N-30D 1 nv26953ed.txt FAN-C-0502 ANNUAL REPORT May 31, 2002 Nuveen Municipal Closed-End Exchange-Traded Funds CONNECTICUT NTC NFC NGK GEORGIA NPG NZX MASSACHUSETTS NMT NMB MISSOURI NOM Dependable, tax-free income because it's not what you earn, it's what you keep.(R) THE NUVEEN INVESTOR See Page 13 LOGO: NUVEEN Investments RECEIVE YOUR NUVEEN FUND UPDATES FASTER THAN EVER! By registering for online access, you can view and save on your computer the Fund information you currently receive in the mail. This information then can be retrieved any time, and you can select only the specific pages you want to view or print. Once you sign up, you'll receive an e-mail notice the moment Fund reports are ready. This notice will contain a link to the report - all you have to do is click on the internet address provided. You'll be saving time, as well as saving printing and distribution expenses for your Fund. Registering for electronic access is easy and only takes a few minutes. (see instructions at right) Your e-mail address is strictly confidential and will not be used for anything other than notifications of shareholder information. And if you decide you don't like receiving your reports electronically, it's a simple process to go back to regular mail delivery. SIGN UP TODAY-- Here's all you need to do... IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM 2 Look at the address sheet that accompanied this report. Enter the personal 13-CHARACTER ENROLLMENT NUMBER imprinted near your name on the address sheet. 3 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g. yourID@providerID.com), and a personal, 4-digit PIN of your choice. (Pick a number that's easy to remember.) 4 Click Submit. Confirm the information you just entered is correct, then click Submit again. 5 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6 Use this same process if you need to change your registration information or cancel internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select the Access Account tab. Select the E-REPORT ENROLLMENT section. Click on Enrollment Page. 3 You'll be taken to a screen that asks for your Social Security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Sidebar text: " I urge you to consider receiving future Fund reports and other information electronically ...see the inside front cover of this report for detailed instructions." Dear Shareholder I am pleased to report that during the period covered by this report, your Fund continued to meet its primary objective of providing attractive monthly income, while at the same time offering opportunities to reduce overall portfolio volatility. Detailed information on your Fund's performance can be found in the Portfolio Managers' Comments and Performance Overview sections of this report. I urge you to take the time to read them. I also urge you to consider receiving future Fund reports and other information electronically via the Internet and e-mail rather than in hard copy. Not only will you be able to receive the information faster, but this also may help lower Fund expenses. Sign up is quick and easy - see the inside front cover of this report for detailed instructions. In addition to providing you with steady tax-free income, your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy. These include careful research, constant surveillance and judicious trading by Nuveen's seasoned portfolio management team, with every action designed to supplement income, improve Fund structure, better adapt to current market conditions or increase diversification. In uncertain markets like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. For more than 100 years, Nuveen has specialized in offering quality investments such as these Nuveen Funds to those seeking to accumulate and preserve wealth. Our mission continues to be to assist you and your financial advisor by offering the investment services and products that can help you meet your financial objectives. We thank you for continuing to choose Nuveen Investments as a partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board July 15, 2002 1 Nuveen Municipal Closed-End Exchange-Traded Funds (NTC, NFC, NGK, NPG, NZX, NMT, NMB, NOM) Portfolio Managers' Comments Portfolio managers Paul Brennan, Tom O'Shaughnessy and Tom Futrell review economic and market conditions, key strategies, and recent Fund performance. Paul assumed portfolio management responsibility for NTC in 1999, for NFC at its inception in 2001, and for NGK upon its inception in 2002. Tom O'Shaughnessy has managed NPG since 1998 and NZX since its inception in 2001. Tom Futrell assumed management responsibilities for NMT in 1998, and for NMB and NOM in 2001. WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THIS REPORTING PERIOD? The two major forces at work during the twelve months ended May 31, 2002, were the general slowdown in economic growth and the Federal Reserve's aggressive easing of short-term interest rates. In addition, the events of September 11, 2001, and the uncertain geopolitical climate that followed also impacted the economy and the markets. In the municipal markets, the generally sluggish economic environment of the past twelve months helped many securities perform well. In addition, the trend toward increased issuance remained strong. Looking at the first five months of 2002, all the states represented in this report saw significant increases in municipal issuance when compared with the same period in 2001. On the demand side, municipal bonds continued to be highly sought after by individual investors looking for diversification, tax-free income and an alternative to a volatile stock market. Institutional investors, especially traditional purchasers such as property/ casualty insurance companies, also have been active buyers. HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST TWELVE MONTHS? For the fiscal year ended May 31, 2002, the Funds covered in this report produced total annual returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Municipal Bond Index1 and relevant Lipper Peer Group2 also are presented. LEHMAN TOTAL RETURN TOTAL LIPPER MARKET YIELD ON NAV RETURN1 AVERAGE2 ----------------------------------------------------- TAXABLE- 1 YEAR 1 YEAR 1 YEAR EQUIV- ENDED ENDED ENDED 5/31/02 ALENT3 5/31/02 5/31/02 5/31/02 ----------------------------------------------------- NTC 5.31% 7.93% 7.87% 6.51% 8.17% ----------------------------------------------------- NFC 5.32% 7.94% 8.81% 6.51% 8.17% ----------------------------------------------------- NGK 5.50% 8.21% - - - ----------------------------------------------------- NPG 5.42% 8.21% 7.32% 6.51% 8.17% ----------------------------------------------------- NZX 5.41% 8.20% - - - ----------------------------------------------------- NMT 5.35% 8.05% 7.51% 6.51% 8.17% ----------------------------------------------------- NMB 5.49% 8.26% 8.46% 6.51% 8.17% ----------------------------------------------------- NOM 5.41% 8.20% 8.65% 6.51% 8.17% ----------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. Over the past twelve months, the Fed's policy to keep short-term interest rates relatively low, combined with generally favorable market conditions, created a positive total return environment for municipal bonds. The Funds' participation in the market's gains is reflected, in part, in the total returns on NAV listed in the above table. In a market characterized by rising bond values, funds with longer durations4 typically would be expected to outperform funds or indexes with shorter durations. As of May 31, 2002, the durations of the Nuveen Funds with at least one-year of history ranged from 8.73 to 13.83 compared with 7.82 for the unleveraged Lehman Brothers Municipal Bond Index. 1 The Funds' performances are compared with that of the Lehman Brothers Municipal Bond Index, a national unleveraged index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The Funds' total returns are compared with the average annualized return of the 26 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 market yield on the indicated date and a federal income tax rate of 30% plus the applicable state income tax rate. The combined federal and state tax rates used in this report are as follows: Connecticut 33%, Georgia 34%, Massachusetts 33.5%, and Missouri 34%. 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. 2 Among the newer Funds, the durations of NGK and NZX, which were introduced within the past year, were 15.21 and 16.50, respectively. Relatively high durations like these are typical of newer Nuveen funds, and over time, we expect these durations will get shorter to come more closely in line with the older Nuveen Funds. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? With the Fed keeping short-term interest rates relatively low, the dividend-payment capabilities of these Funds benefited from the use of leverage, a strategy that can potentially enhance the dividends paid to common shareholders. This benefit is tied in part to the short-term rates the leveraged Funds pay their MuniPreferred(R) shareholders. For example, low short-term rates can enable the Funds to reduce the amount of income they pay preferred shareholders, which can leave more earnings to support common share dividends. During the year ended May 31, 2002, steady or falling short-term interest rates enabled us to implement dividend increases in NTC, NPG, NMT, and NOM. The newer funds, NFC, NZX and NMB all maintained steady, attractive dividends during the period, and NGK, which was introduced in March 2002, paid its first monthly dividend in June. Over the past year, the share prices of these Nuveen Funds tended to remain relatively stable (see the charts on the individual Performance Overview pages). This steady performance helped keep all of the Funds' share prices at premiums to their net asset values. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE FISCAL YEAR ENDED MAY 31, 2002? Two areas of emphasis during this reporting period were enhancing the dividend-paying capabilities of the Funds and improving their diversification and call protection. New issuance in several of these states tends to be irregular, with periods of relatively strong issuance followed by periods of relatively light new issue supply. As a result, our approach has been to look for opportunities as they occur and to respond quickly as favorable situations develop. Over the past year, we often focused on essential services (such as water and sewer systems), some selected airport and utility issues, and certain general obligation bonds. When we were able to obtain attractive prices, we selectively sold some healthcare and multifamily housing bonds from the portfolios. We also were trying to modestly shorten each of the Funds' duration, which would help to better position them in the event that interest rates start to creep higher in the coming months. By shortening durations, we believe we can help make the portfolios less sensitive to possible interest rate changes while still providing yields and returns that are competitive with longer duration funds. 3 In the current geopolitical climate, we believe that maintaining strong credit quality is a key requirement for all the Funds. As of May 31, 2002, each of these Nuveen Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 74% to 93%. All of the Funds also had a portion of their assets invested in BBB bonds, which serve to enhance the Funds' income streams. All of the Funds also continued to offer excellent levels of call protection through 2002 and 2003. Among the newer Funds, NGK, NZX and NMB have virtually no call exposure over this period, while 2% of NFC becomes callable in 2003. The four older Funds - NTC, NPG, NMT and NOM - all reach their 10-year anniversaries in 2003, a point in their life cycles that normally is associated with an increase in call exposure. However, we have been successful in our recent efforts to significantly reduce this exposure. NOM now has expected call exposure of 3% over this two-year period, while the other three Funds could see up to 13-22% of their portfolios called over the next two years. The number of actual calls will depend largely on market interest rates over this time. In general, we believe this call exposure is very manageable, and we foresee no problems in working through it. Given the current level of rates, our general approach has been to hold higher-yielding bonds as long as possible to help support the Funds' dividends, while we look for attractive replacement opportunities. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS IN PARTICULAR? In general, our outlook for the fixed-income markets over the next twelve months remains positive. We believe the U.S. economy is headed for recovery, but one that may take longer and see a slower pace of growth than some are now predicting. We believe inflation and interest rates should remain relatively low over the near term, and that new municipal issuance should continue to be strong. We anticipate the demand for tax-exempt municipal bonds will remain firm as investors look for ways to rebalance their portfolios and reduce risk. We plan to remain focused on strategies that add value for our shareholders, provide support for the Funds' dividends, and fully utilize Nuveen's experience and research expertise. As noted, shareholders may see these Funds' durations shorten. Overall, we believe these Funds can continue to play an important role in investors' long-range financial programs, providing balance and diversification, dependable tax-free income, and a measure of security in uncertain times. We believe the Funds currently are well positioned for the market environment ahead, and we will continue to closely monitor and respond to events as appropriate. 4 Nuveen Connecticut Premium Income Municipal Fund Performance Overview As of May 31, 2002 NTC [PIE CHART] AAA/U.S. GUARANTEED 73% AA 17% A 2% BBB 6% NR 2% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $16.05 --------------------------------------------------- Common Share Net Asset Value $14.46 --------------------------------------------------- Market Yield 5.31% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.59% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 7.93% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $76,327 --------------------------------------------------- Average Effective Maturity (Years) 17.06 --------------------------------------------------- Leverage-Adjusted Duration 8.73 --------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 5/93) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- 1-Year 5.01% 7.87% --------------------------------------------------- 5-Year 8.12% 7.18% --------------------------------------------------- Since Inception 6.23% 6.11% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- Education and Civic Organizations 21% --------------------------------------------------- Healthcare 13% --------------------------------------------------- Tax Obligation/General 13% --------------------------------------------------- U.S. Guaranteed 10% --------------------------------------------------- Tax Obligation/Limited 7% --------------------------------------------------- [Bar Chart] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 6/01 0.068 7/01 0.068 8/01 0.068 9/01 0.069 10/01 0.069 11/01 0.069 12/01 0.07 1/02 0.07 2/02 0.07 3/02 0.071 4/02 0.071 5/02 0.071 [Line Chart] SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 6/1/01 16.05 16.12 16.1 16.2 16.3 16.46 16.56 16.62 16.44 16.38 16.58 16.66 16.6 16.63 16.65 16.64 16.37 16.44 16.29 16.2 16.22 16.15 16.23 16.31 16.18 16.18 16 16.11 15.98 15.8 15.75 15.9 15.94 16.3 16.32 16.35 16.52 16.61 16.57 16.78 16.74 16.1 15.8 15.92 15.74 15.68 15.61 15.9 16.1 16.2 16.2 16.05 5/31/02 16.05 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 30%. 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 33%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2001 of $0.0019 per share. 5 Nuveen Connecticut Dividend Advantage Municipal Fund Performance Overview As of May 31, 2002 NFC [PIE CHART] AAA/U.S. GUARANTEED 54% AA 20% A 16% BBB 7% NR 3% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $15.79 --------------------------------------------------- Common Share Net Asset Value $14.24 --------------------------------------------------- Market Yield 5.32% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.60% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 7.94% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $36,233 --------------------------------------------------- Average Effective Maturity (Years) 21.39 --------------------------------------------------- Leverage-Adjusted Duration 13.83 --------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 1/01) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- 1-Year 8.61% 8.81% --------------------------------------------------- Since Inception 9.34% 5.20% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- Tax Obligation/General 22% --------------------------------------------------- Education and Civic Organizations 19% --------------------------------------------------- Utilities 11% --------------------------------------------------- Tax Obligation/Limited 10% --------------------------------------------------- Housing/Single Family 10% --------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE 6/01 0.07 7/01 0.07 8/01 0.07 9/01 0.07 10/01 0.07 11/01 0.07 12/01 0.07 1/02 0.07 2/02 0.07 3/02 0.07 4/02 0.07 5/02 0.07 [LINE CHART] SHARE PRICE PERFORMANCE WEEKLY CLOSING PRICE PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. 6/1/01 15.4 15.56 15.79 15.57 15.77 15.58 15.64 15.69 15.7 15.8 15.95 15.9 15.88 16.03 15.98 15.92 15.45 15.97 16 15.71 15.95 15.72 16 15.95 15.91 15.91 16 16.04 15.87 15.72 15.8 15.98 16.1 16.26 16.46 16.1 16.6 16.36 16.34 15.92 15.59 15.25 14.91 14.97 14.9 14.9 14.97 15.2 15.5 15.68 15.54 15.7 5/31/02 15.79 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 30%. 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 33%. 