 5/01/29 Grand Rapids and Kent County Joint Building Authority, Michigan, Limited Tax General Obligation Bonds, Devos Place Project, Series 2001: 8,900 0.000%, 12/01/25 No Opt. Call AAA 4,352,100 3,000 0.000%, 12/01/26 No Opt. Call AAA 1,379,130 5,305 0.000%, 12/01/29 No Opt. Call AAA 2,037,863 1,700 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AA 1,810,517 5.000%, 9/01/27 - NPFG Insured 2,000 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA- 2,011,560 Michigan, General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 1,488,984 Obligation Bonds, Series 2003, 5.000%, 5/01/21 1,065 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 1,123,905 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - AGM Insured 1,935 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 2,055,938 Series 2006, 5.000%, 5/01/25 - AGM Insured 200 L'Anse Creuse Public Schools, Macomb County, Michigan, General 5/15 at 100.00 AAA 203,084 Obligation Bonds, Series 2005, 5.000%, 5/01/35 - AGM Insured 2,505 Lincoln Consolidated School District, Washtenaw and Wayne 5/16 at 100.00 AA- 2,618,076 Counties, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 - NPFG Insured 2,810 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AA- 2,955,699 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - NPFG Insured 865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 873,771 General Obligation Bonds, Series 2007, 5.000%, 5/01/37 - AGM Insured 1,500 Marshall Public Schools, Calhoun County, Michigan, General 5/17 at 100.00 AA- 1,534,395 Obligation Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA GTY Insured 2,100 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 2,277,975 Detroit City School District, Series 2005, 5.000%, 6/01/18 - AGM Insured 4,000 Michigan, General Obligation Bonds, Environmental Protection 5/13 at 100.00 AA- 4,249,640 Program, Series 2003A, 5.250%, 5/01/20 100 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- 110,052 Program, Series 2009A, 5.500%, 11/01/25
Nuveen Investments 27 NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 2,500 Montrose School District, Michigan, School Building and Site No Opt. Call A1 $ 2,990,775 Bonds, Series 1997, 6.000%, 5/01/22 - NPFG Insured 1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AA 1,127,027 Wastewater Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 1,000 Oakland County Building Authority, Michigan, General Obligation 9/11 at 100.00 AAA 1,029,760 Bonds, Series 2002, 5.125%, 9/01/22 3,950 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 4,052,740 General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - AGM Insured 1,595 Oakridge Public Schools, Muskegon County, Michigan, General 5/15 at 100.00 AA- 1,706,921 Obligation Bonds, Series 2005, 5.000%, 5/01/22 - NPFG Insured Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007: 4,330 5.000%, 8/01/26 - NPFG Insured (UB) 8/17 at 100.00 Aa1 4,634,572 1,120 5.000%, 8/01/30 - NPFG Insured (UB) 8/17 at 100.00 Aa1 1,168,653 1,245 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 1,153,306 Obligation Bonds, Tender Option Bond Trust 2836, 11.153%, 5/01/36 - AGM Insured (IF) 4,340 Plymouth-Canton Community School District, Wayne and Washtenaw 5/14 at 100.00 AA- 4,461,520 Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/26 - FGIC Insured 1,000 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 1,016,040 Obligation Bonds, Series 2008, 5.000%, 5/01/33 - AGM Insured 200 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 206,106 Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 - AGC Insured 3,175 South Redford School District, Wayne County, Michigan, General 5/15 at 100.00 AA- 3,231,293 Obligation Bonds, School Building and Site, Series 2005, 5.000%, 5/01/30 - NPFG Insured 1,655 Southfield Library Building Authority, Michigan, General 5/15 at 100.00 AA+ 1,739,554 Obligation Bonds, Series 2005, 5.000%, 5/01/26 - NPFG Insured 2,200 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 2,231,658 General Obligation Bonds, Series 2007, 5.000%, 5/01/32 - NPFG Insured 2,000 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 2,028,020 Bonds, Series 2008, 5.000%, 5/01/34 - AGM Insured 2,275 Troy City School District, Oakland County, Michigan, General 5/16 at 100.00 AA 2,505,162 Obligation Bonds, Series 2006, 5.000%, 5/01/19 - NPFG Insured Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building and Site, Series 2008: 310 5.000%, 5/01/31 - AGM Insured 5/18 at 100.00 AAA 318,355 575 5.000%, 5/01/38 - AGM Insured 5/18 at 100.00 AAA 582,665 5,000 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 A 4,998,750 Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/21 - NPFG Insured 3,350 Wayne Westland Community Schools, Michigan, General Obligation 11/14 at 100.00 AAA 3,790,090 Bonds, Series 2004, 5.000%, 5/01/17 - AGM Insured 1,725 Williamston Community School District, Michigan, Unlimited Tax No Opt. Call A1 2,004,536 General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 102,679 Total Tax Obligation/General 97,473,403 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 18.4% (12.2% OF TOTAL INVESTMENTS) 1,000 Grand Rapids Building Authority, Kent County, Michigan, Limited No Opt. Call AA 1,128,480 Tax General Obligation Bonds, Series 1998, 5.000%, 4/01/16 1,345 Grand Rapids Building Authority, Kent County, Michigan, Limited 10/11 at 100.00 AA 1,390,273 Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - NPFG Insured Michigan Building Authority, Revenue Bonds, Series 2006IA: 7,000 0.000%, 10/15/27 - FGIC Insured 10/16 at 58.27 AAA 2,710,820 6,200 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA 2,236,836 4,440 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 A+ 4,362,744 30 Michigan Municipal Bond Authority, Local Government Loan Program 5/10 at 100.00 Aa3 30,153 Revenue Sharing Bonds, Series 1992D, 6.650%, 5/01/12
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED (continued) $ 2,135 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ $ 2,135,897 Program, Series 2005II, 5.000%, 10/15/33 - AMBAC Insured Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,100 5.000%, 10/15/22 - NPFG Insured 10/13 at 100.00 A+ 5,274,062 5,000 5.000%, 10/15/23 - NPFG Insured 10/13 at 100.00 A+ 5,129,249 3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,783,850 5.250%, 10/01/21 - AGM Insured 17,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AA- 2,100,690 Bonds, Series 2007A, 0.000%, 8/01/44 - NPFG Insured 250 Virgin Islands Public Finance Authority Revenue and Refunding 10/19 at 100.00 BBB 225,430 Bonds (Virgin Islands Matching Fund Loan Notes) Series 2009A-1 (Senior Lien) Series 2009A-2 (Senior Lien), 5.000%, 10/01/39 1,000 Virgin Islands Public Finance Authority, Revenue Bonds, 10/19 at 100.00 BBB 1,002,220 Refunding Series 2009B, 5.000%, 10/01/25 - ----------------------------------------------------------------------------------------------------------------------------------- 54,000 Total Tax Obligation/Limited 31,510,704 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 A 1,008,160 Bonds, Series 2002, 5.250%, 7/01/21 - NPFG Insured (Alternative Minimum Tax) 500 Wayne County Airport Authority, Michigan, Revenue Refunding No Opt. Call A 531,690 Bonds, Detroit Metropolitan Airport, Series 2007, 5.000%, 12/01/12 - FGIC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 1,500 Total Transportation 1,539,850 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 25.9% (17.1% OF TOTAL INVESTMENTS) (4) 1,200 Birmingham, Michigan, General Obligation Bonds, Series 2002, 10/12 at 100.50 AAA 1,336,980 5.000%, 10/01/20 (Pre-refunded 10/01/12) 935 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 1,056,316 Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) - AGM Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 3,400 5.750%, 7/01/28 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 A+ (4) 3,646,908 770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 813,189 730 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 776,443 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A: 4,025 5.000%, 7/01/24 (Pre-refunded 7/01/13) - NPFG Insured 7/13 at 100.00 A+ (4) 4,538,711 1,500 5.000%, 7/01/25 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 A+ (4) 1,691,445 1,085 Freeland Community School District, Saginaw, Midland and Bay 5/10 at 100.00 AA- (4) 1,095,036 Counties, Michigan, General Obligation Bonds, Series 2000, 5.250%, 5/01/19 (Pre-refunded 5/01/10) 2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AA- (4) 2,188,600 General Obligation Bonds, Series 2002, 5.000%, 5/01/24 (Pre-refunded 5/01/12) 1,790 Lansing Building Authority, Michigan, General Obligation Bonds, 6/13 at 100.00 AA+ (4) 2,024,580 Series 2003A, 5.000%, 6/01/26 (Pre-refunded 6/01/13) - MBIA Insured 3,880 Mayville Community Schools, Tuscola County, Michigan, General 11/14 at 100.00 AA- (4) 4,530,560 Obligation Bonds, School Building and Site Project, Series 2004, 5.000%, 5/01/34 (Pre-refunded 11/01/14) - FGIC Insured 250 Michigan South Central Power Agency, Power Supply System No Opt. Call A3 (4) 265,040 Revenue Bonds, Series 2000, 6.000%, 5/01/12 (ETM) 1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 (4) 1,701,105 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) 3,460 Michigan State Hospital Finance Authority, Hospital Revenue 5/10 at 100.00 Aaa 3,489,860 Refunding Bonds, St. John's Health System, Series 1998A, 5.000%, 5/15/28 - AMBAC Insured (ETM) Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 1,025 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 1,198,317 500 5.000%, 5/15/37 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 584,545 1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 5.000%, 11/11 at 100.00 AAA 1,075,300 11/01/25 (Pre-refunded 11/01/11) - AGM Insured 2,000 Michigan, Certificates of Participation, Series 2000, 5.500%, 6/10 at 100.00 A2 (4) 2,027,860 6/01/27 (Pre-refunded 6/01/10) - AMBAC Insured
Nuveen Investments 29 NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED (4) (continued) $ 700 Muskegon Heights, Muskegon County, Michigan, Water Supply 11/10 at 100.00 N/R (4) $ 726,047 System Revenue Bonds, Series 2000A, 5.625%, 11/01/30 (Pre-refunded 11/01/10) - MBIA Insured 1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB (4) 1,158,896 Revenue Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded 7/01/10) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 108,359 915 6.000%, 8/01/26 (ETM) No Opt. Call AAA 1,166,451 4,100 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 Aaa 4,952,636 Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) 1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AA- (4) 1,009,980 Counties, Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC Insured 1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,135,638 Counties, Michigan, General Obligation Bonds, Series 2001, 5.375%, 5/01/19 (Pre-refunded 11/01/11) - AGM Insured - ----------------------------------------------------------------------------------------------------------------------------------- 40,025 Total U.S. Guaranteed 44,298,802 - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 15.3% (10.1% OF TOTAL INVESTMENTS) Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds,Series 2008A: 215 5.000%, 7/01/28 7/18 at 100.00 AA- 225,759 5,000 5.000%, 7/01/32 7/18 at 100.00 AA- 5,137,049 3,000 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1/12 at 100.00 A2 3,042,990 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 3,445,010 Revenue Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 3/10 at 102.00 A 1,000,710 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) 4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 4,017,800 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 2,050 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Baa1 2,107,564 Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 3,630 Michigan Strategic Fund, Limited Obligation Revenue Refunding No Opt. Call A2 4,355,274 Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 - AMBAC Insured 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 Baa1 2,842,440 Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 25,120 Total Utilities 26,174,596 - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 11.1% (7.3% OF TOTAL INVESTMENTS) 5,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 5,511,493 Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - AGM Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call A 1,515,240 Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 565 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 587,357 Bonds, Series 2003A, 5.000%, 7/01/17 - AGM Insured 1,500 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 A+ 1,510,470 Bonds, Series 2003A, 5.000%, 7/01/25 - NPFG Insured 675 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 692,577 Series 2008, 5.000%, 1/01/38 2,030 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA 2,102,979 Series 2009, 5.100%, 1/01/39 - AGC Insured
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER (continued) $ 4,210 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/14 at 100.00 AAA $ 4,684,426 Revenue Bonds, Series 2004, 5.000%, 10/01/19 1,150 Michigan Municipal Bond Authority, Drinking Water Revolving 10/14 at 100.00 AAA 1,218,368 Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23 1,000 Michigan Municipal Bond Authority, Water Revolving Fund Revenue 10/17 at 100.00 AAA 1,087,100 Bonds, Series 2007, 5.000%, 10/01/24 - ----------------------------------------------------------------------------------------------------------------------------------- 18,130 Total Water and Sewer 18,910,010 - ----------------------------------------------------------------------------------------------------------------------------------- $ 281,169 Total Investments (cost $248,315,094) - 151.1% 258,410,792 =============---------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.1)% (3,630,000) ------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 3,527,698 ------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.1)% (5) (87,325,000) ------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 170,983,490 ===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.8%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 31 NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS) $ 2,625 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 2,411,378 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 1.8% (1.2% OF TOTAL INVESTMENTS) 2,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, 9/12 at 100.00 AA 2,012,600 Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 13.2% (8.9% OF TOTAL INVESTMENTS) 2,725 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 2,671,481 Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39 3,050 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 3,008,520 Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 1,350 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 1,408,725 Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%, 6/01/39 - AGC Insured Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: 1,005 5.000%, 5/15/26 5/15 at 100.00 Baa3 879,847 200 5.000%, 5/15/34 5/15 at 100.00 Baa3 157,124 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A: 2,000 6.250%, 8/15/13 8/10 at 100.00 BB- 2,000,200 500 6.500%, 8/15/18 8/10 at 100.00 BB- 494,235 250 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 295,120 Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 3,500 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 8/19 at 100.00 A1 3,527,370 and Refunding Bonds, William Beaumont Hospital Obligated Group, Series 2009W, 6.000%, 8/01/39 - ----------------------------------------------------------------------------------------------------------------------------------- 14,580 Total Health Care 14,442,622 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 6.5% (4.4% OF TOTAL INVESTMENTS) 875 Michigan Housing Development Authority, GNMA Collateralized 4/12 at 102.00 Aaa 889,875 Limited Obligation Multifamily Housing Revenue Bonds, Burkshire Pointe Apartments, Series 2002A, 5.400%, 10/20/32 (Alternative Minimum Tax) 1,380 Michigan Housing Development Authority, Limited Obligation 4/10 at 100.00 AAA 1,381,780 Revenue Bonds, Breton Village Green Project, Series 1993, 5.625%, 10/15/18 - AGM Insured 2,070 Michigan Housing Development Authority, Limited Obligation 4/10 at 100.00 AAA 2,073,685 Revenue Bonds, Walled Lake Villa Project, Series 1993, 6.000%, 4/15/18 - AGM Insured 800 Michigan Housing Development Authority, Rental Housing Revenue 7/15 at 100.00 AAA 815,104 Bonds, Series 2006D, 5.125%, 4/01/31 - AGM Insured (Alternative Minimum Tax) 25 Michigan Housing Development Authority, Rental Housing Revenue 10/18 at 100.00 AA 25,962 Bonds, Series 2009A, 5.700%, 10/01/39 Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section 8 Assisted Multifamily Housing Revenue Refunding Bonds, Clinton Place Project, Series 1992A: 425 6.600%, 6/01/13 6/10 at 100.00 AA+ 426,411 1,500 6.600%, 6/01/22 6/10 at 100.00 AA+ 1,502,460 - ----------------------------------------------------------------------------------------------------------------------------------- 7,075 Total Housing/Multifamily 7,115,277 - ----------------------------------------------------------------------------------------------------------------------------------- MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,050 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB 1,022,312 Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 57.8% (38.9% OF TOTAL INVESTMENTS) 1,475 Anchor Bay School District, Macomb and St. Clair Counties, 11/13 at 100.00 AA- 1,568,751 Michigan, General Obligation Bonds, Series 2003, 5.000%, 5/01/21 2,500 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AA- 2,607,875 Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/21
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ $ 1,044,630 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 100 Battle Creek School District, Calhoun County, Michigan, General 5/17 at 100.00 AAA 101,014 Obligation Bonds, Series 2007, 5.000%, 5/01/37 - AGM Insured 2,250 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/15 at 100.00 AA- 2,327,603 Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/26 - NPFG Insured 1,501 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/17 at 100.00 AA- 1,445,808 Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 8.044%, 5/01/32 - NPFG Insured (IF) 1,725 Charter County of Wayne, Michigan, General Obligation Limited 12/19 at 100.00 A 1,810,250 Tax Building Improvement Bonds, Series 2009, 6.750%, 11/01/39 Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2002A: 1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AA- 2,027,409 750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AA- 844,703 2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AA 2,520,050 Obligation Bonds, Series 2003B, 5.000%, 5/01/23 - FGIC Insured Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General Obligation Building Authority Stadium Bonds, Series 1997: 770 5.500%, 2/01/17 - FGIC Insured 4/10 at 100.00 A 770,932 6,990 5.250%, 2/01/27 - FGIC Insured 8/10 at 100.00 A 6,992,515 860 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AA 931,406 5.000%, 9/01/24 - NPFG Insured 1,500 Hartland Consolidated School District, Livingston County, 5/11 at 100.00 AA- 1,508,670 Michigan, General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,650 Holly Area School District, Oakland County, Michigan, General 5/16 at 100.00 AA- 1,681,812 Obligation Bonds, Series 2006, 5.125%, 5/01/32 - NPFG Insured 2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 2,125,900 Obligation Bonds, Series 2003, 5.000%, 5/01/22 1,250 Kalamazoo Public Schools, Michigan, General Obligation Bonds, 5/16 at 100.00 AAA 1,328,125 Series 2006, 5.000%, 5/01/25 - AGM Insured 500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA- 531,530 Obligation Bonds, Series 2004, 5.000%, 5/01/22 1,000 Livonia Public Schools, Wayne County, Michigan, General 5/14 at 100.00 AA- 1,051,850 Obligation Bonds, Series 2004A, 5.000%, 5/01/21 - NPFG Insured 865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 873,771 General Obligation Bonds, Series 2007, 5.000%, 5/01/37 - AGM Insured 425 Marshall Public Schools, Calhoun County, Michigan, General 5/17 at 100.00 AA- 434,745 Obligation Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA GTY Insured 1,000 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 1,084,750 Detroit City School District, Series 2005, 5.000%, 6/01/18 - AGM Insured Michigan, General Obligation Bonds, Environmental Protection Program, Series 2003A: 1,000 5.250%, 5/01/20 5/13 at 100.00 AA- 1,062,410 2,000 5.250%, 5/01/21 5/13 at 100.00 AA- 2,114,380 800 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- 880,416 Program, Series 2009A, 5.500%, 11/01/25 2,450 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 2,513,725 General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - AGM Insured 3,500 Ottawa County, Michigan, Water Supply System, General Obligation 8/17 at 100.00 Aa1 3,652,040 Bonds, Series 2007, 5.000%, 8/01/30 - NPFG Insured (UB) 1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, 5/14 at 100.00 AAA 1,148,224 Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - AGM Insured 805 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 745,712 Obligation Bonds, Tender Option Bond Trust 2836, 11.153%, 5/01/36 - AGM Insured (IF) 1,000 Rockford Public Schools, Kent County, Michigan, General 5/15 at 100.00 AAA 1,035,430 Obligation Bonds, Series 2005, 5.000%, 5/01/27 - AGM Insured
Nuveen Investments 33 NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 1,000 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA $ 1,016,040 Obligation Bonds, Series 2008, 5.000%, 5/01/33 - AGM Insured 125 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 128,816 Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 - AGC Insured 1,100 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 1,115,829 General Obligation Bonds, Series 2007, 5.000%, 5/01/32 - NPFG Insured 1,500 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 1,521,015 Bonds, Series 2008, 5.000%, 5/01/34 - AGM Insured Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building and Site, Series 2008: 800 5.000%, 5/01/31 - AGM Insured 5/18 at 100.00 AAA 821,560 1,350 5.000%, 5/01/38 - AGM Insured 5/18 at 100.00 AAA 1,367,996 2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AA- 2,960,067 Counties, Michigan, General Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 Wayne County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A: 1,500 5.500%, 12/01/18 - NPFG Insured 12/11 at 101.00 A 1,536,075 4,435 5.000%, 12/01/30 - NPFG Insured 12/11 at 101.00 A 4,079,757 - ----------------------------------------------------------------------------------------------------------------------------------- 61,721 Total Tax Obligation/General 63,313,591 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 20.8% (14.0% OF TOTAL INVESTMENTS) 2,880 Michigan Building Authority, Revenue Bonds, Series 2006IA, 10/16 at 100.00 A+ 2,829,888 5.000%, 10/15/36 - FGIC Insured Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I: 2,420 5.500%, 10/15/19 10/11 at 100.00 A+ 2,547,486 6,205 5.000%, 10/15/24 10/11 at 100.00 A+ 6,306,947 1,600 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ 1,617,120 Program, Series 2005II, 5.000%, 10/15/30 - AMBAC Insured Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,000 5.000%, 10/15/22 - NPFG Insured 10/13 at 100.00 A+ 5,170,649 2,480 5.000%, 10/15/23 - NPFG Insured 10/13 at 100.00 A+ 2,544,108 1,500 Michigan, Comprehensive Transportation Revenue Refunding Bonds, 11/11 at 100.00 AAA 1,594,680 Series 2001A, 5.000%, 11/01/19 - AGM Insured 250 Virgin Islands Public Finance Authority Revenue and Refunding 10/19 at 100.00 BBB 225,430 Bonds (Virgin Islands Matching Fund Loan Notes) Series 2009A-1 (Senior Lien) Series 2009A-2 (Senior Lien), 5.000%, 10/01/39 - ----------------------------------------------------------------------------------------------------------------------------------- 22,335 Total Tax Obligation/Limited 22,836,308 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 0.2% (0.1% OF TOTAL INVESTMENTS) 230 Kent County, Michigan, Airport Revenue Bonds, Gerald R. Ford 1/17 at 100.00 AAA 236,562 International Airport, Series 2007, 5.000%, 1/01/32 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 12.4% (8.3% OF TOTAL INVESTMENTS) (4) 915 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 A (4) 1,068,949 Bonds, Series 2005A, 5.000%, 7/01/30 (Pre-refunded 7/01/15) - MBIA Insured 1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 A+ (4) 1,462,685 Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 500 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA- (4) 577,880 Obligation Bonds, Series 2004, 5.000%, 5/01/22 (Pre-refunded 5/01/14) 75 Michigan South Central Power Agency, Power Supply System Revenue No Opt. Call A3 (4) 79,512 Bonds, Series 2000, 6.000%, 5/01/12 (ETM) 1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/10 at 100.00 A+ (4) 1,548,990 Program, Series 2000I, 5.375%, 6.000%, 10/15/20 (Pre-refunded 10/15/10)
