-----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, LLO2CnPlcxm1ap0wYNluTJ4G0+H6oToEtmIoNFznKNnEVcWgjQ/yu4EUNyG/iuT+ 9a0myHebMxMoWvvivelx7A== 0000891804-97-000023.txt : 19970131 0000891804-97-000023.hdr.sgml : 19970131 ACCESSION NUMBER: 0000891804-97-000023 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961130 FILED AS OF DATE: 19970130 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND CENTRAL INDEX KEY: 0000897419 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 367032570 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07484 FILM NUMBER: 97514170 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 WEST WACKER DRIVE STREET 2: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 N-30D 1 NUVEEN MASSACHUSETTS PREM INCOME MUNI FUND(NMT) Nuveen Exchange-Traded Funds Providing tax-free income to help you live your dreams CONNECTICUT PREMIUM INCOME (NTC) MASSACHUSETTS PREMIUM INCOME (NMT) MISSOURI PREMIUM INCOME (NOM) WASHINGTON PREMIUM INCOME (NPW) SEMIANNUAL REPORT/NOVEMBER 30, 1996 Photographic image of couple walking on beach. CONTENTS 3 Dear shareholder 5 Answering your questions 10 Fund performance 12 Commonly used terms 14 Shareholder meeting report 15 Portfolio of investments 31 Statement of net assets 32 Statement of operations 33 Statement of changes in net assets 35 Notes to financial statements 44 Financial highlights Dear shareholder "These funds continue to achieve their goal of delivering attractive tax-free income." Photographic image of head shot of Chairman and Chief Executive Officer of Nuveen. As we begin a new year, I am pleased to have this opportunity to report to you on the performance of your funds, which continue to achieve their goal of delivering attractive tax-free income from portfolios of investment-grade quality municipal bonds. Because the proceeds from these bonds are used to maintain and improve our nation's infrastructure, your investment has several benefits: As you support the publicly funded projects that enhance your communities, you also benefit from the credit strength of these communities and receive income that is exempt from federal and, in most cases, state income taxes. As of November 30, 1996, investors in the Connecticut, Massachusetts, Missouri, and Washington funds were receiving annual tax-free yields that ranged from 5.54% to 5.93%. To match these yields, an investor in the 36% federal income tax bracket would have had to earn at least 8.66% on taxable alternatives. In addition to providing highly attractive levels of tax-free income, these funds have also continued to generate strong price appreciation relative to similar funds. During the past few years, as market declines were followed by rebounds, share price appreciation for these funds lagged the market. With net asset values appreciating more quickly, shares began to trade at a discount. In 1996, we saw both share prices and net asset values improve. Each of these funds has seen an increase over its share price of 12 months ago; for some funds, the share price increase was substantial. Over the past 12 months, these funds posted total returns on net asset value of 5.95% to 6.39%, equivalent to taxable total returns of 9.43% to 10.93%. This performance is especially encouraging in light of a bond market that essentially ended the year where it began. The current economy reflects a combination of factors that traditionally bode well for the bond market. Yields remain attractive, and the economy continues to expand at a moderate pace. We believe that the funds covered in this report are positioned to perform well in changing markets due to both Nuveen's prudent use of leverage--which helps moderate volatility in the event of a rising interest rate environment, and enhances income in periods of falling rates--as well as our conservative dividend policy. By setting dividends at levels that are expected to remain stable for at least six months, Nuveen can effectively smooth out periods of market fluctuation, enabling investors to depend on their tax-free dividends with confidence. Nuveen continues to meet the challenge of our investors' expanding needs for capital preservation, current income, and future growth. In November, we introduced the Nuveen Growth and Income Stock Fund, the first of three equity-based mutual funds designed to provide a complement to our current municipal bond funds. In an additional move to increase the range of investment solutions available to our investors, Nuveen has acquired Flagship Resources Inc., a highly regarded fixed-income mutual fund specialist that shares our views on the importance of research and emphasizes a conservative, value-oriented approach to portfolio management. We are currently in the process of combining our tax-exempt mutual fund activities, which will result in the broadest selection of municipal bond funds available in the U.S. We at Nuveen are excited about these recent developments, and we are pleased to be bringing our investors expanded options for achieving wealth preservation, dependable income, and long-term asset growth. Thank you for your continued confidence in Nuveen and our family of investments. Sincerely, Timothy R. Schwertfeger Chairman of the Board January 15, 1997 Answering your questions Tom Spalding, head of Nuveen's portfolio management team, talks about 1996's municipal bond market and offers insights into factors that affected performance How would you categorize the municipal market over the past 12 months? Over the past year, the bond market--despite some fluctuations--has been relatively stable compared with recent years. While 1994 represented the worst period in recent bond market history and 1995 the best in a decade, 1996's bond market finished the year unchanged, rebounding from a mid-year decline. Following a strong start to the year, a succession of mixed reports affecting interest rate and inflation forecasts caused investors to view the markets alternatively with enthusiasm, then uncertainty. In the third quarter, evidence of an economic slowdown, the strong U.S. dollar, and lack of inflationary pressures combined to allay investor fears, sparking a rally in bonds that continued through the post-election period. Throughout the year, the municipal market continued to reward investors with solid returns, dependable income, and opportunities to purchase bonds with strong credit quality. A look at the current economy shows a positive tone, reflecting a combination of factors that historically bode well for the bond market, especially long-term issues. Yields remain attractive, as inflation maintains the same modest pace that it has demonstrated over the past five years, giving every indication of being well under control. At the same time, the economy continues to moderate, as evidenced by the lack of price pressure at the consumer and producer levels, steady employment statistics, low labor costs, and a stable money supply. Photographic image of Tom Spalding, Portfolio Manager at Nuveen. Tom Spalding, head of Nuveen's portfolio management team, answers investors' questions on developments in the municipal market. What principal factors affected the bond market--and Nuveen funds--in 1996? In 1996, the continued euphoria in the equity market focused investors' attention on stocks and brought record amounts of new money into stock-based mutual funds, bypassing the bond market. Some investors, concerned about an eventual correction in the stock market, decided to take their profits, but adopted a wait-and-see attitude about investing capital gains, electing to go with short-term vehicles until a clearer picture of market trends emerged. Both of these events affected demand for bond issues of all types. Although they were the focus of much specula tion, interest rates, a key factor affecting bond market performance, were relatively stable in 1996 compared with the two previous years. Over the past 12 months, the yield on the 30-year Treasury bond, which serves as a benchmark for long-term interest rates, operated within a range of 130 basis points, compared with ranges exceeding 200 basis points in both 1994 and 1995. In 1994 and into early 1995, the Federal Reserve made an unprecedented series of moves to tighten interest rates; the result was the worst bond market in recent history. As 1995 progressed, the Fed reacted to low