6 Nuveen Connecticut Dividend Advantage Municipal Fund 2 Performance Overview As of May 31, 2002 NGK [PIE CHART] AAA/U.S. GUARANTEED 73% AA 20% A 4% BBB 3% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $15.05 --------------------------------------------------- Common Share Net Asset Value $14.48 --------------------------------------------------- Market Yield 5.50% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.86% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.21% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $33,408 --------------------------------------------------- Average Effective Maturity (Years) 21.66 --------------------------------------------------- Leverage-Adjusted Duration 15.21 --------------------------------------------------- CUMULATIVE TOTAL RETURN (Inception 3/02) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- Since Inception 0.79% 1.53% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- Tax Obligation/General 38% --------------------------------------------------- Education and Civic Organizations 25% --------------------------------------------------- Tax Obligation/Limited 13% --------------------------------------------------- Utilities 8% --------------------------------------------------- U.S. Guaranteed 6% --------------------------------------------------- THE FUND PAID ITS FIRST REGULAR MONTHLY DIVIDEND OF $0.069 PER SHARE ON JUNE 3, 2002. [LINE CHART] SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/29/02 15.1 15.02 15.01 15.01 15.05 15.05 15.1 15.2 15.1 5/31/02 15.05 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 30%. 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 33%. 7 Nuveen Georgia Premium Income Municipal Fund Performance Overview As of May 31, 2002 NPG [PIE CHART] AAA/U.S. GUARANTEED 67% AA 12% A 12% BBB 9% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $15.83 --------------------------------------------------- Common Share Net Asset Value $14.31 --------------------------------------------------- Market Yield 5.42% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.74% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.21% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $53,909 --------------------------------------------------- Average Effective Maturity (Years) 21.71 --------------------------------------------------- Leverage-Adjusted Duration 11.11 --------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 5/93) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- 1-Year 8.98% 7.32% --------------------------------------------------- 5-Year 8.43% 6.81% --------------------------------------------------- Since Inception 6.28% 6.05% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- Healthcare 26% --------------------------------------------------- Housing/Multifamily 15% --------------------------------------------------- Water and Sewer 14% --------------------------------------------------- Utilities 10% --------------------------------------------------- Basic Materials 9% --------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 6/01 0.0665 7/01 0.0665 8/01 0.0665 9/01 0.068 10/01 0.068 11/01 0.068 12/01 0.07 1/02 0.07 2/02 0.07 3/02 0.0715 4/02 0.0715 5/02 0.0715 [LINE CHART] SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 6/1/01 15.35 15.38 15.38 15.25 15 15.16 15.21 15.25 15.46 15.49 15.42 15.55 15.59 15.46 15.46 15.43 15.03 14.95 15.03 15.02 15.15 15.22 15.52 15.35 15.21 15.2 15.21 15.27 15.5 15.56 15.54 15.53 15.41 15.53 15.52 15.67 15.82 15.86 15.93 15.86 15.82 15.57 15.4 15.32 15.36 15.25 15.48 15.5 15.47 15.65 15.75 15.8 5/31/02 15.83 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 30%. 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%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2001 of $0.0189 per share. 8 Nuveen Georgia Dividend Advantage Municipal Fund Performance Overview As of May 31, 2002 NZX [PIE CHART] AAA/U.S. GUARANTEED 66% AA 15% A 14% BBB 5% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $14.74 --------------------------------------------------- Common Share Net Asset Value $14.00 --------------------------------------------------- Market Yield 5.41% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.73% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.20% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $27,381 --------------------------------------------------- Average Effective Maturity (Years) 25.26 --------------------------------------------------- Leverage-Adjusted Duration 16.50 --------------------------------------------------- CUMULATIVE TOTAL RETURN (Inception 9/01) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- Since Inception 1.42% 1.02% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- Education and Civic Organizations 18% --------------------------------------------------- Healthcare 18% --------------------------------------------------- Tax Obligation/Limited 17% --------------------------------------------------- Water and Sewer 15% --------------------------------------------------- Housing/Single Family 11% --------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE 11/01 0.0665 12/01 0.0665 1/02 0.0665 2/02 0.0665 3/02 0.0665 4/02 0.0665 5/02 0.0665 [LINE CHART] SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/28/01 15.1 15.01 15.04 15.01 15.11 15.19 15.12 15.12 15.13 15.05 15.3 14.92 14.9 14.69 14.7 14.85 14.94 14.99 15.25 15.25 15.15 15.03 15 15 14.97 14.65 14.65 14.32 14.35 14.83 15.04 14.75 14.65 14.75 14.6 5/31/02 14.74 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 30%. 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%. 9 Nuveen Massachusetts Premium Income Municipal Fund Performance Overview As of May 31, 2002 NMT [PIE CHART] AAA/U.S. GUARANTEED 68% AA 9% A 16% BBB 5% NR 2% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $15.70 --------------------------------------------------- Common Share Net Asset Value $14.48 --------------------------------------------------- Market Yield 5.35% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.64% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.05% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $67,856 --------------------------------------------------- Average Effective Maturity (Years) 17.21 --------------------------------------------------- Leverage-Adjusted Duration 9.62 --------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 3/93) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- 1-Year 8.04% 7.51% --------------------------------------------------- 5-Year 6.91% 6.54% --------------------------------------------------- Since Inception 6.16% 6.20% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- U.S. Guaranteed 24% --------------------------------------------------- Education and Civic Organizations 20% --------------------------------------------------- Housing/Multifamily 20% --------------------------------------------------- Healthcare 15% --------------------------------------------------- Tax Obligation/General 8% --------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 6/01 0.068 7/01 0.068 8/01 0.068 9/01 0.069 10/01 0.069 11/01 0.069 12/01 0.07 1/02 0.07 2/02 0.07 3/02 0.07 4/02 0.07 5/02 0.07 [LINE CHART] SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 6/1/01 15.33 15.32 15.26 15.2 15.24 15.43 15.33 15.4 15.4 15.6 15.7 15.89 15.85 15.91 16.05 16.05 15.45 15.35 15.65 15.58 15.84 15.68 15.8 15.86 15.83 15.94 16.02 15.88 15.7 15.76 15.67 15.51 15.59 15.76 15.83 15.83 15.73 15.9 15.85 16.04 15.9 15.71 15.25 14.95 14.99 15.1 15.3 15.46 15.65 15.71 15.9 15.56 5/31/02 15.7 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 30%. 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 33.5%. 10 Nuveen Massachusetts Dividend Advantage Municipal Fund Performance Overview As of May 31, 2002 NMB [PIE CHART] AAA/U.S. GUARANTEED 66% AA 17% A 6% BBB 11% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $15.95 --------------------------------------------------- Common Share Net Asset Value $14.16 --------------------------------------------------- Market Yield 5.49% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.84% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.26% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $27,519 --------------------------------------------------- Average Effective Maturity (Years) 25.47 --------------------------------------------------- Leverage-Adjusted Duration 13.67 --------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 1/01) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- 1-Year 14.15% 8.46% --------------------------------------------------- Since Inception 10.59% 5.02% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- Education and Civic Organizations 19% --------------------------------------------------- Tax Obligation/General 15% --------------------------------------------------- Transportation 13% --------------------------------------------------- Healthcare 11% --------------------------------------------------- Water and Sewer 10% --------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE 6/01 0.073 7/01 0.073 8/01 0.073 9/01 0.073 10/01 0.073 11/01 0.073 12/01 0.073 1/02 0.073 2/02 0.073 3/02 0.073 4/02 0.073 5/02 0.073 [LINE CHART] SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 6/1/01 14.78 14.91 14.82 14.89 14.81 14.98 14.93 14.88 14.99 15.04 15.17 15.38 15.65 15.66 15.51 15.57 15.25 15.15 15.5 15.53 15.48 15.42 15.49 15.79 15.55 15.63 15.49 15.62 15.2 15.08 15.22 15.47 15.54 15.6 15.36 15.5 15.2 15.2 15.31 15.36 15.51 15.32 15.57 15.7 15.74 15.72 15.78 15.8 15.92 15.9 15.9 15.85 5/31/02 15.95 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 30%. 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 33.5%. 11 Nuveen Missouri Premium Income Municipal Fund Performance Overview As of May 31, 2002 NOM [PIE CHART] AAA/U.S. GUARANTEED 69% AA 11% A 3% BBB 5% NR 11% OTHER 1% PORTFOLIO STATISTICS --------------------------------------------------- Share Price $15.41 --------------------------------------------------- Common Share Net Asset Value $14.35 --------------------------------------------------- Market Yield 5.41% --------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.73% --------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.20% --------------------------------------------------- Net Assets Applicable to Common Shares ($000) $31,619 --------------------------------------------------- Average Effective Maturity (Years) 16.12 --------------------------------------------------- Leverage-Adjusted Duration 9.53 --------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 5/93) --------------------------------------------------- ON SHARE PRICE ON NAV --------------------------------------------------- 1-Year 14.11% 8.65% --------------------------------------------------- 5-Year 9.08% 6.66% --------------------------------------------------- Since Inception 5.82% 5.73% --------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) --------------------------------------------------- Healthcare 19% --------------------------------------------------- U.S. Guaranteed 18% --------------------------------------------------- Tax Obligation/General 18% --------------------------------------------------- Tax Obligation/Limited 15% --------------------------------------------------- Education and Civic Organizations 11% --------------------------------------------------- [BAR CHART] 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE 6/01 0.0655 7/01 0.0655 8/01 0.0655 9/01 0.0665 10/01 0.0665 11/01 0.0665 12/01 0.0675 1/02 0.0675 2/02 0.0675 3/02 0.0695 4/02 0.0695 5/02 0.0695 [LINE CHART] SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 6/1/01 14.25 14.27 14.29 14.3 14.39 14.42 14.59 14.6 14.7 14.82 14.82 14.93 15 15.05 15.09 15.09 14.87 14.98 15.24 15.08 15.08 15.1 15.21 15.33 15.3 15.35 15.3 15.3 15.26 15.07 15.08 15.07 15.12 15.19 15.37 15.29 15.41 15.3 15.25 15.25 15.56 15.52 15.45 15.45 15.3 15.25 15.21 15.45 15.5 15.5 15.41 15.55 5/31/02 15.41 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 30%. 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%. 12 V1 THE NUVEEN INVESTOR PHOTO OF: 2 boys Bond surveillance - a HIGH PRIORITY at NUVEEN The Enron scandal has raised numerous questions about the real value of American securities. Investors want to know what safeguards are in place to inspire their trust and ensure their holdings are dependable. The Nuveen Investor recently spoke with David Blair, Assistant Vice President and Senior Analyst at Nuveen, about the research and surveillance processes used for Nuveen funds. HOW DO NUVEEN'S RESEARCH ANALYSTS EVALUATE BONDS PRIOR TO PURCHASE? We evaluate factors impacting market sectors, issuers and specific bonds and assign credit ratings to bonds we consider for purchase. We seek to purchase bonds with stable and improving credit characteristics, which have attractive prices and yields relative to other bonds in their sectors. HOW DO YOU CONDUCT YOUR RESEARCH? We conduct detailed analyses that often involve site visits and discussions with managers of the projects being financed. Since Nuveen is a major investor with large buying power, issuers and project managers are willing to listen to us and respond to our concerns. IS THE RESEARCH AND ANALYSIS PROCESS ANY DIFFERENT WHEN CONSIDERING HIGH-YIELD BONDS? Up to 20 percent of some funds can be invested in below investment grade bonds to help the fund attain a higher yield. This underscores the need for research. If one of our 16 analysts believes a high-yield bond should be purchased, a second analyst reviews the issue as well. HOW DO YOU MONITOR THE VARIOUS BONDS ONCE THEY'VE BEEN PURCHASED? We have a proprietary database with information and analysis on the bonds Nuveen holds in its funds. Among other things, we are able to evaluate risk exposure to sectors, issuers and specific bonds on an on-going basis. HOW DOES THE RESEARCH DEPARTMENT COMMUNICATE THE INFORMATION GATHERED? We conduct biweekly meetings within the research department and weekly meetings with portfolio managers. We also write-up our findings and distribute them with "buy," "hold" or "sell" recommendations to portfolio managers. (continued on page 15) Volume one 2002 INSIDE 13 Bond Surveillance - A High Priority at Nuveen 14 Is it Time to Rethink Your Bond Strategy? 15 Many Investors Continue to Find Solutions with Professional Advice 16 Fund Reports Available Online 16 ETFConnect: The Source for All Exchange-Traded Funds (C)2002 Nuveen Investments. All rights reserved. LOGO: NUVEEN INVESTMENTS 13 V1 IS IT TIME TO RETHINK YOUR BOND STRATEGY? Significant stock market losses in recent history have sent many investors toward bonds as a way to potentially cut their losses and balance equity- dominated portfolios. While many consider bonds a set-and-forget investment, there are several circumstances that might prompt you to reassess -- and perhaps revamp -- your bond holdings. TAX BRACKET CHANGES The Economic Growth and Tax Relief Reconciliation Act of 2001 has dropped tax brackets a percentage point this year, but a higher salary, large bonus, sale of assets or retirement may push you into a higher tax bracket for 2002. If you are in a higher tax bracket and want to generate an income stream without raising your tax burden, tax-free municipal bonds may be a prudent option. Even if you are in a lower tax bracket, municipal bonds could make sense. The question is whether municipal or taxable bonds will deliver a better taxable yield. RETIREMENT PLANS CHANGE Whether you are near retirement or are currently enjoying it, you may want to consider rebalancing your retirement accounts with less stock and more bonds, to potentially reduce risk and try to preserve the assets that you have accumulated. If you are just entering retirement you may want to make tax-free municipal bonds a part of your portfolio to emphasize income generation and protection from taxation. RISK TOLERANCE CHANGES The recent market volatility and market downturn may have caused many investors to reevaluate their tolerance for risk. On the other hand, your portfolio might have performed well over the last few years and you may not need to take on extra risk to meet your long-term goals. In either situation you could take a look at your bond portfolio and determine whether you need to make changes to correspond with your tolerance for risk. PORTFOLIO CHANGES If you make significant changes to one or more of your investments, you'll want to look at your portfolio as a whole, particularly with regard to overall asset allocation. You may need to do some rebalancing to stay on track with your investment strategy. Your financial advisor can help. Regardless of how your circumstances change, he or she can provide up-to-date information on the bond market and various funds to help you decide how to maximize your returns consistent with your short- and long-term financial goals. No investment is risk free and some investments carry more risk than others. It is important to know what the risks are, to evaluate them against any potential rewards, and to determine your tolerance for risk when selecting an investment. PHOTO OF: lighthouse photo of: 2 children THE NUVEEN INVESTOR VOL 02.1 LOGO: Nuveen Investments 14 photo: clouds photo: woman and girl V1 MANY INVESTORS CONTINUE TO FIND SOLUTIONS WITH PROFESSIONAL ADVICE For many investors, current financial markets are confusing and frustrating. According to research conducted for the Forum for Investor Advice*, that's the number one reason many turn to a financial advisor. They want someone to suggest ideas and provide consultation, dialogue and professional advice. Investors say their advisors are helpful in other key ways, including... o Saving time. After consultation, investors note that the second most important reason for using an advisor is to have someone else monitor their portfolio, reducing the amount of time they spend on investing. o Help in sorting through information. Investors in the 21st century have more products from which to choose than in the past. For example, there are approximately 8,000 mutual funds today, up from 3,000 in 1990. o Assistance in setting financial goals. According to investors who use a financial advisor, they are more likely to have a plan for a specific financial goal than do-it-yourself investors. o Staying focused. Advisor-assisted investors are