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED (4) (continued) Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I: $ 150 5.500%, 10/15/19 (Pre-refunded 10/15/11) 10/11 at 100.00 A+ (4) $ 162,074 295 5.000%, 10/15/24 (Pre-refunded 10/15/11) 10/11 at 100.00 A+ (4) 316,346 1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 (4) 1,701,105 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) 500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A+ (4) 547,085 Refunding Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31 (Pre-refunded 11/15/11) 2,465 Michigan State Hospital Finance Authority, Hospital Revenue 5/10 at 100.00 N/R (4) 2,603,459 Refunding Bonds, St. John's Hospital, Series 1993A, 6.000%, 5/15/13 - AMBAC Insured (ETM) Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 425 5.000%, 5/15/25 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 496,863 150 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 175,364 1,000 Otsego Public Schools District, Allegan and Kalamazoo Counties, 5/14 at 100.00 AAA 1,155,760 Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 (Pre-refunded 5/01/14) - AGM Insured 1,425 Walled Lake Consolidated School District, Oakland County, 5/14 at 100.00 AA- (4) 1,661,450 Michigan, General Obligation Bonds, Series 2004, 5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured - ----------------------------------------------------------------------------------------------------------------------------------- 12,285 Total U.S. Guaranteed 13,557,522 - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 15.2% (10.2% OF TOTAL INVESTMENTS) Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: 125 5.000%, 7/01/28 7/18 at 100.00 AA- 131,255 2,500 5.000%, 7/01/32 7/18 at 100.00 AA- 2,568,525 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1/12 at 100.00 A2 1,014,330 1 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 925 Michigan South Central Power Agency, Power Supply System Revenue No Opt. Call A3 988,104 Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation 3/10 at 102.00 A 1,000,710 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) 5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 5,022,249 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 3,000 Michigan Strategic Fund, Limited Obligation Pollution Control No Opt. Call Baa1 3,084,240 Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 Baa1 2,842,440 Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 16,550 Total Utilities 16,651,853 - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 17.7% (11.9% OF TOTAL INVESTMENTS) 3,500 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 3,507,315 Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - AGM Insured 1,085 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 A 1,068,584 Bonds, Series 2005A, 5.000%, 7/01/30 - NPFG Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call A 1,515,240 Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 1,120 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 1,164,318 Bonds, Series 2003A, 5.000%, 7/01/17 - AGM Insured 1,330 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 7/15 at 100.00 AA+ 1,370,139 Series 2005, 5.000%, 1/01/30 - NPFG Insured
Nuveen Investments 35 NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER (continued) Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2008: $ 400 5.000%, 1/01/27 No Opt. Call AA+ $ 426,972 450 5.000%, 1/01/38 1/18 at 100.00 AA+ 461,718 425 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA 440,279 Series 2009, 5.100%, 1/01/39 - AGC Insured 1,000 Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007, 5.000%, 10/01/24 10/17 at 100.00 AAA 1,087,100 8,245 North Kent Sewer Authority, Michigan, Sewer Revenue Bonds, 11/16 at 100.00 A+ 8,347,155 Series 2006, 5.000%, 11/01/31 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 19,055 Total Water and Sewer 19,388,820 - ----------------------------------------------------------------------------------------------------------------------------------- $ 159,506 Total Investments (cost $159,438,589) - 148.7% 162,988,845 =============---------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.1)% (2,330,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 2,660,515 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.0)% (5) (53,700,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 109,619,360 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.9%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 36 Nuveen Investments NZW | Nuveen Michigan Dividend Advantage Municipal Fund | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 1.3% (0.9% OF TOTAL INVESTMENTS) $ 425 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 $ 390,414 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 4.1% (2.8% OF TOTAL INVESTMENTS) 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 N/R 1,000,017 Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.000%, 9/01/26 - AMBAC Insured 250 Michigan Public Educational Facilities Authority, Charter 12/17 at 100.00 N/R 206,260 School Revenue Bonds, American Montessori Academy, Series 2007, 6.500%, 12/01/37 - ----------------------------------------------------------------------------------------------------------------------------------- 1,400 Total Education and Civic Organizations 1,206,277 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 14.7% (9.8% OF TOTAL INVESTMENTS) 475 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 465,671 Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39 775 Michigan State Hospital Finance Authority, Hospital Revenue 4/13 at 100.00 A 764,460 Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 150 Michigan State Hospital Finance Authority, Hospital Revenue 6/19 at 100.00 AAA 156,525 Bonds, Mid-Michigan Obligated Group, Series 2009A, 5.875%, 6/01/39 - AGC Insured 515 Michigan State Hospital Finance Authority, Hospital Revenue 7/10 at 100.00 BB 515,010 Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: 400 5.000%, 5/15/26 5/15 at 100.00 Baa3 350,188 400 5.000%, 5/15/34 5/15 at 100.00 Baa3 314,248 100 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 118,048 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 1,700 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 1,593,172 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 4,515 Total Health Care 4,277,322 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 7.0% (4.7% OF TOTAL INVESTMENTS) 1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,732,453 Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative Minimum Tax) 200 Michigan Housing Development Authority, Rental Housing 7/15 at 100.00 AAA 203,776 Revenue Bonds, Series 2006D, 5.125%, 4/01/31 - AGM Insured (Alternative Minimum Tax) 100 Michigan Housing Development Authority, Rental Housing 10/18 at 100.00 AA 103,847 Revenue Bonds, Series 2009A, 5.700%, 10/01/39 - ----------------------------------------------------------------------------------------------------------------------------------- 2,000 Total Housing/Multifamily 2,040,076 - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS) 500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, No Opt. Call BBB 492,965 Republic Services Inc., Series 2001, 4.250%, 8/01/31 (Mandatory put 4/01/14) (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 48.8% (32.6% OF TOTAL INVESTMENTS) 200 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 208,926 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 437 Caledonia Community Schools, Kent, Allegan and Barry 5/17 at 100.00 AA- 420,932 Counties, Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 8.044%, 5/01/32 - NPFG - Insured (IF) 25 Charter County of Wayne, Michigan, General Obligation Limited 12/19 at 100.00 A 26,236 Tax Building Improvement Bonds, Series 2009, 6.750%, 11/01/39 50 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax 4/10 at 100.00 A 50,061 General Obligation Building Authority Stadium Bonds, Series 1997, 5.500%, 2/01/17 - FGIC Insured 300 Grand Rapids, Michigan, General Obligation Bonds, Series 9/17 at 100.00 AA 319,503 2007, 5.000%, 9/01/27 - NPFG Insured
Nuveen Investments 37 NZW | Nuveen Michigan Dividend Advantage Municipal Fund (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 940 Huron Valley School District, Oakland and Livingston 11/11 at 100.00 AA- $ 970,550 Counties, Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/27 500 Jackson Public Schools, Jackson County, Michigan, General 5/14 at 100.00 AAA 527,655 Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - AGM Insured 430 Lowell Area Schools, Counties of Ionia and Kent, Michigan, 5/17 at 100.00 AAA 434,360 General Obligation Bonds, Series 2007, 5.000%, 5/01/37 - AGM Insured 400 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 433,900 Detroit City School District, Series 2005, 5.000%, 6/01/18 - AGM Insured 100 Michigan, General Obligation Bonds, Environmental Protection 5/19 at 100.00 AA- 110,052 Program, Series 2009A, 5.500%, 11/01/25 1,150 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AA 1,178,256 Wastewater Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 1,410 New Haven Community Schools, Macomb County, Michigan, General 5/16 at 100.00 AAA 1,464,299 Obligation Bonds, Series 2006, 5.000%, 5/01/25 - AGM Insured 420 Oakland Intermediate School District, Oakland County, 5/17 at 100.00 AAA 430,924 Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - AGM Insured 1,000 Ottawa County, Michigan, Water Supply System, General 8/17 at 100.00 Aa1 1,043,440 Obligation Bonds, Series 2007, 5.000%, 8/01/30 - NPFG Insured (UB) 235 Parchment School District, Kalamazoo County, Michigan, 5/17 at 100.00 AAA 217,692 General Obligation Bonds, Tender Option Bond Trust 2836, 11.153%, 5/01/36 - AGM Insured (IF) 750 Plainwell Community Schools, Allegan County, Michigan, 5/18 at 100.00 AAA 783,735 General Obligation Bonds, School Building & Site, Series 2008, 5.000%, 5/01/28 - AGC Insured 100 Rockford Public Schools, Kent County, Michigan, General 5/18 at 100.00 AAA 101,604 Obligation Bonds, Series 2008, 5.000%, 5/01/33 - AGM Insured 25 South Haven, Van Buren County, Michigan, General Obligation 12/19 at 100.00 AAA 25,763 Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 - AGC Insured 330 Thornapple Kellogg School District, Barry County, Michigan, 5/17 at 100.00 AA- 334,749 General Obligation Bonds, Series 2007, 5.000%, 5/01/32 - NPFG Insured 100 Trenton Public Schools District, Michigan, General Obligation 5/18 at 100.00 AAA 101,401 Bonds, Series 2008, 5.000%, 5/01/34 - AGM Insured 225 Van Dyke Public Schools, Macomb County, Michigan, General 5/18 at 100.00 AAA 227,999 Obligation Bonds, School Building and Site, Series 2008, 5.000%, 5/01/38 - AGM Insured Washtenaw County, Michigan, Limited Tax General Obligation Bonds, Sylvan Township Water and Wastewater System, Series 2001: 500 5.000%, 5/01/19 - NPFG Insured 5/10 at 100.50 AA+ 505,845 800 5.000%, 5/01/20 - NPFG Insured 5/10 at 100.50 AA+ 809,352 1,690 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 A 1,554,631 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - NPFG Insured 500 Wayne Westland Community Schools, Michigan, General 11/14 at 100.00 AAA 565,685 Obligation Bonds, Series 2004, 5.000%, 5/01/17 - AGM Insured 1,300 Willow Run Community Schools, Washtenaw County, Michigan, 5/11 at 100.00 AA- 1,356,095 General Obligation Bonds, Series 2001, 5.000%, 5/01/21 - ----------------------------------------------------------------------------------------------------------------------------------- 13,917 Total Tax Obligation/General 14,203,645 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 16.5% (11.1% OF TOTAL INVESTMENTS) 1,100 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AA 1,137,026 Limited Tax General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - NPFG Insured 770 Kalkaska County Hospital Authority, Michigan, Hospital No Opt. Call N/R 802,402 Revenue Bonds, Series 2007, 5.125%, 5/01/14
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED (continued) Michigan Building Authority, Revenue Bonds, Series 2006IA: $ 1,520 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA $ 548,386 720 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 A+ 707,472 1,150 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,168,895 Program, Series 2001I, 5.000%, 10/15/24 500 Virgin Islands Public Finance Authority Revenue and 10/19 at 100.00 BBB 450,860 Refunding Bonds (Virgin Islands Matching Fund Loan Notes) Series 2009A-1 (Senior Lien) Series 2009A-2 (Senior Lien), 5.000%, 10/01/39 - ----------------------------------------------------------------------------------------------------------------------------------- 5,760 Total Tax Obligation/Limited 4,815,041 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 0.9% (0.6% OF TOTAL INVESTMENTS) 250 Wayne County Airport Authority, Michigan, Revenue Refunding No Opt. Call A 265,845 Bonds, Detroit Metropolitan Airport, Series 2007, 5.000%, 12/01/12 - FGIC Insured - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 21.1% (14.1% OF TOTAL INVESTMENTS) (4) 1,000 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 1,101,200 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/21 (Pre-refunded 5/01/12) - AGM Insured 720 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 813,420 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) - AGM Insured 1,000 Garden City School District, Wayne County, Michigan, General 5/11 at 100.00 AA- (4) 1,055,160 Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26 (Pre-refunded 5/01/11) 1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 1,075,140 Spectrum Health, Series 2001A, 5.250%, 1/15/21 (Pre-refunded 7/15/11) 55 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ (4) 58,980 Program, Series 2001I, 5.000%, 10/15/24 (Pre-refunded 10/15/11) Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 425 5.000%, 5/15/30 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 496,863 335 5.000%, 5/15/37 (Pre-refunded 5/15/15) 5/15 at 100.00 AAA 391,645 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 108,359 615 6.000%, 8/01/26 (ETM) No Opt. Call AAA 784,008 250 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AA (4) 258,495 Obligation Bonds, Series 2001, 5.150%, 11/01/22 (Pre-refunded 11/01/10) - FGIC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,485 Total U.S. Guaranteed 6,143,270 - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 18.8% (12.6% OF TOTAL INVESTMENTS) 1,115 Lansing Board of Water and Light, Michigan, Steam and 7/13 at 100.00 AAA 1,165,733 Electric Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 - AGM Insured Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: 50 5.000%, 7/01/28 7/18 at 100.00 AA- 52,502 750 5.000%, 7/01/32 7/18 at 100.00 AA- 770,558 1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 A2 1,259,070 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 A2 2,217,189 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 - SYNCORA GTY Insured (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 5,365 Total Utilities 5,465,052 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39 NZW | Nuveen Michigan Dividend Advantage Municipal Fund (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 14.5% (9.7% OF TOTAL INVESTMENTS) $ 1,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA $ 1,002,090 Revenue Bonds, Series 2006A, 5.000%, 7/01/34 - AGM Insured 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System No Opt. Call A 1,010,160 Revenue Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 280 Detroit, Michigan, Senior Lien Sewerage Disposal System 7/13 at 100.00 AAA 291,080 Revenue Bonds, Series 2003A, 5.000%, 7/01/17 - AGM Insured 125 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, 1/18 at 100.00 AA+ 128,255 Series 2008, 5.000%, 1/01/38 150 Grand Rapids, Michigan, Water Supply System Revenue Bonds, 1/19 at 100.00 AAA 155,393 Series 2009, 5.100%, 1/01/39 - AGC Insured 1,000 Michigan Municipal Bond Authority, Clean Water Revolving 10/15 at 100.00 AAA 1,095,730 Fund Revenue Bonds, Series 2005, 5.000%, 10/01/19 500 Michigan Municipal Bond Authority, Water Revolving Fund 10/17 at 100.00 AAA 546,670 Revenue Bonds, Series 2007, 5.000%, 10/01/23 - ----------------------------------------------------------------------------------------------------------------------------------- 4,055 Total Water and Sewer 4,229,378 - ----------------------------------------------------------------------------------------------------------------------------------- $ 43,672 Total Investments (cost $42,521,861) - 149.4% 43,529,285 - ----------------------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.3)% (665,000) ==================================================================================================================== Other Assets Less Liabilities - 1.9% 537,592 ==================================================================================================================== Preferred Shares, at Liquidation Value - (49.0)% (5) (14,275,000) ==================================================================================================================== Net Assets Applicable to Common Shares - 100% $ 29,126,877 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.8%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 40 Nuveen Investments NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 7.5% (5.2% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 4,735 5.875%, 6/01/30 6/17 at 100.00 BBB $ 4,035,120 1,650 5.750%, 6/01/34 6/17 at 100.00 BBB 1,329,290 8,450 5.875%, 6/01/47 6/17 at 100.00 BBB 6,356,174 120 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 116,399 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ----------------------------------------------------------------------------------------------------------------------------------- 14,955 Total Consumer Staples 11,836,983 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 14.7% (10.2% OF TOTAL INVESTMENTS) 1,650 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 1,650,776 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,750 Ohio Higher Education Facilities Commission, General Revenue 10/13 at 100.00 AA 1,855,053 Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 894,630 Wittenberg University, Series 2005, 5.000%, 12/01/29 2,420 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 A 2,476,967 Bonds, University of Dayton, 2006 Project, Series 2006, 5.000%, 12/01/30 - AMBAC Insured 1,415 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/14 at 100.00 AA 1,496,617 Denison University, Series 2004, 5.000%, 11/01/21 1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 A 1,362,781 University of Dayton, Series 2004, 5.000%, 12/01/25 - AMBAC Insured 1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa2 1,025,240 Wittenberg University, Series 2001, 5.500%, 12/01/15 1,500 Ohio State Higher Education Facilities, Revenue Bonds, Case 12/16 at 100.00 AA- 1,546,305 Western Reserve University, Series 2006, 5.000%, 12/01/44 - NPFG Insured 1,200 Ohio State University, General Receipts Bonds, Series 2002A, 12/12 at 100.00 AA 1,236,756 5.125%, 12/01/31 3,000 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 3,276,450 5.250%, 6/01/22 1,510 University of Akron, Ohio, General Receipts Bonds, Series 1/13 at 100.00 A2 1,557,157 2003A, 5.000%, 1/01/21 - AMBAC Insured 850 University of Cincinnati, Ohio, General Receipts Bonds, Series 6/13 at 100.00 A+ 879,028 2003C, 5.000%, 6/01/22 - FGIC Insured University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D: 1,200 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 A+ 1,264,968 2,605 5.000%, 6/01/25 - AMBAC Insured 6/14 at 100.00 A+ 2,690,548 - ----------------------------------------------------------------------------------------------------------------------------------- 22,420 Total Education and Civic Organizations 23,213,276 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 21.9% (15.2% OF TOTAL INVESTMENTS) 2,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 5/10 at 101.00 Baa1 1,984,780 Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 3,405 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 3,343,574 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and 8/10 at 100.00 A 1,001,050 Improvement Bonds, MetroHealth System, Series 1997, 5.625%, 2/15/17 - NPFG Insured 2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland 7/13 at 100.00 Aa2 2,099,720 Clinic Health System, Series 2003A, 6.000%, 1/01/32 3,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 2,775,180 Firelands Regional Medical Center, Series 2002A, 5.625%, 8/15/32 300 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/19 at 100.00 Aa2 306,603 Children's Hospital Project, Improvement Series 2009, 5.250%, 11/01/40
Nuveen Investments 41 NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 1,000 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 $ 1,002,720 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital 5/14 at 100.00 A 2,624,518 Medical Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured 1,000 Lorain County, Ohio, Hospital Revenue Bonds, Catholic 10/12 at 100.00 AA- 1,009,950 Healthcare Partners Inc, Refunding Series 2002, 5.375%, 10/01/30 2,000 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 5/10 at 101.00 N/R 2,013,360 Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured 785 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 812,703 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A: 1,500 5.000%, 5/01/30 5/14 at 100.00 AA 1,523,055 2,500 5.000%, 5/01/32 No Opt. Call AA 2,527,050 1,350 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, 11/14 at 100.00 Aa3 1,417,149 Series 2009A, 6.250%, 11/15/39 1,000 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 1,063,840 Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 2,700 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 Aa2 3,175,794 Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.967%, 1/01/39 (IF) 830 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 843,712 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 1,200 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 1,140,444 Health System Group, Series 2006, 5.250%, 11/15/36 600 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 611,100 Health System Series 2008, 5.750%, 12/01/35 1,315 State of Ohio Hospital Revenue Bonds, Series 2008A (Cleveland 1/18 at 100.00 Aa2 1,386,444 Clinic Health System Obligated Group), 5.000%, 1/01/25 1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 N/R 1,848,203 Union Hospital Project, Series 2001, 5.750%, 10/01/21 - RAAI Insured - ----------------------------------------------------------------------------------------------------------------------------------- 33,645 Total Health Care 34,510,949 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 6.3% (4.4% OF TOTAL INVESTMENTS) 1,385 Clermont County, Ohio, GNMA Collateralized Mortgage Revenue 8/10 at 100.00 Aaa 1,386,288 Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Longwood Phase One Associates LP, Series 2001A: 2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,531,133 2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,276,280 985 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/10 at 100.00 Aa2 985,483 Mortgage Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax) 800 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 821,024 Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 795 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 781,437 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 1,200 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 1,204,164 Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 9,890 Total Housing/Multifamily 9,985,809 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 2.4% (1.7% OF TOTAL INVESTMENTS) 1,140 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 3/10 at 101.00 Aaa 1,143,021 Program Residential Mortgage Revenue Bonds, Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax) 655 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 3/10 at 100.00 Aaa 668,879 Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 - AGM Insured (Alternative Minimum Tax) 1,995 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 1,989,773 Bonds, Series 2006H, 5.000%,9/01/31 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 3,790 Total Housing/Single Family 3,801,673 - -----------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 1.3% (0.8% OF TOTAL INVESTMENTS) $ 815 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R $ 716,328 Revenue Bonds, Bond Fund Program - Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) 1,300 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/10 at 100.00 N/R 1,216,501 Revenue Bonds, Jergens Inc., Series 1998A, 5.375%, 5/15/18 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 2,115 Total Industrials 1,932,829 - ----------------------------------------------------------------------------------------------------------------------------------- MATERIALS - 1.4% (0.9% OF TOTAL INVESTMENTS) 2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A 2,141,220 Cargill Inc., Series 2004B, 4.500%, 12/01/15 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 38.6% (26.7% OF TOTAL INVESTMENTS) Butler County, Ohio, General Obligation Bonds, Series 2002: 1,345 5.000%, 12/01/21 - NPFG Insured 12/12 at 100.00 Aa2 1,462,445 1,200 5.000%, 12/01/22 - NPFG Insured 12/12 at 101.00 Aa2 1,291,680 1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aa2 1,573,740 General Obligation Bonds, Series 2005, 5.000%, 12/01/30 - AGM Insured 1,000 Central Ohio Solid Waste Authority, General Obligation Bonds, 6/14 at 100.00 AAA 1,119,870 Series 2004A, 5.000%, 12/01/15 - AMBAC Insured 2,600 Cincinnati City School District, Hamilton County, Ohio, 12/12 at 100.00 AAA 2,825,602 General Obligation Bonds, Series 2002, 5.250%, 6/01/21 - AGM Insured 1,000 Cleveland Municipal School District, Cuyahoga County, Ohio, 6/14 at 100.00 AAA 1,057,750 General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - AGM Insured 1,200 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 1,296,168 5.000%, 12/01/21 1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 5.250%, 6/14 at 100.00 AA- 1,109,120 12/01/19 - AMBAC Insured 1,000 Dublin City School District, Franklin, Delaware and Union 12/13 at 100.00 AAA 1,086,680 Counties, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 - AGM Insured 1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aaa 1,015,620 Bonds, Series 2000A, 5.000%, 12/01/20 1,195 Fairview Park City School District, Cuyahoga County, Ohio, 6/15 at 100.00 A2 1,251,727 General Obligation Bonds, Series 2005, 5.000%, 12/01/24 - NPFG Insured 1,840 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 2,003,282 5.000%, 12/01/28 1,500 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 1,582,305 12/01/32 1,355 Grove City, Ohio, General Obligation Bonds, Construction & No Opt. Call Aa2 1,406,029 Improvement Series 2009, 5.125%, 12/01/36 7,020 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 7,370,226 Bonds, Series 2007, 5.000%, 12/01/34 - AGM Insured 1,850 Hilliard School District, Franklin County, Ohio, General 12/15 at 100.00 Aa2 1,955,987 Obligation Bonds, School Construction, Series 2005, 5.000%, 12/01/26 - NPFG Insured 3,000 Hilliard School District, Franklin County, Ohio, General 12/16 at 100.00 AA 3,216,660 Obligation Bonds, Series 2006A, 5.000%, 12/01/25 - NPFG Insured 2,580 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 2,633,354 Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aa3 1,248,462 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - NPFG Insured 800 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 861,800 Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured 2,000 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 A3 2,008,560 Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured 505 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 533,957 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - AGM Insured 500 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 529,440 Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31