inflation statistics by easing rates, and the bond market rallied. In 1996, constant conjectures about the Fed's next interest rate move--as well as worries about the potential return of inflation and uncertainty over the direction of the economy--caused numerous fits and starts in the bond market. Adding to the general concern in the pre-election months was the debate about the flat tax and its effect on tax-free investments such as municipal bonds. As the election settled that question and the Fed continued to stand pat on interest rates, the bond market enjoyed a resurgence of confidence in the post-election period, making up much of the ground it had lost during the summer doldrums. Has Nuveen continued to follow a value investing approach during this period? Yes. At Nuveen, we define value investing as a disciplined approach to security selection and portfolio construction that concentrates on identifying individual bonds with current yields, prices, credit quality, and future prospects that are exceptionally attractive in relation to other bonds in the market. We continue to believe that this approach is the best investment strategy for the funds we manage. Successful value investing depends on obtaining detailed insights into the outlook for individual issuers and the characteristics of specific bonds--information that may go beyond that used by the market as a whole. That's where our award-winning Research Department excels. To find the municipal bonds we consider for our portfolios, Nuveen Research uses its special insights to help portfolio managers target bonds that may be upgraded, which results in a higher level of quality and safety in the portfolios, as well as bonds that are anticipated to increase in value as the result of factors as yet unrecognized by the investment community in general. We continue to be committed to maintaining Nuveen's tradition of value investing and prudent management, with a focus on building shareholder value, providing research-oriented management, and delivering dependable performance, in the belief that this will contribute to many more years of investment success for our fund shareholders. What is the status of bond calls in these Nuveen portfolios? The funds covered in this report have virtually no call exposure. It is important to understand that the bond market has dealt with the issue of bond calls and pre-refundings for years. Although this has put some pressure on the dividends of our older funds (those issued before 1991), all of our funds have performed very well through this period. In addition to this strong call protection, shareholders in these funds continue to enjoy attractive dividends, with each fund reporting one or more dividend increases during the past 12 months. This positive trend in dividend payment can be traced to the leveraged structure of these funds, which enables them to invest the proceeds from the sale of short-term preferred shares in the purchase of additional long-term bonds, thereby increasing the portfolio's income stream to the benefit of shareholders. NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NTC The fund's monthly tax-free dividend was increased during the 12 months ended November 1996. Shareholders continue to benefit from the fund's conservatively leveraged structure. In addition, the portfolio continues to have significant call protection.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 12/13/95 $0.0600 1/10/96 $0.0620 2/13/96 $0.0620 3/13/96 $0.0620 4/11/96 $0.0620 5/13/96 $0.0620 6/12/96 $0.0620 7/11/96 $0.0620 8/13/96 $0.0620 9/11/96 $0.0620 10/10/96 $0.0620 11/13/96 $0.0635 FUND HIGHLIGHTS 11/30/96 Yield 5.54% Taxable-equivalent yield 9.08% Annual total return on NAV 6.39% Taxable-equivalent total return 9.96% Share price $13.75 NAV $13.80 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND NMT The fund's monthly tax-free dividend was increased twice during the 12 months ended November 1996. Shareholders continue to benefit from the fund's conservatively leveraged structure. In addition, the portfolio continues to have significant call protection.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 12/13/95 $0.0660 1/10/96 $0.0660 2/13/96 $0.0680 3/13/96 $0.0680 4/11/96 $0.0680 5/13/96 $0.0680 6/12/96 $0.0680 7/11/96 $0.0680 8/13/96 $0.0695 9/11/96 $0.0695 10/10/96 $0.0695 11/13/96 $0.0695 FUND HIGHLIGHTS 11/30/96 Yield 5.90% Taxable-equivalent yield 10.44% Annual total return on NAV 6.39% Taxable-equivalent total return 10.93% Share price $14.125 NAV $14.29 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND NOM The fund's monthly tax-free dividend was increased twice during the 12 months ended November 1996. Shareholders continue to benefit from the fund's conservatively leveraged structure. In addition, the portfolio continues to have significant call protection.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 12/13/95 $0.0550 1/10/96 $0.0550 2/13/96 $0.0585 3/13/96 $0.0585 4/11/96 $0.0585 5/13/96 $0.0585 6/12/96 $0.0585 7/11/96 $0.0585 8/13/96 $0.0610 9/11/96 $0.0610 10/10/96 $0.0610 11/13/96 $0.0610 FUND HIGHLIGHTS 11/30/96 Yield 5.80% Taxable-equivalent yield 9.67% Annual total return on NAV 5.95% Taxable-equivalent total return 9.43% Share price $12.625 NAV $13.91 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND NPW The fund's monthly tax-free dividend was increased during the 12 months ended November 1996. Shareholders continue to benefit from the fund's conservatively leveraged structure. In addition, the portfolio continues to have significant call protection.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 12/13/95 $0.0620 1/10/96 $0.0620 2/13/96 $0.0620 3/13/96 $0.0620 4/11/96 $0.0620 5/13/96 $0.0620 6/12/96 $0.0620 7/11/96 $0.0620 8/13/96 $0.0620 9/11/96 $0.0620 10/10/96 $0.0620 11/13/96 $0.0630 FUND HIGHLIGHTS 11/30/96 Yield 5.93% Taxable-equivalent yield 9.27% Annual total return on NAV 6.01% Taxable-equivalent total return 9.04% Share price $12.75 NAV $14.27 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
Commonly used terms Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, November 30, 1996) divided by its closing price per share on that date. Taxable equivalent yield The return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the fund's stated annualized yield on share price. In this report, these tax rates are assumed to be 39% for CT, 43.5% for MA, 40% for MO, and 36% for WA, based on 1996 incomes of $121,300-$263,750 for investors filing singly, $147,700-$263,750 for those filing jointly. Net Asset Value (NAV) The market value of all securities and other assets held by an exchange-traded fund, minus any liabili ties. The NAV per share is the fund's net assets, less the value of its preferred shares, divided by its total number of common shares outstanding. Total return on NAV The percentage change in a fund's NAV per common share for a given period, assuming reinvestment of all dividends and capital gains distributions, if any. Taxable equivalent total return The total return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the fund's stated total return on NAV. Leverage A technique used to enhance the income produced for common shareholders by a long-term municipal bond fund through the issuance of short-term preferred shares. The proceeds from the sale of the preferred shares can be used to purchase additional long-term bonds, thus increasing the portfolio's income stream. Changes in net asset value, both up and down, are also magnified by leverage. Each fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as are deemed advisable. No shares were repurchased during the six-month period ended November 30, 1996. Any future repur chases will be reported to shareholders. SHAREHOLDER MEETING REPORT On November 21, 1996, the following Nuveen Exchange-Traded Funds held an Annual Meeting of Shareholders. At the meeting, shareholders voted to elect directors of the Funds and to ratify selection of Ernst & Young L.L.P. as the auditors for the Funds. The directors elected at the meeting include: Lawrence H. Brown, Anthony T. Dean, Anne E. Impellizzeri, and Peter R. Sawers.