more likely than do-it-yourself investors to have developed a comprehensive investment program. o Peace of mind. Investors say their comfort level in all types of markets is higher when using an advisor for a "second opinion" on an investment decision. *The survey of 324 investors was conducted in December of 2000 by Market Facts and analyzed by New York based Neuwirth Research. Of the 324, 166 said they had an ongoing relationship with a financial advisor, while 157 described themselves as do-it-yourselfers. (continued from page 13) HOW ARE PROBLEM BONDS IDENTIFIED AND HANDLED? We conduct surveillance on our bonds on a regular basis to ensure, among other things, that deteriorating bonds are identified early. We then discuss any emerging problems and potential courses of action with the portfolio manager. HOW MANY ISSUES DOES THE RESEARCH DEPARTMENT FOLLOW? We follow 12 sectors and 1,500 uninsured bonds, worth about $18 billion of Nuveen's $45 billion in total municipal assets. The remaining $27 billion in municipal assets are insured or escrowed (backed by Treasury bonds). For the insured bonds, we monitor closely on a regular basis the insurers guaranteeing the bonds. WILL RESEARCH AND SURVEILLANCE CHANGE IN LIGHT OF PROBLEMS WITH ENRON SECURITIES? Overall, our investment process and surveillance have worked well and been effective. However, we meet as a group on a regular basis and are constantly evaluating ways to improve the process to respond to issues and the market environment. The Nuveen Investor VOL 02.1 LOGO: Nuveen Investments 15 LOOK AHEAD... FUND REPORTS AVAILABLE ONLINE V1 photo of 2 web pages Nuveen Fund information is now available online. Once you register, you'll receive an e-mail notice with a link to your Fund's reports and other information just as soon as it is ready. Registering takes only a few minutes. If you receive statements from a brokerage firm or financial advisor, go to WWW.INVESTORDELIVERY.COM. Enter your personal 13-character enrollment number imprinted on the address sheet of this report near your name. From the options on the follow-up page, select the New Enrollment-Create screen. Once there, enter your e-mail address and a personal, four-digit PIN. Hit the Submit button. Confirm the information you entered is correct, then hit Submit again. If you receive statements directly from Nuveen, go to WWW.NUVEEN.COM. Select the Access Your Account tab, then select E-Report Enrollment. Finally, click on the Enrollment Page. Once there, you'll need to provide your social security number and e-mail address. Click on Enroll. After registering, you should receive a confirming e-mail within 24 hours. If not, repeat these steps to ensure all information is accurate. You can use this same process if you need to change your registration information or want to cancel Internet viewing. The e-mail address you provide is strictly confidential and will only be used to notify you of shareholder information. The information in this newsletter should not be construed as specific tax or investment advice. Contact your advisor for information about your particular situation. ETFCONNECT: THE SOURCE FOR ALL EXCHANGE-TRADED FUNDS Last fall, Nuveen launched ETFConnect, the industry's first website featuring all-encompassing information on exchanged-traded funds. Whatever you're looking for in the world of Index ETFs or Closed-End Exchange-Traded Funds - prices, NAVs, dividend information, performance histories, new developments - this is the place. Highlights include Quick Facts sheets for more than 500 funds, a multi-fund search capability, website links, a list of fund sponsors, tools for portfolio tracking, and a continually updated education center. Check out WWW.ETFCONNECT.COM. photo of web pages The Nuveen Investor Vol 02.1 Logo: NUVEEN Investments 16 Report of Independent Auditors THE BOARD OF TRUSTEES AND SHAREHOLDERS NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND NUVEEN MASSACHUSETTS DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund 2, Nuveen Georgia Premium Income Municipal Fund, Nuveen Georgia Dividend Advantage Municipal Fund, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Massachusetts Dividend Advantage Municipal Fund and Nuveen Missouri Premium Income Municipal Fund as of May 31, 2002, and the related statements of operations, changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2002, by correspondence with the custodian and brokers or by other appropriate alternative auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Nuveen Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund 2, Nuveen Georgia Premium Income Municipal Fund, Nuveen Georgia Dividend Advantage Municipal Fund, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Massachusetts Dividend Advantage Municipal Fund and Nuveen Missouri Premium Income Municipal Fund at May 31, 2002, and the results of their operations, changes in their net assets and their financial highlights for the periods indicated therein in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Chicago, Illinois July 12, 2002 17
Nuveen Connecticut Premium Income Municipal Fund (NTC) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.9% $ 1,415 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 Aa3 $1,445,621 Bonds, Series 2000, 5.750%, 7/01/20 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 31.6% Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), 1996 Series A: 1,215 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102.00 AAA 1,280,355 780 5.875%, 11/15/17 (Alternative Minimum Tax) 11/06 at 102.00 AAA 812,877 830 Connecticut Higher Education Supplemental Loan Authority, 11/09 at 102.00 AAA 880,987 Revenue Bonds (Family Education Loan Program), 1999 Series A, 6.000%, 11/15/18 995 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aaa 999,756 Bonds (Family Education Loan Program), 2001 Series A, 5.250%, 11/15/18 (Alternative Minimum Tax) 1,540 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102.00 BBB 1,540,123 Revenue Bonds (Quinnipiac College Issue), Series D, 6.000%, 7/01/23 2,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 AAA 2,125,160 Revenue Bonds (Trinity College Issue), Series E, 5.875%, 7/01/26 1,500 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 AAA 1,550,520 Revenue Bonds (The Loomis Chaffee School Issue), Series C, 5.500%, 7/01/16 1,800 State of Connecticut Health and Educational Facilities Authority, 7/08 at 102.00 AAA 1,789,488 Revenue Bonds (Fairfield University Issue), Series H, 5.000%, 7/01/23 2,920 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102.00 AAA 3,033,384 Revenue Bonds (Connecticut College Issue), Series C-1, 5.500%, 7/01/20 1,250 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 AAA 1,262,988 Revenue Bonds (Fairfield University), Series I, 5.250%, 7/01/25 750 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 775,823 Revenue Bonds (The Horace Bushnell Memorial Hall Issue), Series A, 5.625%, 7/01/29 500 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 489,840 Revenue Bonds (Trinity College), Series 2001G, 5.000%, 7/01/31 650 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 672,081 Revenue Bonds (Loomis Chaffee School), Series D, 5.500%, 7/01/23 450 State of Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 440,618 Revenue Bonds (Greenwich Academy), 2001 Series B, 5.000%, 3/01/32 2,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,976,060 Revenue Bonds (University of Hartford Issue), 2002 Series E, 5.250%, 7/01/32 500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 499,485 Revenue Bonds (Yale University Issue), 2002 Series W, 5.125%, 7/01/27 3,060 University of Connecticut, Student Fee Revenue Bonds, 11/08 at 101.00 AAA 2,888,212 1998 Series A, 4.750%, 11/15/27 1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AAA 1,035,260 2002 Series A, 5.250%, 11/15/19 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 19.1% 1,000 State of Connecticut Health and Educational Facilities Authority, 7/04 at 102.00 AAA 1,086,310 Revenue Bonds (Newington Children's Hospital), Series A, 6.050%, 7/01/10 1,595 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102.00 AAA 1,631,494 Revenue Bonds (St. 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 101.00 Aaa 1,959,320 Revenue Bonds (Stamford Hospital Issue), Series G, 5.000%, 7/01/24 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 1,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102.00 AAA $1,035,190 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 101.00 Aaa 2,977,680 Revenue Refunding Bonds (Middlesex Health Services Issue), Series 1997H, 5.125%, 7/01/27 2,000 State of Connecticut Health and Educational Facilities Authority, 7/10 at 101.00 AA 2,127,220 Revenue Bonds (Eastern Connecticut Health Network Issue), Series A, 6.000%, 7/01/25 2,000 Connecticut Development Authority, Solid Waste Disposal Facilities 7/05 at 102.00 AAA 2,211,740 Revenue Bonds (Pfizer, Inc. Project), Series 1994, 7.000%, 7/01/25 (Alternative Minimum Tax) 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101.50 AAA 1,575,855 Environmental Control Facilities Financing Authority, Hospital Revenue Refunding Bonds (FHA-Insured Mortgage - Pila Hospital Project), 1995 Series A, 6.125%, 8/01/25 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.7% 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 12/09 at 100.00 AAA 1,042,000 Program Bonds, 1999 Series D2, 6.200%, 11/15/41 (Alternative Minimum Tax) 1,000 Housing Authority of the City of Waterbury, Connecticut, Mortgage 7/02 at 100.00 AAA 1,000,110 Refunding Revenue Bonds (FHA-Insured Mortgage Loan - Waterbury NSA-II Section 8 Assisted Project), Series 1998C, 5.450%, 7/01/23 965 Waterbury Nonprofit Housing Corporation, Connecticut, Taxable 7/02 at 101.00 AAA 975,740 Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Fairmont Height Section 8 Assisted Project), Series 1993A, 6.500%, 7/01/07 1,920 Housing Authority of the City of Willimantic, Connecticut, 10/05 at 105.00 AAA 2,100,730 Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan - Village Heights Apartments Project), Series 1995A, 8.000%, 10/20/30 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.0% 3,175 Connecticut Housing Finance Authority, Housing Mortgage 5/03 at 102.00 AAA 3,295,872 Finance Program Bonds, 1993 Series B, 6.200%, 5/15/12 2,000 Connecticut Housing Finance Authority, Housing Mortgage 11/06 at 102.00 AAA 2,078,580 Finance Program Bonds, 1996 Series E (Subseries E-2), 6.150%, 11/15/27 (Alternative Minimum Tax) 225 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 236,063 Program Bonds, 2000 Series A (Subseries A-1), 6.000%, 11/15/28 500 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 497,510 Program Bonds, 2001 Series A-1, 5.250%, 11/15/28 525 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 524,213 Program Bonds, 2001 Series A (Subseries A-2), 5.450%, 5/15/32 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 983,430 Program Bonds, 2001 Series C, 5.300%, 11/15/33 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 10.1% 1,300 State of Connecticut Health and Educational Facilities Authority, 8/08 at 102.00 AAA 1,290,458 Revenue Bonds (Hebrew Home and Hospital Issue) (FHA-Insured Mortgage), Series B, 5.200%, 8/01/38 2,000 State of Connecticut Health and Educational Facilities Authority, 11/03 at 102.00 AAA 2,080,000 Revenue Bonds (Nursing Home Program Issue) (Mansfield Center for Nursing and Rehabilitation Project), Series 1993, 5.875%, 11/01/12 615 Connecticut Development Authority, First Mortgage Gross Revenue 9/09 at 102.00 AA 651,279 Healthcare Project Refunding Bonds (Connecticut Baptist Homes, Inc. Project), Series 1999, 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 102.00 AA 1,011,900 1,000 5.375%, 8/01/24 2/10 at 102.00 AA 1,004,230 Connecticut Development Authority, Health Facility Refunding Revenue Bonds (Alzheimer's Resource Center of Connecticut, Inc. Project), Series 1994A: 695 6.875%, 8/15/04 No Opt. Call N/R 694,555 1,000 7.000%, 8/15/09 8/04 at 102.00 N/R 999,850 19 Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 18.9% $ 1,500 City of Bridgeport, Connecticut, General Obligation Bonds, 2000 7/10 at 101.00 AAA $1,643,250 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 101.00 Aa3 711,513 660 5.625%, 10/15/17 10/09 at 101.00 Aa3 708,074 1,000 State of Connecticut, General Obligation Bonds, Series 1999B, 11/09 at 101.00 AA 1,059,550 5.500%, 11/01/18 1,960 State of Connecticut, General Obligation Bonds, Series 1993E, No Opt. Call AA 2,249,982 6.000%, 3/15/12 1,500 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,566,495 5.375%, 4/15/19 1,650 State of Connecticut, General Fund Obligation Bonds, Issued by the 10/04 at 102.00 AA 1,811,403 Connecticut Development Authority, Series 1994A, 6.375%, 10/15/14 1,000 City of Hartford, Connecticut, General Obligation Bonds, 6/10 at 102.00 AAA 1,057,270 5.500%, 6/15/20 400 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A 411,112 Series 2000A, 6.000%, 6/01/20 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 101.00 Aaa 374,493 350 5.625%, 3/15/19 3/10 at 101.00 Aaa 376,765 350 5.700%, 3/15/20 3/10 at 101.00 Aaa 376,464 1,000 City of Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,056,230 Series 2002A, 5.375%, 4/01/17 965 City of Waterbury, Connecticut, General Obligation Tax Revenue 2/09 at 101.00 AA 1,015,402 Intercept Bonds, 2000 Issue, 6.000%, 2/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 12.2% 1,900 Capitol Region Education Council, Connecticut, Revenue Bonds, 10/05 at 102.00 BBB 2,017,705 6.700%, 10/15/10 2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 102.00 AAA 2,076,220 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 101.00 AAA 1,065,290 Infrastructure Purposes, 1999 Series A, 5.625%, 12/01/19 1,700 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 2,003,178 Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10 1,000 State of Connecticut, Second Injury Fund Special Assessment 1/11 at 101.00 AAA 1,071,090 Revenue Bonds, Series 2000A, 5.250%, 1/01/14 1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101.00 BBB- 1,078,310 Islands Gross Receipts Tax Loan Note), Series 1999A, 6.500%, 10/01/24 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.3% 750 State of Connecticut, General Airport Revenue Bonds (Bradley 4/11 at 101.00 AAA 731,318 International Airport), Series 2001A, 5.125%, 10/01/26 (Alternative Minimum Tax) 2,075 State of Connecticut, Airport Revenue Refunding Bonds (Bradley 10/04 at 100.00 AAA 2,305,387 International Airport), Series 1992, 7.650%, 10/01/12 1,000 City of Hartford, Connecticut, Parking System Revenue Bonds, 7/10 at 100.00 BBB 1,031,070 2000 Series A, 6.400%, 7/01/20 1,500 City of New Haven, Connecticut, Air Rights Parking Facility Revenue 6/02 at 102.00 AAA 1,534,725 Bonds, Series 1991, 6.500%, 12/01/15 (Pre-refunded to 6/24/02) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 12.8% 40 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA*** 45,918 6.000%, 3/15/12 1,600 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102.00 Baa3*** 1,697,728 Revenue Bonds (Sacred Heart University Issue), Series B, 5.700%, 7/01/16 (Pre-refunded to 7/01/03) 20 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102.00 AAA 20,474 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 102.00 BBB*** 3,097,084 Revenue Bonds (Quinnipiac College Issue), Series D, 6.000%, 7/01/23 (Pre-refunded to 7/01/03) 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 2,000 State of Connecticut Health and Educational Facilities Authority, 11/04 at 102.00 AA-*** $2,267,500 Revenue Bonds (Nursing Home Program Issue) (AHF/Hartford, Inc. Project), Series 1994, 7.125%, 11/01/24 (Pre-refunded to 11/01/04) 1,250 State of Connecticut Health and Educational Facilities Authority, 7/04 at 101.00 AAA 1,384,388 Revenue Bonds (Choate Rosemary Hall Issue), Series A, 7.000%, 7/01/25 (Pre-refunded to 7/01/04) 925 State of Connecticut, Airport Revenue Refunding Bonds (Bradley 10/04 at 100.00 AAA 1,039,099 International Airport), Series 1992, 7.650%, 10/01/12 (Pre-refunded to 10/01/04) 205 South Central Connecticut Regional Water Authority, Water 8/03 at 102.00 AAA 218,466 System Revenue Bonds, Eleventh Series, 5.750%, 8/01/12 (Pre-refunded to 8/01/03) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.4% 1,500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 1,531,935 Refunding Bonds (Connecticut Light and Power Company), Series 1993A, 5.850%, 9/01/28 2,630 Connecticut Resources Recovery Authority, Resource Recovery 11/02 at 101.50 AAA 2,739,855 Revenue Bonds (American Ref-Fuel Company of Southeastern Connecticut Project), 1989 Series A, 7.700%, 11/15/11 1,000 Connecticut Resources Recovery Authority, Corporate Credit 12/11 at 102.00 Baa2 980,890 Resource Recovery Revenue Bonds (American Ref-Fuel Company of Southeastern Connecticut), Series A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) 395 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 368,930 Revenue Bonds (Wheelabrator Lisbon Project), Series 1993A, 5.500%, 1/01/14 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.1% 1,400 Connecticut Development Authority, Water Facilities Refunding 6/03 at 102.00 AAA 1,414,000 Revenue Bonds (Bridgeport Hydraulic Company Project), Series 1993B, 5.500%, 6/01/28 2,500 Connecticut Development Authority, Water Facilities Revenue 9/06 at 102.00 AAA 2,610,474 Bonds (Bridgeport Hydraulic Company Project), Series 1996, 6.000%, 9/01/36 (Alternative Minimum Tax) 1,000 State of Connecticut, Clean Water Fund Revenue Bonds, 10/11 at 100.00 AAA 1,050,170 Series 2001, 5.500%, 10/01/20 1,795 South Central Connecticut Regional Water Authority, Water System 8/03 at 102.00 AAA 1,904,240 Revenue Bonds, Eleventh Series, 5.750%, 8/01/12 ------------------------------------------------------------------------------------------------------------------------------------ $ 107,610 Total Investments (cost $107,484,338) - 147.1% 112,273,414 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.1% 2,353,439 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.2)% (38,300,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 76,326,853 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): 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.