Nuveen Investments 43 NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 1,515 Massillon City School District, Ohio, General Obligation 12/12 at 100.00 Baa1 $ 1,572,434 Bonds, Series 2003, 5.250%, 12/01/21 - NPFG Insured 1,350 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 1,391,000 Obligation Bonds, Series 2008, 5.250%, 12/01/36 640 New Albany Plain Local School District, Franklin County, 6/12 at 100.00 Aa2 692,992 Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 - FGIC Insured 1,000 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 A 1,036,370 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured 1,000 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 1,031,190 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, 2/13 at 100.00 AA+ 3,137,250 Series 2003F, 5.000%, 2/01/23 1,510 Painesville City School District, Ohio, General Obligation 12/14 at 100.00 A 1,621,136 Bonds, Series 2004, 5.000%, 12/01/22 - FGIC Insured 280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aa2 297,640 Ohio, General Obligation Bonds, Series 2000, 6.000%, 12/01/20 - FGIC Insured 1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA 1,492,208 5.000%, 12/01/27 - FGIC Insured 2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aa1 2,135,060 5.000%, 12/01/21 - FGIC Insured 70 Strongsville, Ohio, Limited Tax General Obligation Various 4/10 at 100.00 Aa1 70,311 Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 100 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA 103,905 School Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 650 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 674,466 Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 Warren City School District, Trumbull County, Ohio, General Obligation Bonds, Series 2004: 2,515 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AA 2,745,449 1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AA 1,265,531 1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aa1 1,036,860 Obligation Bonds, Series 2003, 5.000%, 12/01/28 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 57,395 Total Tax Obligation/General 60,744,266 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 15.7% (10.9% OF TOTAL INVESTMENTS) 1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 BBB+ 1,411,243 Project, Series 2004A, 5.000%, 12/01/25 - AMBAC Insured 3,000 Franklin County, Ohio, Excise Tax and Lease Revenue 12/15 at 100.00 Aaa 3,195,000 Anticipation Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured 1,085 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 A+ 1,151,934 Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC Insured 4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 4,681,511 Series 2006, 5.000%, 12/01/32 - AMBAC Insured 1,000 Hudson City School District, Ohio, Certificates of 6/14 at 100.00 A1 1,020,690 Participation, Series 2004, 5.000%, 6/01/26 - NPFG Insured New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds, Series 2001B: 1,000 5.500%, 10/01/15 - AMBAC Insured 4/12 at 100.00 A2 1,042,850 1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 A2 1,028,370 800 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 854,584 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - AGM Insured 2,645 Ohio State Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AA 2,994,299 Correctional Building Fund Project, Series 2004A, 5.250%, 4/01/15 - NPFG Insured 1,000 Ohio, State Appropriation Lease Bonds, Mental Health Capital 6/13 at 100.00 AA 1,107,980 Facilities, Series 2003B-II, 5.000%, 6/01/16
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED (continued) $ 23,215 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ $ 4,773,699 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 7,875 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 1,503,023 Revenue Bonds, First Subordinate Series 2010A, 0.000%, 8/01/35 - ----------------------------------------------------------------------------------------------------------------------------------- 48,600 Total Tax Obligation/Limited 24,765,183 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 3.4% (2.3% OF TOTAL INVESTMENTS) 3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 A- 2,950,710 International Airport, Series 2003C, 5.250%, 12/01/23 - RAAI Insured (Alternative Minimum Tax) 2,000 Ohio Turnpike Commission, Revenue Refunding Bonds, Series No Opt. Call AA 2,365,740 1998A, 5.500%, 2/15/18 - FGIC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,000 Total Transportation 5,316,450 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 20.7% (14.3% OF TOTAL INVESTMENTS) (4) 2,030 Butler County, Ohio, General Obligation Judgment Bonds, 12/12 at 101.00 Aa2 (4) 2,293,758 Series 2002, 5.250%, 12/01/21 (Pre-refunded 12/01/12) 1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox No Opt. Call A- (4) 1,167,340 International Airport, Series 2005B, 5.000%, 12/01/14 - SYNCORA GTY Insured (ETM) 2,000 Garfield Heights City School District, Cuyahoga County, Ohio, 12/11 at 100.00 N/R (4) 2,160,920 General Obligation School Improvement Bonds, Series 2001, 5.000%, 12/15/26 (Pre-refunded 12/15/11) - MBIA Insured 1,500 Hamilton County, Ohio, Sewer System Revenue and Improvement 6/10 at 101.00 AA+ (4) 1,537,005 Bonds, Metropolitan Sewer District of Greater Cincinnati, Series 2000A, 5.750%, 12/01/25 (Pre-refunded 6/01/10) - MBIA Insured 1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AA (4) 1,052,090 Improvement Bonds, Series 2000, 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FGIC Insured 2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aa1 (4) 2,119,660 Tax General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured 760 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 N/R (4) 869,220 Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) - FGIC Insured 3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 3,049,020 Kettering Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10) 1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA (4) 1,326,440 Washington Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2000, 5.750%, 12/01/22 (Pre-refunded 12/01/10) 460 New Albany Plain Local School District, Franklin County, 6/12 at 100.00 Aa2 (4) 509,919 Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 (Pre-refunded 6/01/12) - FGIC Insured 1,225 Ohio Water Development Authority, Water Pollution Control 6/15 at 100.00 AAA 1,437,672 Loan Fund Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25 (Pre-refunded 6/01/15) Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A: 1,315 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AA+ (4) 1,534,329 3,380 5.250%, 12/01/24 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AA+ (4) 3,943,750 1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA 1,146,500 Obligation Bonds, Series 2003, 5.000%, 12/01/30 (Pre-refunded 12/01/13) - MBIA Insured 1,670 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 1,759,128 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) 2,830 Springfield Township, Hamilton County, Ohio, Various Purpose 12/11 at 100.00 Aa3 (4) 3,065,484 Limited Tax General Obligation Bonds, Series 2002, 5.250%, 12/01/27 (Pre-refunded 12/01/11) 1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 N/R (4) 1,555,575 Improvement Bonds, Trinity Health System, Series 2000, 6.375%, 10/01/20 (Pre-refunded 10/01/10) 2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AA- (4) 2,113,880 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured - ----------------------------------------------------------------------------------------------------------------------------------- 29,930 Total U.S. Guaranteed 32,641,690 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45 NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 8.1% (5.6% OF TOTAL INVESTMENTS) $ 2,500 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 $ 2,532,425 Series 2008, 5.250%, 2/15/43 4,000 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 A2 4,090,119 System Improvement Revenue Bonds, Series 2002, 5.000%, 2/15/22 - NPFG Insured Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B: 2,105 0.000%, 11/15/32 - NPFG Insured No Opt. Call A 617,018 2,155 0.000%, 11/15/34 - NPFG Insured No Opt. Call A 555,796 3,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG 4/10 at 100.00 N/R 2,574,150 Funding Limited Partnership Project, Series 1997, 5.625%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 800 Ohio Municipal Electric Generation Agency, Beneficial No Opt. Call A1 285,296 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2001, 0.000%, 2/15/29 - NPFG Insured 2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 2,059,760 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 16,560 Total Utilities 12,714,564 - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 2.6% (1.8% OF TOTAL INVESTMENTS) 430 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 434,377 Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured 1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding No Opt. Call Aa2 1,160,540 and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - NPFG Insured 40 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding 7/10 at 100.00 Aa2 40,089 and Improvement Bonds, Series 1996H, 5.750%, 1/01/26 - NPFG Insured 1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, Series 2005, 10/15 at 100.00 Aa3 1,321,370 5.250%, 10/01/22 - AGM Insured 200 Marysville, Ohio, Wastewater Treatment System Revenue Bonds, 12/17 at 100.00 A- 195,578 Series 2007, 5.000%, 12/01/37 - SYNCORA GTY Insured 525 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 569,100 Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - AGM Insured 275 Ohio Water Development Authority, Water Pollution Control 6/15 at 100.00 AAA 301,964 Loan Fund Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25 - ----------------------------------------------------------------------------------------------------------------------------------- 3,690 Total Water and Sewer 4,023,018 - ----------------------------------------------------------------------------------------------------------------------------------- $ 249,990 Total Investments (cost $218,693,518) - 144.6% 227,627,910 =============---------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 2,810,933 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (46.4)% (5) (73,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 157,438,843 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.1%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 46 Nuveen Investments NXI | Nuveen Ohio Dividend Advantage Municipal Fund | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 5.8% (4.0% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 1,320 5.875%, 6/01/30 6/17 at 100.00 BBB $ 1,124,891 3,375 5.875%, 6/01/47 6/17 at 100.00 BBB 2,538,708 45 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 43,650 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ----------------------------------------------------------------------------------------------------------------------------------- 4,740 Total Consumer Staples 3,707,249 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 9.0% (6.3% OF TOTAL INVESTMENTS) 700 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 700,329 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 2,650 Ohio Higher Education Facilities Commission, Revenue Bonds, Ohio 5/12 at 100.00 A3 2,689,166 Northern University, Series 2002, 5.000%, 5/01/22 500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 470,565 Wittenberg University, Series 2005, 5.000%, 12/01/24 1,760 Ohio University at Athens, Subordinate Lien General Receipts 6/14 at 100.00 A+ 1,921,269 Bonds, Series 2004, 5.000%, 12/01/20 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,610 Total Education and Civic Organizations 5,781,329 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 18.7% (13.1% OF TOTAL INVESTMENTS) 1,385 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 1,360,015 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland Clinic 7/13 at 100.00 Aa2 1,154,846 Health System, Series 2003A, 6.000%, 1/01/32 300 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/19 at 100.00 Aa2 306,603 Children's Hospital Project, Improvement Series 2009, 5.250%, 11/01/40 500 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 501,360 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 500 Lorain County, Ohio, Hospital Revenue Bonds, Catholic Healthcare 10/12 at 100.00 AA- 504,975 Partners Inc, Refunding Series 2002, 5.375%, 10/01/30 2,200 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare 5/10 at 101.00 N/R 2,214,696 Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured 330 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 341,646 Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 1,015,370 Initiatives, Series 2004A, 5.000%, 5/01/30 375 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, 11/14 at 100.00 Aa3 393,653 Series 2009A, 6.250%, 11/15/39 250 Ohio State Higher Educational Facilities Commission, Hospital 1/15 at 100.00 A 265,960 Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 1,350 Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland 1/19 at 100.00 Aa2 1,587,897 Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.967%, 1/01/39 (IF) 335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 340,534 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 500 Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health 11/16 at 100.00 A- 475,185 System Group, Series 2006, 5.250%, 11/15/36 375 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 381,938 Health System Series 2008, 5.750%, 12/01/35 State of Ohio Hospital Revenue Bonds, Series 2008A (Cleveland Clinic Health System Obligated Group): 1,050 5.000%, 1/01/25 1/18 at 100.00 Aa2 1,107,047 90 5.250%, 1/01/33 1/18 at 100.00 Aa2 92,795 - ----------------------------------------------------------------------------------------------------------------------------------- 11,640 Total Health Care 12,044,520 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47 NXI | Nuveen Ohio Dividend Advantage Municipal Fund (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 8.9% (6.2% OF TOTAL INVESTMENTS) $ 1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease Revenue 8/15 at 100.00 N/R $ 1,120,206 Bonds, Euclid Avenue Housing Corporation - Fenn Tower Project, Series 2005, 5.000%, 8/01/23 - AMBAC Insured 350 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 359,198 Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue Bonds, 4/11 at 102.00 Aa2 2,953,229 Asbury Woods Project, Series 2001A, 5.450%, 4/01/26 320 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 AAA 314,541 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 1,000 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 1,003,470 Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 5,720 Total Housing/Multifamily 5,750,644 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 2.3% (1.6% OF TOTAL INVESTMENTS) 235 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 246,553 Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 630 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 668,940 Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 45,504 Program Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 500 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 498,690 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 1,410 Total Housing/Single Family 1,459,687 - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 6.8% (4.7% OF TOTAL INVESTMENTS) 1,500 Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond Fund 5/12 at 102.00 N/R 1,429,770 Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 340 Cleveland-Cuyahoga County Port Authority, Ohio, Development 11/15 at 100.00 N/R 298,836 Revenue Bonds, Bond Fund Program - Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) 880 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 BBB 888,202 Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 1,300 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa3 1,486,407 Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 700 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 246,134 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 4,720 Total Industrials 4,349,349 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 24.8% (17.3% OF TOTAL INVESTMENTS) 125 Barberton City School District, Summit County, Ohio, General 6/18 at 100.00 AA 132,375 Obligation Bonds, School Improvement Series 2008, 5.250%, 12/01/31 1,500 Centerville City School District, Montgomery County, Ohio, 6/15 at 100.00 Aa2 1,573,740 General Obligation Bonds, Series 2005, 5.000%, 12/01/30 - AGM Insured 400 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 176,656 Obligation Bonds, Series 2006, 0.000%, 12/01/27 - AGM Insured 500 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 540,070 5.000%, 12/01/21 1,355 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,484,823 5.000%, 12/01/27 470 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 495,789 12/01/32 2,550 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 2,677,219 Series 2007, 5.000%, 12/01/34 - AGM Insured 2,000 Indian Lake Local School District, Logan and Auglaize Counties, 6/17 at 100.00 A+ 2,041,360 Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 430 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 447,931 Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 1,005 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA $ 1,062,627 Obligation Bonds, Series 2006, 5.000%, 12/01/25 - AGM Insured 200 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 211,776 General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,519 Obligation Bonds, Series 2008, 5.250%, 12/01/36 750 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa3 773,393 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 50 Sylvania City School District, Ohio, General Obligation School 6/17 at 100.00 AAA 51,953 Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 2,415 Troy City School District, Miami County, Ohio, General 12/14 at 100.00 Aa3 2,536,305 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - AGM Insured 50 Vandalia Butler City School District, Montgomery County, Ohio, No Opt. Call AA 51,882 General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101.00 Aa1 1,620,655 Limited Tax General Obligation Refunding Bonds, Series 2001, 5.500%, 12/01/17 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 15,335 Total Tax Obligation/General 15,930,073 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 17.5% (12.3% OF TOTAL INVESTMENTS) 125 Cincinnati City School District, Ohio, Certificates of 12/16 at 100.00 AAA 128,620 Participation, Series 2006, 5.000%, 12/15/32 - AGM Insured 50 Delaware County District Library, Delaware, Franklin, Marion, 12/19 at 100.00 A1 50,073 Morrow and Union Counties, Ohio, Library Fund Library Facilities Notes, Series 2009 (Special Obligation), 5.000%, 12/01/34 2,000 Franklin County, Ohio, Excise Tax and Lease Revenue Anticipation 12/15 at 100.00 Aaa 2,130,000 Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured 1,415 Hamilton County Convention Facilities Authority, Ohio, First 6/14 at 100.00 A+ 1,479,482 Lien Revenue Bonds, Series 2004, 5.000%, 12/01/21 - FGIC Insured 2,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 12/16 at 100.00 A2 2,035,440 2006, 5.000%, 12/01/32 - AMBAC Insured 500 New Albany Community Authority, Ohio, Community Facilities 4/12 at 100.00 A2 521,425 Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/15 - AMBAC Insured 345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 368,539 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - AGM Insured 1,000 Ohio State Building Authority, State Facilities Bonds, Adult 4/15 at 100.00 AAA 1,065,830 Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - AGM Insured 5,220 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 1,073,389 Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 5,250 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 1,002,015 Bonds, First Subordinate Series 2010A, 0.000%, 8/01/35 1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,427,748 Loan Note, Series 1999A, 6.375%, 10/01/19 - ----------------------------------------------------------------------------------------------------------------------------------- 19,305 Total Tax Obligation/Limited 11,282,561 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 1.4% (0.9% OF TOTAL INVESTMENTS) 865 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 5.500%, 2/11 at 100.00 AA 878,191 2/15/26 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 33.5% (23.4% OF TOTAL INVESTMENTS) (4) 1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 (4) 1,036,860 Unlimited Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 (Pre-refunded 12/01/10) 1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,188,800 Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) - AGM Insured
