-----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, Nn3NeCa7LgMaHnTbdymR4cfoStK/c/TlF1yao6NGJ2DclHk8KOpyglmh0Uhze8BZ 8eIijlDyYlhMtVC7e0OGcQ== 0000891804-01-000254.txt : 20010206 0000891804-01-000254.hdr.sgml : 20010206 ACCESSION NUMBER: 0000891804-01-000254 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001130 FILED AS OF DATE: 20010205 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: SEC FILE NUMBER: 811-07484 FILM NUMBER: 1524590 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 0001.txt NUVEEN MASSACHUSETTS PREM INCOME MUNI FUND(NMT) LOGO: NUVEEN INVESTMENTS SEMIANNUAL REPORT November 30, 2000 Municipal Closed-End Exchange-Traded Funds Dependable, tax-free income to help you keep more of what you earn. CONNECTICUT NTC MASSACHUSETTS NMT MISSOURI NOM INVEST WELL. LOOK AHEAD. LEAVE YOUR MARK.(SM) PHOTO OF: WATER PHOTO OF: MAN AND GIRL WORKING ON COMPUTER. Credit Quality HIGHLIGHTS As of November 30, 2000 PIE CHART: NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND (NTC) AAA/U.S. Guaranteed 70% AA 23% BBB 5% NR 2% PIE CHART: NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND (NMT) AAA/U.S. Guaranteed 64% AA 18% A 10% BBB 2% NR 6% PIE CHART: NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND (NOM) AAA/U.S. Guaranteed 68% AA 11% A 3% BBB 6% NR 12% CONTENTS 1 Dear Shareholder 3 Portfolio Managers' Comments 8 NTC Performance Overview 9 NMT Performance Overview 10 NOM Performance Overview 11 Shareholder Meeting Report 12 Portfolio of Investments 22 Statement of Net Assets 23 Statement of Operations 24 Statement of Changes in Net Assets 25 Notes to Financial Statements 29 Financial Highlights 32 Build Your Wealth Automatically 33 Fund Information - -------------------------------------------------------------------------------- COMPOUND YOUR WEALTH - AUTOMATICALLY All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital gains directly into additional shares of your Fund. This is a great way to see your investment grow through the power of compounding. For more information about Dividend Reinvestment, see the last page of this report or speak with your financial advisor. - -------------------------------------------------------------------------------- Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "A WELL-BALANCED PORTFOLIO CAN HELP YOU REDUCE YOUR INVESTMENT RISKS." Dear SHAREHOLDER One of the primary goals of your Nuveen Fund is to provide you with attractive, dependable tax-free income from a quality portfolio. I am pleased to report that over the period covered by this report your Fund has continued to meet these objectives. I urge you to read the Portfolio Managers' Comments and Performance Overview pages included in this report, which provide more details about Fund results, how they were achieved, and how the Funds are trying to position themselves for the future. The uncertain markets of this past reporting period also remind us of another important reason for investing in Nuveen Funds. In times such as these, your Nuveen Fund can help bring a measure of diversification to your overall portfolio and serve as a useful counterbalance to other holdings. A well-balanced portfolio can help you reduce your investment risks and provide one of the keys to strong long-term performance. Invest Well. Look Ahead. Leave Your Mark. At Nuveen, we believe that investors should focus not only on investments that can help them accumulate wealth, but also on the plans and services that can help preserve that wealth and pass it along to future generations. This long-term perspective is an integral part of our portfolio management strategies, our insistence on quality, and our desire to provide investments that can withstand the test of time. In establishing a program tailored to your needs, the sound ongoing advice and disciplined focus provided by a trusted financial advisor can be an invaluable resource, enabling you to make wise investment decisions and build a program that can result in a lasting legacy. For more than a century, Nuveen has offered quality investments to those who recognize and embrace the need for building, preserving and managing wealth. All of us at Nuveen are dedicated to working with you and your financial advisor to provide the services, products, perspectives, and solutions that can help you meet your personal and family financial goals, now and for years to come. We thank you for your continued confidence. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 16, 2001 Sidebar text: "IN ESTABLISHING A PROGRAM TAILORED TO YOUR NEEDS, THE SOUND ONGOING ADVICE AND DISCIPLINED FOCUS PROVIDED BY A TRUSTED FINANCIAL ADVISOR CAN BE AN INVALUABLE RESOURCE." Nuveen Closed-End Exchange-Traded Funds (NTC, NMT, NOM) Portfolio Managers' COMMENTS Portfolio managers Paul Brennan, Tom Futrell, and Mike Davern review the economic environment, key investment strategies, and the performance of the Nuveen Closed-End Exchange-Traded Funds. Paul assumed portfolio management responsibility for NTC in 1999, while Tom and Mike have managed NMT and NOM, respectively, since 1998. WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND THE MUNICIPAL MARKET OVER THE PAST YEAR? The major factor affecting the fixed-income markets over the past year has been Federal Reserve policy. Citing potential inflation as a threat to the economy, the Fed raised interest rates six times between June 1999 and May 2000, eventually bringing the federal funds rate to 6.50%, the highest level in almost a decade. The goal of this tightening policy has been to slow economic growth without causing a recession. Recent evidence has indicated that the Fed effort may be having an impact. While the U.S. economic expansion has reached a record tenth year, various reports point to slowing growth. As a result, the Fed now appears to consider the possibility of economic weakness a more serious risk than inflation. Accordingly, the Fed moved to lower rates in January, and many anticipate that the Fed will move again to reduce interest rates if a significant economic slowdown seems imminent. Looking at the municipal market, recent signs of a slow ing economy have helped many bonds perform well. Falling new issue supply also helped the market. During the first 11 months of 2000 new issue supply totaled $169 billion nationwide, down 14% from 1999 levels. Part of this decline stemmed from higher rate concerns earlier in 2000, which made it less attractive for some issuers to offer bonds. The generally favorable economic conditions in many cities and states also enabled issuers to use pay-as-you-go funding for necessary projects. At the same time, demand from individual investors looking for diversification, income, and a haven from the volatile stock market continued to be strong. As a result, current municipal bond prices and yields are comparable to those of a year ago. As of November 30, 2000, long-term municipal yields were more than 102% of 30-year Treasury yields, compared with 98% in November 1999 and the historical average of 86% for the period 1986-1999. WHAT ABOUT THE ECONOMIC AND MARKET ENVIRONMENT IN THESE THREE STATES? Paul: In Connecticut, municipal issuance for the first 11 months of 2000 totaled $2.7 billion, down 11.5% from 1999 levels. One of the larger deals of the past year was the $580 million issuance of general obligation bonds by the state, which financed various projects in Connecticut's ongoing capital improvement program. Overall, Connecticut enjoys an excellent financial position, a strong economy, high levels of productivity, and the highest per capita income in the nation. During 2000, Connecticut's economy continued the transition from a reliance on defense manufacturing to more highly skilled, high-income employment, especially in the financial services and information technology sectors. In addition, job growth in the state continued to benefit from the increased presence of gaming in Connecticut. Tom: Unlike the decline in supply seen in the broader market, Massachusetts' total January-November 2000 issuance of $8 billion represented an increase of 17% compared with last year's levels. This moved Massachusetts to fifth among the states in terms of total issuance, up from eighth in 1999. Several large deals contributed to this total, notably $1.1 billion in Massachusetts electric power supply revenue bonds.In the November election, voters overwhelmingly approved a tax rollback proposal that will reduce income taxes from almost 6% to 5% in gradual increments through 2003. During 2000, the Massachusetts economy continued to perform well, with significant employment growth in the construction, services, and technology sectors. Although concerns about cost overruns lingered in the Central Artery/Tunnel (Big Dig) and Massachusetts Turnpike projects, plans to finance shortfalls and potentially cut costs are in place or under consideration. Work also continued on the $1 billion expansion program at Boston's Logan Airport. Massachusetts' overall financial position led Moody's to upgrade the commonwealth's credit rating to Aa2 from Aa3 in February 2000. Mike: With total municipal issuance of $2.7 billion for the first 11 months of 2000, Missouri also saw a slight increase over 1999 totals. During 2000, Missouri's economy was relatively stagnant, as manufacturing job losses resulting from corporate mergers and layoffs hampered the growth of the state's two largest metropolitan areas: St. Louis and Kansas City. Even gains in the construction, telecommunications, and business services sectors were not enough to offset this trend. Adding to this situation was Missouri's lack of participation in the "new economy," as represented by the technology sector. Projections call for these conditions to persist over the near term, especially if a slowing economy impacts consumer spending on items such as autos, as Ford, General Motors, and Chrysler all operate major plants in the state. HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST YEAR? For the year ended November 30, 2000, the Nuveen Closed-End Exchange-Traded Funds covered in this report produced total returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Municipal Bond Index1 and the Funds' Lipper Peer Group2 are also presented. Market Total Return Lehman Lipper Yield on NAV Total Return1 Average2 - -------------------------------------------------------------------------------- 1 Year 1 Year 1 Year Taxable- Ended Ended Ended 11/30/00 Equivalent3 11/30/00 11/30/00 11/30/00 - -------------------------------------------------------------------------------- NTC 5.63% 8.53% 10.72% 8.18% 9.52% - -------------------------------------------------------------------------------- NMT 5.70% 8.77% 9.45% 8.18% 9.52% - -------------------------------------------------------------------------------- NOM 5.65% 8.69% 9.48% 8.18% 9.52% - -------------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. Early in the year, as the Fed's interest rate hikes pushed yields higher, municipal bond prices underwent a corresponding drop. Over the summer, however, the tight supply of new municipal issues and generally favorable technicals helped to prompt a shift in market outlook, rallying the municipal market and boosting the prices of many bonds. In this recent environment, we would expect funds with longer durations4 to perform well. As of November 30, 2000, these three Nuveen Funds had durations ranging from 9.79 to 11.07. By comparison, the duration of the unleveraged Lehman Brothers Municipal Bond Index was 7.34. The Funds' participation in the recovery of the municipal market is reflected in the total returns on NAV listed above, which show dramatic improvement over the performance results presented in the Funds' annual report last May. 1 The Funds' performances are compared with that of the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of the Funds are compared with the average annualized return of the 18 funds in the Lipper Other States Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's mar ket yield on the indicated date and a federal income tax rate of 31% plus the applicable state income tax rate. The combined federal and state tax rates used in this report are as follows: Connecticut 34%, Massachusetts 35%, and Missouri 35%. 4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. Unless otherwise noted, references to duration in this commentary are intended to indicate Fund duration. WERE THE FUNDS' DIVIDENDS AFFECTED? Over the past year, good call protection helped to protect the income stream of NTC. As of November 30, 2000, this Fund had provided shareholders with 70 consecutive months of steady or increasing dividends. The dividends of NMT and NOM, however, were impacted by changes in the interest rate environment over the past 12 months. All three of the Funds covered in this report use leverage as a way to potentially enhance the dividends paid to common shareholders. The extent of this benefit is tied in part to the short-term rates that the Funds pay their MuniPreferred(R) shareholders. When short-term rates rise, the Funds must pay out more income to preferred shareholders, decreasing the amount of income available for common shareholders. As the Federal Reserve raised short-term rates between June 1999 and May 2000, these increases had a corresponding impact on short-term municipal rates. In Massachusetts and Missouri, the increase in short-term municipal rates was large enough to lead to a decrease in the common share dividends of NMT and NOM in June 2000. Despite the dividend adjustments in these two Funds, all of the Funds continued to provide competitive market yields, as shown in the earlier table. Recently, investor demand for municipal bonds with shorter maturities has caused the slope of the municipal yield curve to become very steep. The increased demand for short-maturity bonds could have beneficial effects on the dividend stability of these leveraged Funds going forward by holding short-term rates down and reducing the amount the Funds pay their MuniPreferred(R) shareholders. WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE? During late 1999 and the first half of 2000, uncertainties about inflation and interest rates, coupled with investors' focus on equity market performance, tended to dampen interest in most fixed-income products. The lack of demand put pressure on the prices of many municipal bond investments. In recent months, as the bond market showed signs of recovery and the stock market continued to be volatile, we believe many investors again started to consider tax-free fixed-income alternatives. However, investor recognition of this opportunity continued to lag the rise in value of the bonds held by the Funds. Consequently, NTC and NMT saw their premiums (share price above NAV) narrow over the past 12 months, while NOM's discount (share price below NAV) widened. With the market price of NOM lower than the actual value of the bonds in its portfolio, shareholders may want to con sider taking advantage of this opportunity to add to their holdings of this Nuveen Fund. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED NOVEMBER 30, 2000? Despite a slow start, the past year turned out to be generally positive for the fixed-income markets, including municipal bonds. As evidenced by their strong 12-month total returns on NAV, these Funds were well structured going into this period. Although the overall supply of new issuance was fairly tight during 2000, we did find opportunities in the market to strengthen long-term dividend-paying capabilities, enhance call protection, and purchase bonds with the potential to add value and diversification to the Funds' portfolios. For example, in NTC we recently leveraged our understanding of the complexities of tobacco-backed bonds, gained through active participation in the offerings of these types of bonds in New York, to purchase bonds issued by Puerto Rico for the Children's Trust Fund. These Aa3 rated bonds, which we purchased in late October in both the primary and secondary markets, offered attractive yields as well as state and federal income tax exemption. NTC also recently purchased bonds issued by the U.S.-administered Northern Mariana Islands, a very infrequent issuer. These bonds, which were enhanced by insurance, offered attractive yields and added diversification to the portfolio. Another addition to NTC's portfolio involved bonds issued for the renovation and expansion of several parking garages located in Hartford. This small but complex deal, which was offered only to a select group of institutional buyers, required substantial due diligence and discussions with the underwriter, but resulted in some very attractive yields for the Fund. In NOM, our strong overall credit quality allowed us to look for selected opportunities among lower-rated credits and add income potential to the Fund by taking advantage of widening credit spreads (for example, the difference between yields offered by AAA rated bonds and BBB rated bonds). The bonds added to NOM's portfolio during the past six months offered yields that averaged 80 basis points higher than similarly structured issues in the current Missouri market. One of these purchases involved bonds issued by Texas County Memorial Hospital. These non-rated bonds, which Nuveen Research assessed as equivalent to BBB rated bonds, benefited the Fund by providing yields 200 basis points above the market. We are confident in the ability of our research team to assess the risks associated with non-rated issues like this. Overall, however, the healthcare industry is facing challenging times, and specific conditions in the Connecticut and Massachusetts markets led us to reduce our overall exposure to this sector in both NTC and NMT. In NTC, we cut our weighting by selling some of our holdings of insured hospital bonds when we could do so without affecting the Fund's earning potential, obtaining prices above those seen in the healthcare sector in general. In Massachusetts, where Harvard Pilgrim Health Care, the commonwealth's largest health maintenance organization, was placed into receivership earlier this year, we sold NMT's position in insured Harvard Pilgrim bonds at attractive prices. We also cut the Fund's exposure to the education sector, selling Phillips Academy bonds. Some of the proceeds from these sales were reinvested in the multifamily housing sector, specifically in GNMA housing bonds that offered 10 to 15 basis points in additional yield over comparable issues in the market. Working closely with regional dealers, we purchased what we believed were the best GNMA-collateralized issues available, including Massachusetts Development Finance Agency bonds for Haskell House, an assisted living facility in Boston. All three Funds continued to offer excellent credit quality, with between 79% and 93% of their portfolios invested in bonds rated AAA/U.S. guaranteed and AA as of November 30, 2000. The Funds also had allocations of BBB/non-rated bonds that ranged from 7% to 18%, which generally provided higher yields as credit spreads widened over the past 18 months. WHAT IS YOUR OUTLOOK FOR THESE NUVEEN FUNDS? In general, our outlook for the fixed-income markets over the next 12 months is positive. Current projections call for continued strong demand for municipal bonds, while new municipal issuance nationwide in 2001 is expected to remain under $200 billion, which could create pockets of opportunity. These supply-and-demand dynamics should continue to provide support for the municipal market and municipal bond prices. We will, of course, continue to closely monitor the economy and Federal Reserve policy in order to be prepared to respond appropriately to any developing situations. Looking specifically at these Nuveen Funds, both NTC and NOM offer excellent levels of call protection over the next year. In NTC, we took