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Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 7.5% $ 685 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 Aa3 $699,823 Bonds, Series 2000, 5.750%, 7/01/20 Guam Economic Development Authority, Asset-Backed Bonds, Series 2001A: 250 5.000%, 5/15/22 5/11 at 100.00 A2 253,473 500 5.400%, 5/15/31 5/11 at 100.00 A2 514,100 1,270 Guam Economic Development Authority, Asset-Backed Bonds, 5/11 at 100.00 A2 1,248,931 Series 2001B, 5.500%, 5/15/41 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 29.4% 785 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aaa 788,752 Bonds (Family Education Loan Program), Series 2001A, 5.250%, 11/15/18 (Alternative Minimum Tax) 50 State of Connecticut Health and Educational Facilities Authority, 7/08 at 101.00 AA 47,843 Revenue Bonds (Sacred Heart University Issue), Series E, 5.000%, 7/01/28 500 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- 511,335 Revenue Bonds (University of New Haven Issue), Series D, 6.700%, 7/01/26 100 State of Connecticut Health and Educational Facilities Authority, 7/08 at 102.00 AAA 99,416 Revenue Bonds (Fairfield University Issue), Series H, 5.000%, 7/01/23 2,750 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 2,694,120 Revenue Bonds (Trinity College), Series 2001G, 5.000%, 7/01/31 1,000 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 1,033,970 Revenue Bonds (The Loomis Chaffee School), Series D, 5.500%, 7/01/23 625 State of Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 611,969 Revenue Bonds (Greenwich Academy), Series 2001B, 5.000%, 3/01/32 1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 988,030 Revenue Bonds (University of Hartford Issue), Series 2002E, 5.250%, 7/01/32 500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 499,485 Revenue Bonds (Yale University Issue), Series 2002W, 5.125%, 7/01/27 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds (Ana G. Mendez University System Project), Series 1999: 125 5.375%, 2/01/19 2/09 at 101.00 BBB 124,581 270 5.375%, 2/01/29 2/09 at 101.00 BBB 261,074 University of Connecticut, General Obligation Bonds, Series 2001A: 1,000 5.250%, 4/01/20 4/11 at 101.00 AA 1,028,160 1,000 4.750%, 4/01/20 4/11 at 101.00 AA 986,560 1,000 4.750%, 4/01/21 4/11 at 101.00 AA 979,700 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 3.1% 125 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 122,458 Revenue Bonds (Stamford Hospital Issue), Series G, 5.000%, 7/01/24 1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,015,400 Revenue Bonds (Bristol Hospital Issue), Series 2002B, 5.500%, 7/01/32 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.5% 2,000 Housing Authority of the City of Stamford, Connecticut, Multifamily No Opt. Call A3 1,995,360 Housing Revenue Refunding Bonds (The Fairfield Apartments Project), Series 1998, 4.750%, 12/01/28 (Mandatory put 12/01/08) 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 14.9% $ 2,000 Connecticut Housing Finance Authority, Housing Mortgage 11/05 at 102.00 AAA $2,101,960 Finance Program Bonds, 1995 Series F (Subseries F-1), 6.000%, 5/15/17 1,265 Connecticut Housing Finance Authority, Housing Mortgage 5/10 at 100.00 AAA 1,258,700 Finance Program Bonds, 2001 Series A-1, 5.250%, 11/15/28 1,065 Connecticut Housing Finance Authority, Housing Mortgage 5/10 at 100.00 AAA 1,063,403 Finance Program Bonds, 2001 Series A (Subseries A-2), 5.450%, 5/15/32 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 983,430 Program Bonds, 2001 Series C, 5.300%, 11/15/33 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.3% 500 Connecticut Development Authority, Health Facility Refunding 8/04 at 102.00 N/R 465,275 Revenue Bonds (Alzheimer's Resource Center of Connecticut, Inc. Project), Series 1994A, 7.250%, 8/15/21 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 33.7% 1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,044,330 5.375%, 4/15/19 Town of East Lyme, Connecticut, General Obligation Bonds: 150 5.000%, 7/15/18 7/11 at 102.00 Aaa 153,008 500 5.125%, 7/15/20 7/11 at 102.00 Aaa 508,885 700 Farmington, Connecticut, General Obligation Bonds, Series 2001, 3/11 at 101.00 Aa1 701,680 4.875%, 3/15/20 Town of Hamden, Connecticut, General Obligation Bonds: 640 5.250%, 8/15/18 8/11 at 102.00 AAA 667,795 635 5.000%, 8/15/19 8/11 at 102.00 AAA 643,934 300 5.000%, 8/15/20 8/11 at 102.00 AAA 301,899 1,000 City of Hartford, Connecticut, General Obligation Bonds, 1/08 at 102.00 AAA 1,013,700 Series 1998, 4.700%, 1/15/15 875 City of New Haven, Connecticut, General Obligation Bonds, 2/08 at 101.00 AAA 884,179 Series 1999, 4.700%, 2/01/15 1,000 City of New Haven, Connecticut, General Obligation Bonds, 11/10 at 101.00 AAA 1,006,300 Series 2001A, 5.000%, 11/01/20 250 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100.00 A 256,945 Bonds, Series 2000A, 6.000%, 6/01/20 Town of Norwich, Connecticut, General Obligation Bonds, Series 2001A: 585 5.000%, 4/01/15 4/09 at 100.00 Aaa 601,485 245 5.000%, 4/01/16 4/09 at 100.00 Aaa 250,459 575 5.000%, 4/01/17 4/09 at 100.00 Aaa 585,448 475 5.000%, 4/01/18 4/09 at 100.00 Aaa 481,413 575 5.000%, 4/01/19 4/09 at 100.00 Aaa 580,428 275 5.000%, 4/01/20 4/09 at 100.00 Aaa 276,166 1,000 City of Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,056,230 Series 2002A, 5.375%, 4/01/17 Town of Windsor, Connecticut, General Obligation Bonds: 390 5.000%, 7/15/18 7/09 at 100.00 Aa2 396,166 390 5.000%, 7/15/19 7/09 at 100.00 Aa2 394,520 370 5.000%, 7/15/20 7/09 at 100.00 Aa2 372,072 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.5% 1,000 State of Connecticut Health and Educational Facilities Authority, 7/08 at 105.00 A 1,076,390 Revenue Bonds (New Opportunities for Waterbury, Inc. Issue), Series 1998A, 6.750%, 7/01/28 1,475 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AAA 1,639,994 Infrastructure Purposes, 1998 Series B, 5.500%, 11/01/12 State of Connecticut, Certificates of Participation (Juvenile Training School), Series 2001: 600 5.000%, 12/15/20 12/11 at 101.00 AA- 602,862 1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 968,240 500 Virgin Islands Public Finance Authority, Revenue and Refunding 10/08 at 101.00 AA 510,510 Bonds (Virgin Islands Matching Fund Loan Notes) (Senior Lien/Refunding), Series 1998A, 5.500%, 10/01/18 750 Virgin Islands Public Finance Authority, Revenue Bonds 10/10 at 101.00 BBB- 808,530 (Virgin Islands Gross Receipts Tax Loan Note), Series 1999A, 6.375%, 10/01/19 23 Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) (continued) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 9.2% $ 2,500 State of Connecticut, General Airport Revenue Bonds (Bradley 4/11 at 101.00 AAA $2,437,725 International Airport), Series 2001A, 5.125%, 10/01/26 (Alternative Minimum Tax) 1,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 4/11 at 101.00 N/R 906,810 Special Facilities Revenue Bonds (Northwest Airlines, Inc. Project), Series 2001A, 7.000%, 4/01/25 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 8.4% Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, 2000 Series A: 1,425 5.500%, 10/01/32 10/10 at 101.00 AAA 1,482,698 1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,558,005 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 17.2% 1,500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 1,531,935 Refunding Bonds (Connecticut Light and Power Company), Series 1993A, 5.850%, 9/01/28 1,000 Connecticut Resources Recovery Authority, Corporate Credit 12/11 at 102.00 Baa2 980,890 Resource Recovery Revenue Bonds (American Ref-Fuel Company of Southeastern Connecticut), Series A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) 1,000 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 934,000 Revenue Bonds (Wheelabrator Lisbon Project), Series 1993A, 5.500%, 1/01/14 (Alternative Minimum Tax) 1,975 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,996,942 Series HH, 5.250%, 7/01/29 790 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/05 at 100.00 A- 793,640 Bonds, Series Z, 5.250%, 7/01/21 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.8% 2,000 State of Connecticut, Clean Water Fund Revenue Bonds, 10/11 at 100.00 AAA 2,100,340 Series 2001, 5.500%, 10/01/20 ------------------------------------------------------------------------------------------------------------------------------------ $ 54,310 Total Investments (cost $54,593,936) - 151.5% 54,883,861 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 849,445 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.8)% (19,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 36,233,306 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements.
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Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 34.4% $ 500 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- $511,335 Revenue Bonds (University of New Haven Issue), Series D, 6.700%, 7/01/26 500 State of Connecticut Health and Educational Facilities Authority, 7/08 at 101.00 AAA 502,455 Revenue Bonds (Hopkins School Issue), Series 1998A, 5.000%, 7/01/20 2,000 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 1,995,460 Revenue Bonds (Loomis Chaffee School), Series D, 5.250%, 7/01/31 1,000 State of Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 979,150 Revenue Bonds (Greenwich Academy), Series 2001B, 5.000%, 3/01/32 1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 988,030 Revenue Bonds (University of Hartford Issue), 2002 Series E, 5.250%, 7/01/32 2,250 State of Connecticut Health and Educational Facilities Authority, 11/11 at 100.00 AAA 2,260,823 Revenue Bonds (Connecticut State University System), 2002 Series D-2, 5.000%, 11/01/21 500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 499,485 Revenue Bonds (Yale University Issue), 2002 Series W, 5.125%, 7/01/27 University of Connecticut, Student Fee Revenue Refunding Bonds, Series 2002A: 500 5.250%, 11/15/22 11/12 at 101.00 AAA 509,695 2,000 5.000%, 11/15/29 11/12 at 101.00 AAA 1,948,940 1,230 University of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,284,341 5.375%, 4/01/19 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 2.9% 1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 983,160 Revenue Bonds (St. Francis Hospital and Medical Center), Series 2002D, 5.000%, 7/01/22 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 6.1% 1,000 Connecticut Housing Finance Authority, Housing Mortgage 11/11 at 100.00 AAA 1,009,900 Finance Program Bonds, 2002 Series A (Subseries A-1), 5.450%, 11/15/28 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/11 at 100.00 AAA 1,012,120 Program Bonds, 2002 Series A (Subseries A-2), 5.600%, 11/15/28 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 61.2% 1,000 City of Bridgeport, Connecticut, General Obligation Bonds, Series C, 8/11 at 100.00 AAA 1,046,470 5.375%, 8/15/18 395 Town of Colchester, Connecticut, General Obligation Bonds, 6/11 at 102.00 Aaa 433,840 Series 2001, 5.500%, 6/15/14 2,000 State of Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,225,840 5.500%, 12/15/12 1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,044,330 5.375%, 4/15/19 East Hartford, Connecticut, General Obligation Bonds, Series 2002: 750 4.875%, 5/01/20 5/10 at 100.00 Aaa 747,930 750 5.000%, 5/01/21 5/10 at 100.00 Aaa 752,640 750 5.000%, 5/01/22 5/10 at 100.00 Aaa 750,698 2,105 Fairfield, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 2,173,391 5.000%, 4/01/16 Farmington, Connecticut, General Obligation Bonds, Series 2002: 1,450 5.000%, 9/15/20 9/12 at 101.00 Aa1 1,462,499 1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,457,178 1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,306,644 Obligation Bonds, Series 2002, 5.000%, 4/01/22 1,000 Commonwealth of Puerto Rico, General Obligation Public 7/11 at 100.00 AAA 1,002,840 Improvement Refunding Bonds, Series 2001, 5.125%, 7/01/30 25 Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) (continued) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Regional School District No. 008, Towns of Andover, Hebron and Marlborough, Tolland County, Connecticut, General Obligation Bonds, Series 2002: $ 1,390 5.000%, 5/01/20 5/11 at 101.00 Aaa $1,400,217 1,535 5.000%, 5/01/22 5/11 at 101.00 Aaa 1,536,719 2,105 City of Stamford, Connecticut, General Obligation Bonds, 8/12 at 100.00 AAA 2,175,433 Series 2002, 5.000%, 8/15/16 City of Waterbury, Connecticut, General Obligation Bonds, Series 2002A: 500 5.375%, 4/01/17 4/12 at 100.00 AAA 528,115 400 5.000%, 4/01/20 4/12 at 100.00 AAA 401,668 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.3% 1,625 State of Connecticut, Special Tax Obligation Bonds, Transportation 7/12 at 100.00 AAA 1,686,425 Infrastructure Purposes, 2002 Series A, 5.375%, 7/01/20 (WI, settling 6/06/02) 500 State of Connecticut, Special Tax Obligation Bonds, Transportation 10/11 at 100.00 AAA 542,335 Infrastructure Purposes, 2001 Series B, 5.375%, 10/01/13 500 State of Connecticut, Special Tax Obligation Bonds, Transportation 11/07 at 101.00 AAA 514,485 Infrastructure Purposes, 1997 Series A, 5.000%, 11/01/15 2,250 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 AAA 2,222,303 Revenue Bonds, Series D, 5.000%, 7/01/32 2,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call AAA 2,155,940 Bonds, 2002 Series E, 5.500%, 8/01/27 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.4% 1,950 City of New Haven, Connecticut, Air Rights Parking Facility Revenue 12/12 at 101.00 AAA 2,124,330 Refunding Bonds, Series 2002, 5.375%, 12/01/15 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 9.3% Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, 2000 Series A: 1,000 5.500%, 10/01/32 10/10 at 101.00 AAA 1,040,490 2,000 5.500%, 10/01/40 10/10 at 101.00 AAA 2,077,340 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.4% 1,000 Connecticut Resources Recovery Authority, Corporate Credit Resource 12/11 at 102.00 Baa2 980,890 Recovery Revenue Bonds (America Ref-Fuel Company of Southeastern Connecticut), Series A-II, 5.500%, 11/15/15 (Alternative Minimum Tax) 1,650 Guam Power Authority, Revenue Bonds, 1999 Series A, 10/09 at 101.00 AAA 1,647,476 5.125%, 10/01/29 1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,516,664 Series HH, 5.250%, 7/01/29 ------------------------------------------------------------------------------------------------------------------------------------ $ 50,340 Total Investments (cost $50,750,616) - 154.0% 51,440,024 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 5.7% $ 1,900 Connecticut Health and Educational Facilities Authority, Revenue VMIG-1 1,900,000 ============= Bonds, Yale University Issue, Variable Rate Demand Bonds, Series 1997, 1.500%, 07/01/29+ -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (7.3)% (2,432,055) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.4)% (17,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 33,407,969 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
26
Nuveen Georgia Premium Income Municipal Fund (NPG) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ BASIC MATERIALS - 13.7% $ 2,500 Effingham County Industrial Development Authority, Georgia, Pollution 6/11 at 101.00 BBB- $2,319,550 Control Revenue Refunding Bonds (Georgia-Pacific Project), Series 2001, 6.500%, 6/01/31 5,000 Richmond County Development Authority, Georgia, Environmental 2/11 at 101.00 BBB 5,053,750 Improvement Revenue Bonds (International Paper Company Project), Series 2001A, 6.250%, 2/01/25 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.8% 2,000 Development Authority of Cartersville, Georgia, Sewage Facilities 5/07 at 101.00 A+ 2,068,620 Refunding Revenue Bonds (Anheuser-Busch Project), Series 1997, 6.125%, 5/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 11.1% Urban Residential Finance Authority of the City of Atlanta, Georgia, Dormitory Facility Refunding Revenue Bonds (Morehouse College Project), Series 1995: 1,210 5.750%, 12/01/20 12/05 at 102.00 AAA 1,271,250 1,375 5.750%, 12/01/25 12/05 at 102.00 AAA 1,432,434 1,555 Development Authority of DeKalb County, Georgia, Revenue Bonds 10/04 at 102.00 Aa1 1,683,334 (Emory University Project), Series 1994-A, 6.000%, 10/01/14 1,550 Private Colleges and Universities Authority, Georgia, Revenue 6/03 at 102.00 AA 1,576,459 Bonds (Agnes Scott College Project), Series 1993, 5.625%, 6/01/23 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 38.9% 3,000 Hospital Authority of Albany-Dougherty County, Georgia, Revenue 9/03 at 102.00 AAA 3,154,350 Bonds (Phoebe Putney Memorial Hospital), Series 1993, 5.700%, 9/01/13 2,300 Chatham County Hospital Authority, Savannah, Georgia, Hospital 7/11 at 101.00 A- 2,372,266 Revenue Improvement Bonds (Memorial Health University Medical Center, Inc.), Series 2001A, 6.125%, 1/01/24 2,000 Hospital Authority of Clarke County, Georgia, Hospital Revenue 1/12 at 101.00 AAA 1,972,920 Certificates (Athens Regional Medical Center), Series 2002, 5.125%, 1/01/32 (WI, settling 6/05/02) 3,000 Floyd County Hospital Authority, Georgia, Revenue Anticipation 7/12 at 101.00 Aaa 2,979,540 Certificates (Floyd Medical Center Project), Series 2002, 5.200%, 7/01/32 (WI, settling 6/12/02) 1,765 Hospital Authority of Hall County and the City of Gainesville, 10/05 at 102.00 AAA 1,836,130 Georgia, Revenue Anticipation Certificates (Northeast Georgia Healthcare Project), Series 1995, 6.000%, 10/01/25 1,750 Hospital Authority of Hall County and the City of Gainesville, 5/11 at 100.00 A- 1,698,428 Georgia, Revenue Anticipation Certificates (Northeast Georgia Health System, Inc. Project), Series 2001, 5.500%, 5/15/31 3,000 Glynn-Brunswick Memorial Hospital Authority, Revenue Anticipation 8/06 at 102.00 AAA 3,138,690 Certificates (Southeast Georgia Health Systems Project), Series 1996, 5.250%, 8/01/13 3,750 Hospital Authority of Gwinnett County, Georgia, Revenue 2/12 at 102.00 AAA 3,767,363 Anticipation Certificates (Gwinnett Hospital System, Inc.), Series 1997B, 5.300%, 9/01/27 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 22.8% 1,145 Housing Authority of Clayton County, Georgia, Multifamily 12/05 at 102.00 AAA 1,176,121 Housing Revenue Bonds (The Advantages Project), Series 1995, 5.800%, 12/01/20 3,400 Housing Authority of DeKalb County, Georgia, Multifamily 1/05 at 102.00 AAA 3,587,136 Housing Revenue Bonds (The Lakes at Indian Creek Apartments Project), Series 1994, 7.150%, 1/01/25 (Alternative Minimum Tax) 950 Housing Authority of the City of Decatur, Georgia, Mortgage 7/02 at 102.00 AAA 968,544 Revenue Refunding Bonds (FHA-Insured Mortgage Loan) (Park Trace Apartments - Section 8 Assisted Project), Series 1992A, 6.450%, 7/01/25 27 Nuveen Georgia Premium Income Municipal Fund (NPG) (continued) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 2,000 Housing Authority of the City of Lawrenceville, Georgia, Multifamily 12/10 at 100.00 AAA $2,027,040 Housing