Nuveen Investments 49 NXI | Nuveen Ohio Dividend Advantage Municipal Fund (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED (4) (continued) $ 1,000 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA $ 1,180,860 Obligation Bonds, Series 2004, 5.250%, 12/01/16 (Pre-refunded 12/01/14) - AGM Insured 2,000 Lakota Local School District, Butler County, Ohio, Unlimited Tax 6/11 at 100.00 Aa1 (4) 2,119,660 General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured 910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, Series 12/10 at 101.00 A2 (4) 956,101 2001, 5.500%, 12/01/18 (Pre-refunded 12/01/10) - AMBAC Insured 1,000 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 N/R (4) 1,143,710 Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) - FGIC Insured 1,000 Nordonia Hills Local School District, Ohio, General Obligation 12/10 at 101.00 AA (4) 1,050,280 Bonds, Series 2000, 5.450%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 2,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/11 at 101.00 AA (4) 2,177,120 Denison University, Series 2001, 5.200%, 11/01/26 (Pre-refunded 11/01/11) 1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/10 at 101.00 N/R (4) 1,047,720 University of Dayton, Series 2000, 5.500%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 1,135 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 5.500%, 2/11 at 100.00 AA (4) 1,192,147 2/15/26 (Pre-refunded 2/15/11) 2,000 Ohio, General Obligation Higher Education Capital Facilities 2/11 at 100.00 AA+ (4) 2,088,060 Bonds, Series 2001A, 5.000%, 2/01/20 (Pre-refunded 2/01/11) 1,900 Olentangy Local School District, Delaware and Franklin Counties, 6/14 at 100.00 AA+ (4) 2,216,901 Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured 665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 700,491 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) 2,735 University of Cincinnati, Ohio, General Receipts Bonds, Series 6/12 at 100.00 A+ (4) 3,022,171 2002F, 5.375%, 6/01/19 400 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AA- (4) 422,776 Counties, Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured - ----------------------------------------------------------------------------------------------------------------------------------- 19,745 Total U.S. Guaranteed 21,543,657 - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 9.8% (6.9% OF TOTAL INVESTMENTS) American Municipal Power Ohio Inc., General Revenue Bonds, Series 2008: 50 5.000%, 2/15/38 - AGC Insured 2/18 at 100.00 AAA 51,154 1,000 5.250%, 2/15/43 2/18 at 100.00 A1 1,012,970 1,440 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 A2 1,502,510 Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - NPFG Insured 2,130 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 624,346 2008B, 0.000%, 11/15/32 - NPFG Insured 2,150 Ohio Air Quality Development Authority, Revenue Refunding Bonds, 5/10 at 100.50 Baa1 2,103,668 Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 A1 1,027,080 Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/21 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 7,770 Total Utilities 6,321,728 - -----------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 4.7% (3.3% OF TOTAL INVESTMENTS) $ 175 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 A3 $ 176,782 Series 2007, 5.000%, 12/01/32 - AMBAC Insured 325 Ohio Water Development Authority, Revenue Bonds, Drinking Water 6/18 at 100.00 AAA 352,300 Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - AGM Insured 2,375 Ohio Water Development Authority, Revenue Bonds, Water 12/13 at 100.00 Aa2 2,478,336 Development Community Assistance Program, Series 2003, 5.000%, 12/01/23 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,875 Total Water and Sewer 3,007,418 - ------------------------------------------------------------------------------------------------------------------------------------ $ 99,735 Total Investments (cost $89,006,604) - 143.2% 92,056,406 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 1,234,089 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (45.1)% (5) (29,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 64,290,495 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.5%. N/R Not rated. (IF) Inverse floating rate investment. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 51 NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 4.1% (2.9% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 250 5.875%, 6/01/30 6/17 at 100.00 BBB $ 213,048 2,200 5.875%, 6/01/47 6/17 at 100.00 BBB 1,654,862 45 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 43,650 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ----------------------------------------------------------------------------------------------------------------------------------- 2,495 Total Consumer Staples 1,911,560 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 11.6% (8.0% OF TOTAL INVESTMENTS) 1,345 Bowling Green State University, Ohio, General Receipts 6/13 at 100.00 A+ 1,473,864 Bonds, Series 2003, 5.250%, 6/01/18 - AMBAC Insured 450 Ohio Higher Education Facilities Commission, General Revenue 7/16 at 100.00 A+ 450,212 Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,050 Ohio Higher Educational Facilities Commission, Revenue 12/11 at 100.00 Baa2 1,076,502 Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15 1,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/13 at 100.00 A+ 1,034,150 Series 2003C, 5.000%, 6/01/22 - FGIC Insured 1,245 University of Cincinnati, Ohio, General Receipts Bonds, 6/14 at 100.00 A+ 1,312,404 Series 2004D, 5.000%, 6/01/19 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,090 Total Education and Civic Organizations 5,347,132 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 26.2% (18.1% OF TOTAL INVESTMENTS) 1,090 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 1,070,336 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 300 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/19 at 100.00 Aa2 306,603 Children's Hospital Project, Improvement Series 2009, 5.250%, 11/01/40 250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 250,680 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 200 Lorain County, Ohio, Hospital Revenue Bonds, Catholic 10/12 at 100.00 AA- 201,990 Healthcare Partners Inc, Refunding Series 2002, 5.375%, 10/01/30 1,850 Lorain County, Ohio, Hospital Revenue Refunding and 10/11 at 101.00 AA- 1,894,363 Improvement Bonds, Catholic Healthcare Partners, Series 2001A, 5.400%, 10/01/21 900 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 5/10 at 101.00 N/R 906,012 Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured 225 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 232,940 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 700 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 710,759 Initiatives, Series 2004A, 5.000%, 5/01/30 90 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 94,477 Hospital, Series 2009A, 6.250%, 11/15/39 100 Ohio State Higher Educational Facilities Commission, 1/15 at 100.00 A 106,384 Hospital Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 1,000 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 Aa2 1,176,220 Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.967%, 1/01/39 (IF) 665 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 675,986 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 350 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 332,630 Health System Group, Series 2006, 5.250%, 11/15/36 90 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 91,665 Health System Series 2008, 5.750%, 12/01/35 35 State of Ohio Hospital Revenue Bonds, Series 2008A 1/18 at 100.00 Aa2 36,902 (Cleveland Clinic Health System Obligated Group), 5.000%, 1/01/25
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 N/R $ 3,978,242 Union Hospital Project, Series 2001, 5.750%, 10/01/26 - RAAI Insured - ----------------------------------------------------------------------------------------------------------------------------------- 11,515 Total Health Care 12,066,189 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 5.0% (3.4% OF TOTAL INVESTMENTS) 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,040,140 Housing Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) 250 Montgomery County, Ohio, GNMA Guaranteed Multifamily 10/18 at 101.00 Aaa 256,570 Housing Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 235 Ohio Housing Finance Agency, FHA-Insured Multifamily 6/16 at 102.00 AAA 230,991 Housing Mortgage Revenue Bonds, MadonnaHomes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 750 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 752,603 Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 2,235 Total Housing/Multifamily 2,280,304 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 2.2% (1.5% OF TOTAL INVESTMENTS) 995 Ohio Housing Finance Agency, Single Family Mortgage Revenue 9/15 at 100.00 Aaa 992,393 Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 10.8% (7.5% OF TOTAL INVESTMENTS) 3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 BBB+ 2,983,409 Revenue Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative Minimum Tax) 640 Ohio State Water Development Authority, Solid Waste Revenue 7/12 at 100.00 BBB 645,965 Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa3 1,143,390 Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 500 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 175,810 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 5,140 Total Industrials 4,948,574 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 43.3% (29.9% OF TOTAL INVESTMENTS) 1,700 Butler County, Hamilton, Ohio, Limited Tax General 11/11 at 101.00 A2 1,762,832 Obligation Bonds, One Renaissance Center Acquisition, Series 2001, 5.000%, 11/01/26 - AMBAC Insured Cleveland Municipal School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2004: 1,000 5.000%, 12/01/15 - AGM Insured 6/14 at 100.00 AAA 1,118,570 1,000 5.000%, 12/01/22 - AGM Insured 6/14 at 100.00 AAA 1,057,750 300 Columbus City School District, Franklin County, Ohio, No Opt. Call AAA 132,492 General Obligation Bonds, Series 2006, 0.000%, 12/01/27 - AGM Insured 400 Cuyahoga County, Ohio, General Obligation Bonds, Series 12/14 at 100.00 AA+ 432,056 2004, 5.000%, 12/01/21 1,000 Franklin County, Ohio, General Obligation Bonds, Series 12/17 at 100.00 AAA 1,095,810 2007, 5.000%, 12/01/27 400 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/15 at 100.00 AA 421,948 12/01/32 1,905 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 2,000,040 Bonds, Series 2007, 5.000%, 12/01/34 - AGM Insured 1,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 1,020,680 Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 345 Lakewood City School District, Cuyahoga County, Ohio, 12/17 at 100.00 AA- 359,387 General Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aa3 2,624,634 Center Bonds, Series 2002, 5.500%,12/01/22 - FGIC Insured 1,005 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 1,062,627 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - AGM Insured 200 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 211,776 Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31
Nuveen Investments 53 NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 $ 51,519 Obligation Bonds, Series 2008, 5.250%, 12/01/36 2,665 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 A 2,761,925 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured 400 Northmor Local School District, Morrow County, Ohio, 11/18 at 100.00 Aa3 412,476 General Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 1,960 Portage County, Ohio, General Obligation Bonds, Series 12/11 at 100.00 AA 2,074,523 2001, 5.000%, 12/01/25 - FGIC Insured 1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA+ 1,054,900 5.500%, 12/01/25 - FGIC Insured 50 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA 51,953 School Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 200 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 207,528 Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 - ----------------------------------------------------------------------------------------------------------------------------------- 19,000 Total Tax Obligation/General 19,915,426 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 14.6% (10.1% OF TOTAL INVESTMENTS) 175 Delaware County District Library, Delaware, Franklin, 12/19 at 100.00 A1 175,256 Marion, Morrow and Union Counties, Ohio, Library Fund Library Facilities Notes, Series 2009 (Special Obligation), 5.000%, 12/01/34 1,400 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 1,424,808 Series 2006, 5.000%, 12/01/32 - AMBAC Insured 250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 267,058 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - AGM Insured 1,000 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 1,065,830 Adult Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - AGM Insured 1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation 12/13 at 100.00 AA 1,180,322 Capital Facilities, Series 2004A-II, 5.000%, 12/01/18 4,065 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 835,886 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 3,940 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 751,988 Revenue Bonds, First Subordinate Series 2010A, 0.000%, 8/01/35 1,000 Summit County Port Authority, Ohio, Revenue Bonds, Civic 12/11 at 100.00 N/R 1,005,740 Theatre Project, Series 2001, 5.500%, 12/01/26 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 12,925 Total Tax Obligation/Limited 6,706,888 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 16.5% (11.4% OF TOTAL INVESTMENTS) (4) 605 Columbus City School District, Franklin County, Ohio, 12/14 at 100.00 AAA 719,224 General Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) - AGM Insured 1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aa3 (4) 1,081,020 Obligation Capital Improvement Bonds, Series 2001A, 5.125%, 12/01/21 (Pre-refunded 12/01/11) - MBIA Insured 2,250 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 2,447,099 Obligation Bonds, Series 2001, 5.500%, 12/01/21 (Pre-refunded 12/01/11) - AGM Insured 1,000 Marysville Exempted Village School District, Ohio, 6/15 at 100.00 N/R (4) 1,186,200 Certificates of Participation, School Facilities Project, Series 2005, 5.250%, 12/01/21 (Pre-refunded 6/01/15) - MBIA Insured 225 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 242,737 Water Development, Series 2001A, 5.000%, 12/01/21 (Pre-refunded 12/01/11) - AGM Insured 1,050 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 1,236,008 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.500%, 12/01/15 (Pre-refunded 6/01/14) - FGIC Insured 635 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 668,890 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) - ----------------------------------------------------------------------------------------------------------------------------------- 6,765 Total U.S. Guaranteed 7,581,178 - -----------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 9.5% (6.6% OF TOTAL INVESTMENTS) $ 1,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 $ 1,012,970 Series 2008, 5.250%, 2/15/43 1,065 Cleveland, Ohio, Public Power System Revenue Bonds, Series No Opt. Call A 312,173 2008B, 0.000%, 11/15/32 - NPFG Insured 2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/10 at 100.50 Baa1 2,446,125 Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 595 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 A1 612,779 Interest Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,160 Total Utilities 4,384,047 - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 0.9% (0.6% OF TOTAL INVESTMENTS) 130 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 131,323 Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured 210 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 227,640 Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - AGM Insured 45 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 48,039 Water Development, Series 2001A, 5.000%, 12/01/21 - AGM Insured - ----------------------------------------------------------------------------------------------------------------------------------- 385 Total Water and Sewer 407,002 - ----------------------------------------------------------------------------------------------------------------------------------- $ 71,705 Total Investments (cost $64,644,869) - 144.7% 66,540,693 =============---------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 1,059,576 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.0)% (5) (21,600,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 46,000,269 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.5%. N/R Not rated. (IF) Inverse floating rate investment. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 55 NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 6.7% (4.6% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 1,100 5.875%, 6/01/30 6/17 at 100.00 BBB $ 937,409 1,670 5.875%, 6/01/47 6/17 at 100.00 BBB 1,256,191 20 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 19,400 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ----------------------------------------------------------------------------------------------------------------------------------- 2,790 Total Consumer Staples 2,213,000 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 6.1% (4.2% OF TOTAL INVESTMENTS) 350 Ohio Higher Education Facilities Commission, General 7/16 at 100.00 A+ 350,165 Revenue Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 1,125 Ohio Higher Education Facilities Commission, Revenue 5/12 at 100.00 A3 1,183,196 Bonds, Ohio Northern University, Series 2002, 5.750%, 5/01/16 500 Ohio Higher Education Facilities Commission, Revenue 12/15 at 100.00 Baa2 470,565 Bonds, Wittenberg University, Series 2005, 5.000%, 12/01/24 - ----------------------------------------------------------------------------------------------------------------------------------- 1,975 Total Education and Civic Organizations 2,003,926 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 20.4% (14.1% OF TOTAL INVESTMENTS) 695 Butler County, Ohio, Hospital Facilities Revenue Bonds, 5/16 at 100.00 N/R 682,462 Cincinnati Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 600 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/19 at 100.00 Aa2 613,206 Children's Hospital Project, Improvement Series 2009, 5.250%, 11/01/40 250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 250,680 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 300 Lorain County, Ohio, Hospital Revenue Bonds, Catholic 10/12 at 100.00 AA- 302,985 Healthcare Partners Inc, Refunding Series 2002, 5.375%, 10/01/30 500 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 5/10 at 101.00 N/R 503,340 Healthcare Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured 160 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/16 at 100.00 A- 165,646 Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 500 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 507,685 Initiatives, Series 2004A, 5.000%, 5/01/30 60 Montgomery County, Ohio, Revenue Bonds, Miami Valley 11/14 at 100.00 Aa3 62,984 Hospital, Series 2009A, 6.250%, 11/15/39 1,500 Ohio State Higher Educational Facilities Commission, 1/15 at 100.00 A 1,595,760 Hospital Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 675 Ohio State, Hospital Facility Revenue Refunding Bonds, 1/19 at 100.00 Aa2 793,949 Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551, 19.967%, 1/01/39 (IF) 335 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 340,534 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 250 Richland County, Ohio, Hospital Revenue Bonds, MidCentral 11/16 at 100.00 A- 237,593 Health System Group, Series 2006, 5.250%, 11/15/36 60 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena 12/18 at 100.00 A 61,110 Health System Series 2008, 5.750%, 12/01/35 600 State of Ohio Hospital Revenue Bonds, Series 2008A 1/18 at 100.00 Aa2 632,598 (Cleveland Clinic Health System Obligated Group), 5.000%, 1/01/25 - ----------------------------------------------------------------------------------------------------------------------------------- 6,485 Total Health Care 6,750,532 - -----------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 3.4% (2.4% OF TOTAL INVESTMENTS) $ 200 Montgomery County, Ohio, GNMA Guaranteed Multifamily 10/18 at 101.00 Aaa $ 205,256 Housing Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 185 Ohio Housing Finance Agency, FHA-Insured Multifamily 6/16 at 102.00 AAA 181,844 Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 750 Summit County Port Authority, Ohio, Multifamily Housing 9/17 at 102.00 AAA 752,603 Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 1,135 Total Housing/Multifamily 1,139,703 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 3.2% (2.2% OF TOTAL INVESTMENTS) 110 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 115,408 Securities Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 385 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 408,797 Securities Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 45,504 Securities Program Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 500 Ohio Housing Finance Agency, Single Family Mortgage 9/15 at 100.00 Aaa 498,690 Revenue Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 1,040 Total Housing/Single Family 1,068,399 - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 6.9% (4.8% OF TOTAL INVESTMENTS) 555 Cleveland-Cuyahoga County Port Authority, Ohio, Common 5/12 at 102.00 N/R 529,015 Bond Fund Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 480 Ohio State Water Development Authority, Solid Waste 7/12 at 100.00 BBB 484,474 Revenue Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 1,000 Toledo-Lucas County Port Authority, Ohio, Revenue No Opt. Call Baa3 1,143,390 Refunding Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 400 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 140,648 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 2,435 Total Industrials 2,297,527 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 33.9% (23.4% OF TOTAL INVESTMENTS) 1,815 Columbus City School District, Franklin County, Ohio, No Opt. Call AAA 801,577 General Obligation Bonds, Series 2006, 0.000%, 12/01/27 - AGM Insured 300 Cuyahoga County, Ohio, General Obligation Bonds, Series 12/14 at 100.00 AA+ 324,042 2004, 5.000%, 12/01/21 1,000 Franklin County, Ohio, General Obligation Bonds, Series 12/17 at 100.00 AAA 1,095,810 2007, 5.000%, 12/01/27 250 Green, Ohio, General Obligation Bonds, Series 2008, 12/15 at 100.00 AA 263,718 5.500%, 12/01/32 1,275 Hamilton City School District, Ohio, General Obligation 6/17 at 100.00 AAA 1,338,610 Bonds, Series 2007, 5.000%, 12/01/34 - AGM Insured 1,000 Indian Lake Local School District, Logan and Auglaize 6/17 at 100.00 A+ 1,020,680 Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - NPFG Insured 1,000 Kenston Local School District, Geauga County, Ohio, 6/13 at 100.00 Aa3 1,076,260 General Obligation Bonds, Series 2003, 5.000%, 12/01/22 - NPFG Insured 210 Lakewood City School District, Cuyahoga County, Ohio, 12/17 at 100.00 AA- 226,223 General Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured 1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Baa2 1,274,597 5.125%, 12/01/26 - AMBAC Insured 500 Marysville Exempted School District, Union County, Ohio, 12/15 at 100.00 AAA 528,670 General Obligation Bonds, Series 2006, 5.000%, 12/01/25 - AGM Insured 100 Mason City School District, Counties of Warren and Butler, 6/17 at 100.00 Aa1 105,888 Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General 12/18 at 100.00 A2 51,519 Obligation Bonds, Series 2008, 5.250%, 12/01/36
Nuveen Investments 57 NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 150 Northmor Local School District, Morrow County, Ohio, 11/18 at 100.00 Aa3 $ 154,679 General Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 1,000 Ohio, Common Schools Capital Facilities, General 9/11 at 100.00 AA+ 1,070,060 Obligation Bonds, Series 2001B, 5.000%, 9/15/20 1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AAA 1,246,593 Bonds, Series 2002, 5.000%, 12/01/18 500 Sylvania City School District, Ohio, General Obligation 6/17 at 100.00 AAA 519,525 School Improvement Bonds, Series 1995, 5.250%, 12/01/36 - AGC Insured 100 Vandalia Butler City School District, Montgomery County, No Opt. Call AA 103,764 Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 - ----------------------------------------------------------------------------------------------------------------------------------- 11,650 Total Tax Obligation/General 11,202,215 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 13.5% (9.3% OF TOTAL INVESTMENTS) 75 Delaware County District Library, Delaware, Franklin, 12/19 at 100.00 A1 75,110 Marion, Morrow and Union Counties, Ohio, Library Fund Library Facilities Notes, Series 2009 (Special Obligation), 5.000%, 12/01/34 1,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 1,017,720 Series 2006, 5.000%, 12/01/32 - AMBAC Insured 1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 1,008,990 Certificates of Participation, Series 2003, 5.000%, 11/01/30 1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,377,038 Administrative Building Fund Projects, Series 2002A, 5.500%, 4/01/18 - AGM Insured 200 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 213,646 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - AGM Insured 2,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 411,260 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 1,835 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 350,228 Revenue Bonds, First Subordinate Series 2010A, 0.000%, 8/01/35 - ----------------------------------------------------------------------------------------------------------------------------------- 7,360 Total Tax Obligation/Limited 4,453,992 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 5.5% (3.8% OF TOTAL INVESTMENTS) 1,550 Ohio Turnpike Commission, Revenue Refunding Bonds, Series No Opt. Call AA 1,833,449 1998A, 5.500%, 2/15/18 - FGIC Insured - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 36.4% (25.1% OF TOTAL INVESTMENTS) (4) 725 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 A1 (4) 830,596 Obligation Bonds, Series 2002, 5.750%, 12/01/21 (Pre-refunded 12/01/12) - FGIC Insured 1,300 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 (4) 1,411,228 Obligation Bonds, Series 2001, 5.500%, 12/01/28 (Pre-refunded 12/01/11) 1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA (4) 1,125,620 5.375%, 12/01/22 (Pre-refunded 12/01/12) 500 Miami East Local School District, Miami County, Ohio, 6/12 at 100.00 AAA 550,295 General Obligation Bonds, Series 2002, 5.125%, 12/01/29 (Pre-refunded 6/01/12) - AGM Insured 1,000 Montgomery County, Ohio, Hospital Facilities Revenue 4/10 at 101.00 A (4) 1,016,340 Bonds, Kettering Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10) 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 Aa2 (4) 1,071,860 Initiatives, Series 2001, 5.500%, 9/01/12 (Pre-refunded 9/01/11) 2,000 Ohio Higher Education Facilities Commission, Revenue 10/12 at 100.00 N/R (4) 2,242,496 Bonds, Case Western Reserve University, Series 2002B, 5.500%, 10/01/22 (Pre-refunded 10/01/12) 230 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 248,131 Water Development, Series 2001A, 5.000%, 12/01/21 (Pre-refunded 12/01/11) - AGM Insured 1,000 Olentangy Local School District, Delaware and Franklin 6/14 at 100.00 AA+ (4) 1,166,790 Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/21 (Pre-refunded 6/01/14) - FGIC Insured 1,535 Pickerington Local School District, Fairfield and 12/11 at 100.00 AA- (4) 1,661,883 Franklin Counties, Ohio, General Obligation Bonds, School Facilities Construction and Improvement, Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) - FGIC Insured 665 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- (4) 700,491 Improvement Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) - ----------------------------------------------------------------------------------------------------------------------------------- 10,955 Total U.S. Guaranteed 12,025,730 - -----------------------------------------------------------------------------------------------------------------------------------