advantage of the recent inefficient pricing in the Connecticut market to improve the Fund's call protection without impacting its funda mental earnings. In NOM, our strategies over the past 12 months have included selling bonds with shorter call dates to reduce the Fund's call exposure. NTC has 4% of its portfolio subject to calls in 2001, while 3% of NOM's portfolio is subject to calls over the same period. In 2002, NTC faces calls affecting 7% of its portfolios. NMT has slightly higher call exposure over the next two years (11% in 2001 and 10% in 2002), but we foresee no problems in working through these positions. The interest rate environment over the next two years will play a major role in determining whether many of these bonds are actually called. While we cannot control the direction of interest rates, we continue to work to improve the Funds' call protection and to actively manage the Funds in an effort to mitigate the longer-term effects of the bond call process. In addition to bond calls, we plan to continue to focus on strengthening the Funds' dividend-payment capabilities, taking advantage of the wider credit spreads currently available in the marketplace. For example, if prices and yields remain attractive, we plan to carefully consider adding tobacco settlement bonds to both NTC and NMT. The high credit quality of these Funds gives us room to increase our allocations of lower-rated issues with the potential to enhance current portfolio yields and future capital appreciation. In NOM, an additional goal is to continue to build on the Fund's strong income base as part of our efforts to eliminate the current discount. As value-oriented investors, we will also continue to look for areas of the market that offer opportunities to add value for our shareholders. We believe these three Nuveen Funds will continue to serve as a depend-able source of tax-free income and portfolio diversifi cation, two essential elements of a comprehensive investment strategy. Nuveen Connecticut Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2000 NTC PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 5/93 - -------------------------------------------------- Share Price $14 1/2 - -------------------------------------------------- Net Asset Value $13.77 - -------------------------------------------------- Market Yield 5.63% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.16% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.53% - -------------------------------------------------- Fund Net Assets ($000) $110,511 - -------------------------------------------------- Average Effective Maturity (Years) 18.03 - -------------------------------------------------- Leverage-Adjusted Duration 10.71 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 2.31% 10.72% - -------------------------------------------------- 5-Year 7.20% 5.96% - -------------------------------------------------- Since Inception 4.95% 5.43% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- Education and Civic Organizations 17% - -------------------------------------------------- Tax Obligation/General 14% - -------------------------------------------------- Healthcare 14% - -------------------------------------------------- U.S.Guaranteed 11% - -------------------------------------------------- Tax Obligation/Limited 7% - -------------------------------------------------- BAR CHART: 1999-2000 Monthly Tax-Free Dividends Per Share 12/99 0.068 1/00 0.068 2/00 0.068 3/00 0.068 4/00 0.068 5/00 0.068 6/00 0.068 7/00 0.068 8/00 0.068 9/00 0.068 10/00 0.068 11/00 0.068 LINE CHART: Share Price Performance 12/1/99 15.06 14.88 14.81 14.81 14.88 14.81 14.56 14.5 14.94 14.56 14.31 14.06 13.81 13.75 13.75 13.81 13.88 13.94 13.81 13.94 13.63 13.69 13.56 13.5 13.44 14 14.19 14.13 14.25 14.31 14.69 14.81 15 15.06 15 14.94 14.94 15 15 15 15.06 14.88 14.81 14.5 14.19 14.31 14.31 11/30/00 14.56 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34%. Nuveen Massachusetts Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2000 NMT PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 3/93 - -------------------------------------------------- Share Price $14 5/16 - -------------------------------------------------- Net Asset Value $13.95 - -------------------------------------------------- Market Yield 5.70% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.26% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.77% - -------------------------------------------------- Fund Net Assets ($000) $99,018 - -------------------------------------------------- Average Effective Maturity (Years) 17.43 - -------------------------------------------------- Leverage-Adjusted Duration 9.79 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 2.88% 9.45% - -------------------------------------------------- 5-Year 6.99% 5.62% - -------------------------------------------------- Since Inception 5.02% 5.76% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- U.S. Guaranteed 23% - -------------------------------------------------- Housing/Multifamily 17% - -------------------------------------------------- Education and Civic Organizations 15% - -------------------------------------------------- Healthcare 12% - -------------------------------------------------- Tax Obligation/General 11% - -------------------------------------------------- BAR CHART: 1999-2000 Monthly Tax-Free Dividends Per Share 12/99 0.0705 1/00 0.0705 2/00 0.0705 3/00 0.0705 4/00 0.0705 5/00 0.0705 6/00 0.068 7/00 0.068 8/00 0.068 9/00 0.068 10/00 0.068 11/00 0.068 LINE CHART: Share Price Performance 12/1/99 14.63 14.56 14.44 14 14 13.75 13.63 13.81 14.19 14.19 13.94 13.88 13.81 13.63 13.56 13.38 13.69 13.63 13.69 13.69 13.81 13.94 13.63 13.69 13.94 14.13 14.06 14.19 14.06 14.13 14.19 14.38 14.44 14.56 14.75 14.88 14.88 14.81 14.81 14.88 14.81 14.75 14.75 14.75 14.44 14.13 14.19 14.5 14.38 11/30/00 14.38 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. Nuveen Missouri Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2000 NOM PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 5/93 - -------------------------------------------------- Share Price $13 1/16 - -------------------------------------------------- Net Asset Value $13.52 - -------------------------------------------------- Market Yield 5.65% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.19% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.69% - -------------------------------------------------- Fund Net Assets ($000) $45,433 - -------------------------------------------------- Average Effective Maturity (Years) 18.62 - -------------------------------------------------- Leverage-Adjusted Duration 11.07 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 6.34% 9.48% - -------------------------------------------------- 5-Year 8.10% 5.08% - -------------------------------------------------- Since Inception 3.56% 4.88% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- Tax Obligation/General 19% - -------------------------------------------------- Tax Obligation/Limited 17% - -------------------------------------------------- Education and Civic Organizations 14% - -------------------------------------------------- U.S. Guaranteed 10% - -------------------------------------------------- Healthcare 9% - -------------------------------------------------- BAR CHART: 1999-2000 Monthly Tax-Free Dividends Per Share 12/99 0.0645 1/00 0.0645 2/00 0.0645 3/00 0.0645 4/00 0.0645 5/00 0.0645 6/00 0.0615 7/00 0.0615 8/00 0.0615 9/00 0.0615 10/00 0.0615 11/00 0.0615 Share Price Performance 12/1/99 13.13 13.19 13.31 13.81 13.88 13.94 13.88 13.63 13.44 13.25 13.25 13.44 13.31 13.13 13.13 13.13 13.38 13.44 13.31 13.38 13.31 13.13 13 12.88 12.81 13.19 13.31 13.19 13.25 13.25 13.5 13.56 13.63 13.63 13.63 13.63 13.63 13.5 13.25 13.38 13.31 13.31 13.25 13.31 13.25 13.19 13.13 13.13 13.06 11/30/00 13 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. Shareholder MEETING REPORT The annual shareholder meeting was held in Chicago, Illinois on October 18, 2000.
NTC NMT NOM - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Common Shares Common Shares Common Shares Shares Series-TH Shares Series - TH Shares Series - TH ==================================================================================================================================== Robert P. Bremner For 4,798,981 1,511 4,400,454 1,359 1,802,718 623 Withhold 28,938 -- 43,868 -- 226,509 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,827,919 1,511 4,444,322 1,359 2,029,227 623 ==================================================================================================================================== Lawrence H. Brown For 4,798,681 1,511 4,397,121 1,359 1,802,926 623 Withhold 29,238 -- 47,201 -- 226,301 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,827,919 1,511 4,444,322 1,359 2,029,227 623 ==================================================================================================================================== Anne E. Impellizzeri For 4,798,015 1,511 4,397,121 1,359 1,802,926 623 Withhold 29,904 -- 47,201 -- 226,301 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,827,919 1,511 4,444,322 1,359 2,029,227 623 ==================================================================================================================================== Peter R. Sawers For 4,798,681 1,511 4,396,508 1,359 1,802,926 623 Withhold 29,238 -- 47,814 -- 226,301 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,827,919 1,511 4,444,322 1,359 2,029,227 623 ==================================================================================================================================== Judith M. Stockdale For 4,792,314 1,511 4,399,841 1,359 1,802,718 623 Withhold 35,605 -- 44,481 -- 226,509 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,827,919 1,511 4,444,322 1,359 2,029,227 623 ==================================================================================================================================== William J. Schneider For -- 1,511 -- 1,359 -- 623 Withhold -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,511 -- 1,359 -- 623 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,511 -- 1,359 -- 623 Withhold -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,511 -- 1,359 -- 623 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 4,783,508 1,511 4,375,619 1,353 1,805,910 623 Against 3,090 -- 33,357 6 217,681 -- Abstain 41,321 -- 35,346 -- 5,636 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,827,919 1,511 4,444,322 1,359 2,029,227 623 ====================================================================================================================================