NTC NMT NOM NPW APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS: Lawrence H. Brown For 4,626,088 9,414,657 1,948,154 2,128,145 Abstain 63,071 135,553 26,049 32,516 --------- --------- --------- --------- Total 4,689,159 9,550,210 1,974,203 2,160,661 ========= ========= ========= ========= Anthony T. Dean For 4,626,800 9,414,657 1,948,154 2,128,145 Abstain 62,359 135,553 26,049 32,516 --------- --------- --------- --------- Total 4,689,159 9,550,210 1,974,203 2,160,661 ========= ========= ========= ========= Anne E. Impellizzeri For 4,625,138 9,414,657 1,948,154 2,128,145 Abstain 64,021 135,553 26,049 32,516 --------- --------- --------- --------- Total 4,689,159 9,550,210 1,974,203 2,160,661 ========= ========= ========= ========= Peter R. Sawers For 4,627,750 9,414,657 1,948,154 2,128,145 Abstain 61,409 135,553 26,049 32,516 --------- --------- --------- --------- Total 4,689,159 9,550,210 1,974,203 2,160,661 ========= ========= ========= ========= RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 4,627,790 9,387,268 1,940,292 2,127,726 Against 22,335 32,069 5,770 4,230 Abstain 39,034 130,873 28,141 28,705 --------- --------- --------- --------- Total 4,689,159 9,550,210 1,974,203 2,160,661 ========= ========= ========= =========
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND (NTC) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,400,000 Connecticut Development Authority, Water Facilities Revenue Bonds, Bridgeport Hydraulic Company Project, 1993 B Series, 5.500%, 6/01/28 Aaa 6/03 at 102 $ 1,390,662 2,795,000 Connecticut Development Authority, Water Facilities Revenue Bonds, Bridgeport Hydraulic Company Project, 1993 A Series, 5.600%, 6/01/28 (Alternative Minimum Tax) Aaa 6/03 at 102 2,732,308 2,000,000 Connecticut Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Pfizer Inc. Project, 1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax) Aaa 7/05 at 102 2,287,460 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, 1994 Series A: 1,500,000 6.875% 8/15/04 N/R No Opt. Call 1,568,130 1,000,000 7.000%, 8/15/09 N/R 8/04 at 102 1,065,100 1,000,000 Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), 1996 Series A, 5.875%, 11/15/17 (Alternative Minimum Tax) Aaa 11/06 at 102 1,018,040 3,175,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1993 Series B, 6.200%, 5/15/12 Aa 5/03 at 102 3,273,870 2,500,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1996 Subseries E-2, 6.150%, 11/15/27 (Alternative Minimum Tax) Aa 11/06 at 102 2,528,400 3,250,000 Connecticut Municipal Electric Energy Cooperative, Power Supply System Revenue Bonds, 1993 Series A, 5.000%, 1/01/18 Aaa 1/04 at 102 3,093,253 2,200,000 Connecticut Resources Recovery Authority, Bridgeport Resco Company, L.P. Project Bonds, Series A, Adjustable Convertible Extendable Securities-Aces., 7.625%, 1/01/09 A 1/97 at 103 2,270,510 3,360,000 Connecticut Resources Recovery Authority, Resource Recovery Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut Project, 1989 Series A, 7.700%, 11/15/11 AA- 11/98 at 103 3,688,910 2,000,000 State of Connecticut, General Obligation Bonds, 1993 Series E, 6.000%, 3/15/12 Aa No Opt. Call 2,183,800 3,250,000 State of Connecticut, General Obligation Bonds, 1993 Series D, 5.100%, 8/01/11 Aa 8/03 at 101 1/2 3,211,748 3,470,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford Issue, Series C, 8.000%, 7/01/18 (Pre-refunded to 7/01/03) Aaa 7/03 at 100 3,928,456 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Newington Children's Hospital, Series A, 6.050%, 7/01/10 Aaa 7/04 at 102 $ 1,063,100 2,725,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Saint Francis Hospital and Medical Center Issue, Series B, 6.200%, 7/01/22 Aaa 7/02 at 102 2,858,253 1,700,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lawrence and Memorial Hospital Issue, Series C, 6.250%, 7/01/22 (Pre-refunded to 7/01/02) Aaa 7/02 at 102 1,873,332 2,020,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College Issue, Series C, 6.000%, 7/01/22 Aaa 7/02 at 102 2,100,275 4,450,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac College Issue, Series D, 6.000%, 7/01/23 BBB- 7/03 at 102 4,286,819 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart University Issue, Series G: 1,000,000 5.000%, 7/01/13 Aaa 7/03 at 102 963,380 975,000 5.000%, 7/01/18 Aaa 7/03 at 102 919,074 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart University Issue, Series B: 2,600,000 5.700%, 7/01/16 Baa 7/03 at 102 2,440,958 1,000,000 5.800%, 7/01/23 Baa 7/03 at 102 937,650 2,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital of Saint Raphael Issue, Series H, 5.200%, 7/01/08 Aaa No Opt. Call 2,032,120 1,500,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lawrence and Memorial Hospital Issue, Series D, 5.000%, 7/01/22 Aaa 7/03 at 102 1,390,800 2,500,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Middlesex Hospital Issue, Series G, 6.250%, 7/01/22 Aaa 7/02 at 102 2,671,475 1,250,000 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%, 7/01/25 Aaa 7/04 at 101 1,432,263 2,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home Program Issue, Series 1994, AHF/Hartford, Inc. Project, 7.125%, 11/01/24 AA- 11/04 at 102 2,291,520 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home Program Issue, Series 1993, Mansfield Center for Nursing and Rehabilitation Project, 5.875%, 11/01/12 Aaa 11/03 at 102 $ 2,084,440 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Kent School Issue, Series B: 1,500,000 5.500%, 7/01/15 Aaa 7/05 at 101 1,507,695 5,160,000 5.625%, 7/01/16 Aaa 7/06 at 102 5,194,675 2,200,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Day Kimball Hospital Issue Series A, 5.375%, 7/01/26 Aaa 7/06 at 102 2,171,004 2,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College Issue, Series C, 5.875%, 7/01/26 Aaa 7/06 at 102 2,073,080 2,040,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Loomis Chaffee School Issue, Series C, 5.500%, 7/01/16 Aaa 7/06 at 102 2,054,668 1,800,000 State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10 AA- No Opt. Call 2,044,944 1,000,000 State of Connecticut, Special Tax Obligation Refunding Bonds, Transportation Infrastructure Purposes, 1993 Series B, 4.600% 10/01/06 AA- 10/03 at 102 981,100 3,000,000 State of Connecticut, Airport Revenue Refunding Bonds, Bradley International Airport, Series 1992, 7.650%, 10/01/12 Aaa 10/04 at 100 3,498,420 1,650,000 State of Connecticut, General Fund Obligation Bonds, 1994 Series A, Issued By Connecticut Development Authority, 6.375%, 10/15/14 AA- 10/04 at 102 1,784,195 3,000,000 State of Connecticut, Clean Water Fund Subordinate Revenue Refunding Bonds, 1996 Series, 5.250%, 7/01/10 Aaa 1/05 at 101 3,010,350 1,900,000 Capitol Region Education Council, Revenue Bonds, 6.700%, 10/15/10 BBB 10/05 at 102 1,985,652 City of New Haven, Connecticut, Air Rights Parking Facility Revenue Bonds, Series 1991: 3,000,000 6.625%, 12/01/05 Aaa 12/01 at 102 3,304,590 1,500,000 6.500%, 12/01/15 Aaa 12/01 at 102 1,655,355 2,000,000 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Eleventh Series, 5.750%, 8/01/12 Aaa 8/03 at 102 2,061,060 1,275,000 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Twelfth Series, 5.125%, 8/01/07 Aaa 8/03 at 102 1,295,438 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 3,250,000 City of Waterbury Connecticut, General Obligation Tax Revenue Intercept Refunding Bonds, 1993 Issue, 5.375%, 4/15/08 Aaa 4/03 at 102 $ 3,329,040 1,540,000 Waterbury Nonprofit Housing Corporation, Connecticut Taxable Mortgage Revenue Refunding Bonds, FHAInsured Mortgage Loan-Fairmont Heights Section 8 Assisted Project, Series 1993A, 6.500%, 7/01/07 Aaa 7/02 at 101 1,692,628 1,930,000 Housing Authority of the City of Willimantic, Multi-Family Housing Revenue Bonds, Series 1995A, GNMA Collateralized Mortgage Loan- Village Heights Apartments Project, 8.000%, 10/20/30 AAA 10/05 at 105 2,219,171 1,500,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Hospital Revenue Refunding Bonds, 1995 Series A, FHA Insured Mortgage-Doctor Pila Hospital Project, 6.125%, 8/01/25 AAA 8/05 at 101 1/2 1,583,520 $102,865,000 Total Investments - (cost $104,236,284) - 98.0% 107,032,691 ================ Other Assets Less Liabilities - 2.0% 2,203,734 Net Assets - 100% $109,236,425 ============ NUMBER OF MARKET MARKET STANDARD-&-POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 32 $ 70,489,385 66% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 21,988,487 21 PORTFOLIO OF A, A- A, A2, A3 1 2,270,510 2 INVESTMENTS: BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 4 