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.7% (5.3% OF TOTAL INVESTMENTS) $ 500 American Municipal Power Ohio Inc., General Revenue 2/18 at 100.00 A1 $ 506,485 Bonds, Series 2008, 5.250%, 2/15/43 1,500 American Municipal Power Ohio Inc., Wadsworth, Electric 2/12 at 100.00 A2 1,565,115 System Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - NPFG Insured 1,595 Cleveland, Ohio, Public Power System Revenue Bonds, No Opt. Call A 467,526 Series 2008B, 0.000%, 11/15/32 - NPFG Insured ----------------------------------------------------------------------------------------------------------------------------------- 3,595 Total Utilities 2,539,126 ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 1.1% (0.8% OF TOTAL INVESTMENTS) 130 City of Marysville, Ohio, Water System Mortgage Revenue 12/17 at 100.00 A3 131,323 Bonds, Series 2007, 5.000%, 12/01/32 - AMBAC Insured 160 Ohio Water Development Authority, Revenue Bonds, Drinking 6/18 at 100.00 AAA 173,440 Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - AGM Insured 40 Ohio Water Development Authority, Revenue Bonds, Fresh 12/11 at 100.00 AAA 42,701 Water Development, Series 2001A, 5.000%, 12/01/21 - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 330 Total Water and Sewer 347,464 - ------------------------------------------------------------------------------------------------------------------------------------ $ 51,300 Total Investments (cost $45,585,789) - 144.8% 47,875,063 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 686,620 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (46.9)% (5) (15,500,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 33,061,683 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.4%. N/R Not rated. (IF) Inverse floating rate investment. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 59 | Statement of | Assets & Liabilities February 28, 2010
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - -------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $248,315,094, $159,438,589 and $42,521,861, respectively) $ 258,410,792 $ 162,988,845 $ 43,529,285 Cash 639,855 626,126 65,559 Receivables: Interest 3,779,173 2,573,340 635,822 Investments sold -- -- -- Other assets 54,595 49,080 12,202 - -------------------------------------------------------------------------------------------------------------------------------- Total assets 262,884,415 166,237,391 44,242,868 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations 3,630,000 2,330,000 665,000 Payables: Investments purchased -- -- -- Common share dividends 686,718 428,884 127,931 Preferred share dividends 2,860 2,089 499 Accrued expenses: Management fees 126,448 80,540 18,136 Other 129,899 76,518 29,425 - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 4,575,925 2,918,031 840,991 - -------------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 87,325,000 53,700,000 14,275,000 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 170,983,490 $ 109,619,360 $ 29,126,877 ================================================================================================================================ Common shares outstanding 11,561,053 7,613,948 2,054,786 ================================================================================================================================ Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.79 $ 14.40 $ 14.18 ================================================================================================================================ NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - -------------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 115,611 $ 76,139 $ 20,548 Paid-in surplus 162,163,959 106,838,046 29,127,931 Undistributed (Over-distribution of) net investment income 2,052,752 1,308,096 327,171 Accumulated net realized gain (loss) (3,444,530) (2,153,177) (1,356,197) Net unrealized appreciation (depreciation) 10,095,698 3,550,256 1,007,424 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 170,983,490 $ 109,619,360 $ 29,126,877 ================================================================================================================================ Authorized shares: Common 200,000,000 200,000,000 Unlimited Preferred 1,000,000 1,000,000 Unlimited ================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 60 Nuveen Investments
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $218,693,518, $89,006,604, $64,644,869 and $45,585,789, respectively) $ 227,627,910 $ 92,056,406 $ 66,540,693 $ 47,875,063 Cash 1,572,648 787,246 546,751 445,938 Receivables: Interest 2,888,233 1,235,319 975,914 678,737 Investments sold 190,000 80,000 -- 45,000 Other assets 26,646 12,235 14,898 27,439 - --------------------------------------------------------------------------------------------------------------------------------- Total assets 232,305,437 94,171,206 68,078,256 49,072,177 - --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations -- -- -- -- Payables: Investments purchased 1,029,795 514,898 205,959 308,939 Common share dividends 622,596 280,748 204,463 151,792 Preferred share dividends 2,573 1,013 1,566 744 Accrued expenses: Management fees 113,600 38,551 28,373 18,036 Other 98,030 45,501 37,626 30,983 - --------------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,866,594 880,711 477,987 510,494 - --------------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 73,000,000 29,000,000 21,600,000 15,500,000 - --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 157,438,843 $ 64,290,495 $ 46,000,269 $ 33,061,683 ================================================================================================================================= Common shares outstanding 9,746,032 4,243,493 3,121,477 2,156,758 ================================================================================================================================= Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 16.15 $ 15.15 $ 14.74 $ 15.33 ================================================================================================================================= NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - --------------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 97,460 $ 42,435 $ 31,215 $ 21,568 Paid-in surplus 147,812,939 60,272,123 44,255,705 30,521,415 Undistributed (Over-distribution of) net investment income 1,981,139 901,121 566,366 459,793 Accumulated net realized gain (loss) (1,387,087) 25,014 (748,841) (230,367) Net unrealized appreciation (depreciation) 8,934,392 3,049,802 1,895,824 2,289,274 - --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 157,438,843 $ 64,290,495 $ 46,000,269 $ 33,061,683 ================================================================================================================================= Authorized shares: Common 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited Unlimited =================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 61 | Statement of | Operations Year Ended February 28, 2010
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - ---------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 12,829,934 $ 8,274,052 $ 2,208,387 - ---------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 1,632,303 1,039,702 276,922 Preferred shares - auction fees 147,607 90,797 24,150 Preferred shares - dividend disbursing agent fees 20,000 20,000 10,000 Shareholders' servicing agent fees and expenses 17,825 13,590 643 Interest expense on floating rate obligations 36,481 23,416 6,683 Custodian's fees and expenses 52,473 36,012 14,577 Directors'/Trustees' fees and expenses 8,261 5,235 1,383 Professional fees 35,152 25,881 12,056 Shareholders' reports - printing and mailing expenses 46,720 35,008 12,558 Stock exchange listing fees 9,219 9,219 292 Investor relations expense 18,698 12,416 3,413 Other expenses 33,236 22,655 17,931 - ---------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 2,057,975 1,333,931 380,608 Custodian fee credit (428) (414) (26) Expense reimbursement -- -- (55,445) - ---------------------------------------------------------------------------------------------------------------------- Net expenses 2,057,547 1,333,517 325,137 - ---------------------------------------------------------------------------------------------------------------------- Net investment income 10,772,387 6,940,535 1,883,250 - ---------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (1,126,911) (479,222) (758,274) Change in net unrealized appreciation (depreciation) of investments 13,314,923 7,688,095 3,453,979 - ---------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 12,188,012 7,208,873 2,695,705 - ---------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (440,076) (271,823) (64,791) - ---------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (440,076) (271,823) (64,791) - ---------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 22,520,323 $ 13,877,585 $ 4,514,164 ======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 62 Nuveen Investments
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 11,609,090 $ 4,755,381 $ 3,387,808 $ 2,507,309 - ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 1,451,275 598,283 429,255 311,526 Preferred shares - auction fees 126,945 51,369 38,503 27,385 Preferred shares - dividend disbursing agent fees 30,000 10,000 10,000 10,000 Shareholders' servicing agent fees and expenses 19,608 1,053 1,150 849 Interest expense on floating rate obligations -- -- -- -- Custodian's fees and expenses 47,414 23,394 18,462 15,320 Directors'/Trustees' fees and expenses 7,365 3,027 2,175 1,568 Professional fees 31,925 16,800 14,405 12,638 Shareholders' reports - printing and mailing expenses 46,726 19,669 16,546 13,648 Stock exchange listing fees 9,219 599 441 305 Investor relations expense 17,075 6,516 4,988 3,674 Other expenses 25,103 19,714 18,693 18,047 - ---------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 1,812,655 750,424 554,618 414,960 Custodian fee credit (192) (240) (254) (180) Expense reimbursement -- (96,845) (85,828) (74,684) - ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 1,812,463 653,339 468,536 340,096 - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income 9,796,627 4,102,042 2,919,272 2,167,213 - ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 363,546 222,662 (18,550) (180,875) Change in net unrealized appreciation (depreciation) of investments 13,563,229 4,711,810 4,761,551 2,739,661 - ---------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 13,926,775 4,934,472 4,743,001 2,558,786 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (380,264) (156,209) (115,975) (83,432) - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (380,264) (156,209) (115,975) (83,432) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 23,343,138 $ 8,880,305 $ 7,546,298 $ 4,642,567 ==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 63 | Statement of | Changes in Net Assets
MICHIGAN MICHIGAN QUALITY INCOME (NUM) PREMIUM INCOME (NMP) --------------------------------------------- ---------------------------------------------- SEVEN SEVEN YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED 2/28/10 2/28/09 7/31/08 2/28/10 2/28/09 7/31/08 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 10,772,387 $ 6,297,863 $ 10,847,892 $ 6,940,535 $ 4,032,688 $ 6,913,995 Net realized gain (loss) from: Investments (1,126,911) (1,757,557) (263,137) (479,222) (1,285,668) (512,989) Forward swaps -- -- -- -- 69,797 (6,970) Futures contracts -- -- -- -- 41,405 -- Change in net unrealized appreciation (depreciation) of: Investments 13,314,923 (5,268,940) (7,931,308) 7,688,095 (3,725,846) (5,009,333) Forward swaps -- -- -- -- (71,362) 207,726 Futures contracts -- -- -- -- (13,813) 13,813 Distributions to Preferred shareholders: From net investment income (440,076) (1,528,357) (2,850,189) (271,823) (911,943) (1,775,079) From accumulated net realized gains -- -- (431,262) -- -- (187,020) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 22,520,323 (2,256,991) (628,004) 13,877,585 (1,864,742) (355,857) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (8,473,599) (4,551,261) (7,897,051) (5,420,952) (2,906,120) (5,138,948) From accumulated net realized gains -- -- (1,193,754) -- -- (574,353) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (8,473,599) (4,551,261) (9,090,805) (5,420,952) (2,906,120) (5,713,301) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased and retired (1,779,734) -- -- (1,271,720) (283,094) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions (1,779,734) -- -- (1,271,720) (283,094) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 12,266,990 (6,808,252) (9,718,809) 7,184,913 (5,053,956) (6,069,158) Net assets applicable to Common shares at the beginning of period 158,716,500 165,524,752 175,243,561 102,434,447 107,488,403 113,557,561 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $ 170,983,490 $ 158,716,500 $ 165,524,752 $ 109,619,360 $ 102,434,447 $ 107,488,403 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 2,052,752 $ 210,824 $ (7,421) $ 1,308,096 $ 73,500 $ (141,120) ====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 64 Nuveen Investments
MICHIGAN OHIO DIVIDEND ADVANTAGE (NZW) QUALITY INCOME (NUO) ------------------------------------------ ---------------------------------------------- SEVEN SEVEN YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED 2/28/10 2/28/09 7/31/08 2/28/10 2/28/09 7/31/08 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,883,250 $ 1,113,258 $ 1,952,639 $ 9,796,627 $ 5,455,829 $ 9,258,185 Net realized gain (loss) from: Investments (758,274) (206,695) (97,468) 363,546 (963,174) (894,117) Forward swaps -- -- -- -- -- (113,636) Futures contracts -- -- -- -- 348,303 (8,573) Change in net unrealized appreciation (depreciation) of: Investments 3,453,979 (1,840,743) (1,870,613) 13,563,229 (4,408,974) (6,068,561) Forward swaps -- -- -- -- -- 141,307 Futures contracts -- -- -- -- (101,622) 101,622 Distributions to Preferred shareholders: From net investment income (64,791) (265,934) (491,691) (380,264) (1,253,559) (2,439,092) From accumulated net realized gains -- (8,429) (48,339) -- -- (235,804) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 4,514,164 (1,208,543) (555,472) 23,343,138 (923,197) (258,669) - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,474,799) (815,426) (1,457,223) (7,787,080) (3,810,698) (6,520,095) From accumulated net realized gains -- (24,804) (150,270) -- -- (656,883) - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,474,799) (840,230) (1,607,493) (7,787,080) (3,810,698) (7,176,978) - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 8,680 -- -- -- Repurchased and retired (148,424) -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (148,424) -- 8,680 -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares 2,890,941 (2,048,773) (2,154,285) 15,556,058 (4,733,895) (7,435,647) Net assets applicable to Common shares at the beginning of period 26,235,936 28,284,709 30,438,994 141,882,785 146,616,680 154,052,327 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 29,126,877 $ 26,235,936 $ 28,284,709 $ 157,438,843 $ 141,882,785 $ 146,616,680 - ----------------------------------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of period $ 327,171 $ (16,421) $ (48,259) $ 1,981,139 $ 355,545 $ 3,336 ===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 65 | Statement of | Changes in Net Assets (continued)
OHIO OHIO DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------ ------------------------------------------- SEVEN SEVEN YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED 2/28/10 2/28/09 7/31/08 2/28/10 2/28/09 7/31/08 - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 4,102,042 $ 2,294,907 $ 3,959,340 $ 2,919,272 $ 1,675,202 $ 2,890,350 Net realized gain (loss) from: Investments 222,662 (160,768) (240,447) (18,550) (424,412) (326,158) Forward swaps -- 104,696 (31,726) -- -- (45,455) Futures contracts -- 276,060 (8,580) -- 64,124 -- Change in net unrealized appreciation (depreciation) of: Investments 4,711,810 (2,005,025) (2,295,579) 4,761,551 (2,249,194) (1,953,136) Forward swaps -- (107,042) 220,088 -- -- 56,523 Futures contracts -- (41,291) 41,291 -- (19,976) 19,976 Distributions to Preferred shareholders: From net investment income (156,209) (507,674) (974,550) (115,975) (391,035) (790,428) From accumulated net realized gains -- -- (133,387) -- -- (67,354) - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 8,880,305 (146,137) 536,450 7,546,298 (1,345,291) (215,682) - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,281,918) (1,629,732) (2,775,637) (2,300,529) (1,186,161) (2,007,110) From accumulated net realized gains -- -- (399,794) -- -- (185,104) - -------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,281,918) (1,629,732) (3,175,431) (2,300,529) (1,186,161) (2,192,214) - -------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased and retired -- (6,912) -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- (6,912) -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares 5,598,387 (1,782,781) (2,638,981) 5,245,769 (2,531,452) (2,407,896) Net assets applicable to Common shares at the beginning of period 58,692,108 60,474,889 63,113,870 40,754,500 43,285,952 45,693,848 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 64,290,495 $ 58,692,108 $ 60,474,889 $ 46,000,269 $ 40,754,500 $ 43,285,952 ================================================================================================================================ Undistributed (Over-distribution of) net investment income at the end of period $ 901,121 $ 250,348 $ 108,618 $ 566,366 $ 65,127 $ (32,879) ================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 66 Nuveen Investments
OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------- SEVEN YEAR ENDED MONTHS ENDED YEAR ENDED 2/28/10 2/28/09 7/31/08 - ----------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,167,213 $ 1,194,279 $ 2,053,018 Net realized gain (loss) from: Investments (180,875) (55,182) (272,641) Forward swaps -- 104,696 -- Futures contracts -- 173,467 23,859 Change in net unrealized appreciation (depreciation) of: Investments 2,739,661 (958,880) (1,043,820) Forward swaps -- (107,042) 107,042 Futures contracts -- (21,252) 9,550 Distributions to Preferred shareholders: From net investment income (83,432) (265,893) (496,884) From accumulated net realized gains -- -- (45,494) - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 4,642,567 64,193 334,630 - ------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,708,152) (857,987) (1,454,801) From accumulated net realized gains -- -- (132,313) - ------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,708,152) (857,987) (1,587,114) - ------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- Repurchased and retired -- (20,129) -- - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- (20,129) -- - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 2,934,415 (813,923) (1,252,484) Net assets applicable to Common shares at the beginning of period 30,127,268 30,941,191 32,193,675 - ------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $ 33,061,683 $ 30,127,268 $ 30,941,191 ================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 459,793 $ 87,202 $ 24,308 ==================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 67 | Notes to | Financial Statements 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP), Nuveen Michigan Dividend Advantage Municipal Fund (NZW), Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO), Nuveen Ohio Dividend Advantage Municipal Fund (NXI), Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) and Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (collectively, the "Funds"). Common shares of Michigan Quality Income (NUM), Michigan Premium Income (NMP), and Ohio Quality Income (NUO) are traded on the New York Stock Exchange (NYSE) while Common shares of Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards Codification(TM) (the "Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The Codification supersedes existing non-grandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification did not have a material effect on the Funds' financial statements. During the fiscal period ended February 28, 2009, the Board of Directors/Trustees of the Funds approved a change in the Funds' fiscal and tax year ends from July 31 to February 28/29. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with US generally accepted accounting principles. INVESTMENT VALUATION The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. Futures contracts are valued using the closing settlement price. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Directors/Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates value. INVESTMENT TRANSACTIONS Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At February 28, 2010, 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. 68 Nuveen Investments INCOME TAXES Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that 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. For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from US generally accepted accounting principles. PREFERRED SHARES The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of February 28, 2010, the number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - -------------------------------------------------------------------------------- Number of shares: Series M -- 805 -- Series W -- -- 571 Series TH 2,972 1,343 -- Series F 521 -- -- - -------------------------------------------------------------------------------- Total 3,493 2,148 571 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - -------------------------------------------------------------------------------- Number of shares: Series M 645 -- -- -- Series T -- -- -- 620 Series W -- 1,160 -- -- Series TH 1,327 -- -- -- Series TH2 948 -- -- -- Series F -- -- 864 -- - -------------------------------------------------------------------------------- Total 2,920 1,160 864 620 ================================================================================ Nuveen Investments 69 | Notes to | Financial Statements (continued) Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the Preferred shares. As of February 28, 2010, the aggregate amount of outstanding Preferred shares redeemed by each Fund is as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - ----------------------------------------------------------------------------------------------------- Preferred shares redeemed, at liquidation value $6,675,000 $2,300,000 $1,725,000 =====================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - ----------------------------------------------------------------------------------------------------- Preferred shares redeemed, at liquidation value $4,000,000 $2,000,000 $2,400,000 $1,000,000 =====================================================================================================
INVERSE FLOATING RATE SECURITIES Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust reflected as a financing transaction," with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as "Interest expense on floating rate obligations" on the Statement of Operations. During the fiscal year ended February 28, 2010, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At February 28, 2010, the Funds were not invested in externally-deposited Recourse Trusts.