Nuveen Connecticut Premium Income Municipal Fund (NTC) Portfolio of INVESTMENTS November 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.4% $ 1,500 The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, 7/10 at 100 Aa3 $ 1,501,560 Series 2000, 5.750%, 7/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.0% Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), 1996 Series A: 1,365 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102 AAA 1,413,922 875 5.875%, 11/15/17 (Alternative Minimum Tax) 11/06 at 102 AAA 903,000 900 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/09 at 102 AAA 946,863 Bonds (Family Education Loan Program), 1999 Series A, 6.000%, 11/15/18 1,540 State of Connecticut Health and Educational Facilities Authority, Revenue 7/03 at 102 BBB- 1,465,957 Bonds, Quinnipiac College Issue, Series D, 6.000%, 7/01/23 2,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 AAA 2,050,260 Revenue Bonds, Trinity College Issue, Series E, 5.875%, 7/01/26 1,500 State of Connecticut Health and Educational Facilities Authority, Revenue 7/06 at 102 AAA 1,514,265 Bonds, The Loomis Chaffee School Issue, Series C, 5.500%, 7/01/16 2,250 State of Connecticut Health and Educational Facilities Authority, 7/08 at 102 AAA 2,123,438 Revenue Bonds, Fairfield University Issue, Series H, 5.000%, 7/01/23 2,920 State of Connecticut Health and Educational Facilities Authority, Revenue 7/07 at 102 AAA 2,938,717 Bonds, Connecticut College Issue, Series C-1, 5.500%, 7/01/20 1,250 State of Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101 AAA 1,215,475 Bonds, Fairfield University Issue, Series I, 5.250%, 7/01/25 750 State of Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101 Aaa 754,718 Bonds, The Horace Bushnell Memorial Hall Issue, Series A, 5.625%, 7/01/29 3,810 The University of Connecticut, Student Fee Revenue Bonds, 11/08 at 101 AAA 3,395,510 1998 Series A, 4.750%, 11/15/27 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 13.7% 1,000 State of Connecticut Health and Educational Facilities Authority, 7/04 at 102 AAA 1,055,010 Revenue Bonds, Newington Children's Hospital, Series A, 6.050%, 7/01/10 500 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 AAA 462,960 Revenue Bonds, Lawrence and Memorial Hospital Issue, Series D, 5.000%, 7/01/22 500 State of Connecticut Health and Educational Facilities Authority, No Opt. Call AAA 516,260 Revenue Bonds, Hospital of Saint Raphael Issue, Series H, 5.200%, 7/01/08 1,625 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 1,662,375 Revenue Bonds, Saint Francis Hospital and Medical Center Issue, Series B, 6.200%, 7/01/22 2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101 Aaa 1,836,260 Revenue Bonds, Stamford Hospital Issue, Series G, 5.000%, 7/01/24 1,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102 AAA 1,012,100 Revenue Bonds, The William W. Backus Hospital Issue, Series D, 5.750%, 7/01/27 3,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 101 Aaa 2,814,630 Revenue Bonds, Middlesex Health Services Issue, Series I, 5.125%, 7/01/27 2,000 State of Connecticut Health and Educational Facilities Authority, 7/10 at 101 AA 2,035,160 Revenue Bonds, Eastern Connecticut Health Network Issue, Series A, 6.000%, 7/01/25 2,000 Connecticut Development Authority, Solid Waste Disposal 7/05 at 102 AAA 2,190,880 Facilities Revenue Bonds (Pfizer Inc. Project), 1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax) 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101 1/2 AAA 1,563,060 Environmental Control Facilities Financing Authority, Hospital Revenue Refunding Bonds, 1995 Series A (FHA-Insured Mortgage - Pila Hospital Project), 6.125%, 8/01/25 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.5% $ 1,000 Connecticut Housing Finance Agency, Housing Mortgage Finance 12/09 at 100 AA $ 1,015,850 Program Bonds, 1999 Series D, 6.200%, 11/15/41 (Alternative Minimum Tax) 3,000 Housing Authority of the City of Waterbury, Mortgage Refunding 1/02 at 100 AAA 2,864,940 Revenue Bonds, Series 1998C (FHA-Insured Mortgage Loan - Waterbury NSA-II Section 8 Assisted Project), 5.450%, 7/01/23 1,150 Waterbury Nonprofit Housing Corporation, Taxable Mortgage 7/02 at 101 AAA 1,183,546 Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Fairmont Height Section 8 Assisted Project), Series 1993A, 6.500%, 7/01/07 1,930 Housing Authority of the City of Willimantic, Multifamily Housing 10/05 at 105 AAA 2,126,879 Revenue Bonds, Series 1995A (GNMA Collateralized Mortgage Loan - Village Heights Apartments Project), 8.000%, 10/20/30 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.3% 3,175 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/03 at 102 AA 3,291,142 Program Bonds, Series B, 6.200%, 5/15/12 2,235 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/06 at 102 AA 2,267,184 Program Bonds, 1996 Subseries E-2, 6.150%, 11/15/27 (Alternative Minimum Tax) 250 Connecticut Housing Finance Agency, Housing Mortgage Finance 5/10 at 100 AA 255,595 Program Bonds, 2000 Series A, 6.000%, 11/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 6.9% 1,300 State of Connecticut Health and Educational Facilities Authority, 8/08 at 102 AAA 1,207,141 Revenue Bonds, Hebrew Home and Hospital Issue, Series B (FHA-Insured Mortgage), 5.200%, 8/01/38 2,000 State of Connecticut Health and Educational Facilities Authority, 11/03 at 102 AAA 2,072,300 Revenue Bonds, Nursing Home Program Issue, Series 1993 (Mansfield Center for Nursing and Rehabilitation Project), 5.875%, 11/01/12 615 Connecticut Development Authority, First Mortgage Gross Revenue 9/09 at 102 AA 614,637 Health Care Project Refunding Bonds (Connecticut Baptist Homes, Inc. Project), 1999 Series, 5.500%, 9/01/15 Connecticut Development Authority, Revenue Refunding Bonds (Duncaster Inc. Project), Series 1999A: 1,000 5.250%, 8/01/19 2/10 at 102 AA 955,810 1,000 5.375%, 8/01/24 2/10 at 102 AA 954,850 Connecticut Development Authority, Health Facility Refunding Revenue Bonds (Alzheimers Resource Center of Connecticut, Inc. Project), Series 1994A: 900 6.875%, 8/15/04 No Opt. Call N/R 875,448 1,000 7.000%, 8/15/09 8/04 at 102 N/R 993,180 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.2% 1,500 City of Bridgeport, Connecticut, General Obligation Bonds, 7/10 at 101 AAA 1,587,900 2000 Series A, 6.000%, 7/15/19 Town of Cheshire, Connecticut, General Obligation Bonds, Issue of 1999: 660 5.625%, 10/15/16 10/09 at 101 Aa3 682,757 660 5.625%, 10/15/17 10/09 at 101 Aa3 679,991 1,000 State of Connecticut, General Obligation Bonds, 1999 Series B, 11/09 at 101 AA 1,018,450 5.500%, 11/01/18 1,960 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA 2,156,725 6.000%, 3/15/12 1,650 Connecticut Development Authority, General Fund Obligation Bonds, 10/04 at 102 AA 1,757,069 1994 Series A, 6.375%, 10/15/14 City of Hartford, Connecticut, General Obligation Bonds: 1,000 5.125%, 6/15/15 6/10 at 102 AAA 1,005,170 1,000 5.500%, 6/15/20 6/10 at 102 AAA 1,016,640 400 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100 A 405,344 Bonds, 2000 Series A, 6.000%, 6/01/20 (WI, settling 12/06/00) 3,500 Commonwealth of Puerto Rico, Public Improvement Bonds of 1998, 7/08 at 101 AAA 3,281,215 4.875%, 7/01/23 Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued) Portfolio of INVESTMENTS November 30, 2000 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Regional School District No. 16 (Towns of Beacon Falls and Prospect, Connecticut), General Obligation Bonds, Issue of 2000: $ 350 5.500%, 3/15/18 3/10 at 101 Aaa $ 359,804 350 5.625%, 3/15/19 3/10 at 101 Aaa 362,698 350 5.700%, 3/15/20 3/10 at 101 Aaa 364,207 965 City of Waterbury, Connecticut, General Obligation Tax Revenue 2/09 at 101 AA 991,952 Intercept Bonds, 2000 Issue, 6.000%, 2/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 7.3% 1,900 Capitol Region Education Council Bonds (Connecticut), 6.700%, 10/15/10 10/05 at 102 BBB 1,995,665 2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 102 AAA 2,018,960 Revenue Bonds, Child Care Facilities Program, Series C, 5.625%, 7/01/29 1,000 State of Connecticut, Special Tax Obligation Bonds, Transportation 12/09 at 101 AAA 1,025,370 Infrastructure Purposes, 1999 Series A, 5.625%, 12/01/19 1,800 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 2,038,284 Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10 1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101 BBB- 1,037,300 Islands Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.3% 3,000 State of Connecticut, Airport Revenue Refunding Bonds, Bradley 10/04 at 100 AAA 3,315,390 International Airport, Series 1992, 7.650%, 10/01/12 1,000 City of Hartford, Connecticut, Parking System Revenue Bonds, 7/10 at 100 BBB 1,011,340 2000 Series A, 6.400%, 7/01/20 1,500 City of New Haven, Connecticut, Air Rights Parking Facility 12/01 at 102 AAA 1,555,155 Revenue Bonds, Series 1991, 6.500%, 12/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 10.4% 40 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA*** 43,760 6.000%, 3/15/12 2,600 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 Baa3*** 2,721,914 Revenue Bonds, Sacred Heart University Issue, Series B, 5.700%, 7/01/16 (Pre-refunded to 7/01/03) 2,020 