9,651,079 9 Non-rated Non-rated 2 2,633,230 2 - ------------------------------------------------------------------------------------------------------------------- TOTAL 48 $107,032,691 100% * Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND (NMT) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE Massachusetts Health and Educational, Facilities Authority, Revenue Refunding Bonds, Youville Hospital Issue (FHA Insured Project Series): $ 2,920,000 6.125%, 2/15/15 Aa 2/04 at 102 $ 3,003,892 1,000,000 6.000%, 2/15/25 Aa 2/04 at 102 1,020,300 1,000,000 Massachusetts Educational Financing Authority, Education Loan Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10 (Alternative Minimum Tax) Aaa 7/04 at 102 1,047,880 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Deaconess Hospital Issue, Series D: 3,310,000 6.625%, 4/01/12 A 4/02 at 102 3,518,729 1,000,000 6.875%, 4/01/22 A 4/02 at 102 1,071,730 1,600,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Children's Hospital Issue, Series E, 5.500%, 10/01/19 Aa 10/02 at 102 1,594,720 3,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15 Aaa 7/03 at 102 3,001,860 1,400,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Massachusetts General Hospital Issue, Series G, 5.375%, 7/01/11 Aaa 7/00 at 100 1,408,540 2,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds (Daughters of Charity National Health System-The Carney Hospital), Series D, 6.100%, 7/01/14 Aa 7/04 at 102 2,071,040 3,800,000 Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 6.300%, 10/01/13 A1 4/03 at 102 3,906,172 645,000 Massachusetts Housing Finance Agency, Housing Development Revenue, Series 1986-A, 7.500%, 12/01/06 (Alternative Minimum Tax) Aaa 12/96 at 102 658,029 2,450,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 9, 8.100%, 12/01/21 (Alternative Minimum Tax) Aa 12/98 at 102 2,547,412 2,500,000 Massachusett Housing Finance Agency, Insured Rental Housing Bonds, 1994 Series A, 6.650%, 7/01/19 (Alternative Minimum Tax) Aaa 7/04 at 102 2,605,900 4,955,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue Bonds, 1995 Series A (FHA Insured Mortgage Loans), 7.350%, 1/01/35 (Alternative Minimum Tax) Aaa 1/05 at 102 5,393,121 1,350,000 Massachusetts Industrial Finance Agency, Pollution Control Revenue Bonds, 1993 Series (Eastern Edison Company Project), 5.875%, 8/01/08 Baa2 8/03 at 102 1,331,627 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 3,175,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) N/R 7/01 at 103 $ 3,560,382 1,125,000 Massachusetts Industrial Financial Agency, Revenue Bonds, Heights Crossing Limited Partnership Issue (FHA Insured Project), Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) AAA 2/06 at 102 1,145,059 2,500,000 Massachusetts Industrial Finance Agency, Revenue Refunding Bonds, College of the Holy Cross - 1992 Issue II, 6.375%, 11/01/15 (Pre-refunded to 11/01/02) A1 11/02 at 102 2,790,025 1,355,000 Massachusetts Industrial Finance Agency, Revenue Bonds, Merrimack College Issue, Series 1992, 7.125%, 7/01/12 BBB- 7/02 at 102 1,477,235 1,175,000 Massachusetts Industrial Finance Agency, Revenue Bonds (Brooks School Issue), Series 1993, 5.950%, 7/01/23 A 7/03 at 102 1,194,258 3,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds, Phillips Academy Issue, Series 1993, 5.375%, 9/01/23 Aa1 9/08 at 102 3,460,520 2,645,000 Massachusetts Industrial Finance Agency, Revenue Bonds (Whitehead Institute for Biomedical Research - 1993 Issue), 5.125%, 7/01/26 Aa 7/03 at 102 2,539,888 3,000,000 Massachusetts Industrial Finance Agency, Revenue Bonds, Harvard Community Health Plan, Inc., Issue 1988 Series B (Refunding Bonds), 8.125%, 10/01/17 A 10/98 at 102 3,238,500 1,420,000 Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1994 Series B, 5.000%, 7/01/17 Aaa 7/04 at 102 1,340,594 2,000,000 Massachusetts Municipal Wholesale Electric Company, A Public Corporation of The Commonwealth of Massachusetts, Power Supply System Revenue Bonds, 6.000%, 7/01/18 Aaa 7/02 at 100 2,050,820 1,000,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 7/01/13 Aaa No Opt. Call 1,706,510 4,750,000 Massachusetts Port Authority, Revenue Refunding Bonds, Series 1993-B, 5.000%, 7/01/18 (Alternative Minimum Tax) Aa 7/03 at 100 4,437,592 2,090,000 Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement Revenue Bonds (Pool Loan Program), Series 1, 5.600%, 8/01/13 Aa 8/03 at 102 2,111,987 3,000,000 Massachusetts Water Resources Authority, General Revenue Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 A 3/03 at 100 2,759,880 3,000,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1991 Series A, 5.750%, 12/01/21 A 12/01 at 100 3,010,980 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE Town of Barnstable, Massachusetts, General Obligation Bonds: $ 1,020,000 5.750%, 9/15/10 Aa 9/04 at 102 $ 1,062,942 1,020,000 5.750%, 9/15/11 Aa 9/04 at 102 1,058,974 965,000 5.750%, 9/15/12 Aa 9/04 at 102 997,385 1,420,000 City of Boston, Massachusetts, Revenue Refunding Bonds, Boston City Hospital (FHA Insured Mortgage), Series B, 5.750%, 2/15/23 Aa 8/00 at 102 1,403,755 1,000,000 City of Chelsea, Massachusetts, General Obligation Bonds, School Project Loan, Act of 1948, 7.000%, 6/15/03 Aaa No Opt. Call 1,135,790 4,875,000 City of Lowell, Massachusetts, General Obligation State Qualified Bonds, 5.600%, 11/01/12 Aaa 11/03 at 102 4,932,085 1,765,000 The New England Education Loan Marketing Corporation, Student Loan Revenue Bonds, 1992 Subordinated Issue C, 6.750%, 9/01/02 (Alternative Minimum Tax) A1 No Opt. Call 1,913,983 4,000,000 The New England Loan Marketing Corporation, Student Loan Revenue Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax) A1 No Opt. Call 4,405,560 1,750,000 Puerto Rico Aqueduct and Sewer Authority, Revenue Bonds, Series 1988A, 7.875%, 7/01/17 (Pre-refunded to 7/01/98) AAA 7/98 at 102 1,894,078 3,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series P, 7.000%, 7/01/21 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 3,404,130 $89,480,000 Total Investments - (cost $89,103,985) - 93.5% 93,213,864 ================ TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES 5.1% $ 3,200,000 The Commonwealth of Massachusetts, Dedicated Income Tax Bonds, Fiscal Recovery Loan, Act of 1990, Series B, Variable Rate Demand Bonds, 3.900%, 12/01/97+ VMIG-1 3,200,000 1,900,000 Massachusetts Health and Educational Facilities Authority (Capital Asset Program), Variable Rate Demand Bonds, 4.050%, 7/01/05+ VMIG-1 1,900,000 $ 5,100,000 Total Temporary Investments - 5.1% 5,100,000 ================ Other Assets Less Liabilities - 1.4% 1,420,237 Net Assets - 100% $99,734,101 =========== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 14 $31,724,396 34% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 27,310,407 29 PORTFOLIO OF A+ A1 4 13,015,740 14 INVESTMENTS A, A- A, A2, A3 6 14,794,077 16 (EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 2 2,808,862 3 TEMPORARY Non-rated Non-rated 1 3,560,382 4 INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------- TOTAL 40 $93,213,864 100% * Ratings: Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. N/R - Investment is not rated. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND (NOM) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,000,000 Health Facilities Revenue Bonds (Barnes-Jewish, Inc./Christian Health Services), Series 1993, 5.150%, 5/15/10 Aa No Opt. Call $ 994,410 1,000,000 Health and Educational Facilities Authority, of the State of Missouri, Health Facilities Revenue Bonds (BJC Health System), Series 1994A, 6.750%, 5/15/12 Aa No Opt. Call 1,151,700 1,000,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Refunding Revenue Bonds (SSMHealth Care), Series 1992AA, 6.250%, 6/01/07 Aaa 6/02 at 102 1,076,760 1,290,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Revenue Bonds (SSM Health Care Obligated Group Projects), Series 1990B, 7.000%, 6/01/15 Aaa 6/00 at 102 1,521,233 1,500,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Revenue Bonds (Saint Luke's Health System), Series 1993, 5.125%, 11/15/19 Aaa 11/03 at 102 1,420,575 1,000,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital, Inc.), Series 1996, 6.500%, 2/15/21 BBB+ 2/06 at 102 1,014,020 1,000,000 Health and Educational Facilities Authority of the State of Missouri, Educational Facilities Revenue Bonds (Saint Louis University), Series 1996, 5.000%, 10/01/10 Aaa 10/06 at 102 988,620 585,000 Missouri Housing Development Commission, Mortgage Purchase Bonds, Series May 15, 1979 (FHA Insured or VAGuaranteed Mortgage Loans), 6.600%, 11/15/10 AA+ 11/01 at 100 594,237 2,270,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds, Series 1991-A, GNMA Mortgage-Backed Securities Program), 7.375%, 8/01/23 (Alternative Minimum Tax) AAA 2/01 at 102 2,408,538 1,835,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds (Homeownership Loan Program), 1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax) AAA 3/06 at 105 2,025,858 1,000,000 Regional Convention and Sports Complex Authority, Convention and Sports Facility Project and Refunding Bonds, Series A 1993 (State of Missouri Sponsor), 5.500%, 8/15/13 A1 8/03 at 102 1,005,750 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,225,000 State Environmental Improvement and Energy Resources Authority (State of Missouri, Water Pollution Control Revenue Bonds, State Revolving Fund Program-City of Kansas City Project), Series 1995B, 7.750%, 1/01/08 Aa1 1/05 at 102 1,501,483 1,000,000 State Environmental Improvement and Energy Resources Authority (State of Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program-City of Branson Project), Series 1995A, 6.050%, 7/01/16 Aaa 7/04 at 102 1,048,480 1,000,000 State Environmental Improvement and Energy Resources Authority (State of Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program-Multiple Participant Series), Series 1996D, 5.875%, 1/01/15 Aa 1/06 at 101 1,043,860 1,400,000 Boone County, Missouri, Hospital Revenue Bonds, Series 1993, 5.500%, 8/01/09 A 8/02 at 102 1,390,424 500,000 City of Cape Girardeau, Missouri, Waterworks System Refunding Revenue Bonds, Series 1995, 5.200%, 3/01/09 Aaa 3/06 at 100 505,120 1,000,000 Union Reorganized School District No. R-XI of Franklin County, Missouri, General Obligation School Building and Refunding Bonds, Series 1993, 5.750%, 3/01/13 Aaa 3/03 at 100 1,028,690 1,550,000 Jackson County, Missouri, Single Family Mortgage Revenue Bonds, Series 1983, 0.000%, 3/01/15 Aaa No Opt. Call 566,525 1,140,000 City of Kansas City, Missouri, General Improvement Airport Refunding Revenue Bonds, Series 1995, 6.750%, 9/01/09 Aaa 9/05 at 101 1,285,179 1,500,000 City of Kansas City, Missouri, General Improvement Airport Revenue Bonds, Series 1994 A, 6.900%, 9/01/11 (Alternative Minimum Tax) Aaa 9/04 at 101 1,686,810 1,000,000 Land Clearance For Redevelopment Authority, of Kansas City, Missouri, Lease Revenue Bonds (Municipal Auditorium and Muehlebach Hotel Redevelopment Projects), Series 1995A, 5.900%, 12/01/18 Aaa 12/05 at 102 1,046,760 2,000,000 School District of Kansas City, Missouri, Building Corporation, Insured Leasehold Revenue Bonds, Series 1993 (The School District of Kansas City, Missouri, Capital Improvements Project), 5.000%, 2/01/14 Aaa 2/04 at 102 1,927,300 2,020,000 Ritenour School District of St. Louis County, Missouri, General Obligation School Bonds, Series 1995, 7.375%, 2/01/12 Aaa No Opt. Call 2,498,740 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,500,000 Francis Howell School District, St. Charles County, Missouri, General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08 Aaa No Opt. Call $ 1,885,110 1,400,000 School District of the City of St. Charles, Missouri, General Obligation Bonds (Missouri Direct Deposit Program), Series 1996A, 5.625%, 3/01/14 Aa 3/06 at 100 1,441,496 1,500,000 Certificates of Receipt, Series 1993, St. Louis County, Missouri, GNMACollateralized Mortgage Revenue Bonds, Series 1989A, 5.650%, 7/01/20 (Alternative Minimum Tax) AAA No Opt. Call 1,559,205 1,395,000 The Board of Education of the City of St. Louis (Missouri), General Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07 Aaa No Opt. Call 1,816,332 1,800,000 St. Louis Municipal Finance Corporation, City Justice Center, Leasehold Revenue Improvement Bonds, Series 1996A (City of St. Louis, Missouri, Lessee), 5.750%, 2/15/11 Aaa 2/06 at 102 1,865,340 1,500,000 St. Louis Municipal Finance Corporation, Leasehold Revenue Refunding Bonds, 5.850%, 7/15/09 Aa3 7/03 at 102 1,526,805 1,275,000 St. Louis Municipal Finance Corporation, Leasehold Revenue Improvement and Refunding Bonds, Series 1992 (City of St. Louis, Missouri, Lessee) 6.250%, 2/15/12 (Pre-refunded to 2/15/03) Aaa 2/03 at 102 1,409,602 500,000 City of Sikeston, Missouri, Electric System Revenue Refunding Bonds, 1996 Series, 6.000%, 6/01/16 Aaa No Opt. Call 547,045 625,000 Reorganized School District No. R-IV of Stone County, Missouri (Reeds Spring, Missouri), General Obligation School Building Refunding and Improvement Bonds, Series 1995, 7.600%, 3/01/10 Aaa No Opt. Call 780,419 1,250,000 The Industrial Development Authority of The City of University City, Missouri, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized- Canterbury Gardens Project), Series 1995A, 5.900%, 12/20/20 AAA 12/05 at 102 1,270,250 1,000,000 The Curators of the University of Missouri, Health Facilities Revenue Bonds (University of Missouri Health System), Series 1996A, 5.200%, 11/01/10 (WI) Aaa 11/06 at 102 993,110 700,000 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series U, 6.000%, 7/01/14 Aaa 7/04 at 102 739,927 $43,260,000 Total Investments - (cost $43,138,175) - 99.7% 45,565,713 ================ PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.9% $ 400,000 Health and Education Facilities Authority of the ================ State of Missouri, Variable Rate Demand Bonds, Educational Facilities Revenue Bonds (Drury College), Series 1996A, 4.100%, 8/15/21+ VMIG-1 $ 400,000 Other Assets Less Liabilities - (0.6%) (250,654) Net Assets - 100% $45,715,059 =========== NUMBER-OF MARKET MARKET STANDARD-&-POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 25 $33,901,528 75% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 7 8,253,991 18 PORTFOLIO OF A+ A1 1 1,005,750 2 INVESTMENTS A, A- A, A2, A3 1 1,390,424 3 (EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 1 1,014,020 2 TEMPORARY INVESTMENTS): TOTAL 35 $45,565,713 100% * Ratings: Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. (WI) Security purchased on a when-issued basis (note 1). + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND (NPW) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,000,000 State of Washington, General Obligation Bonds, Series 1994B, 6.000%, 5/01/19 Aa 5/04 at 100 $ 2,071,860 1,250,000 Washington Health Care Facilities Authority, Revenue Bonds, Refunding Series 1992 (Franciscan Health System/Saint Clare Hospital, Tacoma), 6.625%, 7/01/20 Aaa 7/02 at 102 1,374,925 2,000,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (The Children's Hospital and Medical Center, Seattle), 6.125%, 10/01/13 Aaa 10/02 at 102 2,084,360 2,400,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Swedish Hospital Medical Center, Seattle), 6.300%, 11/15/22 Aaa 11/02 at 102 2,540,592 650,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1993 (Empire Health Services, Spokane), 5.625%, 11/01/19 Aaa 11/03 at 102 638,469 1,000,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1993A (The Heart Institute of Spokane), 5.800%, 8/15/18 AA- 8/04 at 102 987,140 1,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 Aaa 7/03 at 102 1,004,320 1,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09 Aa1 No Opt. Call 1,152,670 980,000 Washington State Housing Finance Commission, Multi-Family Mortgage Revenue Bonds (GNMA Mortgage Backed Securities Program), Series 1989A, 7.700%, 7/01/32 (Alternative Minimum Tax) AAA 1/00 at 103 1,034,919 1,610,000 Washington State Housing Finance Commission, Single-Family Mortgage Revenue Bonds (Mortgage Backed Securities Program), Series 1992D-1, 6.150%, 1/01/26 (Alternative Minimum Tax) AAA NoOpt. Call 1,658,719 1,400,000 Washington State University, Housing and Dining System Revenue and Refunding Bonds, Series 1994, 6.375%, 10/01/18 Aaa 10/04 at 101 1,523,942 1,050,000 City of Bellevue, King County, Washington, Water and Sewer Revenue Refunding Bonds, 1994, 5.875%, 7/01/09 Aa 7/04 at 100 1,098,941 1,000,000 Public Utility District No. 1 of Benton County, Washington, Electric Revenue Bonds, Series B 1982, 11/01/02 (Pre-refunded to 11/01/97) Aaa 11/97 at 100 1,088,190 2,000,000 Public Utility District No. 1 of Chelan County, Washington, Columbia River-Rock Island Hydro-Electric System Revenue Bonds, Series