MICHIGAN MICHIGAN MICHIGAN OHIO OHIO OHIO OHIO QUALITY PREMIUM DIVIDEND QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME INCOME ADVANTAGE INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUM) (NMP) (NZW) (NUO) (NXI) (NBJ) (NVJ) - ----------------------------------------------------------------------------------------------------------------------- Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ -- $ -- $ -- =======================================================================================================================
70 Nuveen Investments The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters for the following Funds during the fiscal year ended February 28, 2010, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - ----------------------------------------------------------------------------------- Average floating rate obligations outstanding $3,450,986 $2,215,096 $632,205 Average annual interest rate and fees 1.06% 1.06% 1.06% ================================================================================---
FORWARD SWAP CONTRACTS Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality). Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as "Unrealized appreciation or depreciation on forward swaps" with the change during the fiscal period recognized on the Statement of Operations as "Change in net unrealized appreciation (depreciation) of forward swaps." The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as "Net realized gain (loss) from forward swaps." Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. The Funds did not invest in forward interest rate swap transactions during the fiscal year ended February 28, 2010. FUTURES CONTRACTS Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in attempt to manage such risk. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the "initial margin." Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as "Deposits with brokers for open futures contracts" on the Statement of Assets and Liabilities. Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable or payable for "Variation margin on futures contracts" on the Statement of Assets and Liabilities, when applicable. During the period the futures contract is open, changes in the value of the contract are recorded as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract and is recognized as "Change in net unrealized appreciation (depreciation) of futures contracts" on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into and is recognized as "Net realized gain (loss) from futures contracts" on the Statement of Operations. Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. The Funds did not invest in futures contracts during the fiscal year ended February 28, 2010. MARKET AND COUNTERPARTY CREDIT RISK In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Nuveen Investments 71 | Notes to | Financial Statements (continued) Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount. ZERO COUPON SECURITIES Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolios of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. CUSTODIAN FEE CREDIT Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank. INDEMNIFICATIONS Under the Funds' organizational documents, their officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. USE OF ESTIMATES The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FAIR VALUE MEASUREMENTS In determining the value of each Fund's investments, various inputs are used. These inputs are summarized in the three broad levels listed below: Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 - Significant unobservable inputs (including management's assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of February 28, 2010:
MICHIGAN QUALITY INCOME (NUM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $258,410,792 $ -- $258,410,792 ================================================================================================= MICHIGAN PREMIUM INCOME (NMP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $162,988,845 $ -- $162,988,845 ================================================================================================= MICHIGAN DIVIDEND ADVANTAGE (NZW) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 43,529,285 $ -- $ 43,529,285 =================================================================================================
72 Nuveen Investments
OHIO QUALITY INCOME (NUO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $227,627,910 $ -- $227,627,910 ================================================================================================= OHIO DIVIDEND ADVANTAGE (NXI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 92,056,406 $ -- $ 92,056,406 ================================================================================================= OHIO DIVIDEND ADVANTAGE 2 (NBJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 66,540,693 $ -- $ 66,540,693 ================================================================================================= OHIO DIVIDEND ADVANTAGE 3 (NVJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 47,875,063 $ -- $ 47,875,063 =================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the current fiscal period, the Funds adopted amendments to authoritative guidance under GAAP on disclosures about derivative instruments and hedging activities. This guidance is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to better understand: a) how and why a fund uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect a fund's financial position, results of operations and cash flows, if any. The Funds record derivative instruments at fair value with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended February 28, 2010. 4. FUND SHARES COMMON SHARES Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM INCOME (NUM) INCOME (NMP) --------------------------------- ---------------------------------- YEAR SEVEN MONTHS YEAR YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 2/28/10 2/28/09 7/31/08 - -------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased and retired (153,900) -- -- (110,400) (26,700) -- - -------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased and retired $11.54 -- -- $11.50 $10.58 -- Discount per share repurchased and retired 18.15% -- -- 17.11% 20.80% -- ==========================================================================================================================
MICHIGAN DIVIDEND OHIO QUALITY ADVANTAGE (NZW) INCOME (NUO) --------------------------------- ---------------------------------- YEAR SEVEN MONTHS YEAR YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 2/28/10 2/28/09 7/31/08 - -------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- 595 -- -- -- Repurchased and retired (12,200) -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased and retired $12.15 -- -- -- -- -- Discount per share repurchased and retired 13.24% -- -- -- -- -- ==========================================================================================================================
Nuveen Investments 73 | Notes to | Financial Statements (continued)
OHIO DIVIDEND OHIO DIVIDEND ADVANTAGE (NXI) ADVANTAGE 2 (NBJ) --------------------------------- ---------------------------------- YEAR SEVEN MONTHS YEAR YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 2/28/10 2/28/09 7/31/08 - -------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased and retired -- (600) -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased and retired -- $11.50 -- -- -- -- Discount per share repurchased and retired -- 17.21% -- -- -- -- ==========================================================================================================================
OHIO DIVIDEND ADVANTAGE 3 (NVJ) ---------------------------------- YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 - -------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- Repurchased and retired -- (1,700) -- - -------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased and retired -- $11.82 -- Discount per share repurchased and retired -- 16.10% -- ==========================================================================================================================
PREFERRED SHARES Transactions in Preferred shares were as follows:
MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------ YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 ------------------------------------------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series TH 122 $3,050,000 106 $2,650,000 -- $ -- Series F 21 525,000 18 450,000 -- -- - ----------------------------------------------------------------------------------------------------------------------- Total 143 $3,575,000 124 $3,100,000 -- $ -- =======================================================================================================================
MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------ YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 ------------------------------------------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series M 35 $ 875,000 -- $ -- -- $ -- Series TH 57 1,425,000 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- Total 92 $2,300,000 -- $ -- -- $ -- =======================================================================================================================
74 Nuveen Investments
MICHIGAN DIVIDEND ADVANTAGE (NZW) --------------------------------------------------------------- YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 --------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series W 26 $650,000 43 $1,075,000 -- $ -- ==========================================================================================================================
OHIO QUALITY INCOME (NUO) --------------------------------------------------------------- YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 --------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series M 35 $ 875,000 -- $ -- -- $ -- Series TH 73 1,825,000 -- -- -- -- Series TH2 52 1,300,000 -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total 160 $4,000,000 -- $ -- -- $ -- ==========================================================================================================================
OHIO DIVIDEND ADVANTAGE (NXI) --------------------------------------------------------------- YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 --------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series T 80 $2,000,000 -- $ -- -- $ -- ==========================================================================================================================
OHIO DIVIDEND ADVANTAGE 2 (NBJ) --------------------------------------------------------------- YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/08 --------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series F 60 $1,500,000 36 $900,000 -- $ -- ==========================================================================================================================
OHIO DIVIDEND ADVANTAGE 3 (NVJ) --------------------------------------------------------------- YEAR SEVEN MONTHS YEAR ENDED ENDED ENDED 2/28/10 2/28/09 7/31/09 --------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series T 40 $1,000,000 -- $ -- -- $ -- ==========================================================================================================================
MUNIFUND TERM PREFERRED SHARES During January 2010, Michigan Dividend Advantage (NZW) and Ohio Dividend Advantage 3 (NVJ) filed with the Securities and Exchange Commission (SEC) a registration statement seeking to register MTP. These registration statements, declared effective by the SEC, enable the Funds to issue to the public shares of MTP to refinance all or a portion of their ARPS. The issuance of MTP by these Funds is subject to market conditions. There is no assurance that these MTP shares will be issued. Nuveen Investments 75 | Notes to | Financial Statements (continued) 5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the fiscal year ended February 28, 2010, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Purchases $ 24,345,889 $ 19,798,850 $ 3,094,489 Sales and maturities 23,849,386 19,453,989 2,727,220 =====================================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------- Purchases $ 14,552,863 $ 5,939,043 $ 5,423,046 $ 6,452,863 Sales and maturities 13,705,919 7,332,414 6,142,902 7,124,018 =====================================================================================================================
6. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At February 28, 2010, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Cost of investments $244,996,805 $157,283,489 $41,898,032 =====================================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------- Cost of investments $218,568,487 $ 88,970,270 $ 64,636,296 $45,557,939 =====================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2010, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 12,355,284 $ 4,815,415 $ 1,628,277 Depreciation (2,570,721) (1,439,601) (661,800) - --------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 9,784,563 $ 3,375,814 $ 966,477 =====================================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 11,851,544 $ 4,516,364 $ 2,801,992 $ 3,002,196 Depreciation (2,792,121) (1,430,228) (897,595) (685,072) - --------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 9,059,423 $ 3,086,136 $ 1,904,397 $ 2,317,124 =====================================================================================================================
76 Nuveen Investments The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at February 28, 2010, the Funds' tax year end, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income* $ 2,713,075 $ 1,776,023 $ 444,067 Undistributed net ordinary income** 969 177 90 Undistributed net long-term capital gains -- -- -- =====================================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income* $ 2,526,500 $ 1,105,725 $ 749,997 $ 584,364 Undistributed net ordinary income** 53,384 58,022 24,745 5,763 Undistributed net long-term capital gains -- 24,115 -- -- =====================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 1, 2010, paid on March 1, 2010. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the Funds' tax years ended February 28, 2010, February 28, 2009 and July 31, 2008, was designated for purposes of the dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE YEAR ENDED FEBRUARY 28, 2010 (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income*** $ 8,303,611 $ 5,617,873 $ 1,531,890 Distributions from net ordinary income** -- -- -- Distributions from net long-term capital gains**** -- -- -- =====================================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 YEAR ENDED FEBRUARY 28, 2010 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income*** $ 7,994,424 $ 3,335,906 $ 2,373,144 $ 1,758,180 Distributions from net ordinary income** -- 39,995 -- -- Distributions from net long-term capital gains**** -- -- -- -- =====================================================================================================================
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 6,134,177 $ 3,859,940 $ 1,079,536 Distributions from net ordinary income** -- -- -- Distributions from net long-term capital gains -- -- 33,173 =====================================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUO) (NXI) (NBJ) (NVJ) - -------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 5,095,614 $ 2,133,665 $ 1,578,459 $ 1,122,076 Distributions from net ordinary income** -- -- -- -- Distributions from net long-term capital gains -- -- -- -- =====================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended February 28, 2010, as Exempt Interest Dividends. **** The Funds designate as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended February 28, 2010. Nuveen Investments 77 | Notes to | Financial Statements (continued)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE YEAR ENDED JULY 31, 2008 (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 10,748,540 $ 6,922,965 $ 1,960,679 Distributions from net ordinary income** 68,426 12,818 -- Distributions from net long-term capital gains 1,574,122 748,463 198,609 =====================================================================================================================
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 YEAR ENDED JULY 31, 2008 (NUO) (NXI) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 8,988,444 $ 3,778,712 $ 2,803,986 $ 1,968,527 Distributions from net ordinary income** 10,212 -- 3,297 -- Distributions from net long-term capital gains 882,398 532,929 248,931 177,807 =====================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At February 28, 2010, the Funds' tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - --------------------------------------------------------------------------------------------------------------------- Expiration: February 29, 2016 $ -- $ 34,858 $ -- February 28, 2017 337,855 336,297 457,422 February 28, 2018 2,690,744 1,586,140 834,359 - --------------------------------------------------------------------------------------------------------------------- Total $ 3,028,599 $ 1,957,295 $ 1,291,781 =====================================================================================================================
OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND INCOME ADVANTAGE 2 ADVANTAGE 3 (NUO) (NBJ) (NVJ) - --------------------------------------------------------------------------------------------------------------------- Expiration: February 29, 2016 $ -- $ 14,045 $ -- February 28, 2017 1,309,059 522,972 52,532 February 28, 2018 78,027 211,828 177,836 - --------------------------------------------------------------------------------------------------------------------- Total $ 1,387,086 $ 748,845 $ 230,368 =====================================================================================================================
Michigan Dividend Advantage (NZW) elected to defer net realized losses from investments incurred from November 1, 2009 through February 28, 2010, the Fund's tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October capital losses of $8,448 are treated as having arisen on the first day of the following fiscal year. 7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all fund assets managed by the Adviser. This pricing structure enables each Fund's shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser. 78 Nuveen Investments The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule: MICHIGAN QUALITY INCOME (NUM) MICHIGAN PREMIUM INCOME (NMP) OHIO QUALITY INCOME (NUO) AVERAGE DAILY NET ASSETS* FUND-LEVEL FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ MICHIGAN DIVIDEND ADVANTAGE (NZW) OHIO DIVIDEND ADVANTAGE (NXI) OHIO DIVIDEND ADVANTAGE 2 (NBJ) OHIO DIVIDEND ADVANTAGE 3 (NVJ) AVERAGE DAILY NET ASSETS* FUND-LEVEL FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL* EFFECTIVE RATE AT BREAKPOINT LEVEL - -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ * The complex-level fee component of the management fee for the funds is calculated based upon the aggregate daily managed assets of all Nuveen funds, with such daily managed assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fees, daily managed assets include assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds' use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed assets in certain circumstances. As of February 28, 2010, the complex-level fee rate was .1874%. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent directors/trustees that enables directors/trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. Nuveen Investments 79 | Notes to | Financial Statements (continued) For the first ten years of Ohio Dividend Advantage's (NXI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Ohio Dividend Advantage (NXI) for any portion of its fees and expenses beyond March 31, 2011. For the first ten years of Michigan Dividend Advantage's (NZW) and Ohio Dividend Advantage 2's (NBJ) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Michigan Dividend Advantage (NZW) and Ohio Dividend Advantage 2 (NBJ) for any portion of their fees and expenses beyond September 30, 2011. For the first ten years of Ohio Dividend Advantage 3's (NVJ) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, - -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Ohio Dividend Advantage 3 (NVJ) for any portion of its fees and expenses beyond March 31, 2012. 8. NEW ACCOUNTING PRONOUNCEMENTS ACCOUNTING FOR TRANSFERS OF FINANCIAL ASSETS During June 2009, FASB issued changes to the authoritative guidance under GAAP on accounting for transfers of financial assets. The objective of this guidance is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and transferor's continuing involvement, if any, in transferred financial assets. This guidance is effective as of the beginning of each reporting entity's first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. The recognition and measurement provisions of this guidance must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of this guidance should be applied to transfers that occurred both before and after the effective date of this guidance. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and disclosures, if any. 80 Nuveen Investments FAIR VALUE MEASUREMENTS On January 21, 2010, FASB issued changes to the authoritative guidance under GAAP for fair value measurements. The objective of this guidance is to provide guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for both Level 2 and Level 3 positions, ii) transfers between all levels (including Level 1 and Level 2) on a gross basis (i.e., transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer and iii) purchases, sales, issuances and settlements in the Level 3 rollforward must be shown on a gross basis rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of this guidance and the impact it will have to the financial statement amounts and footnote disclosures, if any. 9. SUBSEQUENT EVENTS DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income, which were paid on April 1, 2010, to shareholders of record on March 15, 2010, as follows: MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) - -------------------------------------------------------------------------------- Dividend per share $.0660 $.0650 $. 0640 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) - -------------------------------------------------------------------------------- Dividend per share $.0740 $.0700 $.0690 $.0730 ================================================================================ MUNIFUND TERM PREFERRED SHARES Subsequent to the reporting period, Ohio Dividend Advantage (NXI) and Ohio Dividend Advantage 2 (NBJ) filed with the Securities and Exchange Commission (the "SEC") a registration statement seeking to register MuniFund Term Preferred shares ("MTP"). These registration statements, declared effective by the SEC, enable the Funds to issue to the public shares of MTP to refinance all or a portion of their Preferred shares. The issuance of MTP by Ohio Dividend Advantage (NXI) and Ohio Dividend Advantage 2 (NBJ) is subject to market conditions. There is no assurance that MTP will be issued. Nuveen Investments 81 | Financial | Highlights Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ---------------------------------------------------------------- ------------------------------ DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM NET BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL - -------------------------------------------------------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 $13.55 $.93 $1.06 $(.04) $ -- $1.95 $(.73) $ -- $ (.73) 2009(d) 14.13 .54 (.60) (.13) -- (.19) (.39) -- (.39) Year Ended 7/31: 2008 14.96 .93 (.71) (.24) (.04) (.06) (.67) (.10) (.77) 2007 15.17 .94 (.10) (.25) (.02) .57 (.71) (.07) (.78) 2006 15.88 .96 (.52) (.21) (.02) .21 (.81) (.11) (.92) 2005 15.51 .98 .57 (.13) (.01) 1.41 (.93) (.11) (1.04) MICHIGAN PREMIUM INCOME (NMP) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 13.26 .90 .97 (.04) -- 1.83 (.71) -- (.71) 2009(d) 13.87 .52 (.63) (.12) -- (.23) (.38) -- (.38) Year Ended 7/31: 2008 14.65 .89 (.69) (.23) (.02) (.05) (.66) (.07) (.73) 2007 14.92 .90 (.12) (.23) (.02) .53 (.71) (.09) (.80) 2006 15.55 .91 (.40) (.18) (.02) .31 (.79) (.15) (.94) 2005 15.19 .93 .50 (.11) -- 1.32 (.91) (.05) (.96) ================================================================================================================================