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 2,108,981 Revenue Bonds, Trinity College Issue, Series C, 6.000%, 7/01/22 (Pre-refunded to 7/01/02) 2,910 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 BBB-*** 3,067,547 Revenue Bonds, Quinnipiac College Issue, Series D, 6.000%, 7/01/23 (Pre-refunded to 7/01/03) 2,000 State of Connecticut Health and Educational Facilities Authority, 11/04 at 102 AA-*** 2,219,080 Revenue Bonds, Nursing Home Program Issue, Series 1994 (AHF/Hartford, Inc. Project), 7.125%, 11/01/24 (Pre-refunded to 11/01/04) 1,250 State of Connecticut Health and Educational Facilities Authority, 7/04 at 101 AAA 1,365,413 Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%, 7/01/25 (Pre-refunded to 7/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.4% 3,250 Connecticut Municipal Electric Energy Cooperative, Power Supply 1/04 at 102 AAA 3,121,040 System Revenue Bonds, 1993 Series A, 5.000%, 1/01/18 2,800 Connecticut Resources Recovery Authority, Resource Recovery 5/01 at 102 1/2 AA 2,841,580 Revenue Bonds (American Ref-Fuel Company of Southeastern Connecticut Project), 1989 Series A, 7.700%, 11/15/11 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.4% $ 1,400 Connecticut Development Authority, Water Facilities Refunding 6/03 at 102 AAA $ 1,400,056 Revenue Bonds (Bridgeport Hydraulic Company Project), 1993B Series, 5.500%, 6/01/28 2,500 Connecticut Development Authority, Water Facilities Revenue 9/06 at 102 AAA 2,546,522 Bonds (Bridgeport Hydraulic Company Project), 1996 Series, 6.000%, 9/01/36 (Alternative Minimum Tax) 2,000 South Central Connecticut Regional Water Authority, Water System 8/03 at 102 AAA 2,064,560 Revenue Bonds, Eleventh Series, 5.750%, 8/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ $ 107,655 Total Investments (cost $107,006,863) - 98.8% 109,218,721 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 1,291,823 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 110,510,544 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
Nuveen Massachusetts Premium Income Municipal Fund (NMT) Portfolio of INVESTMENTS November 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.1% $ 695 Massachusetts Educational Financing Authority, Education Loan Revenue 7/04 at 102 AAA $ 727,130 Bonds, Issue E, Series 1995, 6.150%, 7/01/10 (Alternative Minimum Tax) 1,970 Massachusetts Health and Educational Facilities Authority, Revenue 6/03 at 102 AAA 1,893,347 Bonds, Boston College Issue, Series K, 5.250%, 6/01/23 2,645 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/03 at 102 Aa1 2,476,831 Whitehead Institute for Biomedical Research, 1993 Issue, 5.125%, 7/01/26 1,500 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 102 AAA 1,488,195 Phillips Academy Issue, Series 1993, 5.375%, 9/01/23 2,300 Massachusetts Industrial Finance Agency, Education Revenue 9/08 at 101 A 2,090,447 Bonds, Belmont Hill School Issue, Series 1998, 5.250%, 9/01/28 1,765 The New England Education Loan Marketing Corporation, No Opt. Call A3 1,822,768 Student Loan Revenue Bonds, 1992 Subordinate Issue C, 6.750%, 9/01/02 (Alternative Minimum Tax) 4,000 The New England Loan Marketing Corporation, Student Loan No Opt. Call AA 4,442,480 Revenue Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 11.6% 3,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/04 at 102 AAA 2,878,350 Bonds, New England Medical Center Hospitals Issue, Series G-1, 5.375%, 7/01/24 3,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/03 at 102 AAA 3,038,460 Bonds, Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15 Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Youville Hospital Issue (FHA-Insured Project), Series B: 1,965 6.125%, 2/15/15 2/04 at 102 Aa2 2,003,396 1,000 6.000%, 2/15/25 2/04 at 102 Aa2 1,023,140 2,805 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 102 AAA 2,532,494 Bonds, Caregroup Issue, Series A, 5.000%, 7/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 16.5% 3,000 Massachusetts Development Finance Agency, Assisted Living 9/10 at 105 AAA 3,467,310 Facility Revenue Bonds (GNMA Collateralized - The Monastery at West Springfield Project), Series 1999A, 7.625%, 3/20/41 (Alternative Minimum Tax) 2,500 Massachusetts Development Finance Authority, Revenue Bonds, 10/11 at 105 AAA 2,758,850 Series 2000A (GNMA Collateralized - VOA Concord Assisted Living, Inc. Project), 6.900%, 10/20/41 (Alternative Minimum Tax) 2,000 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102 N/R 2,010,640 Revenue Bonds (Prospect House Apartments), Series 1999, 7.000%, 12/01/31 (Alternative Minimum Tax) 2,000 Massachusetts Development Finance Authority, Assisted 6/11 at 105 AAA 2,113,400 Living Revenue Bonds (GNMA Collateralized - Haskell House Project), Series 2000A, 6.500%, 12/20/41 (Alternative Minimum Tax) 3,800 Massachusetts Housing Finance Agency, Housing Project Revenue 4/03 at 102 A+ 3,966,136 Bonds, 6.300%, 10/01/13 1,910 Massachusetts Housing Finance Agency, Rental Housing 1/05 at 102 AAA 2,025,651 Mortgage Revenue Bonds, 1995 Series A (FHA-Insured Mortgage Loans), 7.350%, 1/01/35 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 7.2% $ 1,270 City of Boston, Massachusetts, Revenue Bonds (Deutsches 10/08 at 105 AAA $ 1,295,121 Altenheim, Inc. Project - FHA-Insured Mortgage), Series 1998A, 6.125%, 10/01/31 2,000 Massachusetts Development Finance Agency, Revenue Bonds, 8/09 at 101 A 2,012,960 Northern Berkshire Community Services, Inc. Issue, 1999 Series A, 6.250%, 8/15/25 1,000 Massachusetts Health and Educational Facilities Authority, 2/07 at 102 Aa2 1,010,940 Revenue Refunding Bonds, Youville Hospital Issue (FHA-Insured Project), Series A, 6.250%, 2/15/41 2,000 Massachusetts Industrial Finance Agency, Health Care Facilities 5/07 at 102 A+ 1,819,260 Revenue Bonds, Series 1997B (Jewish Geriatric Services, Inc. Obligated Group), 5.500%, 5/15/27 1,020 Massachusetts Industrial Financial Agency, Revenue Bonds, 2/06 at 102 AAA 1,028,752 Heights Crossing Limited Partnership Issue (FHA-Insured Project), Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 10.8% Town of Barnstable, Massachusetts, General Obligation Bonds: 1,020 5.750%, 9/15/10 9/04 at 102 AA 1,072,357 1,020 5.750%, 9/15/11 9/04 at 102 AA 1,067,093 4,375 City of Lowell, Massachusetts, General Obligation State Qualified 11/03 at 102 AAA 4,511,281 Bonds, 5.600%, 11/01/12 2,500 Massachusetts Bay Transportation Authority, General Transportation No Opt. Call AAA 2,952,950 System Bonds, 1991 Series A, 7.000%, 3/01/21 1,000 Narragansett Regional School District, Massachusetts, General 6/10 at 101 Aaa 1,109,400 Obligation Bonds, Series 2000, 6.500%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.5% 1,300 Massachusetts Development Finance Agency, Revenue Bonds, 6/09 at 101 AA 1,337,934 Worcester Redevelopment Authority Issue, Series 1999, 6.000%, 6/01/24 4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102 AAA 4,081,000 (US Air Project), Series 1996-A, 5.750%, 9/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.2% 2,500 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 2,471,750 Revenue Bonds, Malden Hospital Issue (FHA-Insured Project), Series A, 5.000%, 8/01/16 2,000 Massachusetts Health and Educational Facilities Authority, 7/06 at 100 Aaa 2,139,240 Revenue Bonds (Daughters of Charity National Health System - The Carney Hospital), Series D, 6.100%, 7/01/14 (Pre-refunded to 7/01/06) Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Deaconess Hospital Issue, Series D: 3,310 6.625%, 4/01/12 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 3,468,748 1,000 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 1,051,170 1,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 1/01 at 100 AAA 1,544,500 13.000%, 7/01/13 2,500 Massachusetts Industrial Finance Agency, Revenue Refunding 11/02 at 102 AA-*** 2,637,950 Bonds, College of the Holy Cross - 1992 Issue II, 6.375%, 11/01/15 (Pre-refunded to 11/01/02) 1,195 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/02 at 102 AAA 1,268,026 Merrimack College Issue, Series 1992, 7.125%, 7/01/12 (Pre-refunded to 7/01/02) 1,175 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/03 at 102 A3*** 1,238,673 Brooks School Issue, Series 1993, 5.950%, 7/01/23 (Pre-refunded to 7/01/03) 3,000 Massachusetts Water Resources Authority, General Revenue 12/01 at 100 Aaa 3,042,990 Bonds, 1991 Series A, 5.750%, 12/01/21 (Pre-refunded to 12/01/01) 3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series P, 7/01 at 102 AAA 3,113,760 7.000%, 7/01/21 (Pre-refunded to 7/01/01) Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued) Portfolio of INVESTMENTS November 30, 2000 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.6% $ 1,000 Massachusetts Municipal Wholesale Electric Company, Power 7/02 at 100 AAA $ 1,010,230 Supply System Revenue Bonds, 1992 Series A, 6.000%, 7/01/18 3,215 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,361,508 Revenue Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 2,500 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 2,142,250 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.8% 3,000 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 AA 2,811,330 Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ $ 94,755 Total Investments (cost $94,056,152) - 98.3% 97,360,198 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 1,657,799 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 99,017,997 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Nuveen Missouri Premium Income Municipal Fund (NOM) Portfolio of INVESTMENTS November 30, 2000 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.1% $ 1,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA $ 945,760 Revenue Bonds (Procter & Gamble Paper Products Company Project), Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.1% 1,875 The Junior College District of Mineral Area of the State of 9/10 at 102 N/R 1,968,375 Missouri (Mineral Area College), Student Housing System Revenue Bonds, Series 2000, 7.200%, 