Senior Revenue Bonds (Brisben Greens of Hillcrest II Project), Series 2000A-1, 5.800%, 12/01/33 (Alternative Minimum Tax) 3,000 Macon-Bibb County Urban Development Authority, Georgia, 1/04 at 103.00 AAA 3,024,750 Multifamily Housing Refunding Revenue Bonds, Series 1997A, 5.550%, 1/01/24 1,500 Housing Authority of the City of Marietta, Georgia, Multifamily 10/06 at 102.00 AAA 1,530,780 Housing Revenue Bonds (GNMA Collateralized - Country Oaks Apartments), Series 1996, 6.150%, 10/20/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 6.2% 255 Housing Authority of Fulton County, Georgia, Single Family Mortgage 3/05 at 102.00 AAA 262,069 Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1995A, 6.550%, 3/01/18 (Alternative Minimum Tax) 60 Georgia Housing and Finance Authority, Single Family Mortgage 6/06 at 102.00 AAA 61,678 Bonds, 1996 Series A (Subseries A-2), 6.450%, 12/01/27 (Alternative Minimum Tax) 2,995 Georgia Housing and Finance Authority, Single Family Mortgage 12/10 at 100.00 AAA 3,017,463 Bonds, 2001 Series A (Subseries A-2), 5.700%, 12/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 5.0% 2,500 Forsyth County School District, Georgia, General Obligation 2/10 at 102.00 Aa2 2,702,875 Bonds, Series 1999, 5.750%, 2/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 10.1% 1,000 Downtown Development Authority of the City of Atlanta, 10/02 at 102.00 AA 1,059,200 Georgia, Refunding Revenue Bonds (Underground Atlanta Project), Series 1992, 6.250%, 10/01/12 3,000 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 AAA 3,228,870 Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26 1,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax No Opt. Call AAA 1,169,250 Revenue Refunding Bonds, Series P, 6.250%, 7/01/20 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.1% 1,000 City of Atlanta, Georgia, Airport Facilities Revenue Refunding Bonds, No Opt. Call AAA 1,146,830 Series 1994A, 6.500%, 1/01/09 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 0.2% 85 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A*** 97,576 Obligation Bonds, Fifth Crossover Series, 6.400%, 1/01/09 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 14.7% 1,900 Municipal Electric Authority of Georgia, General Power Revenue 1/03 at 100.00 AAA 1,907,844 Bonds, Series 1992B, 5.500%, 1/01/18 1,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, No Opt. Call AAA 1,089,810 Series Z, 5.500%, 1/01/20 1,665 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A 1,884,430 Obligation Bonds, Fifth Crossover Series, 6.400%, 1/01/09 2,000 Development Authority of Monroe County, Georgia, Pollution 9/02 at 100.00 A+ 2,001,840 Control Revenue Bonds (Gulf Power Company Plant Scherer Project), First Series 1994, 6.300%, 9/01/24 1,000 Development Authority of Monroe County, Georgia, Pollution No Opt. Call AAA 1,017,880 Control Revenue Bonds (Georgia Power Company Plant Scherer Project), Series 2001, 4.200%, 1/01/12 (Mandatory put 12/01/08) 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 21.1% $ 4,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA $ 4,263,640 Series 2001A, 5.500%, 11/01/27 3,500 Coweta County Water and Sewer Authority, Georgia, Revenue 6/11 at 102.00 Aaa 3,518,900 Bonds, Series 2001, 5.250%, 6/01/26 2,500 DeKalb County, Georgia, Water and Sewerage Bonds, 10/10 at 101.00 AA 2,462,500 Series 2000, 5.125%, 10/01/31 1,000 City of Milledgeville, Georgia, Water and Sewerage Revenue and No Opt. Call AAA 1,132,400 Refunding Bonds, Series 1996, 6.000%, 12/01/21 ------------------------------------------------------------------------------------------------------------------------------------ $ 78,210 Total Investments (cost $77,682,722) - 149.7% 80,664,510 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 1,044,849 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.6)% (27,800,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 53,909,359 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): 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. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
29
Nuveen Georgia Dividend Advantage Municipal Fund (NZX) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ BASIC MATERIALS - 3.6% $ 1,000 Richmond County Development Authority, Georgia, Environmental 2/12 at 101.00 BBB $ 996,220 Improvement Revenue Refunding Bonds (International Paper Company Project), Series 2002A, 6.000%, 2/01/25 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.7% 1,000 Cartersville Development Authority, Georgia, Waste and Wastewater 2/12 at 100.00 A+ 1,012,730 Facilities Revenue Refunding Bonds (Anheuser Busch, Inc. Project), Series 2002, 5.950%, 2/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 28.0% 1,200 Atlanta Development Authority, Georgia, Revenue Bonds (Yamacraw 1/12 at 100.00 AAA 1,181,808 Design Center Project), Series 2001A, 5.125%, 1/01/27 1,485 Development Authority of Fulton County, Georgia, Georgia Tech 4/12 at 100.00 AAA 1,488,906 Athletic Association Revenue Bonds, Series 2001, 5.000%, 10/01/20 Private Colleges and University Authority, Georgia, Revenue Bonds (Emory University Project), Series 2001A: 1,225 5.000%, 9/01/31 9/11 at 100.00 Aa1 1,183,816 1,315 5.125%, 9/01/33 9/11 at 100.00 Aa1 1,292,750 2,500 Private Colleges and Universities Authority, Georgia, Revenue 10/11 at 102.00 A3 2,521,525 Bonds (Mercer University Project), Series 2001, 5.750%, 10/01/31 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 26.9% 1,000 Hospital Authority of Clarke County, Georgia, Hospital Revenue 1/12 at 101.00 AAA 1,033,390 Certificates (Athens Regional Medical Center), Series 2002, 5.375%, 1/01/19 (WI, settling 6/05/02) 2,500 Hospital Authority of Hall County and the City of Gainesville, 5/11 at 100.00 A- 2,426,325 Georgia, Revenue Anticipation Certificates (Northeast Georgia Health System, Inc. Project), Series 2001, 5.500%, 5/15/31 1,900 Hospital Authority of Gwinnett County, Georgia, Revenue 2/12 at 102.00 AAA 1,908,797 Anticipation Certificates (Gwinnett Hospital System, Inc.), Series 1997B, 5.300%, 9/01/27 2,000 Valdosta and Lowndes County Hospital Authority, Georgia, Revenue 10/12 at 101.00 AAA 2,010,380 Certificates (South Georgia Medical Center Project), Series 2002, 5.250%, 10/01/27 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 12.5% 1,000 Housing Authority of DeKalb County, Georgia, Multifamily Housing 8/11 at 103.00 Aaa 997,810 Revenue Bonds (GNMA Collateralized - Castaways Apartments Project), Series 2001A, 5.400%, 2/20/29 1,000 Housing Authority of DeKalb County, Georgia, Multifamily Housing 12/11 at 103.00 Aaa 1,001,310 Revenue Bonds (GNMA Collateralized - Snapwoods Apartments Project), Series 2001A, 5.500%, 12/20/32 1,400 Housing Authority of Savannah, Georgia, Multifamily Housing 8/16 at 100.00 Aaa 1,426,208 Revenue Refunding Bonds (Chatham Gardens Project), Series 2001, 5.625%, 8/01/31 (Alternative Minimum Tax) (Mandatory put 2/01/19) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 16.3% 2,500 Georgia Housing and Finance Authority, Single Family Mortgage 6/11 at 100.00 AAA 2,435,250 Bonds, 2001 Series B (Subseries B-2), 5.400%, 12/01/31 (Alternative Minimum Tax) 2,000 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 2,015,920 Bonds, 2002 Series A (Subseries A-2), 5.450%, 12/01/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 25.4% 1,000 Carroll City-County Hospital Authority, Georgia, Revenue 7/11 at 101.00 AAA 924,080 Anticipation Certificates (Tanner Medical Center, Inc. Project), Series 2001, 4.750%, 7/01/25 1,400 Development Authority of Clayton County, Georgia, Revenue Bonds 7/12 at 100.00 AAA 1,345,554 (TUFF Archives LLC Project), Series 2001A, 5.000%, 7/01/33 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 750 Georgia Municipal Association, Inc., Certificates of Participation 1/12 at 101.00 AAA $ 753,135 (City of Atlanta Court Project), Series 2002, 5.125%, 12/01/21 2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax No Opt. Call AAA 2,923,125 Revenue Refunding Bonds, Series P, 6.250%, 7/01/20 1,000 Rockdale County Water and Sewerage Authority, Georgia, 1/10 at 101.00 AAA 1,010,910 Revenue Bonds, Series 1999A, 5.375%, 7/01/29 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.9% 1,000 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101.00 AAA 1,055,730 Bonds, Series 2000A, 5.400%, 1/01/15 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 2.1% 525 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 567,866 Series 1999A, 5.000%, 11/01/38 (Pre-refunded to 5/01/09) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.0% 1,000 City of Elberton, Georgia, Combined Utility System Revenue 1/12 at 100.00 Aaa 990,590 Refunding and Improvement Bonds, Series 2001, 5.000%, 1/01/22 1,200 Summerville, Georgia, Combined Public Utility Revenue Refunding 1/12 at 101.00 Baa3 1,207,020 and Improvement Bonds, Series 2002, 5.750%, 1/01/26 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 22.9% 2,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/12 at 100.00 AAA 1,898,640 Series 2001A, 5.000%, 11/01/39 475 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 451,725 Series 1999A, 5.000%, 11/01/38 2,500 DeKalb County, Georgia, Water and Sewerage Bonds, 10/10 at 101.00 AA 2,523,724 Series 2000, 5.375%, 10/01/35 1,395 Macon Water Authority, Georgia, Water and Sewer Revenue 10/11 at 101.00 AA- 1,390,620 Bonds, Series 2001B, 5.000%, 10/01/21 ------------------------------------------------------------------------------------------------------------------------------------ $ 41,770 Total Investments (cost $42,002,379) - 153.3% 41,975,864 =============---------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 405,522 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.8)% (15,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 27,381,386 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
31
Nuveen Massachusetts Premium Income Municipal Fund (NMT) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 29.7% $ 585 Massachusetts Educational Financing Authority, Education Loan 7/04 at 102.00 AAA $ 610,436 Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10 (Alternative Minimum Tax) 1,730 Massachusetts Educational Financing Authority, Educational Loan 1/12 at 100.00 AAA 1,770,274 Revenue Bonds, 2002 Series E, 5.000%, 1/01/13 (Alternative Minimum Tax) 2,090 Massachusetts Development Finance Authority, Revenue Refunding No Opt. Call A3 2,165,470 Bonds (Boston University), Series 1999P, 6.000%, 5/15/29 890 Massachusetts Development Finance Agency, Revenue Bonds 3/09 at 101.00 A 915,819 (Curry College Issue), Series A, 6.000%, 3/01/20 500 Massachusetts Development Finance Authority, Revenue Bonds 9/11 at 101.00 A 501,630 (Belmont Hills School), Series 2001, 5.375%, 9/01/23 1,500 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 100.00 AAA 1,500,435 Bonds (UMASS-Worcester Campus), Series 2001B, 5.250%, 10/01/31 2,645 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102.00 Aa1 2,616,011 (Whitehead Institute for Biomedical Research), 1993 Issue, 5.125%, 7/01/26 1,500 Massachusetts Industrial Finance Agency, Revenue Bonds (Phillips 9/08 at 102.00 AAA 1,528,890 Academy Issue), Series 1993, 5.375%, 9/01/23 2,300 Massachusetts Industrial Finance Agency, Education Revenue 9/08 at 101.00 A 2,213,612 Bonds (Belmont Hill School Issue), Series 1998, 5.250%, 9/01/28 1,765 New England Education Loan Marketing Corporation, No Opt. Call A3 1,783,744 Massachusetts, Student Loan Revenue Bonds, 1992 Subordinated Issue C, 6.750%, 9/01/02 (Alternative Minimum Tax) 4,000 New England Education Loan Marketing Corporation, No Opt. Call A3 4,518,800 Massachusetts, Student Loan Revenue onds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 21.9% 3,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/04 at 102.00 AAA 3,007,470 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 102.00 AAA 3,073,890 Bonds (Lahey Clinic Medical Center Issue), Series B, 5.625%, 7/01/15 2,500 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AA- 2,519,825 Bonds (Partners Healthcare System Issue), Series C, 5.750%, 7/01/32 2,395 Massachusetts Health and Educational Facilities Authority, 7/08 at 102.00 AAA 2,301,403 Revenue Bonds (Caregroup Issue), Series A, 5.000%, 7/01/25 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 11/11 at 101.00 AA 967,250 Bonds (Cape Cod Health Care Inc.), Series 2001C, 5.250%, 11/15/31 2,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 2,004,300 Revenue Bonds (Berkshire Health System Issue), Series 2001E, 6.250%, 10/01/31 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB 1,000,650 Bonds (Caritas Christi Obligated Group), Series 2002B, 6.250%, 7/01/22 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 29.0% 3,000 Massachusetts Development Finance Agency, Assisted Living 9/10 at 105.00 AAA 3,533,670 Facility Revenue Bonds (The Monastery at West Springfield Project - GNMA Collateralized), Series 1999A, 7.625%, 3/20/41 (Alternative Minimum Tax) 2,500 Massachusetts Development Finance Agency, Revenue Bonds 10/11 at 105.00 AAA 2,844,875 (GNMA Collateralized - VOA Concord Assisted Living, Inc. Project), Series 2000A, 6.900%, 10/20/41 (Alternative Minimum Tax) 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,990 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102.00 N/R $2,003,691 Revenue Bonds (Prospect House Apartments), Series 1999, 7.000%, 12/01/31 (Alternative Minimum Tax) 2,000 Massachusetts Development Finance Agency, GNMA Collateralized 6/11 at 105.00 AAA 2,199,180 Assisted Living Facility Revenue Bonds (Haskell House on Parker Hill Project), Series 2000A, 6.500%, 12/20/41 (Alternative Minimum Tax) 1,500 Massachusetts Development Finance Agency, Assisted Living 3/12 at 105.00 AAA 1,566,450 Facility Revenue Bonds (The Arbors at Chicopee Project - GNMA Collateralized), Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax) 3,800 Massachusetts Housing Finance Agency, Housing Project Revenue 4/03 at 102.00 A+ 3,965,376 Refunding Bonds, Series 1993A, 6.300%, 10/01/13 1,480 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 101.00 AAA 1,555,702 Revenue Bonds, 1999 Series D, 5.500%, 7/01/13 (Alternative Minimum Tax) 1,880 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/05 at 102.00 AAA 1,979,433 Revenue Bonds (FHA-Insured Mortgage Loans), 1995 Series A, 7.350%, 1/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 6.2% 1,270 City of Boston, Massachusetts, Revenue Bonds (Deutsches 10/08 at 105.00 AAA 1,340,015 Altenheim, Inc. Project - FHA-Insured Mortgage), Series 1998A, 6.125%, 10/01/31 2,000 Massachusetts Industrial Finance Agency, Healthcare Facilities 5/07 at 102.00 A+ 1,917,520 Revenue Bonds (Jewish Geriatric Services, Inc. Obligated Group), eries 1997B, 5.500%, 5/15/27 895 Massachusetts Industrial Financial Agency, Revenue Bonds 2/06 at 102.00 AAA 927,238 (Heights Crossing Limited Partnership Issue) (FHA-Insured Project), Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 11.3% 2,500 Massachusetts Bay Transportation Authority, General Transportation No Opt. Call AAA 3,095,200 System Bonds, 1991 Series A, 7.000%, 3/01/21 3,000 The Commonwealth of Massachusetts, General Obligation Bonds No Opt. Call AAA 3,454,710 (Consolidated Loan of 2001), Series D, 6.000%, 11/01/13 1,000 Narragansett Regional School District, Massachusetts, General 6/10 at 101.00 Aaa 1,150,680 Obligation Bonds, Series 2000, 6.500%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.1% 1,300 Massachusetts Development Finance Agency, Revenue Bonds 6/09 at 101.00 AA 1,345,955 (Worcester Redevelopment Authority Issue), Series 1999, 6.000%, 6/01/24 (Mandatory put 6/01/04) 4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102.00 AAA 4,173,160 (US Air Project), Series 1996-A, 5.750%, 9/01/16 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 35.1% Town of Barnstable, Massachusetts, General Obligation Bonds: 1,020 5.750%, 9/15/10 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA*** 1,119,134 1,020 5.750%, 9/15/11 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA*** 1,119,134 4,375 City of Lowell, Massachusetts, General Obligation State Qualified 11/03 at 102.00 AAA 4,686,281 Bonds, 5.600%, 11/01/12 (Pre-refunded to 11/01/03) 1,000 Massachusetts Municipal Wholesale Electric Company, Power 7/02 at 100.00 AAA 1,003,730 Supply System Revenue Bonds, 1992 Series A, 6.000%, 7/01/18 (Pre-refunded to 7/01/02) 1,250 The Commonwealth of Massachusetts, General Obligation Bonds 2/10 at 101.00 AAA 1,428,600 (Consolidated Loan), Series 2000A, 6.000%, 2/01/14 (Pre-refunded to 2/01/10) 2,500 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call AAA 2,619,575 Bonds (Malden Hospital Issue) (FHA-Insured Project), Series A, 5.000%, 8/01/16 2,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/06 at 100.00 Aaa 2,159,940 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 Refunding Bonds (Youville Hospital Issue) (FHA-Insured Project), Series B: 1,570 6.125%, 2/15/15 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,702,649 1,000 6.000%, 2/15/25 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,082,410 33 Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 2/07 at 102.00 Aa2*** $1,143,980 Refunding Bonds (Youville Hospital Issue) (FHA-Insured Project), ` Series A, 6.250%, 2/15/41 (Pre-refunded to 2/15/07) 410 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 102.00 AAA 409,734 Bonds (Caregroup Issue), Series A, 5.000%, 7/01/25 1,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/02 at 100.00 AAA 1,534,390 13.000%, 7/01/13 2,500 Massachusetts Industrial Finance Agency, Revenue Refunding 11/02 at 102.00 AA-*** 2,599,250 Bonds (College of the Holy Cross), 1992 Issue II, 6.375%, 11/01/15 (Pre-refunded to 11/01/02) 1,175 Massachusetts Industrial Finance Agency, Revenue Bonds (Brooks 7/03 at 102.00 A3*** 1,249,648 School Issue), Series 1993, 5.950%, 7/01/23 (Pre-refunded to 7/01/03) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.5% 1,000 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 AAA 1,073,370 Revenue Bonds (SEMASS System), 2001 Series A, 5.625%, 1/01/16 2,500 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 1,965,675 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.8% 1,250 Massachusetts Water Resources Authority, General Revenue 3/03 at 100.00 AA 1,235,225 Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 ------------------------------------------------------------------------------------------------------------------------------------ $ 95,085 Total Investments (cost $95,876,284) - 147.6% 100,185,489 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 1,670,970 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.1)% (34,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 67,856,459 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): 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.