of 1976, 6.375%, 6/01/29 A1 12/96 at 102 2,020,340 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,035,000 Covington Water District, Water Revenue Bonds, Refunding Series 1995, 6.050%, 3/01/20 Aaa 3/05 at 100 $ 1,070,532 2,000,000 Housing Authority of the County of King, Washington, Housing Revenue Bonds, 1995 (Woodridge Park Project), 6.350%, 5/01/25 (Alternative Minimum Tax) AA+ 5/05 at 100 2,045,640 1,000,000 Federal Way School District No. 210, King County, Washington, Unlimited Tax General Obligation and Refunding Bonds, 1993, 5.750%, 12/01/12 Aaa No Opt. Call 1,047,590 800,000 Kitsap County, Washington, Sewer Revenue Bonds, 1996, 5.750%, 7/01/16 Aaa 7/06 at 100 816,200 1,600,000 Public Utility District No. 1 of Klickitat County, Washington, Electric Revenue Bonds, 1995, 5.650%, 10/01/15 Aaa 10/05 at 101 1,626,544 1,000,000 Lewis County Public Utility District, Cowlitz Falls Hydroelectric Project, Revenue Refunding Bonds, Series 1993, 5.500%, 10/01/22 Aa1 10/03 at 102 982,590 1,000,000 Peninsula School District No. 401, Pierce County, Washington, Unlimited Tax General Obligation Refunding Bonds, 1993, 5.500%, 12/01/08 Aaa No Opt. Call 1,043,350 1,000,000 Port of Seattle, Washington, Revenue Bonds, 1990A, 6.000%, 12/01/14 AA- 12/00 at 100 1,011,850 1,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1996A, 5.500%, 9/01/21 Aaa 9/06 at 101 985,940 1,000,000 Port of Vancouver, Clark County, Washington, Limited Tax General Obligation Bonds, 1994 Series B, 6.000%, 12/01/04 (Alternative Minimum Tax) Aaa No Opt. Call 1,093,920 900,000 City of Richland, Washington, Water and Sewer Improvement Revenue Bonds, 1993, 5.625%, 4/01/12 Aaa 4/03 at 100 915,606 1,200,000 Sammamish Plateau Water and Sewer District, King County, Washington, Water and Sewer Revenue Refunding Bonds, 1996, 5.500%, 12/01/16 Aaa 12/06 at 100 1,187,796 Seattle Indian Services Commission, Special Obligation Bonds, 1994: 1,000,000 6.000%, 11/01/16 Aa1 11/04 at 100 1,041,150 750,000 6.150%, 11/01/24 Aa1 11/04 at 100 784,898 1,500,000 The City of Seattle, Washington, Drainage and Wastewater Utility Revenue Bonds, 1992, 5.750%, 12/01/22 Aa 12/02 at 101 1,512,450 500,000 The City of Seattle, Washington, Municipal Light and Power Revenue Bonds, 1992A, 5.750%, 8/01/12 Aa 8/02 at 102 510,045 500,000 The City of Seattle, Washington, Water System and Refunding Revenue Bonds, 1993, 5.250%, 12/01/23 Aa 6/03 at 101 481,500 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,640,000 Housing Authority of Skagit County, Low-Income Housing Assistance Revenue Bonds, 1993 (GNMA Collateralized Mortgage Loan-Sea Mar Project), 7.000%, 6/20/35 AAA 11/04 at 104 $ 1,742,139 1,385,000 Public Utility District No. 1 of Snohomish County, Washington, Generation System Revenue Bonds, Series 1993B, 5.750%, 1/01/09 (Alternative Minimum Tax) A1 1/04 at 102 1,417,381 1,500,000 Mukilteo School District No. 6, Snohomish County, Washington, Unlimited Tax General Obligation and Refunding Bonds, 1993, 5.700%, 12/01/12 Aaa No Opt. Call 1,567,995 500,000 Edmonds School District No. 15, Snohomish County, Washington, Unlimited Tax General Obligation Bonds, Series 1994, 6.500%, 12/01/08 AA- No Opt. Call 565,640 1,000,000 University of Washington, Housing and Dining System Revenue Refunding Bonds, Junior Lien Series 1996, 5.125%, 12/01/15 Aaa 12/06 at 102 965,840 1,910,000 Housing Authority of the City of Vancouver Revenue Bonds, 1993, Series B (Fishers Mill Project), (Junior Lien Bonds), 6.000%, 3/01/23 Aa 3/03 at 100 1,947,990 1,500,000 Western Washington University, Housing and Dining System, Revenue Bonds, Series 1992, 6.375%, 10/01/22 Aaa 10/02 at 101 1,605,404 1,000,000 Yakima-Tieton Irrigation District, Yakima County, Washington, Refunding Revenue Bonds, 1992, 6.125%, 6/01/13 Aaa 6/03 at 102 1,049,960 $47,560,000 Total Investments - (cost $47,615,204) - 98.4% 49,299,337 ================ TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 100,000 Washington Health Care Facilities Authority, ================ Variable Rate Demand Revenue Bonds (Sisters of Providence), Series 1985E, 4.000%, 10/01/05+ VMIG-1 100,000 Other Assets Less Liabilities - 1.4% 703,404 Net Assets - 100% $50,102,741 =========== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 23 $29,667,252 60% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 16,194,364 33 PORTFOLIO OF A+ A1 2 3,437,721 7 INVESTMENTS (EXCLUDING TEMPORARY INVESTMENTS): TOTAL 39 $49,299,337 100% * Ratings: Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
STATEMENT OF NET ASSETS (Unaudited)
NTC NMT NOM NPW ASSETS Investments in municipal securities, at market value (note 1) $107,032,691 $ 93,213,864 $ 45,565,713 $ 49,299,337 Temporary investments in short-term municipal securities, at amortized cost (note 1) -- 5,100,000 400,000 100,000 Cash 580,243 15,534 95,234 61,692 Receivables: Interest 2,053,454 1,817,162 814,302 868,798 Investments sold -- 15,000 -- -- Other assets 9,877 7,925 8,323 6,786 ------------ ------------ ------------ ------------ Total assets 109,676,265 100,169,485 46,883,572 50,336,613 ------------ ------------ ------------ ------------ LIABILITIES Payable for investments purchased -- -- 985,327 -- Accrued expenses: Management fees (note 6) 57,874 52,925 24,212 26,548 Other 51,360 57,326 26,278 57,854 Preferred share dividends payable 4,198 5,401 2,367 3,307 Common share dividends payable 326,408 319,732 130,329 146,163 ------------ ------------ ------------ ------------ Total liabilities 439,840 435,384 1,168,513 233,872 ------------ ------------ ------------ ------------ Net assets (note 7) $109,236,425 $ 99,734,101 $ 45,715,059 $ 50,102,741 ============ ============ ============ ============ Preferred shares, at liquidation value $ 38,300,000 $ 34,000,000 $ 16,000,000 $ 17,000,000 ============ ============ ============ ============ Preferred shares outstanding 1,532 1,360 640 680 ============ ============ ============ ============ Common shares outstanding 5,140,283 4,600,454 2,136,537 2,320,051 ============ ============ ============ ============ Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 13.80 $ 14.29 $ 13.91 $ 14.27 ============ ============ ============ ============ See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Six months ended November 30, 1996 (Unaudited)
NTC NMT NOM NPW INVESTMENT INCOME Tax-exempt interest income (note 1) $ 3,022,903 $ 2,874,204 $ 1,258,188 $ 1,413,366 ----------- ----------- ----------- ----------- Expenses: Management fees (note 6) 346,916 317,996 145,221 159,272 Preferred shares--auction fees 47,875 42,500 20,000 21,251 Preferred shares--dividend disbursing agent fees 7,083 6,250 7,083 6,250 Shareholders' servicing agent fees and expenses 7,884 4,120 3,492 1,499 Custodian's fees and expenses 20,871 17,003 17,381 17,479 Trustees' fees and expenses (note 6) 856 948 630 655 Professional fees 8,107 8,194 9,020 8,062 Shareholders' reports--printing and mailing expenses 15,132 13,831 10,827 8,073 Stock exchange listing fees 8,143 8,091 1,015 1,134 Investor relations expense 4,437 3,572 2,002 1,754 Other expenses 5,510 4,678 8,990 6,583 ----------- ----------- ----------- ----------- Total expenses 472,814 427,183 225,661 232,012 ----------- ----------- ----------- ----------- Net investment income 2,550,089 2,447,021 1,032,527 1,181,354 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (notes 1 and 3) (543,174) (122,009) (28,008) 258 Net change in unrealized appreciation or depreciation of investments 4,575,965 3,321,393 1,718,872 1,816,188 ----------- ----------- ----------- ----------- Net gain from investments 4,032,791 3,199,384 1,690,864 1,816,446 ----------- ----------- ----------- ----------- Net increase in net assets from operations $ 6,582,880 $ 5,646,405 $ 2,723,391 $ 2,997,800 =========== =========== =========== =========== See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