9/01/20 1,665 Health and Educational Facilities Authority of the State 11/08 at 101 AA+ 1,496,419 of Missouri, Educational Facilities Revenue Bonds (The Washington University), Series 1998A, 5.000%, 11/15/37 825 Health and Educational Facilities Authority of the State of 3/10 at 101 AA+ 862,513 Missouri, Educational Facilities Revenue Bonds (The Washington University), Series 2000A, 6.000%, 3/01/30 2,000 Health and Educational Facilities Authority of the State of 6/10 at 100 Baa1 2,056,520 Missouri, Educational Facilities Revenue Bonds (Maryville University of St. Louis Project), Series 2000, 6.750%, 6/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 8.7% 425 Health and Educational Facilities Authority of the State of 2/06 at 102 BBB+ 405,229 Missouri, Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital, Inc.), Series 1996, 6.500%, 2/15/21 400 Health and Educational Facilities Authority of the State of 5/08 at 101 AA 356,396 Missouri, Health Facilities Revenue Bonds (BJC Health System), Series 1998, 5.000%, 5/15/28 1,000 Health and Educational Facilities Authority of the State of 12/10 at 101 A 1,001,180 Missouri, Health Facilities Revenue Bonds, St. Anthony's Medical Center, Series 2000, 6.250%, 12/01/30 1,000 Ray County, Missouri, Hospital Revenue Bonds (Ray County 5/05 at 101 1/2 N/R 880,620 Memorial Hospital), Series 1997, 5.750%, 11/15/12 950 Texas County, Missouri, Hospital Revenue Bonds (Texas County 6/10 at 100 N/R 936,577 Memorial Hospital), Series 2000, 7.250%, 6/15/25 500 The Industrial Development Authority of the City of West Plains, 11/07 at 101 N/R 394,910 Missouri, Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1997, 5.600%, 11/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.8% 1,250 The Industrial Development Authority of St. Charles County, 4/08 at 102 AAA 1,214,838 Missouri, Multifamily Housing Revenue Bonds (Ashwood Apartments Project), Series 1998A, 5.600%, 4/01/30 (Alternative Minimum Tax) 545 The Industrial Development Authority of the County of St. Louis, 4/07 at 102 AAA 553,949 Missouri, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997A, 5.950%, 4/20/17 600 The Industrial Development Authority of the County of St. Louis, 4/07 at 102 AAA 606,648 Missouri, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax) 750 The Industrial Development Authority of the County of St. Louis, 8/08 at 102 AAA 719,483 Missouri, Multifamily Housing Revenue Bonds, Series 1999B (GNMA Collateralized - Glen Trails West Apartments Project), 5.700%, 8/20/39 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.4% 1,335 Missouri Housing Development Commission, Single Family 3/06 at 105 AAA 1,450,998 Mortgage Revenue Bonds (Homeownership Loan Program), 1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax) 1,330 Missouri Housing Development Commission, Single Family 2/01 at 102 AAA 1,358,449 Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1991 Series A, 7.375%, 8/01/23 (Alternative Minimum Tax) 1,000 Missouri Housing Development Commission, Single Family 3/10 at 100 AAA 1,026,720 Mortgage Revenue Bonds (Homeownership Loan Program), 2000 Series B-1, 6.250%, 3/01/31 (Alternative Minimum Tax) Nuveen Missouri Premium Income Municipal Fund (NOM) (continued) Portfolio of INVESTMENTS November 30, 2000 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 19.1% $ 2,020 Ritenour School District of St. Louis County, Missouri, General No Opt. Call AAA $ 2,414,890 Obligation School Bonds, Series 1995, 7.375%, 2/01/12 1,500 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 1,733,265 General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08 1,000 School District of the City of St. Charles, Missouri, General 3/06 at 100 AA+ 1,027,780 Obligation Bonds (Missouri Direct Deposit Program), Series 1996A, 5.625%, 3/01/14 1,000 Pattonville R-3 School District, St. Louis County, Missouri, 3/10 at 101 AAA 1,043,600 General Obligation Bonds, Series 2000, 5.750%, 3/01/17 1,395 The Board of Education of the City of St. Louis (Missouri), General No Opt. Call AAA 1,684,993 Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07 625 Reorganized School District No. R-IV of Stone County (Reeds No Opt. Call AAA 752,838 Spring, Missouri), General Obligation School Building Refunding and Improvement Bonds, Series 1995, 7.600%, 3/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.6% 1,000 Land Clearance for Redevelopment Authority of Kansas City, 12/05 at 102 AAA 1,040,250 Missouri, Lease Revenue Bonds (Municipal Auditorium and Muehlebach Hotel Redevelopment Project), Series 1995A, 5.900%, 12/01/18 2,000 Missouri Development Finance Board, Infrastructure Facilities 4/10 at 100 AAA 2,046,960 Revenue Bonds (Kansas City Midtown Redevelopment Projects), Series 2000A, 5.750%, 4/01/22 450 Monarch-Chesterfield Levee District (St. Louis County, Missouri), 3/10 at 101 AAA 465,998 Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19 200 Puerto Rico Aqueduct and Sewer Authority, Refunding Bonds, 7/06 at 101 1/2 A 198,458 Series 1995, Guaranteed by the Commonwealth of Puerto Rico, 5.000%, 7/01/15 1,600 St. Louis Municipal Finance Corporation, City Justice Center, 2/06 at 102 AAA 1,680,144 Leasehold Revenue Improvement Bonds, Series 1996A (City of St. Louis, Missouri, Lessee), 5.750%, 2/15/11 2,000 The Public Building Corporation of the City of Springfield, 6/10 at 100 AAA 2,090,800 Missouri, Leasehold Revenue Bonds, Series 2000A (Jordan Valley Park Projects), 6.125%, 6/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.6% 1,000 The City of St. Louis, Missouri, Airport Revenue Bonds, No Opt. Call AAA 1,076,590 Series 1997B (1997 Capital Improvement Program), Lambert-St. Louis International Airport, 6.000%, 7/01/12 (Alternative Minimum Tax) 1,000 Land Clearance for Redevelopment Authority of the City of 9/09 at 102 N/R 1,034,600 St. Louis (Missouri), Tax Exempt Parking Facility Revenue Refunding and Improvement Bonds, Series of 1999C (LCRA Parking Facilities Project), 7.000%, 9/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 9.8% 675 Health and Educational Facilities Authority of the State 2/06 at 102 BBB+*** 739,942 of Missouri, Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital Inc.), Series 1996, 6.500%, 2/15/21 (Pre-refunded to 2/15/06) 1,290 Health and Educational Facilities Authority of the State of 12/00 at 102 AAA 1,321,218 Missouri, Health Facilities Revenue Bonds (SSM Health Care Obligated Group Projects), Series 1990B, 7.000%, 6/01/15 1,000 Certificates of Receipt, St. Louis County, Missouri, GNMA No Opt. Call AAA 1,019,600 Collateralized Mortgage Revenue Bonds, Series 1993D, 5.650%, 7/01/20 (Alternative Minimum Tax) 1,275 St. Louis Municipal Finance Corporation, Leasehold Revenue 2/05 at 100 AAA 1,359,316 Improvement and Refunding Bonds, Series 1992 (City of St. Louis, Missouri, Lessee), 6.250%, 2/15/12 (Pre-refunded to 2/15/05) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.9% $ 1,225 State Environmental Improvement and Energy Resources 1/05 at 102 Aaa $ 1,379,705 Authority (Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program - City of Kansas City Project), Series 1995B, 7.750%, 1/01/08 1,000 State Environmental Improvement and Energy Resources 7/04 at 102 AAA 1,041,930 Authority (Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program - City of Branson Project), Series 1995A, 6.050%, 7/01/16 750 State Environmental Improvement and Energy Resources 1/06 at 101 Aaa 782,713 Authority (Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program - Multiple Participant Series), Series 1996D, 5.875%, 1/01/15 350 State Environmental Improvement and Energy Resources No Opt. Call Aaa 404,370 Authority (Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program - City of Kansas City Project), Series 1997C, 6.750%, 1/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ $ 42,805 Total Investments (cost $43,532,877) - 98.1% 44,575,544 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 857,158 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 45,432,702 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Statement of NET ASSETS November 30, 2000 (Unaudited)
Connecticut Massachusetts Missouri (NTC) (NMT) (NOM) - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in municipal securities, at market value $109,218,721 $97,360,198 $44,575,544 Cash 351,255 316,258 226,974 Receivables: Interest 1,808,165 1,747,113 815,811 Investments sold -- -- 10,181 Other assets 8,938 7,182 5,883 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets 111,387,079 99,430,751 45,634,393 - ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for investments purchased 404,268 -- -- Accrued expenses: Management fees 58,703 52,699 24,175 Other 31,059 23,197 30,328 Preferred share dividends payable 25,998 19,883 13,350 Common share dividends payable 356,507 316,975 133,838 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 876,535 412,754 201,691 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets $110,510,544 $99,017,997 $45,432,702 =================================================================================================================================== Preferred shares, at liquidation value $ 38,300,000 $34,000,000 $16,000,000 =================================================================================================================================== Preferred shares outstanding 1,532 1,360 640 =================================================================================================================================== Common shares outstanding 5,243,648 4,662,202 2,176,735 =================================================================================================================================== Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 13.77 $ 13.95 $ 13.52 =================================================================================================================================== See accompanying notes to financial statements.