34
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.8% $ 1,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 Aa3 $1,042,480 Bonds, Series 2000, 6.000%, 7/01/26 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 29.4% 1,500 Massachusetts Educational Financing Authority, Educational Loan 7/10 at 100.00 AAA 1,524,570 Revenue Bonds, Issue E, Series 2001, 5.300%, 1/01/16 (Alternative Minimum Tax) 2,000 Massachusetts Development Finance Authority, Revenue Refunding 5/29 at 105.00 A3 2,022,200 Bonds (Boston University), Series 1999P, 6.000%, 5/15/59 1,250 Massachusetts Health and Educational Facilities Authority, Revenue 10/09 at 101.00 Aaa 1,214,775 Bonds (Brandeis University), Series J, 5.000%, 10/01/26 2,000 Massachusetts Health and Educational Facilities Authority, Revenue 2/11 at 100.00 AA- 2,043,380 Bonds (Tufts University), Series 2001-I, 5.500%, 2/15/36 1,250 University of Massachusetts Building Authority, Project Revenue 11/10 at 100.00 AAA 1,271,625 Bonds, Senior Series 2000-2, 5.250%, 11/01/20 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 16.8% 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/09 at 101.00 AA- 972,240 Bonds (Partners Healthcare System Issue), Series B, 5.125%, 7/01/19 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AA- 1,007,930 Bonds (Partners Healthcare System Issue), Series C, 5.750%, 7/01/32 1,250 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 100.00 BBB 1,252,437 Bonds (UMass Memorial Health Care), Series 2001C, 6.625%, 7/01/32 375 Massachusetts Health and Educational Facilities Authority, Revenue 1/12 at 101.00 A- 376,219 Bonds (Covenant Health Systems Obligated Group), Series 2002, 6.000%, 7/01/31 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 101.00 BBB+ 1,002,150 Bonds (Berkshire Health System Issue), Series 2001E, 6.250%, 10/01/31 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 8.4% 1,000 Massachusetts Development Finance Agency, Assisted Living Facility 3/12 at 105.00 AAA 1,044,300 Revenue Bonds (The Arbors at Chicopee Project) (GNMA Collateralized), Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax) 1,250 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 AAA 1,277,313 Revenue Bonds, Series 2001A, 5.850%, 7/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 11.3% 900 Massachusetts Housing Finance Agency, Single Family Housing 12/04 at 102.00 AA 935,442 Revenue Bonds, Series 36, 6.600%, 12/01/26 (Alternative Minimum Tax) 2,175 Massachusetts Housing Finance Agency, Single Family Housing 6/10 at 100.00 AAA 2,186,941 Revenue Bonds, Series 82, 5.375%, 12/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.4% 655 Massachusetts Development Finance Agency, First Mortgage 7/11 at 102.00 BBB- 663,410 Revenue Bonds (Edgecombe Project), Series 2001A, 6.750%, 7/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.8% 1,000 City of Boston, Massachusetts, General Obligation Bonds, Series 2/11 at 100.00 Aa2 1,005,870 2001A, 5.000%, 2/01/20 2,000 Town of Brookline, Massachusetts, General Obligation Bonds, 4/10 at 101.00 Aaa 2,112,820 Series 2000, 5.375%, 4/01/17 2,175 City of Lawrence, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aaa 2,181,677 Series 2001, 5.000%, 2/01/21 35 Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) (continued) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,020 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101.00 AAA $ 986,595 System Bonds, 1997 Series A, 5.000%, 3/01/27 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 11.6% 1,000 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 1,000,280 2000 Series A, 5.250%, 7/01/30 1,000 Puerto Rico Municipal Finance Agency, Revenue Bonds, 1999 8/09 at 101.00 AAA 1,112,840 Series A, 6.000%, 8/01/16 1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin Islands 10/10 at 101.00 BBB- 1,078,040 Gross Receipts Tax Loan Note), Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 19.2% 2,000 Massachusetts Port Authority, Revenue Bonds, Series 1998-D, 7/08 at 101.00 AAA 1,919,180 5.000%, 7/01/28 1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 7/07 at 102.00 AAA 1,018,430 (BOSFUEL Project), Series 1997, 5.500%, 7/01/18 2,500 Massachusetts Turnpike Authority, Senior Metropolitan Highway 1/07 at 102.00 AAA 2,345,875 System Revenue Bonds, 1997 Series A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 8.9% 1,250 Commonwealth of Massachusetts, General Obligation Bonds, 10/10 at 100.00 AAA 1,409,788 Consolidated Loan, Series 2000C, 5.750%, 10/01/19 (Pre-refunded to 10/01/10) 1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,038,670 Bonds, 2000 Series A, 5.500%, 10/01/40 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.9% 1,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 786,270 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 14.8% 2,000 Boston Water and Sewer Commission, Massachusetts, General 11/08 at 101.00 AAA 1,933,620 Revenue Bonds, Senior Series 1998D, 5.000%, 11/01/28 1,750 Massachusetts Water Pollution Abatement Trust, Water Pollution 8/09 at 101.00 Aaa 1,831,603 Abatement Revenue Bonds (MWRA Program), Subordinate Series 1999A, 5.750%, 8/01/29 300 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101.00 AAA 315,986 2000 Series A, 5.750%, 8/01/30 ------------------------------------------------------------------------------------------------------------------------------------ $ 41,600 Total Investments (cost $41,798,168) - 152.3% 41,914,956 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 604,219 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.5)% (15,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 27,519,175 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements.
36
Nuveen Missouri Premium Income Municipal Fund (NOM) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.1% $ 1,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA- $ 980,790 Revenue Bonds (Procter & Gamble Paper Products Company Project), Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.7% 1,875 Junior College District of Mineral Area, Missouri, Student 9/10 at 102.00 N/R 2,004,113 Housing System Revenue Bonds (Mineral Area College), Series 2000, 7.200%, 9/01/20 2,000 Health and Educational Facilities Authority of the State of Missouri, 6/10 at 100.00 Baa2 2,082,860 Educational Facilities Revenue Bonds (Maryville University of St. Louis Project), Series 2000, 6.750%, 6/15/30 500 Health and Educational Facilities Authority of the State of Missouri, 2/08 at 101.00 A3 506,740 Educational Facilities Revenue Bonds (St. Louis Priory School Project), 5.650%, 2/01/25 365 Health and Educational Facilities Authority of the State of 4/11 at 100.00 Aaa 383,060 Missouri, Educational Facilities Revenue Bonds (Webster University), Series 2001, 5.500%, 4/01/18 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 27.7% 1,800 Johnson County, Missouri, Hospital Revenue Bonds (Western 6/10 at 100.00 AA 1,865,268 Missouri Medical Center Project), Series 2000, 6.000%, 6/01/20 2,500 Health and Educational Facilities Authority of the State of Missouri, 6/11 at 101.00 AAA 2,500,200 Revenue Bonds (SSM Health Care), Series 2001A, 5.250%, 6/01/28 500 Health and Educational Facilities Authority of the State of Missouri, 6/11 at 101.00 AAA 500,580 Health Facilities Revenue Bonds (St. Luke's Episcopal-Presbyterian Hospitals), Series 2001, 5.250%, 12/01/26 425 Health and Educational Facilities Authority of the State of Missouri, 2/06 at 102.00 BBB+ 436,637 Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital, Inc.), Series 1996, 6.500%, 2/15/21 1,000 Health and Educational Facilities Authority of the State of 12/10 at 101.00 A 1,035,840 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 101.50 N/R 984,260 Memorial Hospital), Series 1997, 5.750%, 11/15/12 950 Texas County, Missouri, Hospital Revenue Bonds (Texas County 6/10 at 100.00 N/R 946,799 Memorial Hospital), Series 2000, 7.250%, 6/15/25 500 Industrial Development Authority of the City of West Plains, 11/07 at 101.00 BB+ 450,650 Missouri, Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1997, 5.600%, 11/15/17 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 10.9% 1,000 Missouri Housing Development Commission, Multifamily Housing 12/11 at 100.00 AA 1,025,950 Revenue Bonds, 2001 Series II, 5.250%, 12/01/16 1,250 Industrial Development Authority of St. Charles County, Missouri, 4/08 at 102.00 AAA 1,230,150 Multifamily Housing Revenue Bonds (Ashwood Apartments Project), Series 1998A, 5.600%, 4/01/30 (Alternative Minimum Tax) 545 Industrial Development Authority of St. Louis County, Missouri, 4/07 at 102.00 AAA 569,302 Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997A, 5.950%, 4/20/17 600 Industrial Development Authority of St. Louis County, Missouri, 4/07 at 102.00 AAA 624,276 Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax) 37 Nuveen Missouri Premium Income Municipal Fund (NOM) (continued) Portfolio of Investments May 31, 2002 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.9% $ 900 Missouri Housing Development Commission, Single Family Mortgage 3/06 at 105.00 AAA $ 970,146 Revenue Bonds (Homeownership Loan Program), 1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax) 870 Missouri Housing Development Commission, Single Family Mortgage 3/10 at 100.00 AAA 906,731 Revenue Bonds (Homeownership Loan Program), 2000 Series B-1, 6.250%, 3/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.1% 2,020 Ritenour School District of St. Louis County, Missouri, General No Opt. Call AAA 2,480,641 Obligation School Bonds, Series 1995, 7.375%, 2/01/12 1,500 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 1,766,970 General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08 1,000 School District of the City of St. Charles, Missouri, General Obligation 3/06 at 100.00 AA+ 1,043,080 Bonds (Missouri Direct Deposit Program), Series 1996A, 5.625%, 3/01/14 1,000 Pattonville R-3 School District, St. Louis County, Missouri, General 3/10 at 101.00 AAA 1,085,640 Obligation Bonds, Series 2000, 5.750%, 3/01/17 895 Board of Education of the City of St. Louis, Missouri, General No Opt. Call AAA 1,096,348 Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07 625 Reorganized School District No. R-IV of Stone County, Reeds Spring, No Opt. Call AAA 774,788 Missouri, General Obligation School Building Refunding and Improvement Bonds, Series 1995, 7.600%, 3/01/10 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.9% 1,000 Land Clearance for Redevelopment Authority, Kansas City, Missouri, 12/05 at 102.00 AAA 1,057,080 Lease Revenue Bonds (Municipal Auditorium and Muehlebach Hotel Redevelopment Projects), Series 1995A, 5.900%, 12/01/18 2,000 Missouri Development Finance Board, Infrastructure Facilities 4/10 at 100.00 AAA 2,112,660 Revenue Bonds, Kansas City, Missouri (Midtown Redevelopment Projects), Series 2000A, 5.750%, 4/01/22 450 Monarch-Chesterfield Levee District, St. Louis County, Missouri, 3/10 at 101.00 AAA 484,560 Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19 1,000 St Louis Municipal Finance Corporation, Missouri, Carnahan 2/12 at 100.00 Aaa 1,095,290 Courthouse Leasehold Revenue Bonds, Series 2002A, 5.750%, 2/15/16 2,000 Public Building Corporation of the City of Springfield, Missouri, 6/10 at 100.00 AAA 2,177,800 Leasehold Revenue Bonds (Jordan Valley Park Projects), Series 2000A, 6.125%, 6/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.8% 500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 AAA 479,655 Series 2001 (Kansas City International Airport), 5.000%, 4/01/23 (Alternative Minimum Tax) 1,000 Land Clearance for Redevelopment Authority of the City of St. Louis, 9/09 at 102.00 N/R 1,053,030 Missouri, Tax-Exempt Parking Facility Revenue Refunding and Improvement Bonds (LCRA Parking Facilities Project), Series 1999C, 7.000%, 9/01/19 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 26.7% 675 Health and Educational Facilities Authority of the State of Missouri, 2/06 at 102.00 BBB+*** 764,343 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 Missouri, 6/02 at 100.00 AAA 1,292,580 Health Facilities Revenue Bonds (SSM Health Care Obligated Group Projects), Series 1990B, 7.000%, 6/01/15 825 Health and Educational Facilities Authority of the State of Missouri, 3/10 at 101.00 Aa1*** 939,147 Educational Facilities Revenue Bonds (The Washington University), Series 2000A, 6.000%, 3/01/30 (Pre-refunded to 3/01/10) 530 State Environmental Improvement and Energy Resources Authority, 7/04 at 102.00 AAA 581,156 Missouri, Water Pollution Control Revenue Bonds (State Revolving Fund Program) (City of Branson Project), Series 1995A, 6.050%, 7/01/16 (Pre-refunded to 7/01/04) 540 State Environmental Improvement and Energy Resources Authority, 1/06 at 101.00 Aaa 595,949 Missouri, Water Pollution Control Revenue Bonds (State Revolving Fund) (Multi-Participant Program), Series 1996D, 5.875%, 1/01/15 (Pre-refunded to 1/01/06) 1,000 St. Louis County, Missouri, Certificates of Receipt, GNMA No Opt. Call AAA 1,062,580 Collateralized Mortgage Revenue Bonds, Series 1993D, 5.650%, 7/01/20 (Alternative Minimum Tax) 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 1,275 St. Louis Municipal Finance Corporation, Leasehold Revenue 2/05 at 100.00 AAA $1,390,694 Improvement and Refunding Bonds (City of St. Louis, Missouri, Lessee), Series 1992, 6.250%, 2/15/12 (Pre-refunded to 2/15/05) 1,600 St. Louis Municipal Finance Corporation, City Justice Center, 2/06 at 102.00 AAA 1,776,112 Leasehold Revenue Improvement Bonds (City of St. Louis, Missouri, Lessee), Series 1996A, 5.750%, 2/15/11 (Pre-refunded to 2/15/06) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.5% 500 Columbia, Missouri, Water and Electric Revenue Bonds, Series 2002A, 10/12 at 100.00 AAA 489,965 5.000%, 10/01/26 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.6% 350 State Environmental Improvement and Energy Resources Authority, No Opt. Call Aaa 418,429 Missouri, Water Pollution Control Revenue Bonds (State Revolving Fund Program - Kansas City Project), Series 1997C, 6.750%, 1/01/12 470 State Environmental Improvement and Energy Resources Authority, 7/04 at 102.00 AAA 506,496 Missouri, Water Pollution Control Revenue Bonds (State Revolving Fund Program - City of Branson Project), Series 1995A, 6.050%, 7/01/16 210 State Environmental Improvement and Energy Resources Authority, 1/06 at 101.00 Aaa 226,990 Missouri, Water Pollution Control Revenue Bonds (State Revolving Fund - Multi-Participant Program), Series 1996D, 5.875%, 1/01/15 ------------------------------------------------------------------------------------------------------------------------------------ $ 43,835 Total Investments (cost $44,161,019) - 147.9% 46,756,335 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.7% 862,990 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.6)% (16,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 31,619,325 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): 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.