DISCOUNT OFFERING FROM COSTS AND PREFERRED SHARES AT END OF PERIOD COMMON PREFERRED ENDING ------------------------------------- SHARES SHARE COMMON AGGREGATE LIQUIDATION REPURCHASED UNDER- SHARE ENDING AMOUNT AND MARKET ASSET AND WRITING NET ASSET MARKET OUTSTANDING VALUE COVERAGE RETIRED DISCOUNTS VALUE VALUE (000) PER SHARE PER SHARE - ------------------------------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) - ------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 $.02 $ -- $14.79 $12.94 $87,325 $25,000 $73,950 2009(d) -- -- 13.55 10.61 90,900 25,000 68,651 Year Ended 7/31: 2008 -- -- 14.13 12.32 94,000 25,000 69,023 2007 -- -- 14.96 14.16 94,000 25,000 71,607 2006 -- -- 15.17 14.41 94,000 25,000 72,270 2005 -- -- 15.88 15.67 94,000 25,000 74,441 MICHIGAN PREMIUM INCOME (NMP) - ------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 .02 -- 14.40 12.50 53,700 25,000 76,033 2009(d) --* -- 13.26 10.44 56,000 25,000 70,730 Year Ended 7/31: 2008 -- -- 13.87 12.38 56,000 25,000 72,986 2007 -- -- 14.65 13.80 56,000 25,000 75,695 2006 -- -- 14.92 14.27 56,000 25,000 76,612 2005 -- -- 15.55 15.68 56,000 25,000 78,783 =======================================================================================================
82 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT++ -------------------- ------------------------------------ BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME - ------------------------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) - ------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 29.40% 14.83% $170,983 1.24% 1.22% 6.50% 2009(d) (10.68) (1.27) 158,717 1.33** 1.33** 6.92** Year Ended 7/31: 2008 (7.77) (.43) 165,525 1.29 1.25 6.28 2007 3.64 3.77 175,244 1.26 1.22 6.12 2006 (2.28) 1.41 177,734 1.23 1.23 6.17 2005 9.94 9.28 185,900 1.22 1.22 6.13 MICHIGAN PREMIUM INCOME (NMP) - ------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 27.06 14.22 109,619 1.25 1.23 6.51 2009(d) (12.57) (1.62) 102,434 1.32** 1.32** 6.83** Year Ended 7/31: 2008 (5.09) (.36) 107,488 1.38 1.23 6.16 2007 2.16 3.59 113,558 1.38 1.22 5.97 2006 (3.12) 2.06 115,611 1.20 1.20 6.03 2005 16.03 8.80 120,475 1.19 1.19 5.97 =================================================================================================
RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT++(b) ------------------------------------ EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(c) INTEREST INCOME RATE - ------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) - ------------------------------------------------------------------- Year Ended 2/28: 2010 1.24% 1.22% 6.50% 9% 2009(d) 1.33** 1.33** 6.93** 3 Year Ended 7/31: 2008 1.29 1.25 6.28 18 2007 1.26 1.22 6.12 13 2006 1.23 1.23 6.18 18 2005 1.22 1.22 6.13 8 MICHIGAN PREMIUM INCOME (NMP) - ------------------------------------------------------------------- Year Ended 2/28: 2010 1.25 1.23 6.51 12 2009(d) 1.32** 1.32** 6.83** 3 Year Ended 7/31: 2008 1.38 1.23 6.16 20 2007 1.38 1.22 5.97 15 2006 1.20 1.10 6.02 6 2005 1.19 1.19 5.96 11 ===================================================================
* Rounds to less than $.01 per share. ** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (b) After expense reimbursement from the Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (c) The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Inverse Floating Rate Securities. (d) For the seven months ended February 28, 2009. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 83 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ------------------------------------------------------------------ ------------------------------ DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM NET BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL ==================================================================================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010 $12.69 $.91 $ 1.32 $(.03) $-- $2.20 $(.72) $ -- $(.72) 2009(d) 13.68 .54 (1.00) (.13) --** (.59) (.39) (.01) (.40) Year Ended 7/31: 2008 14.73 .94 (.95) (.24) (.02) (.27) (.71) (.07) (.78) 2007 14.94 .95 (.14) (.24) --** .57 (.77) (.01) (.78) 2006 15.44 .97 (.40) (.20) -- .37 (.87) -- (.87) 2005 14.82 .98 .63 (.11) -- 1.50 (.89) -- (.89) ====================================================================================================================================
DISCOUNT OFFERING FROM COSTS AND PREFERRED SHARES AT END OF PERIOD COMMON PREFERRED ENDING -------------------------------------- SHARES SHARE COMMON AGGREGATE LIQUIDATION REPURCHASED UNDER- SHARE ENDING AMOUNT AND MARKET ASSET AND WRITING NET ASSET MARKET OUTSTANDING VALUE COVERAGE RETIRED DISCOUNTS VALUE VALUE (000) PER SHARE PER SHARE ================================================================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) - ------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010 $.01 $ -- $14.18 $12.43 $14,275 $25,000 $76,010 2009(d) -- -- 12.69 10.77 14,925 25,000 68,946 Year Ended 7/31: 2008 -- -- 13.68 13.10 16,000 25,000 69,195 2007 -- -- 14.73 15.10 16,000 25,000 72,561 2006 -- -- 14.94 15.81 16,000 25,000 73,161 2005 -- .01 15.44 16.79 16,000 25,000 74,720 ==================================================================================================================
84 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT++ --------------------- ------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME ===================================================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) - ----------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 22.58% 17.70% $29,127 1.35% 1.33% 6.48% 2009(d) (14.48) (4.20) 26,236 1.48** 1.48** 7.03** Year Ended 7/31: 2008 (8.10) (1.95) 28,285 1.39 1.34 6.23 2007 .46 3.79 30,439 1.38 1.35 5.89 2006 (.47) 2.46 30,823 1.31 1.31 5.92 2005 21.34 10.41 31,821 1.27 1.27 5.93 =====================================================================================================
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT++(b) --------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(c) INTEREST INCOME RATE =========================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) - --------------------------------------------------------------------------- Year Ended 2/28: 2010 1.15% 1.13% 6.68% 6% 2009(d) 1.22** 1.22** 7.29** 4 Year Ended 7/31: 2008 1.07 1.03 6.55 18 2007 .99 .96 6.28 19 2006 .86 .86 6.37 8 2005 .82 .82 6.38 8 ===========================================================================
* Rounds to less than $.01 per share. ** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (b) After expense reimbursement from the Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (c) The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Inverse Floating Rate Securities. (d) For the seven months ended February 28, 2009. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 85 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS -------------------------------------------------------------- ------------------------------ DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM NET BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL ================================================================================================================================== OHIO QUALITY INCOME (NUO) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 $14.56 $1.01 $1.42 $(.04) $ -- $2.39 $(.80) $ -- $(.80) 2009(d) 15.04 .56 (.52) (.13) -- (.09) (.39) -- (.39) Year Ended 7/31: 2008 15.81 .95 (.71) (.25) (.02) (.03) (.67) (.07) (.74) 2007 16.01 .96 (.12) (.26) (.01) .57 (.73) (.04) (.77) 2006 16.58 .98 (.42) (.22) (.01) .33 (.85) (.05) (.90) 2005 16.21 1.02 .49 (.12) -- 1.39 (.98) (.04) (1.02) OHIO DIVIDEND ADVANTAGE (NXI) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 13.83 .96 1.17 (.04) -- 2.09 (.77) -- (.77) 2009(d) 14.25 .54 (.46) (.12) -- (.04) (.38) -- (.38) Year Ended 7/31: 2008 14.87 .93 (.55) (.23) (.03) .12 (.65) (.09) (.74) 2007 15.02 .94 (.09) (.24) (.01) .60 (.72) (.03) (.75) 2006 15.55 .96 (.40) (.21) -- .35 (.85) (.03) (.88) 2005 15.05 1.00 .57 (.11) -- 1.46 (.96) -- (.96) ==================================================================================================================================
DISCOUNT OFFERING FROM COSTS AND PREFERRED SHARES AT END OF PERIOD COMMON PREFERRED ENDING -------------------------------------- SHARES SHARE COMMON AGGREGATE LIQUIDATION REPURCHASED UNDER- SHARE ENDING AMOUNT AND MARKET ASSET AND WRITING NET ASSET MARKET OUTSTANDING VALUE COVERAGE RETIRED DISCOUNTS VALUE VALUE (000) PER SHARE PER SHARE ============================================================================================================== OHIO QUALITY INCOME (NUO) - -------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 $-- $-- $16.15 $15.58 $73,000 $25,000 $78,917 2009(d) -- -- 14.56 12.90 77,000 25,000 71,066 Year Ended 7/31: 2008 -- -- 15.04 13.40 77,000 25,000 72,603 2007 -- -- 15.81 14.43 77,000 25,000 75,017 2006 -- -- 16.01 15.83 77,000 25,000 75,658 2005 -- -- 16.58 16.96 77,000 25,000 77,267 OHIO DIVIDEND ADVANTAGE (NXI) - -------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 --* -- 15.15 14.48 29,000 25,000 80,423 2009(d) -- -- 13.83 12.10 31,000 25,000 72,332 Year Ended 7/31: 2008 -- -- 14.25 12.77 31,000 25,000 73,770 2007 -- -- 14.87 14.39 31,000 25,000 75,898 2006 -- -- 15.02 15.05 31,000 25,000 76,400 2005 -- -- 15.55 17.00 31,000 25,000 78,123 ==============================================================================================================
86 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT++ ------------------- ----------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME ====================================================================================================== OHIO QUALITY INCOME (NUO) - ------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010 27.57% 16.76% $157,439 1.20% 1.20% 6.51% 2009(d) (0.71) (0.49) 141,883 1.35** 1.31** 6.77** Year Ended 7/31: 2008 (2.18) (.26) 146,617 1.42 1.26 6.08 2007 (4.25) 3.56 154,052 1.29 1.19 5.94 2006 (1.36) 2.10 156,026 1.20 1.20 6.05 2005 10.25 8.70 160,982 1.19 1.19 6.16 OHIO DIVIDEND ADVANTAGE (NXI) - ------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2010 26.70 15.46 64,290 1.21 1.21 6.47 2009(d) (2.08) (0.15) 58,692 1.35** 1.31** 6.64** Year Ended 7/31: 2008 (6.21) .83 60,475 1.39 1.24 6.06 2007 .52 4.02 63,114 1.32 1.22 5.85 2006 (6.53) 2.32 63,735 1.21 1.21 5.85 2005 21.79 9.87 65,873 1.21 1.21 6.00 ======================================================================================================
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT++(b) ----------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(c) INTEREST INCOME RATE ========================================================================= OHIO QUALITY INCOME (NUO) - ------------------------------------------------------------------------- Year Ended 2/28: 2010 1.20% 1.20% 6.51% 6% 2009(d) 1.35** 1.31** 6.77** 10 Year Ended 7/31: 2008 1.42 1.26 6.08 14 2007 1.28 1.18 5.94 15 2006 1.20 1.20 6.05 9 2005 1.19 1.19 6.16 14 OHIO DIVIDEND ADVANTAGE (NXI) - ------------------------------------------------------------------------- Year Ended 2/28: 2010 1.06 1.06 6.62 7 2009(d) 1.12** 1.09** 6.87** 10 Year Ended 7/31: 2008 1.12 .97 6.33 17 2007 .97 .87 6.20 14 2006 .79 .79 6.27 6 2005 .77 .77 6.45 14 =========================================================================
* Rounds to less than $.01 per share. ** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (b) After expense reimbursement from the Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (c) The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Inverse Floating Rate Securities. (d) For the seven months ended February 28, 2009. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 87 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS -------------------------------------------------------------- ------------------------------ DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM NET BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL ================================================================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 $13.06 $.93 $ 1.53 $(.04) $ -- $2.42 $(.74) $ -- $(.74) 2009(d) 13.87 .54 (.84) (.13) -- (.43) (.38) -- (.38) Year Ended 7/31: 2008 14.64 .93 (.73) (.25) (.02) (.07) (.64) (.06) (.70) 2007 14.81 .92 (.10) (.25) (.01) .56 (.69) (.04) (.73) 2006 15.37 .93 (.41) (.22) (.01) .29 (.80) (.05) (.85) 2005 14.85 .95 .61 (.12) -- 1.44 (.90) (.02) (.92) OHIO DIVIDEND ADVANTAGE 3 (NVJ) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 13.97 1.00 1.19 (.04) -- 2.15 (.79) -- (.79) 2009(d) 14.33 .55 (.39) (.12) -- .04 (.40) -- (.40) Year Ended 7/31: 2008 14.92 .95 (.56) (.23) (.02) .14 (.67) (.06) (.73) 2007 15.06 .96 (.08) (.25) (.01) .62 (.72) (.04) (.76) 2006 15.57 .95 (.45) (.22) -- .28 (.79) -- (.79) 2005 14.93 .95 .69 (.11) -- 1.53 (.87) (.02) (.89) ==================================================================================================================================
DISCOUNT OFFERING FROM COSTS AND PREFERRED SHARES AT END OF PERIOD COMMON PREFERRED ENDING ------------------------------------- SHARES SHARE COMMON AGGREGATE LIQUIDATION REPURCHASED UNDER- SHARE ENDING AMOUNT AND MARKET ASSET AND WRITING NET ASSET MARKET OUTSTANDING VALUE COVERAGE RETIRED DISCOUNTS VALUE VALUE (000) PER SHARE PER SHARE ============================================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) - -------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 $ -- $ -- $14.74 $13.85 $21,600 $25,000 $78,241 2009(d) -- -- 13.06 11.58 23,100 25,000 69,107 Year Ended 7/31: 2008 -- -- 13.87 12.37 24,000 25,000 70,090 2007 -- -- 14.64 13.80 24,000 25,000 72,598 2006 -- -- 14.81 14.70 24,000 25,000 73,169 2005 -- -- 15.37 15.48 24,000 25,000 74,935 OHIO DIVIDEND ADVANTAGE 3 (NVJ) - -------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 --* -- 15.33 15.20 15,500 25,000 78,325 2009(d) -- -- 13.97 11.95 16,500 25,000 70,647 Year Ended 7/31: 2008 -- -- 14.33 12.91 16,500 25,000 71,881 2007 -- -- 14.92 14.35 16,500 25,000 73,778 2006 -- -- 15.06 14.75 16,500 25,000 74,252 2005 -- -- 15.57 15.90 16,500 25,000 75,918 ==============================================================================================================
88 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ----------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT++ ------------------- -------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME ===================================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) - ----------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 26.62% 18.91% $46,000 1.27% 1.27% 6.49% 2009(d) (3.09) (3.01) 40,755 1.46** 1.42** 6.91** Year Ended 7/31: 2008 (5.46) (.51) 43,286 1.46 1.30 6.10 2007 (1.26) 3.80 45,694 1.41 1.31 5.76 2006 .35 1.96 46,242 1.27 1.27 5.71 2005 11.63 9.90 47,937 1.23 1.23 5.71 OHIO DIVIDEND ADVANTAGE 3 (NVJ) - ----------------------------------------------------------------------------------------------------- Year Ended 2/28: 2010 34.62 15.73 33,062 1.30 1.30 6.56 2009(d) (4.29) .36 30,127 1.46** 1.42** 6.63** Year Ended 7/31: 2008 (5.13) .95 30,941 1.47 1.32 6.05 2007 2.32 4.06 32,194 1.41 1.31 5.85 2006 (2.33) 1.87 32,506 1.28 1.28 5.76 2005 17.60 10.40 33,606 1.27 1.27 5.68 =====================================================================================================
RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT++(b) ----------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(c) INTEREST INCOME RATE ================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) - ---------------------------------------------------------------------------------- Year Ended 2/28: 2010 1.07% 1.07% 6.69% 8% 2009(d) 1.20** 1.16** 7.17** 5 Year Ended 7/31: 2008 1.14 .98 6.41 16 2007 1.02 .92 6.15 14 2006 .81 .81 6.16 8 2005 .78 .78 6.16 14 OHIO DIVIDEND ADVANTAGE 3 (NVJ) - ---------------------------------------------------------------------------------- Year Ended 2/28: 2010 1.07 1.07 6.80 14 2009(d) 1.15** 1.12** 6.93** 9 Year Ended 7/31: 2008 1.12 .97 6.41 19 2007 .99 .89 6.27 19 2006 .83 .83 6.21 2 2005 .83 .83 6.12 3 ==================================================================================
* Rounds to less than $.01 per share. ** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares. (a) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (b) After expense reimbursement from the Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (c) The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Inverse Floating Rate Securities. (d) For the seven months ended February 28, 2009. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 89 Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
- ---------------------------------------------------------------------------------------------------------------------------------- NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ---------------------------------------------------------------------------------------------------------------------------------- INDEPENDENT BOARD MEMBERS: o ROBERT P. BREMNER Private Investor and Management Consultant; 8/22/40 Chairman of Treasurer and Director, Humanities Council of 333 W. Wacker Drive the Board 1996 199 Washington, D.C. Chicago, IL 60606 and Board Member o JACK B. EVANS President, The Hall-Perrine Foundation, a 10/22/48 private philanthropic corporation (since 333 W. Wacker Drive Board Member 1999 199 1996); Director and Chairman, United Fire Chicago, IL 60606 Group, a publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. o WILLIAM C. HUNTER Dean, Tippie College of Business, University 3/6/48 of Iowa (since 2006); Director (since 2004) of 333 W. Wacker Drive Board Member 2004 199 Xerox Corporation; Director (since 2005), Beta Chicago, IL 60606 Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997-2007), Credit Research Center at Georgetown University. o DAVID J. KUNDERT Director, Northwestern Mutual Wealth 10/28/42 Management Company; retired (since 2004) as 333 W. Wacker Drive Board Member 2005 199 Chairman, JPMorgan Fleming Asset Management, Chicago, IL 60606 President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and member of Investment Committee, Greater Milwaukee Foundation. o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd., a 9/24/44 real estate investment company; formerly, 333 W. Wacker Drive Board Member 1997 199 Senior Partner and Chief Operating Officer Chicago, IL 60606 (retired, 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition.