Statement of OPERATIONS Six Months Ended November 30, 2000 (Unaudited)
CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $3,180,336 $2,894,823 $1,315,299 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 356,322 319,552 146,604 Preferred shares - auction fees 48,006 42,617 20,055 Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014 Shareholders' servicing agent fees and expenses 3,728 2,514 1,661 Custodian's fees and expenses 29,431 27,942 13,192 Trustees' fees and expenses 478 430 326 Professional fees 6,304 5,305 7,803 Shareholders' reports - printing and mailing expenses 15,705 20,904 5,404 Stock exchange listing fees 8,147 11,073 5,500 Investor relations expense 7,007 6,079 2,965 Other expenses 6,847 6,452 2,213 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 486,989 447,882 210,737 Custodian fee credit (13,815) (7,098) (1,661) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 473,174 440,784 209,076 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 2,707,162 2,454,039 1,106,223 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (101,659) (315,933) 148,373 Change in net unrealized appreciation (depreciation) of investments 4,685,550 3,927,424 1,481,745 - ----------------------------------------------------------------------------------------------------------------------------------- Net gain from investments 4,583,891 3,611,491 1,630,118 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $7,291,053 $6,065,530 $2,736,341 =================================================================================================================================== See accompanying notes to financial statements.
Statement of CHANGES IN NET ASSETS (Unaudited)
CONNECTICUT (NTC) MASSACHUSETTS (NMT) MISSOURI (NOM) ------------------------------- ---------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 11/30/00 5/31/00 11/30/00 5/31/00 11/30/00 5/31/00 - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,707,162 $ 5,505,528 $ 2,454,039 $ 4,890,353 $ 1,106,223 $ 2,140,228 Net realized gain (loss) from investment transactions (101,659) (176,786) (315,933) (952,042) 148,373 (203,419) Change in net unrealized appreciation (depreciation) of investments 4,685,550 (7,898,353) 3,927,424 (6,202,081) 1,481,745 (2,806,168) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 7,291,053 (2,569,611) 6,065,530 (2,263,770) 2,736,341 (869,359) - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From undistributed net investment income: Common shareholders (2,137,287) (4,258,822) (1,900,984) (3,932,098) (802,506) (1,673,291) Preferred shareholders (705,416) (1,140,890) (573,396) (994,318) (291,772) (570,470) - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (2,842,703) (5,399,712) (2,474,380) (4,926,416) (1,094,278) (2,243,761) - ---------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 182,798 383,940 103,570 225,388 90,026 211,128 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 4,631,148 (7,585,383) 3,694,720 (6,964,798) 1,732,089 (2,901,992) Net assets at the beginning of period 105,879,396 113,464,779 95,323,277 102,288,075 43,700,613 46,602,605 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of period $110,510,544 $105,879,396 $99,017,997 $ 95,323,277 $45,432,702 $43,700,613 ================================================================================================================================== Balance of undistributed net investment income at the end of period $ 293,200 $ 428,741 $ 57,199 $ 77,540 $ 42,922 $ 30,977 ================================================================================================================================== See accompanying notes to financial statements.
Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES 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) and Nuveen Missouri Premium Income Municipal Fund (NOM). Connecticut (NTC) and Massachusetts (NMT) are traded on the New York Stock Exchange while Missouri (NOM) is traded on the American Stock Exchange. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state. The 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 accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers and general market conditions. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At November 30, 2000, Connecticut (NTC) had an outstanding when-issued purchase commitment of $404,268. There were no such outstanding purchase commitments in either of the other Funds. Investment 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 Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, if any, to retain such tax-exempt status when distributed to shareholders of the Funds. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to 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 distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. 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. Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 on each Series may change every seven days, as set by the auction agent. The number of shares outstanding for each Fund is as follows: CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - -------------------------------------------------------------------------------- Number of Shares: Series Th 1,532 1,360 640 ================================================================================ Derivative Financial Instruments The Funds may invest in 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, 2000. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common shares were as follows:
CONNECTICUT (NTC) MASSACHUSETTS (NMT) ------------------------------ ------------------------------ SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 11/30/00 5/31/00 11/30/00 5/31/00 - ------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions 12,663 25,420 7,201 15,214 ================================================================================================= MISSOURI (NOM) ------------------------------ SIX MONTHS ENDED YEAR ENDED 11/30/00 5/31/00 - ------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions 6,804 15,542 =================================================================================================
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 29, 2000, to shareholders of record on December 15, 2000, as follows: CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - -------------------------------------------------------------------------------- Dividend per share $.0680 $.0680 $.0615 ================================================================================ At the same time, Connecticut (NTC) also declared an ordinary taxable income distribution of $.0071 per share. 4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term municipal securities for the six months ended November 30, 2000, were as follows: CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - ------------------------------------------------------------------------------- Purchases: Long-term municipal securities $7,332,458 $6,962,735 $5,098,153 Short-term municipal securities -- -- 1,100,000 Sales and maturities: Long-term municipal securities 7,029,451 7,520,795 5,447,245 Short-term municipal securities -- 2,000,000 1,100,000 =============================================================================== At November 30, 2000, the identified cost of investments owned for federal income tax purposes were as follows: CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - ------------------------------------------------------------------------------- $107,176,368 $94,797,204 $43,678,864 =============================================================================== At May 31, 2000, the Funds' last fiscal year end, the 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: CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - ------------------------------------------------------------------------------- Expiration year: 2003 $ 715,734 $ 552,941 $ 804,913 2004 1,105,901 945,779 708,417 2005 847,914 195,761 -- 2008 7,281 210,989 57,432 - ------------------------------------------------------------------------------- Total $2,676,830 $1,905,470 $1,570,762 =============================================================================== 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2000, were as follows: CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - ------------------------------------------------------------------------------- Gross unrealized: appreciation $ 3,330,142 $ 3,927,134 $1,529,990 depreciation (1,287,789) (1,364,140) (633,310) - ------------------------------------------------------------------------------- Net unrealized appreciation $ 2,042,353 $ 2,562,994 $ 896,680 =============================================================================== 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 an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets of each Fund as follows: AVERAGE DAILY NET ASSETS MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500 of 1% For the next $125 million .6375 of 1 For the next $250 million .6250 of 1 For the next $500 million .6125 of 1 For the next $1 billion .6000 of 1 For net assets over $2 billion .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 of its 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. Notes to FINANCIAL STATEMENTS (Unaudited) (continued)