39
Statement of Assets and Liabilities May 31, 2002 CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK) (NPG) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value $112,273,414 $54,883,861 $51,440,024 $80,664,510 Temporary investments in short-term securities, at amortized cost, which approximates market value -- -- 1,900,000 -- Cash 934,767 416,127 756,928 4,118,402 Receivables: Interest 1,671,737 681,079 536,434 1,436,512 Investments sold 214,225 -- -- 735,264 Other assets 10,656 10,799 475 4,397 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 115,104,799 55,991,866 54,633,861 86,959,085 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- -- -- -- Payable for investments purchased -- -- 3,350,858 4,908,786 Accrued expenses: Management fees 63,061 16,498 11,864 44,919 Organization and offering costs -- 7,713 80,500 -- Other 39,169 62,491 122,529 25,819 Preferred share dividends payable 996 1,457 958 762 Common share dividends payable 374,720 170,401 159,183 269,440 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 477,946 258,560 3,725,892 5,249,726 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 38,300,000 19,500,000 17,500,000 27,800,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 76,326,853 $36,233,306 $33,407,969 $53,909,359 ==================================================================================================================================== Common shares outstanding 5,277,752 2,544,489 2,307,000 3,768,386 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.46 $ 14.24 $ 14.48 $ 14.31 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 52,778 $ 25,445 $ 23,070 $ 37,684 Paid-in surplus 73,138,804 36,013,848 32,675,095 52,106,860 Balance of undistributed net investment income 645,815 6,243 20,396 520,560 Accumulated net realized gain (loss) from investment transactions (2,299,620) (102,155) -- (1,737,533) Net unrealized appreciation (depreciation) of investments 4,789,076 289,925 689,408 2,981,788 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 76,326,853 $36,233,306 $33,407,969 $53,909,359 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 40 GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX) (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value $41,975,864 $100,185,489 $41,914,956 $46,756,335 Temporary investments in short-term securities, at amortized cost, which approximates market value -- -- -- -- Cash 1,071,961 515,631 104,710 141,053 Receivables: Interest 606,008 1,554,149 709,358 883,984 Investments sold -- 10,000 -- 35,584 Other assets 6,095 9,924 10,607 3,947 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 43,659,928 102,275,193 42,739,631 47,820,903 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- -- -- -- Payable for investments purchased 1,037,707 -- -- -- Accrued expenses: Management fees 12,521 56,090 12,585 26,184 Organization and offering costs 3,709 -- 7,713 -- Other 95,588 33,248 64,778 21,874 Preferred share dividends payable 2,630 1,304 1,232 415 Common share dividends payable 126,387 328,092 134,148 153,105 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,278,542 418,734 220,456 201,578 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 15,000,000 34,000,000 15,000,000 16,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $27,381,386 $ 67,856,459 $27,519,175 $31,619,325 ==================================================================================================================================== Common shares outstanding 1,956,336 4,687,023 1,943,302 2,202,955 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.00 $ 14.48 $ 14.16 $ 14.35 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 19,563 $ 46,870 $ 19,433 $ 22,030 Paid-in surplus 27,630,818 64,953,042 27,468,146 30,279,150 Balance of undistributed net investment income 103,113 659,569 9,113 286,262 Accumulated net realized gain (loss) from investment transactions (345,593) (2,112,227) (94,305) (1,563,433) Net unrealized appreciation (depreciation) of investments (26,515) 4,309,205 116,788 2,595,316 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $27,381,386 $ 67,856,459 $27,519,175 $31,619,325 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements.
41
Statement of Operations Year Ended May 31, 2002 CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK)* (NPG) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $6,275,894 $2,867,198 $231,335 $4,588,053 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 743,595 361,613 40,983 532,206 Preferred shares - auction fees 95,750 48,750 1,798 69,500 Preferred shares - dividend disbursing agent fees 10,000 10,000 411 10,000 Shareholders' servicing agent fees and expenses 24,709 2,849 669 12,022 Custodian's fees and expenses 47,897 36,537 6,839 55,685 Trustees' fees and expenses 1,280 864 235 1,294 Professional fees 9,492 9,830 6,589 8,687 Shareholders' reports - printing and mailing expenses 32,163 14,446 4,258 21,265 Stock exchange listing fees 22,078 82 -- 4,640 Investor relations expense 17,997 6,241 -- 13,109 Other expenses 16,773 7,681 252 11,998 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,021,734 498,893 62,034 740,406 Custodian fee credit (5,778) (13,880) (427) (8,425) Expense reimbursement -- (166,899) (18,915) -- ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,015,956 318,114 42,692 731,981 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 5,259,938 2,549,084 188,643 3,856,072 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions 544,946 (44,913) -- 570,501 Change in net unrealized appreciation (depreciation) of investments 474,512 840,819 689,408 (195,055) ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments 1,019,458 795,906 689,408 375,446 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (546,694) (291,100) (9,064) (460,881) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $5,732,702 $3,053,890 $868,987 $3,770,637 ==================================================================================================================================== * For the period March 26, 2002 (commencement of operations) through May 31, 2002. See accompanying notes to financial statements. 42 GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX)** (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $1,296,464 $5,711,613 $2,261,170 $2,655,293 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 171,740 662,035 277,363 307,994 Preferred shares - auction fees 20,240 85,000 37,500 40,000 Preferred shares - dividend disbursing agent fees 5,397 10,000 10,000 10,000 Shareholders' servicing agent fees and expenses 1,445 11,960 2,711 9,430 Custodian's fees and expenses 24,941 34,276 39,697 26,240 Trustees' fees and expenses 606 1,359 825 751 Professional fees 10,716 9,676 10,862 8,156 Shareholders' reports - printing and mailing expenses 10,368 26,396 13,691 12,583 Stock exchange listing fees -- 20,726 62 96 Investor relations expense 1,703 16,987 7,005 7,909 Other expenses 4,017 12,022 7,724 8,939 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 251,173 890,437 407,440 432,098 Custodian fee credit (4,147) (8,805) (19,971) (5,035) Expense reimbursement (78,823) -- (128,014) -- ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 168,203 881,632 259,455 427,063 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 1,128,261 4,829,981 2,001,715 2,228,230 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (345,593) 511,753 (68,781) (29,238) Change in net unrealized appreciation (depreciation) of investments (26,515) 56,519 555,011 669,418 ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (372,108) 568,272 486,230 640,180 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (114,572) (513,588) (238,070) (283,065) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $ 641,581 $4,884,665 $2,249,875 $2,585,345 ==================================================================================================================================== ** For the period September 25, 2001 (commencement of operations) through May 31, 2002. See accompanying notes to financial statements.
43
Statement of Changes in Net Assets CONNECTICUT DIVIDEND CONNECTICUT CONNECTICUT ADVANTAGE 2 PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) (NGK) ----------------------------- ---------------------------- ---------------- FOR THE FOR THE PERIOD 1/26/01 PERIOD 3/26/02 (COMMENCEMENT (COMMENCEMENT YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) OF OPERATIONS) 5/31/02 5/31/01 5/31/02 THROUGH 5/31/01 THROUGH 5/31/02 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 5,259,938 $ 5,383,842 $ 2,549,084 $ 537,367 $ 188,643 Net realized gain (loss) from investment transactions 544,946 576 (44,913) (57,242) -- Change in net unrealized appreciation (depreciation) of investments 474,512 6,892,339 840,819 (548,693) 689,408 Distributions to Preferred Shareholders from net investment income (546,694) (1,264,121) (291,100) (122,470) (9,064) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 5,732,702 11,012,636 3,053,890 (191,038) 868,987 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,403,107) (4,316,867) (2,135,321) (533,518) (159,183) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- 36,216,383 32,878,500 Net proceeds from shares issued to shareholders due to reinvestment of distributions 355,425 366,668 60,234 1,776 -- Preferred shares offering costs -- -- -- (339,375) (280,610) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 355,425 366,668 60,234 35,878,784 32,597,890 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 1,685,020 7,062,437 978,803 35,154,228 33,307,694 Net assets applicable to Common shares at the beginning of period 74,641,833 67,579,396 35,254,503 100,275 100,275 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $76,326,853 $74,641,833 $36,233,306 $35,254,503 $33,407,969 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 645,815 $ 231,595 $ 6,243 $ (118,621) $ 20,396 ==================================================================================================================================== See accompanying notes to financial statements. 44 GEORGIA DIVIDEND MASSACHUSETTS PREMIUM GEORGIA PREMIUM INCOME (NPG) ADVANTAGE (NZX) INCOME (NMT) ----------------------------- ----------------- ---------------------------- FOR THE PERIOD 9/25/01 (COMMENCEMENT YEAR ENDED YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED 5/31/02 5/31/01 THROUGH 5/31/02 5/31/02 5/31/01 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 3,856,072 $ 3,987,219 $ 1,128,261 $ 4,829,981 $ 4,893,855 Net realized gain (loss) from investment transactions 570,501 1,111,221 (345,593) 511,753 22,543 Change in net unrealized appreciation (depreciation) of investments (195,055) 3,931,839 (26,515) 56,519 5,076,539 Distributions to Preferred Shareholders from net investment income (460,881) (981,605) (114,572) (513,588) (1,136,585) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 3,770,637 8,048,674 641,581 4,884,665 8,856,352 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,187,446) (2,989,672) (910,576) (3,887,315) (3,804,794) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- 27,860,955 -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 158,444 117,835 4,901 280,344 203,930 Preferred shares offering costs -- -- (315,750) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 158,444 117,835 27,550,106 280,344 203,930 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 741,635 5,176,837 27,281,111 1,277,694 5,255,488 Net assets applicable to Common shares at the beginning of period 53,167,724 47,990,887 100,275 66,578,765 61,323,277 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $53,909,359 $53,167,724 $27,381,386 $67,856,459 $66,578,765 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 520,560 $ 169,607 $ 103,113 $ 659,569 $ 30,016 ==================================================================================================================================== See accompanying notes to financial statements. 45 Statement of Changes in Net Assets (continued) MASSACHUSETTS MISSOURI PREMIUM DIVIDEND ADVANTAGE (NMB) INCOME (NOM) ----------------------------- ---------------------------- FOR THE PERIOD 1/31/01 (COMMENCEMENT YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED 5/31/02 THROUGH 5/31/01 5/31/02 5/31/01 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,001,715 $ 472,617 $ 2,228,230 $ 2,229,305 Net realized gain (loss) from investment transactions (68,781) (25,524) (29,238) 181,966 Change in net unrealized appreciation (depreciation) of investments 555,011 (435,935) 669,418 2,388,233 Distributions to Preferred Shareholders from net investment income (238,070) (102,546) (283,065) (555,464) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 2,249,875 (91,388) 2,585,345 4,244,040 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,701,593) (425,298) (1,770,473) (1,616,505) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- 27,660,825 -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 19,714 15 296,123 180,182 Preferred shares offering costs -- (293,250) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 19,714 27,367,590 296,123 180,182 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 567,996 26,850,904 1,110,995 2,807,717 Net assets applicable to Common shares at the beginning of period 26,951,179 100,275 30,508,330 27,700,613 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $27,519,175 $26,951,179 $31,619,325 $30,508,330 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 9,113 $ (55,227) $ 286,262 $ 88,313 ==================================================================================================================================== See accompanying notes to financial statements.
46 Notes to Financial Statements 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 Connecticut Dividend Advantage Municipal Fund (NFC), Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK), Nuveen Georgia Premium Income Municipal Fund (NPG), Nuveen Georgia Dividend Advantage Municipal Fund (NZX), Nuveen Massachusetts Premium Income Municipal Fund (NMT), Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) and Nuveen Missouri Premium Income Municipal Fund (NOM). Connecticut Premium Income (NTC) and Massachusetts Premium Income (NMT) are traded on the New York Stock Exchange while Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK), Georgia Premium Income (NPG), Georgia Dividend Advantage (NZX), Massachusetts Dividend Advantage (NMB) and Missouri Premium Income (NOM) are traded on the American Stock Exchange. Prior to the commencement of operations of Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK), Georgia Dividend Advantage (NZX) and Massachusetts Dividend Advantage (NMB), each Fund had no operations other than those related to organizational matters, the initial capital contribution of $100,275 by Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, and the recording of the organization expenses ($15,000, $11,500, $11,500 and $15,000, respectively) and their reimbursement by Nuveen Investments, also a wholly owned subsidiary of The John Nuveen Company. 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 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. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Trustees of the Funds may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At May 31, 2002, Connecticut Dividend Advantage 2 (NGK), Georgia Premium Income (NPG) and Georgia Dividend Advantage (NZX) had outstanding when-issued purchase commitments of $1,685,069, $4,908,786 and $1,037,707, respectively. There were no such outstanding purchase commitments in any 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 for financial reporting purposes. 47 Notes to Financial Statements (continued) 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, to retain such tax-exempt status when distributed to shareholders of the Funds. All monthly tax-exempt income dividends paid during the period ended May 31, 2002, have been designated Exempt Interest Dividends. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend. Generally, 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, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from 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. 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 CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK) (NPG) -------------------------------------------------------------------------------- Number of Shares: Series M -- -- -- -- Series T -- 780 -- -- Series W -- -- 700 -- Series Th 1,532 -- -- 1,112 ================================================================================ GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX) (NMT) (NMB) (NOM) -------------------------------------------------------------------------------- Number of Shares: Series M 600 -- -- -- Series T -- -- 600 -- Series W -- -- -- -- Series Th -- 1,360 -- 640 ================================================================================ Effective November 16, 2001, Georgia Dividend Advantage (NZX) issued 600 Series M $25,000 stated value Preferred shares. Effective May 17, 2002, Connecticut Dividend Advantage 2 (NGK) issued 700 Series W $25,000 stated value Preferred shares. 48 Derivative Financial Instruments The Funds may invest 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 period ended May 31, 2002. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Offering Costs Nuveen Investments has agreed to pay all offering costs (other than the sales load) that exceed $.03 per Common share for Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK), Georgia Dividend Advantage (NZX) and Massachusetts Dividend Advantage (NMB). Connecticut Dividend Advantage's (NFC), Connecticut Dividend Advantage 2's (NGK), Georgia Dividend Advantage's (NZX) and Massachusetts Dividend Advantage's (NMB) share of offering costs ($76,005, $69,000, $58,470 and $58,050, respectively) were recorded as a reduction of the proceeds from the sale of common shares. Costs incurred by Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK), Georgia Dividend Advantage (NZX) and Massachusetts Dividend Advantage (NMB) in connection with their offering of Preferred shares ($339,375, $280,610, $315,750 and $293,250, respectively) were recorded as a reduction to paid-in surplus. 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 applicable to Common Shares from operations during the reporting period. Actual results may differ from those estimates. Change in Accounting Policy As required, effective June 1, 2001, the Funds have adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. Prior to June 1, 2001, the Funds did not accrete taxable market discount on debt securities until they were sold. The cumulative effect of this accounting change had no impact on the total net assets applicable to Common Shares or the Common share net asset values of the Funds, but resulted in an increase in the cost of securities and a corresponding decrease in net unrealized appreciation or increase in net unrealized depreciation based on securities held by the following Funds on June 1, 2001, as follows:
CONNECTICUT CONNECTICUT GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME INCOME ADVANTAGE INCOME (NTC) (NFC) (NPG) (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------ $104,083 $2,201 $143,208 $200,475 $2,288 $23,257 ============================================================================================================
The effect of this change for the fiscal year ended May 31, 2002, was to increase investment income with a corresponding decrease in net unrealized appreciation as follows: The Statement of Changes in Net Assets and Financial Highlights for the prior periods have not been restated to reflect this change in presentation.