NTC NMT Six months ended Year ended Six months ended Year ended 11/30/96 5/31/96 11/30/96 5/31/96 OPERATIONS Net investment income $ 2,550,089 $ 5,014,273 $ 2,447,021 $ 4,817,006 Net realized gain (loss) from investment transactions (notes 1 and 3) (543,174) (521,214) (122,009) (356,375) Net change in unrealized appreciation or depreciation of investments 4,575,965 (534,565) 3,321,393 (520,768) ------------- ------------- ------------- ------------- Net increase in net assets from operations 6,582,880 3,958,494 5,646,405 3,939,863 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (1,917,837) (3,758,689) (1,902,659) (3,669,476) Preferred shareholders (531,031) (1,262,953) (478,331) (1,099,146) ------------- ------------- ------------- ------------- Decrease in net assets from distributions to shareholders (2,448,868) (5,021,642) (2,380,990) (4,768,622) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 174,725 140,264 165,585 61,212 ------------- ------------- ------------- ------------- Net increase in net assets derived from capital share transactions 174,725 140,264 165,585 61,212 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets 4,308,737 (922,884) 3,431,000 (767,547) Net assets at beginning of period 104,927,688 105,850,572 96,303,101 97,070,648 ------------- ------------- ------------- ------------- Net assets at end of period $ 109,236,425 $ 104,927,688 $ 99,734,101 $ 96,303,101 ============= ============= ============= ============= Balance of undistributed net investment income at end of period $ 330,095 $ 228,874 $ 361,345 $ 295,314 ============= ============= ============= ============= See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
NOM NPW Six months ended Year ended Six months ended Year ended 11/30/96 5/31/96 11/30/96 5/31/96 OPERATIONS Net investment income $ 1,032,527 $ 2,042,610 $ 1,181,354 $ 2,357,858 Net realized gain (loss) from investment transactions (notes 1 and 3) (28,008) (126,266) 258 43,444 Net change in unrealized appreciation or depreciation of investments 1,718,872 (499,333) 1,816,188 (580,097) ------------ ------------ ------------ ------------ Net increase in net assets from operations 2,723,391 1,417,011 2,997,800 1,821,205 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (771,291) (1,440,028) (865,379) (1,726,118) Preferred shareholders (251,014) (528,534) (295,735) (641,034) ------------ ------------ ------------ ------------ Decrease in net assets from distributions to shareholders (1,022,305) (1,968,562) (1,161,114) (2,367,152) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- ------------ ------------ ------------ ------------ Net increase in net assets derived from capital share transactions -- -- -- -- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,701,086 (551,551) 1,836,686 (545,947) Net assets at beginning of period 44,013,973 44,565,524 48,266,055 48,812,002 ------------ ------------ ------------ ------------ Net assets at end of period $ 45,715,059 $ 44,013,973 $ 50,102,741 $ 48,266,055 ============ ============ ============ ============ Balance of undistributed net investment income at end of period $ 141,565 $ 131,343 $ 81,076 $ 60,836 ============ ============ ============ ============ See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At November 30, 1996, the state Funds (the "Funds") covered in this report and their corresponding stock exchange symbols are Nuveen Connecticut Premium Income Municipal Fund (NTC), Nuveen Massachusetts Premium Income Municipal Fund (NMT), Nuveen Missouri Premium Income Municipal Fund (NOM) and Nuveen Washington Premium Income Municipal Fund (NPW). NTC and NMT are traded on the New York Stock Exchange while NOM and NPW are traded on the American Stock Exchange. Each Fund invests primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with generally accepted accounting principles. Securities Valuation Portfolio securities for which market quotations are readily available are valued at the mean between the quoted bid and asked prices or the yield equivalent. Portfolio securities for which market quotations are not readily available are valued at fair value by consistent application of methods determined in good faith by the Board of Trustees. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are traded and valued at amortized cost. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of their purchase commitments. At November 30, 1996, NOM had outstanding purchase commitments of $985,327. There were no such purchase commitments in any of the other Funds. Interest Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing to shareholders all of their tax-exempt net investment income, in addition to any significant amounts of net realized capital gains and/or market discount realized from investment transactions. The Funds currently consider significant net realized capital gains and/or market discount as amounts in excess of $.01 per Common share. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gain and market discount distributions are subject to federal taxation. Dividends and Tax-exempt net investment income is declared as a Distributions to dividend monthly and payment is made or reinvestment Shareholders is credited to shareholder accounts after month-end. Net realized capital gains and/or market discount from investment transactions are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryovers. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of such distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one Series. The dividend rate may change every seven days, as set by the Auction Agent. The number of Preferred shares outstanding at November 30, 1996, for each Fund is as follows:
NTC NMT NOM NPW Number of shares: Series Th 1,532 1,360 640 680 ===== ===== === ===
Derivative Financial In October 1994, the Financial Accounting Standards Instruments Board (FASB) issued Statement of Financial Accounting Standards No. 119, Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments, which prescribes disclosure requirements for transactions in certain derivative financial instruments including futures, forward, swap, and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the six months ended November 30, 1996. Use of Estimates The preparation of financial statements in conformity with 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 from operations during the reporting period. 2. FUND SHARES Transactions in Common shares were as follows:
NTC NMT 6 months ended Year ended 6 months ended Year ended 11/30/96 5/31/96 11/30/96 5/31/96 Shares issued to shareholders due to reinvestment of distributions 12,899 10,325 11,793 4,528 ====== ====== ====== ====== NOM NPW 6 months ended Year ended 6 months ended Year ended 11/30/96 5/31/96 11/30/96 5/31/96 Shares issued to shareholders due to reinvestment of distributions -- -- -- -- ====== ====== ====== ======
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the six months ended November 30, 1996, were as follows:
NTC NMT NOM NPW PURCHASES Investments in municipal securities $13,979,152 $ 6,346,964 $ 5,774,332 $ 2,958,805 Temporary municipal investments 7,500,000 7,900,000 4,600,000 5,710,000 SALES AND MATURITIES Investments in municipal securities 13,893,575 10,256,149 4,783,206 2,704,715 Temporary municipal investments 7,800,000 2,800,000 4,700,000 5,910,000 =========== =========== =========== ===========
At November 30, 1996, the identified cost of investments owned for federal income tax purposes was the same as the cost for financial reporting purposes for each Fund. At May 31, 1996, the funds' last fiscal year end, the Funds had unused capital loss carryovers available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryovers will expire as follows:
NTC NMT NOM NPW Expiration year: 2002 $ 9,146 $ -- $ -- $ -- 2003 1,272,842 1,247,263 1,427,894 580,800 2004 1,105,901 945,779 708,417 70,082 ---------- ---------- ---------- ---------- Total $2,387,889 $2,193,042 $2,136,311 $ 650,882 ========== ========== ========== ==========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS On December 2, 1996, the Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid December 31, 1996, to shareholders of record on December 15, 1996, as follows:
NTC NMT NOM NPW Dividend per share $.0635 $.0695 $.0610 $.0630 ====== ====== ====== ====== 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 1996, were as follows: NTC NMT NOM NPW Gross unrealized: Appreciation $ 3,498,226 $ 4,206,559 $ 2,429,101 $ 1,716,858 Depreciation (701,819) (96,680) (1,563) (32,725) ----------- ----------- ----------- ----------- Net unrealized appreciation $ 2,796,407 $ 4,109,879 $ 2,427,538 $ 1,684,133 =========== =========== =========== ===========
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays to the Adviser an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net asset value of each Fund.