90 Nuveen Investments
- ---------------------------------------------------------------------------------------------------------------------------------- NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ---------------------------------------------------------------------------------------------------------------------------------- INDEPENDENT BOARD MEMBERS: o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive Board Member 1997 199 thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). o CAROLE E. STONE Director, Chicago Board Options Exchange 6/28/47 (since 2006); Director, C2 Options Exchange, 333 W. Wacker Drive Board Member 2007 199 Incorporated (since 2009); Commissioner, New Chicago, IL 60606 York State Commission on Public Authority Reform (since 2005); formerly, Chair, New York Racing Association Oversight Board (2005-2007). o TERENCE J. TOTH Director, Legal & General Investment 9/29/59 Management America, Inc. (since 2008); 333 W. Wacker Drive Board Member 2008 199 Managing Partner, Promus Capital (since 2008); Chicago, IL 60606 formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). INTERESTED BOARD MEMBER: o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007), 6/14/61 Director (since 1999) and Chairman (since 333 W. Wacker Drive Board Member 2008 199 2007) of Nuveen Investments, Inc.; Chief Chicago, IL 60606 Executive Officer (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc.; President (since 2005) of Nuveen Commodities Asset Management, LLC.
Nuveen Investments 91 Board Members & Officers (continued)
- ---------------------------------------------------------------------------------------------------------------------------------- NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS - ---------------------------------------------------------------------------------------------------------------------------------- OFFICERS OF THE FUNDS: o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant 9/9/56 Chief Secretary and Associate General Counsel of 333 W. Wacker Drive Administrative 1988 199 Nuveen Investments, LLC; Managing Director, Chicago, IL 60606 Officer Associate General Counsel and Assistant Secretary, of Nuveen Asset Management (since 2002) and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2005) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. o WILLIAM ADAMS IV Executive Vice President of Nuveen 6/9/55 Investments, Inc.; Executive Vice President, 333 W. Wacker Drive Vice President 2007 124 U.S. Structured Products of Nuveen Chicago, IL 60606 Investments, LLC, (since 1999), ; Executive Vice President (since 2005) of Nuveen Commodities Asset Management, LLC. o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously, 1/11/62 Vice President (1993-2004) of Nuveen 333 W. Wacker Drive Vice President 2007 124 Investments, LLC. Chicago, IL 60606 o NIZIDA ARRIAGA Senior Vice President of Nuveen Investments, 6/1/68 LLC (since 2010); formerly, Vice President 333 W. Wacker Drive Vice President 2009 199 (2007-2010); previously, Portfolio Manager, Chicago, IL 60606 Allstate Investments, LLC (1996-2006); Chartered Financial Analyst. o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen 2/3/66 Vice President Investments, LLC.; Vice President of Nuveen 333 W. Wacker Drive and Assistant 2000 199 Asset Management (since 2005). Chicago, IL 60606 Secretary o MARGO L. COOK Executive Vice President (since Oct 2008) of 4/11/64 Nuveen Investments, Inc.; previously, Head of 333 W. Wacker Drive Vice President 2009 199 Institutional Asset Management (2007-2008) of Chicago, IL 60606 Bear Stearns Asset Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen 10/24/45 Investments, LLC and Managing Director (since 333 W. Wacker Drive Vice President 1998 199 2005) of Nuveen Asset Management. Chicago, IL 60606 o STEPHEN D. FOY Vice President (since 1993) and Funds 5/31/54 Vice President Controller (since 1998) of Nuveen Investments, 333 W. Wacker Drive and Controller 1998 199 LLC; Vice President (since 2005) of Nuveen Chicago, IL 60606 Asset Management; Certified Public Accountant. o SCOTT S. GRACE Managing Director, Corporate Finance & 8/20/70 Vice President Development, Treasurer (since September 2009) 333 W. Wacker Drive and Treasurer 2009 199 of Nuveen Investments, LLC; Managing Director Chicago, IL 60606 and Treasurer of Nuveen Asset Management (since 2009); formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly. Senior Associate in Morgan Stanley's Global Financial Services Group (2000-2003); Chartered Accountant Designation.
92 Nuveen Investments
- ---------------------------------------------------------------------------------------------------------------------------------- NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS - ---------------------------------------------------------------------------------------------------------------------------------- OFFICERS OF THE FUNDS: o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed 5/7/69 Income (since 2008) of Nuveen Asset 333 W. Wacker Drive Vice President 2009 135 Management; previously, Chairman, President Chicago, IL 60606 and Chief Executive Officer (2002 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; Certified Public Accountant. o WALTER M. KELLY Senior Vice President (since 2008), Vice 2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice 333 W. Wacker Drive Officer and 2003 199 President and Assistant General Counsel Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Senior Vice President (since 2008), formerly, Vice President (2006-2008) and Assistant Secretary (since 2008) of Nuveen Asset Management. o DAVID J. LAMB Senior Vice President (since 2009), formerly, 3/22/63 Vice President (2000-2009) of Nuveen 333 W. Wacker Drive Vice President 2000 199 Investments, LLC; Vice President (since 2005) Chicago, IL 60606 of Nuveen Asset Management; Certified Public Accountant. o TINA M. LAZAR Senior Vice President (since 2009), formerly, 8/27/61 Vice President of Nuveen Investments, LLC 333 W. Wacker Drive Vice President 2002 199 (1999-2009); Vice President of Nuveen Asset Chicago, IL 60606 Management (since 2005). o LARRY W. MARTIN Senior Vice President (since 2010), Assistant 7/27/51 Vice President Secretary and Assistant General Counsel of 333 W. Wacker Drive and Assistant 1988 199 Nuveen Investments, LLC; Vice President (since Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007). o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice 3/26/66 Vice President President (2007-2008), Nuveen Investments, 333 W. Wacker Drive and Secretary 2007 199 LLC; Managing Director (since 2008), formerly, Chicago, IL 60606 Vice President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). o JOHN V. MILLER Chief Investment Officer and Managing Director 4/10/67 (since 2007), formerly, Vice President 333 W. Wacker Drive Vice President 2007 135 (2002-2007) of Nuveen Asset Management and Chicago, IL 60606 Managing Director (since 2007), formerly Vice President (2002-2007) Nuveen Investments, LLC; Chartered Financial Analyst.
Nuveen Investments 93 Board Members & Officers (continued)
- ---------------------------------------------------------------------------------------------------------------------------------- NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS - ---------------------------------------------------------------------------------------------------------------------------------- OFFICERS OF THE FUNDS: o GREGORY MINO Senior Vice President (since 2010) of Nuveen 1/4/71 Investments, LLC, formerly Vice President 333 W. Wacker Drive Vice President 2009 199 (2008-2010); previously, Director (2004-2007) Chicago, IL 60606 and Executive Director (2007-2008) of UBS Global Asset Management; previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since 8/1/71 Vice President 2008); Vice President and Assistant Secretary, 333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate Meagher & Flom LLP (2002-2008). o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since 7/3/62 Vice President 2007); prior thereto, Partner, Deloitte & 333 W. Wacker Drive and Assistant 2007 199 Touche USA LLP (2005-2007), formerly, senior Chicago, IL 60606 Secretary tax manager (2002-2005); Certified Public Accountant. o MARK L. WINGET Vice President, Nuveen Investments, LLC (since 12/21/68 Vice President 2008); Vice President and Assistant Secretary, 333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) For Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ) Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees for NZW, NXI, NBJ and NVJ is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. For Michigan Quality Income (NUM), Michigan Premium Income (NMP) and Ohio Quality Income (NUO), the Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (2) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. (3) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 94 Nuveen Investments Annual Investment Management Agreement Approval Process The Investment Company Act of 1940, as amended (the "1940 ACT"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "INDEPENDENT BOARD MEMBERS"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "MAY MEETING"), the Boards of Trustees or Directors (as the case may be) (each a "BOARD" and each Trustee or Director, a "BOARD MEMBER") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "ADVISORY AGREEMENT") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2009 (the "APRIL MEETING"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting. In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute performance, fee and expense information for the Funds as well as comparative performance, fee and expense information for a comparable peer group of funds, the performance information of recognized and/or customized benchmarks (as applicable) of the Funds, the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries other than Winslow Capital Management, Inc. ("WINSLOW CAPITAL"), which was recently acquired in December 2008), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating Nuveen Investments 95 Annual Investment Management Agreement Approval Process (continued) the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line. In reviewing the services provided and the initiatives undertaken during the past year, the Independent Board Members recognized the severe market turmoil experienced in the capital markets during recent periods, including sustained periods of high volatility, credit disruption and government intervention. The Independent Board Members considered NAM's efforts, expertise and other actions taken to address matters as they arose that impacted the Funds. The Independent Board Members recognized the role of the Investment Services group which, among other things, monitors the various positions throughout the Nuveen fund complex to identify and address any systematic risks. In addition, the Capital Markets Committee of NAM provides a multi-departmental venue for developing new policies to mitigate any risks. The Independent Board Members further recognized NAM's continuous review of the Nuveen funds' investment strategies and mandates in seeking to continue to refine and improve the investment process for the funds, particularly in light of market conditions. With respect to closed-end funds that issued auction rate preferred shares ("ARPS") or that otherwise utilize leverage, the Independent Board Members noted, in particular, NAM's efforts in refinancing the preferred shares of such funds frozen by the collapse of the auction rate market and managing leverage during a period of rapid market declines, particularly for the non-equity funds. Such efforts included negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs, liquidating portfolio securities during difficult times to meet leverage ratios, and seeking alternative forms of debt and other leverage that may over time reduce financing costs associated with ARPs and enable the funds that have issued ARPs to restore liquidity to ARPs holders. The Independent Board Members also noted Nuveen's continued commitment and efforts to keep investors and financial advisers informed as to its progress with the ARPs through, among other things, conference calls, emails, press releases, information posted on its website, and telephone calls and in-person meetings with financial advisers. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a 96 Nuveen Investments variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing advertising and marketing for the closed-end funds; maintaining websites; and providing educational seminars. As part of their review, the Independent Board Members also evaluated the background, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks. In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures. Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM The Board considered the investment performance of each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "PERFORMANCE PEER GROUP") based on data provided by an independent provider of mutual fund data as well as recognized and/or customized benchmarks (as applicable). The Independent Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group and recognized and/or customized benchmarks (as applicable) for the quarter-, one-, three- and five-year periods (as applicable) ending December 31, 2008 and for the same periods (as applicable) ending March 31, 2009. The Independent Board Members also reviewed performance information of the Nuveen municipal funds managed by NAM in the aggregate ranked by peer group and the performance of such funds, in the aggregate, relative to their benchmark. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. In comparing a fund's performance with that of its Performance Peer Group, the Independent Board Members took into account that the closest Performance Peer Group in certain instances may not adequately reflect the respective fund's investment objectives and strategies thereby hindering a meaningful comparison of the fund's performance with that of the Performance Peer Group. The Independent Board Members further considered the performance of the Funds in the context of the volatile Nuveen Investments 97 Annual Investment Management Agreement Approval Process (continued) market conditions during the past year, and their impact on various asset classes and the portfolio management of the Funds. Based on their review and factoring in the severity of market turmoil in 2008, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. Fees and Expenses The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "PEER UNIVERSE") and in certain cases, to a more focused subset of funds in the Peer Universe (the "PEER GROUP"). The Independent Board Members further reviewed data regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as the asset level of a fund relative to peers, the size and particular composition of the Peer Universe or Peer Group, the investment objectives of the peers, expense anomalies, changes in the funds comprising the Peer Universe or Peer Group from year to year, levels of reimbursement and the timing of information used may impact the comparative data, thereby limiting the ability to make a meaningful comparison. In addition, the Independent Board Members also considered, among other things, the differences in the use and type of leverage compared to the peers. The Independent Board Members also considered the differences in the states reflected in the respective Peer Group. In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees and net total expense ratio were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. Comparisons with the Fees of Other Clients The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients. Such other clients include NAM's municipal separately managed accounts. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited 98 Nuveen Investments to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. 3. Profitability of Nuveen In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers other than Winslow Capital) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2008. In addition, the Independent Board Members reviewed information regarding the financial results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business. Based on their review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. Nuveen Investments 99 Annual Investment Management Agreement Approval Process (continued) In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. In this regard, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio. While economies of scale result when costs can be spread over a larger asset base, the Independent Board Members also recognized that the asset levels generally declined in 2008 due to, among other things, the market downturn. Accordingly, for funds with a reduction in assets under management, advisory fee levels may have increased as breakpoints in the fee schedule were no longer surpassed. In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex generally are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Generally, the complex-wide pricing reduces Nuveen's revenue because total complex fund assets have consistently grown in prior years. As noted, however, total fund assets declined in 2008 resulting in a smaller downward adjustment of revenues due to complex-wide pricing compared to the prior year. Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase. 100 Nuveen Investments E. INDIRECT BENEFITS In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk. In addition to the above, the Independent Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. The Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Independent Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed. Nuveen Investments 101 Reinvest Automatically Easily and Conveniently NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price 102 Nuveen Investments 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. Nuveen Investments 103 Glossary of Terms Used in this Report o AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed," with current holders receiving a formula-based interest rate until the next scheduled auction. o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. 104 Nuveen Investments o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value. o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. Nuveen Investments 105 Notes 106 Nuveen Investments Notes Nuveen Investments 107 Notes 108 Nuveen Investments Other Useful Information QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2009, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange ("NYSE") the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/or redeem shares of its own common and/or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or preferred stock as shown in the accompanying table. COMMON SHARES PREFERRED SHARES FUND REPURCHASED REDEEMED NUM 153,900 143 NMP 110,400 92 NZW 12,200 26 NUO -- 160 NXI -- 80 NBJ -- 60 NVJ -- 40 Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. BOARD OF DIRECTORS/TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Nuveen Investments 109 Nuveen Investments: Serving Investors for Generations Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, longterm investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio. FOCUSED ON MEETING INVESTOR NEEDS. Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $145 billion of assets on December 31, 2009. FIND OUT HOW WE CAN HELP YOU. To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com EAN-C-0210D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Michigan Quality Income Municipal Fund, Inc. The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) - ------------------------------------------------------------------------------------------------------------------------------------ February 28, 2010 $ 15,852 $ 0 $ 0 $ 3,400 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ February 28, 2009 (5) $ 15,986 $ 0 $ 0 $ 1,700 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. (5) Fund changed fiscal year from July to February starting in 2009. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS - ------------------------------------------------------------------------------------------------------------------------------------ February 28, 2010 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ February 28, 2009 (1) $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
(1) Fund changed fiscal year from July to February starting in 2009. NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ February 28, 2010 $ 3,400 $ 0 $ 0 $ 3,400 February 28, 2009 (1) $ 1,700 $ 0 $ 0 $ 1,700
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective amounts from the previous table. (1) Fund changed fiscal year from July to February starting in 2009. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert. ITEM 6. SCHEDULE OF INVESTMENTS. a) See Portfolio of Investments in Item 1. b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND Daniel J. Close Nuveen Michigan Quality Income Municipal Fund, Inc. Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: NUMBER OF PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS* - -------------------------------------------------------------------------------- Daniel J. Close Registered Investment Company 21 $3.79 billion Other Pooled Investment Vehicles 0 $ 0 Other Accounts 6 $50.2 million * Assets are as of February 28, 2010. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of February 28, 2010, the S&P/Investortools Municipal Bond index was comprised of 54,637 securities with an aggregate current market value of $1,176 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors lead by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. In addition, in July 2009, Nuveen Investments created and funded a trust, as part of a newly-established incentive program, which purchased shares of certain Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain employees, including portfolio managers. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of February 28, 2010, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF EQUITY SECURITIES DOLLAR BENEFICIALLY OWNED RANGE OF IN THE REMAINDER OF EQUITY NUVEEN FUNDS SECURITIES MANAGED BY NAM'S BENEFICIALLY MUNICIPAL NAME OF PORTFOLIO OWNED IN INVESTMENT MANAGER FUND FUND TEAM - ------------------------------------------------------------------------------------------------------------------- Daniel J. Close Nuveen Michigan Quality Income Municipal Fund, Inc. $0 $10,001-$50,000
PORTFOLIO MANAGER BIO: Daniel J. Close, CFA, is a Senior Vice President of Nuveen Asset Management. He has direct responsibility for managing approximately $4 billion of municipal securities in 22 municipal funds. He joined Nuveen Investments in 2000 as a member of Nuveen's product management and development team. He then served as a research analyst for Nuveen's municipal investing team, covering corporate-backed, energy, transportation and utility credits. He received his BS in Business from Miami University and his MBA from Northwestern University's Kellogg School of Management. Mr. Close has earned the Chartered Financial Analyst designation. Mr. Close also serves as a portfolio manager to the Build America Investment Grade Bond Fund. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)* TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR UNIT) PROGRAMS PROGRAMS MARCH 1-31, 2009 65,400 $10.17 65,400 1,104,600 APRIL 1-30, 2009 9,200 $10.96 9,200 1,095,400 MAY 1-31, 2009 0 0 1,095,400 JUNE 1-30, 2009 600 $11.40 600 1,094,800 JULY 1-31, 2009 1,000 $11.63 1,000 1,093,800 AUGUST 1-31, 2009 0 0 1,093,800 SEPTEMBER 1-30, 2009 0 0 1,093,800 OCTOBER 1-31, 2009 28,700 $12.91 28,700 1,136,300 NOVEMBER 1-30, 2009 13,000 $12.82 13,000 1,123,300 DECEMBER 1-31, 2009 21,200 $12.56 21,200 1,102,100 JANUARY 1-31, 2010 11,800 $12.79 11,800 1,090,300 FEBRUARY 1-28, 2010 3,000 $12.76 3,000 1,087,300 TOTAL 153,900
* The registrant's repurchase program, which authorized the repurchase of 1,170,000 shares, was announced August 7, 2008. On October 3, 2009, the program was reauthorized for a maximum repurchase amount of 1,165,000 shares. Any repurchases made by the registrant pursuant to the program were made through open-market transactions. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board 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. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) (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/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: May 6, 2010 ------------------------------------------------------------------- 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: May 6, 2010 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: May 6, 2010 ------------------------------------------------------------------- EX-99.CERT 2 ex99cert.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Michigan Quality Income Municipal Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 6, 2010 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Michigan Quality Income Municipal Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 6, 2010 /s/ Stephen D. Foy ------------------------- -------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) EX-99.906 CERT 3 ex99cert906.txt CERTIFICATION Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Michigan Quality Income Municipal Fund, Inc. (the "Fund") certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended February 28, 2010 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: May 6, 2010 ----------------------- /s/ Gifford R. Zimmerman --------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy --------------------------------- Stephen D. Foy Vice President, Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----