7. COMPOSITION OF NET ASSETS At November 30, 2000, net assets consisted of: CONNECTICUT MASSACHUSETTS MISSOURI (NTC) (NMT) (NOM) - ----------------------------------------------------------------------------------------------------------------- Preferred shares, $25,000 stated value per share, at liquidation value $ 38,300,000 $ 34,000,000 $ 16,000,000 Common shares, $.01 par value per share 52,436 46,622 21,767 Paid-in surplus 72,601,044 64,572,586 29,893,134 Balance of undistributed net investment income 293,200 57,199 42,922 Accumulated net realized gain (loss) from investment transactions (2,947,994) (2,962,456) (1,567,788) Net unrealized appreciation of investments 2,211,858 3,304,046 1,042,667 - ----------------------------------------------------------------------------------------------------------------- Net assets $ 110,510,544 $ 99,017,997 $ 45,432,702 ================================================================================================================= Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited =================================================================================================================
Financial HIGHLIGHTS (Unaudited) Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------- ------------------------------------------------------------ Net Net Net Investment Investment Capital Capital Realized/ Income to Income to Gains to Gains to Beginning Net Unrealized Common Preferred Common Preferred Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) Total holders holders+ holders holders+ Total ==================================================================================================================================== CONNECTICUT (NTC) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2001 (a) $12.92 $ .52 $ .87 $1.39 $ (.41) $ (.13) $-- $-- $ (.54) 2000 14.44 1.06 (1.54) (.48) (.82) (.22) -- -- (1.04) 1999 14.49 1.00 (.05) .95 (.80) (.20) -- -- (1.00) 1998 13.63 1.00 .89 1.89 (.80) (.23) -- -- (1.03) 1997 12.99 1.00 .60 1.60 (.76) (.20) -- -- (.96) 1996 13.20 .98 (.21) .77 (.73) (.25) -- -- (.98) MASSACHUSETTS (NMT) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2001 (a) 13.17 .53 .78 1.31 (.41) (.12) -- -- (.53) 2000 14.72 1.05 (1.54) (.49) (.85) (.21) -- -- (1.06) 1999 14.91 1.02 (.16) .86 (.85) (.20) -- -- (1.05) 1998 14.11 1.06 .83 1.89 (.85) (.24) -- -- (1.09) 1997 13.58 1.06 .53 1.59 (.84) (.22) -- -- (1.06) 1996 13.76 1.05 (.19) .86 (.80) (.24) -- -- (1.04) MISSOURI (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2001 (a) 12.77 .51 .74 1.25 (.37) (.13) -- -- (.50) 2000 14.20 .99 (1.39) (.40) (.77) (.26) -- -- (1.03) 1999 14.44 .97 (.22) .75 (.77) (.22) -- -- (.99) 1998 13.68 .99 .78 1.77 (.76) (.25) -- -- (1.01) 1997 13.11 1.00 .55 1.55 (.73) (.25) -- -- (.98) 1996 13.37 .96 (.30) .66 (.67) (.25) -- -- (.92) ==================================================================================================================================== Total Returns ---------------- Based Ending Based on Net Ending on Net Asset Market Market Asset Value Value Value** Value** ============================================================= CONNECTICUT (NTC) - ------------------------------------------------------------ Year Ended 5/31: 2001 (a) $13.77 $14.5000 10.44% 9.81% 2000 12.92 13.5000 (14.85) (4.87) 1999 14.44 16.7500 13.50 5.22 1998 14.49 15.5000 15.61 12.39 1997 13.63 14.1250 9.58 11.01 1996 12.99 13.6250 14.06 3.97 MASSACHUSETTS (NMT) - ------------------------------------------------------------ Year Ended 5/31: 2001 (a) 13.95 14.3125 5.15 9.09 2000 13.17 14.0000 (7.66) (4.79) 1999 14.72 16.0625 2.48 4.47 1998 14.91 16.5000 18.08 11.91 1997 14.11 14.7500 13.76 10.28 1996 13.58 13.7500 8.99 4.55 MISSOURI (NOM) - ------------------------------------------------------------ Year Ended 5/31: 2001 (a) 13.52 13.0625 4.81 8.82 2000 12.77 12.8125 (4.35) (4.63) 1999 14.20 14.1875 5.24 3.64 1998 14.44 14.1875 14.53 11.31 1997 13.68 13.0625 10.53 10.09 1996 13.11 12.5000 10.07 3.09 ============================================================ Ratios/Supplemental Data --------------------------------------------------------------------- Before Credit ------------------------------------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Ending Net Assets Net Assets Total Total Net Applicable Applicable Net Assets Net Assets Assets to Common to Common Including Including (000) Shares++ Shares++ Preferred++ Preferred++ ================================================================================================ CONNECTICUT (NTC) - ------------------------------------------------------------------------------------------------ Year Ended 5/31: 2001 (a) $110,511 1.37%* 7.56%* .89%* 4.91%* 2000 105,879 1.36 7.87 .88 5.08 1999 113,465 1.32 6.83 .88 4.54 1998 113,384 1.33 7.02 .88 4.61 1997 108,524 1.38 7.46 .89 4.79 1996 104,928 1.40 7.37 .89 4.71 MASSACHUSETTS (NMT) - ------------------------------------------------------------------------------------------------ Year Ended 5/31: 2001 (a) 99,018 1.39* 7.62* .91* 4.98* 2000 95,323 1.32 7.71 .86 5.02 1999 102,288 1.30 6.87 .88 4.61 1998 102,936 1.31 7.22 .88 4.81 1997 99,006 1.34 7.63 .88 4.99 1996 96,303 1.35 7.61 .88 4.95 MISSOURI (NOM) - ------------------------------------------------------------------------------------------------ Year Ended 5/31: 2001 (a) 2000 45,433 1.45* 7.60* .93* 4.90* 1999 43,701 1.48 7.49 .95 4.80 1998 46,603 1.44 6.72 .95 4.44 1997 46,935 1.47 7.03 .97 4.60 1996 45,224 1.54 7.38 .99 4.74 44,014 1.57 7.13 1.01 4.57 ================================================================================================ Ratios/Supplemental Data ------------------------------------------------------------------------------- After Credit*** ------------------------------------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Net Assets Net Assets Total Total Applicable Applicable Net Assets Net Assets Portfolio to Common to Common Including Including Turnover Shares++ Shares++ Preferred++ Preferred++ Rate ======================================================================================================= CONNECTICUT (NTC) - ------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2001 (a) 1.33%* 7.60%* .86%* 4.94%* 7% 2000 1.32 7.91 .85 5.10 19 1999 1.30 6.84 .87 4.55 7 1998 1.33 7.02 .88 4.61 13 1997 1.38 7.46 .89 4.79 18 1996 1.40 7.37 .89 4.71 15 MASSACHUSETTS (NMT) - ------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2001 (a) 1.37* 7.64* .90* 4.99* 7 2000 1.31 7.73 .85 5.03 11 1999 1.30 6.88 .87 4.62 11 1998 1.31 7.22 .88 4.81 17 1997 1.34 7.63 .88 4.99 22 1996 1.35 7.61 .88 4.95 18 MISSOURI (NOM) - ------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2001 (a) 1.44* 7.61* .93* 4.90* 12 2000 1.47 7.51 .94 4.81 23 1999 1.43 6.72 .95 4.44 10 1998 1.47 7.03 .97 4.60 25 1997 1.54 7.38 .99 4.74 36 1996 1.57 7.13 1.01 4.57 34 ======================================================================================================= Municipal Auction Rate Cumulative Preferred Stock at End of Period ---------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share =========================================================== CONNECTICUT (NTC) - ----------------------------------------------------------- Year Ended 5/31: 2001 (a) $38,300 $25,000 $72,135 2000 38,300 25,000 69,112 1999 38,300 25,000 74,063 1998 38,300 25,000 74,010 1997 38,300 25,000 70,838 1996 38,300 25,000 68,491 MASSACHUSETTS (NMT) - ----------------------------------------------------------- Year Ended 5/31: 2001 (a) 34,000 25,000 72,807 2000 34,000 25,000 70,091 1999 34,000 25,000 75,212 1998 34,000 25,000 75,688 1997 34,000 25,000 72,799 1996 34,000 25,000 70,811 MISSOURI (NOM) - ----------------------------------------------------------- Year Ended 5/31: 2001 (a) 16,000 25,000 70,989 2000 16,000 25,000 68,282 1999 16,000 25,000 72,817 1998 16,000 25,000 73,336 1997 16,000 25,000 70,663 1996 16,000 25,000 68,772 =========================================================== * 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. Total returns are not annualized. *** After custodian fee credit, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the six months ended November 30, 2000. See accompanying notes to financial statements.
Build Your Wealth AUTOMATICALLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of 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 reinvest-ment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY 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. 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. Fund INFORMATION BOARD OF TRUSTEES Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES The Chase Manhattan Bank 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 6-month period ended November 30, 2000. Any future repurchases will be reported to shareholders in the next annual or semiannual report. Serving Investors FOR GENERATIONS PHOTO OF: John Nuveen, Sr. For over a century, generations of Americans have relied on Nuveen Investments to help them grow and keep the money they've earned. Financial advisors, investors and their families have associated Nuveen Investments with quality, expertise and dependability since 1898. That is why financial advisors have entrusted the assets of more than 1.3 million investors to Nuveen. With the know-how that comes from a century of experience, Nuveen continues to build upon its reputation for quality. Now, financial advisors and investors can count on Nuveen Investments to help them design customized solutions that meet the far-reaching financial goals unique to family wealth strategies - solutions that can translate into legacies. To find out more about how Nuveen Investments' products and services can help you preserve your financial security, talk with your financial advisor, or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before you invest. INVEST WELL. LOOK AHEAD. LEAVE YOUR MARK.(SM) LOGO: NUVEEN Investments. Nuveen Investments o 333 West Wacker Drive FSA-3-11-00 Chicago, IL 60606 o www.nuveen.com -----END PRIVACY-ENHANCED MESSAGE-----