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE For the first $125,000,000 .65 of 1% For the next $125,000,000 .6375 of 1 For the next $250,000,000 .625 of 1 For the next $500,000,000 .6125 of 1 For the next $1,000,000,000 .6 of 1 For net assets over $2,000,000,000 .5875 of 1 The fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS At November 30, 1996, net assets consisted of: NTC NMT NOM NPW Preferred shares, $25,000 stated value per share, at liquidation value $ 38,300,000 $ 34,000,000 $ 16,000,000 $ 17,000,000 Common shares, $.01 par value per share 51,403 46,005 21,365 23,201 Paid-in surplus 70,994,323 63,627,902 29,327,360 31,971,264 Balance of undistributed net investment income 330,095 361,345 141,565 81,076 Accumulated net realized gain (loss) from investment transactions (3,235,803) (2,411,030) (2,202,769) (656,933) Net unrealized appreciation of investments 2,796,407 4,109,879 2,427,538 1,684,133 ------------- ------------- ------------- ------------- Net assets $ 109,236,425 $ 99,734,101 $ 45,715,059 $ 50,102,741 ============= ============= ============= ============= Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ============= ============= ============= =============
8. INVESTMENT COMPOSITION Each Fund invests in municipal securities which include general obligation, escrowed and revenue bonds. At November 30, 1996, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows:
NTC NMT NOM NPW Revenue Bonds: Housing Facilities 11% 22% 14% 17% Health Care Facilities 19 18 18 16 Educational Facilities 18 17 2 8 Electric Utilities 3 4 3 18 Water / Sewer Facilities 6 8 9 17 Lease Rental Facilities -- -- 13 -- Transportation 8 5 6 6 Pollution Control Facilities 6 1 -- -- Other 8 4 3 -- General Obligation Bonds 16 10 21 16 Escrowed Bonds 5 11 11 2 --- --- --- --- 100% 100% 100% 100% === === === ===
Certain long-term and intermediate-term investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (60% for NTC, 36% for NMT, 62% for NOM and 51% for NPW). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of any of the Funds' shares. All of the temporary investments in short-term municipal securities have credit enhancements (letters of credit, guarantees or insurance) issued by third party domestic or foreign banks or other institutions. For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. FINANCIAL HIGHLIGHTS (Unaudited) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt Operating performance net investment income Net realized & Net asset Net unrealized value invest- gain (loss) To To beginning ment from invest- Common Preferred of period income ments shareholders shareholders+ NTC Six months ended 11/30/96 $12.990 $.497 $ .790 $(.374) $(.103) Year ended 5/31, 1996 13.200 .979 (.208) (.734) (.247) 1995 12.450 .977 .739 (.736) (.230) 1994 13.960 .768 (1.400) (.605) (.129) 5/20/93 to 5/31/93 14.050 .002 .001 -- -- NMT Six months ended 11/30/96 13.580 .533 .695 (.414) (.104) Year ended 5/31, 1996 13.760 1.050 (.190) (.800) (.240) 1995 12.900 1.036 .846 (.780) (.242) 1994 14.080 .872 (1.020) (.738) (.149) 3/18/93 to 5/31/93 14.050 .054 .056 -- -- Distributions from capital gains Per Organization Common and offering share costs and market To To Preferred share Net asset value Common Preferred underwriting value end end of shareholders shareholders+ discounts of period period NTC Six months ended 11/30/96 $ -- $ -- $ -- $13.800 $13.750 Year ended 5/31, 1996 -- -- -- 12.990 13.625 1995 -- -- -- 13.200 12.625 1994 -- -- (.144) 12.450 13.125 5/20/93 to 5/31/93 -- -- (.093) 13.960 15.000 NMT Six months ended 11/30/96 -- -- -- 14.290 14.125 Year ended 5/31, 1996 -- -- -- 13.580 13.750 1995 -- -- -- 13.760 13.375 1994 -- -- (.145) 12.900 12.500 3/18/93 to 5/31/93 -- -- (.080) 14.080 15.250 Ratios/Supplemental data Total invest- Ratio of ment net return Total Net assets Ratio of investment on return on end of expenses income Portfolio market net asset period (in to average to average turnover value** value** thousands) net assets++ net assets++ rate NTC Six months ended 11/30/96 3.74% 9.23% $109,236 .89%* 4.78%* 13% Year ended 5/31, 1996 14.06 3.97 104,928 .89 4.71 15 1995 2.22 12.74 105,851 .92 4.99 18 1994 (8.73) (6.74) 101,595 .95 3.95 9 5/20/93 to 5/31/93 -- (.64) 67,533 1.04* 1.17* -- NMT Six months ended 11/30/96 5.78 8.39 99,734 .87* 5.00* 7 Year ended 5/31, 1996 8.99 4.55 96,303 .88 4.95 18 1995 14.12 13.58 97,071 .94 5.20 29 1994 (13.64) (3.38) 93,078 .97 4.26 33 3/18/93 to 5/31/93 1.67 .21 64,377 .93* 2.17* --
See notes on page 46. FINANCIAL HIGHLIGHTS (Unaudited) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt Operating performance net investment income Net realized & Net asset Net unrealized value invest- gain (loss) To To beginning ment from invest- Common Preferred of period income ments shareholders shareholders+ NOM Six months ended 11/30/96 $13.110 $ .483 $ .795 $(.361) $(.117) Year ended 5/31, 1996 13.370 .956 (.295) (.674) (.247) 1995 12.350 .948 1.022 (.693) (.257) 1994 13.900 .759 (1.397) (.594) (.136) 5/20/93 to 5/31/93 14.050 .001 (.001) -- -- NPW Six months ended 11/30/96 13.480 .509 .781 (.373) (.127) Year ended 5/31, 1996 13.710 1.016 (.226) (.744) (.276) 1995 12.970 1.006 .765 (.765) (.266) 1994 14.090 .906 (.923) (.762) (.155) 3/18/93 to 5/31/93 14.050 .066 .088 -- -- Distributions from capital gains Per Total Organization Common invest- and offering share ment costs and market return To To Preferred share Net asset value on Common Preferred underwriting value end end of market shareholders shareholders+ discounts of period period value** NOM Six months ended 11/30/96 $ -- $ -- $ -- $13.910 $12.625 3.87% Year ended 5/31, 1996 -- -- -- 13.110 12.500 10.07 1995 -- -- -- 13.370 12.000 6.13 1994 -- -- (.182) 12.350 12.000 (17.26) 5/20/93 to 5/31/93 -- -- (.150) 13.900 15.125 .83 NPW Six months ended 11/30/96 -- -- -- 14.270 12.750 11.86 Year ended 5/31, 1996 -- -- -- 13.480 11.750 7.44 1995 -- -- -- 13.710 11.625 .41 1994 (.014) (.003) (.169) 12.970 12.375 (16.88) 3/18/93 to 5/31/93 -- -- (.114) 14.090 15.750 5.00 Ratios/Supplemental data Ratio of net Total Net assets Ratio of investment return on end of expenses income Portfolio net asset period (in to average to average turnover value** thousands) net assets++ net assets++ rate NOM Six months ended 11/30/96 8.97% $45,715 1.01%* 4.62%* 11% Year ended 5/31, 1996 3.09 44,014 1.01 4.57 34 1995 14.74 44,566 1.08 4.86 34 1994 (7.16) 42,343 1.05 3.92 39 5/20/93 to 5/31/93 (1.07) 29,296 1.34* .69* -- NPW Six months ended 11/30/96 8.74 50,103 .95* 4.82* 6 Year ended 5/31, 1996 3.75 48,266 .94 4.81 20 1995 12.36 48,812 1.04 5.04 16 1994 (2.73) 47,095 1.08 4.42 29 3/18/93 to 5/31/93 .28 32,653 1.02* 2.63* -- * Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders.
Your investment partner Photographic image of John Nuveen, Sr., founder of Nuveen. For nearly 100 years, Nuveen has earned its reputation as a tax-free income specialist. Since 1898, John Nuveen & Co. Incorporated has worked to bring together the various participants in the municipal bond industry and build strong partnerships that benefit all concerned. Investors, financial advisers, municipal officials, investment bankers--Nuveen believes that forging relationships with these groups based on trust and value is the key to successful investing. As the oldest and largest municipal bond specialist in the United States, Nuveen's investment bankers work with issuers to understand and meet their needs in structuring and selling their bond issues. Nuveen also works closely with financial advisers around the country, including brokerage firms, banks, insurance companies, and independent financial planners, to bring the benefits of tax-free investing to you. These advisers are experts at identifying your needs and recommending the best solutions for your situation. Together we make a powerful team, helping you create a successful investment plan that meets your needs today and in the future. John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, Illinois 60606-1286 FSA-3-11.96 -----END PRIVACY-ENHANCED MESSAGE-----