CONNECTICUT CONNECTICUT GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME INCOME ADVANTAGE INCOME (NTC) (NFC) (NPG) (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------ $14,611 $7,336 $21,549 $38,158 $8,795 $3,328 ============================================================================================================
Classification and Measurement of Redeemable Securities The Funds have adopted the classification requirement of EITF D-98, Classification and Measurement of Redeemable Securities. EITF D-98 requires that Preferred shares, at liquidation value, be presented separately in the Statement of Assets and Liabilities. Accordingly, certain reclassifications have been made to the financial statements and financial highlights for all prior periods presented. The adoption of EITF D-98 had no impact on the Funds' Common share net asset values. 49 Notes to Financial Statements (continued) 2. FUND SHARES Transactions in Common and Preferred shares were as follows:
CONNECTICUT DIVIDEND CONNECTICUT CONNECTICUT DIVIDEND ADVANTAGE 2 GEORGIA PREMIUM INCOME (NTC) ADVANTAGE (NFC) (NGK) PREMIUM INCOME (NPG) --------------------- -------------------------- ---------------- ----------------------- FOR THE FOR THE PERIOD 1/26/01 PERIOD 3/26/02 (COMMENCEMENT (COMMENCEMENT YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) OF OPERATIONS) YEAR ENDED YEAR ENDED 5/31/02 5/31/01 5/31/02 THROUGH 5/31/01 THROUGH 5/31/02 5/31/02 5/31/01 --------------------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- 2,533,500 2,300,000 -- -- Shares issued to shareholders due to reinvestment of distributions 22,147 24,620 3,869 120 -- 10,384 8,153 --------------------------------------------------------------------------------------------------------------------- 22,147 24,620 3,869 2,533,620 2,300,000 10,384 8,153 ===================================================================================================================== Preferred shares sold -- -- -- 780 700 -- -- ===================================================================================================================== GEORGIA DIVIDEND ADVANTAGE MASSACHUSETTS MASSACHUSETTS DIVIDEND MISSOURI (NZX) PREMIUM INCOME (NMT) ADVANTAGE (NMB) PREMIUM INCOME (NOM) --------------- --------------------- ------------------------------ ----------------------- FOR THE FOR THE PERIOD 9/25/01 PERIOD 1/31/01 (COMMENCEMENT (COMMENCEMENT OF OPERATIONS) YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED THROUGH 5/31/02 5/31/02 5/31/01 5/31/02 THROUGH 5/31/01 5/31/02 5/31/01 --------------------------------------------------------------------------------------------------------------------- Common shares: Shares sold 1,949,000 -- -- -- 1,935,000 -- -- Shares issued to shareholders due to reinvestment of distributions 336 18,094 13,928 1,301 1 19,877 13,147 --------------------------------------------------------------------------------------------------------------------- 1,949,336 18,094 13,928 1,301 1,935,001 19,877 13,147 ===================================================================================================================== Preferred shares sold 600 -- -- -- 600 -- -- =====================================================================================================================
51 3. DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on July 1, 2002, to shareholders of record on June 15, 2002, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK) (NPG) --------------------------------------------------------------------------------------------------------- Dividend per share $.0710 $.0700 $.0690 $.0715 ========================================================================================================= GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX) (NMT) (NMB) (NOM) --------------------------------------------------------------------------------------------------------- Dividend per share $.0665 $.0710 $.0730 $.0715 =========================================================================================================
4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term securities for the fiscal year ended May 31, 2002, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK)* (NPG) ---------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $13,657,675 $11,135,342 $50,754,399 $30,484,076 Short-term securities 1,750,000 500,000 16,650,000 -- Sales and maturities: Long-term municipal securities 15,826,734 17,973,000 -- 36,500,806 Short-term securities 1,750,000 500,000 14,750,000 -- ========================================================================================================== * For the period March 26, 2002 (commencement of operations) through May 31, 2002. GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX)** (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $65,896,313 $15,828,623 $3,829,161 $4,236,685 Short-term securities 4,900,000 2,000,000 1,000,000 -- Sales and maturities: Long-term municipal securities 23,523,874 13,473,681 5,919,095 3,699,981 Short-term securities 4,900,000 4,000,000 1,000,000 -- ============================================================================================================= **For the period September 25, 2001 (commencement of operations) through May 31, 2002.
52 Notes to Financial Statements (continued) 5. INCOME TAX INFORMATION The following information is presented on an income tax basis as of May 31, 2002. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions.
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK) (NPG) -------------------------------------------------------------------------------------------------------------- Cost of Investments $107,406,099 $54,587,285 $52,650,550 $77,579,757 ============================================================================================================== GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX) (NMT) (NMB) (NOM) -------------------------------------------------------------------------------------------------------------- Cost of Investments $42,347,972 $95,637,651 $41,823,909 $44,157,072 ============================================================================================================== CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK) (NPG) --------------------------------------------------------------------------------------------------------------- Gross unrealized appreciation $5,053,311 $ 519,551 $692,989 $3,341,199 Gross unrealized depreciation (185,996) (222,975) (3,515) (256,446) --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments $4,867,315 $ 296,576 $689,474 $3,084,753 =============================================================================================================== GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX) (NMT) (NMB) (NOM) --------------------------------------------------------------------------------------------------------------- Gross unrealized appreciation $ 307,531 $5,205,883 $ 456,604 $2,717,138 Gross unrealized depreciation (679,639) (658,045) (365,557) (117,875) --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments $(372,108) $4,547,838 $ 91,047 $2,599,263 ===============================================================================================================
53 The tax components of undistributed net investment income and realized gains at May 31, 2002, are as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK) (NPG) --------------------------------------------------------------------------------------------------------------- Undistributed tax-exempt income $897,969 $176,278 $188,577 $686,277 Undistributed ordinary income * 34,265 -- -- 1,522 Undistributed long-term capital gains -- -- -- -- =============================================================================================================== GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX) (NMT) (NMB) (NOM) --------------------------------------------------------------------------------------------------------------- Undistributed tax-exempt income $235,839 $750,534 $141,123 $409,490 Undistributed ordinary income * -- -- -- -- Undistributed long-term capital gains -- -- -- -- =============================================================================================================== The tax character of distributions paid during the period ended May 31, 2002, are as follows: CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NTC) (NFC) (NGK) (NPG) --------------------------------------------------------------------------------------------------------------- Distributions from tax-exempt income $4,936,883 $2,427,472 $-- $3,537,237 Distributions from ordinary income * 12,951 -- -- 94,734 Distributions from long-term capital gains -- -- -- -- =============================================================================================================== GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI DIVIDEND PREMIUM DIVIDEND PREMIUM ADVANTAGE INCOME ADVANTAGE INCOME (NZX) (NMT) (NMB) (NOM) --------------------------------------------------------------------------------------------------------------- Distributions from tax-exempt income $892,422 $4,408,553 $1,940,760 $2,047,062 Distributions from ordinary income * -- -- -- -- Distributions from long-term capital gains -- -- -- -- =============================================================================================================== * Ordinary income consists of taxable market discount income and short-term capital gains, if any.
At May 31, 2002, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
CONNECTICUT CONNECTICUT GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME INCOME ADVANTAGE INCOME (NTC) (NFC) (NPG) (NMT) (NMB) (NOM) -------------------------------------------------------------------------------------------------------------- Expiration year: 2003 $ 170,060 $-- $-- $ 41,189 $ -- $ 768,346 2004 1,105,901 -- 1,266,940 945,779 -- 708,417 2005 847,914 -- 340,685 195,761 -- -- 2006 -- -- -- -- -- -- 2007 -- -- -- -- -- -- 2008 7,281 -- 129,908 210,989 -- 57,432 2009 168,464 57,242 -- 718,509 25,524 -- 2010 -- 42,027 -- -- 31,957 6,599 -------------------------------------------------------------------------------------------------------------- Total $2,299,620 $99,269 $1,737,533 $2,112,227 $57,481 $1,540,794 ==============================================================================================================
53 Notes to Financial Statements (continued) 6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under Connecticut Premium Income's (NTC), Georgia Premium Income's (NPG), Massachusetts Premium Income's (NMB) and Missouri Premium Income's (NOM) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) 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 the next $3 billion .5875 of 1 For net assets over $5 billion .5750 of 1 ============================================================================================================
Under Connecticut Dividend Advantage's (NFC), Connecticut Dividend Advantage 2's (NGK), Georgia Dividend Advantage's (NZX) and Massachusetts Dividend Advantage's (NMB) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) 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 .5750 of 1 ============================================================================================================
For the first ten years of Connecticut Dividend Advantage's (NFC) and Massachusetts Dividend Advantage's (NMB) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING JANUARY 31, JANUARY 31, -------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ============================================================== * From the commencement of operations. The Adviser has not agreed to reimburse Connecticut Dividend Advantage (NFC) and Massachusetts Dividend Advantage (NMB) for any portion of its fees and expenses beyond January 31, 2011. 54 For the first ten years of Connecticut Dividend Advantage 2's (NGK) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ============================================================== * From the commencement of operations. The Adviser has not agreed to reimburse Connecticut Dividend Advantage 2 (NGK) for any portion of its fees and expenses beyond March 31, 2012. For the first ten years of Georgia Dividend Advantage's (NZX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, -------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ============================================================== * From the commencement of operations. The Adviser has not agreed to reimburse Georgia Dividend Advantage (NZX) for any portion of its fees and expenses beyond September 30, 2011. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its 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. 55 Financial Highlights Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ----------------------------------------------------------- --------------------------- Distributions from and From and in Excess Distributions in Excess of Net from of Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ===================================================================================================================== CONNECTICUT PREMIUM INCOME (NTC) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(d) $14.20 $1.00 $ .20 $(.10) $-- $1.10 $(.84) $-- $(.84) 2001 12.92 1.02 1.32 (.24) -- 2.10 (.82) -- (.82) 2000 14.44 1.06 (1.54) (.22) -- (.70) (.82) -- (.82) 1999 14.49 1.00 (.05) (.20) -- .75 (.80) -- (.80) 1998 13.63 1.00 .89 (.23) -- 1.66 (.80) -- (.80) CONNECTICUT DIVIDEND ADVANTAGE (NFC) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(d) 13.88 1.00 .31 (.11) -- 1.20 (.84) -- (.84) 2001(a) 14.33 .21 (.23) (.05) -- (.07) (.21) -- (.21) CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) 14.33 .08 .30 -- -- .38 (.07) -- (.07) GEORGIA PREMIUM INCOME (NPG) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(d) 14.15 1.02 .11 (.12) -- 1.01 (.85) -- (.85) 2001 12.80 1.06 1.35 (.26) -- 2.15 (.80) -- (.80) 2000 14.45 1.03 (1.65) (.23) -- (.85) (.80) -- (.80) 1999 14.58 1.01 (.13) (.21) -- .67 (.80) -- (.80) 1998 13.70 1.01 .90 (.24) -- 1.67 (.79) -- (.79) GEORGIA DIVIDEND ADVANTAGE (NZX) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(c) 14.33 .58 (.19) (.06) -- .33 (.47) -- (.47) =====================================================================================================================
Total Returns ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ================================================================================ CONNECTICUT PREMIUM INCOME (NTC) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(d) $ -- $14.46 $16.0500 5.01% 7.87% 2001 -- 14.20 16.1000 25.91 16.57 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 CONNECTICUT DIVIDEND ADVANTAGE (NFC) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(d) -- 14.24 15.7900 8.61 8.81 2001(a) (.17) 13.88 15.3400 3.71 (1.67) CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) (.16) 14.48 15.0500 .79 1.53 GEORGIA PREMIUM INCOME (NPG) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(d) -- 14.31 15.8300 8.98 7.32 2001 -- 14.15 15.3500 30.41 16.98 2000 -- 12.80 12.4375 (18.84) (5.87) 1999 -- 14.45 16.2500 13.42 4.64 1998 -- 14.58 15.0625 14.56 12.43 GEORGIA DIVIDEND ADVANTAGE (NZX) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(c) (.19) 14.00 14.7400 1.42 1.02 ================================================================================
Ratios/Supplemental Data ------------------------------------------------------------------------- Municipal Auction Rate Cumulative Before After Credit/ Preferred Stock at End of Period Credit/Reimbursement Reimbursement*** ---------------------------------- ----------------------- ------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Aggregate Liquidation Applicable Applicable Applicable Applicable Applicable Portfolio Amount and Market Asset to Common to Common to Common to Common to Common Turnover Outstanding Value Coverage Shares (000) Shares++ Shares++ Shares++ Shares++ Rate (000) Per Share Per Share ============================================================================================================================== CONNECTICUT PREMIUM INCOME (NTC) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(d) $76,327 1.34% 6.90% 1.34% 6.91% 12% $38,300 $25,000 $74,822 2001 74,642 1.33 7.36 1.31 7.39 8 38,300 25,000 73,722 2000 67,579 1.36 7.87 1.32 7.91 19 38,300 25,000 69,112 1999 75,165 1.32 6.83 1.30 6.84 7 38,300 25,000 74,063 1998 75,084 1.33 7.02 1.33 7.02 13 38,300 25,000 74,010 CONNECTICUT DIVIDEND ADVANTAGE (NFC) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(d) 36,233 1.38 6.56 .88 7.06 20 19,500 25,000 71,453 2001(a) 35,255 1.22* 4.10* .80* 4.52* 29 19,500 25,000 70,198 CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(b) 33,408 1.06* 2.90* .73* 3.23* -- 17,500 25,000 72,726 GEORGIA PREMIUM INCOME (NPG) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(d) 53,909 1.37 7.12 1.35 7.13 37 27,800 25,000 73,480 2001 53,168 1.41 7.67 1.40 7.68 15 27,800 25,000 72,813 2000 47,991 1.43 7.73 1.40 7.76 17 27,800 25,000 68,157 1999 54,022 1.34 6.87 1.33 6.88 14 27,800 25,000 73,581 1998 54,352 1.33 7.10 1.33 7.10 17 27,800 25,000 73,878 GEORGIA DIVIDEND ADVANTAGE (NZX) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(c) 27,381 1.37* 5.70* .92* 6.16* 60 15,000 25,000 70,636 ==============================================================================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share net asset value per share. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a)For the period January 26, 2001 (commencement of operations) through May 31, 2001. (b)For the period March 26, 2002 (commencement of operations) through May 31, 2002. (c)For the period September 25, 2001 (commencement of operations) through May 31, 2002. (d)As required, effective June 1, 2001, the Funds have adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. The effect of this change for the fiscal year ended May 31, 2002, was to increase net investment income per share with a corresponding decrease in net realized/unrealized investment gain (loss) per share and increase each ratio of net investment income to average net assets as follows: CONNECTICUT CONNECTICUT GEORGIA PREMIUM DIVIDEND PREMIUM INCOME (NTC) ADVANTAGE (NFC) INCOME (NPG) ---------------------------------------------- 2002 per share impact ($) -- -- .01 2002 income ratio impact (%) .02 .02 .04 The Financial Highlights for the prior periods have not been restated to reflect this change in presentation. 56-57 Financial Highlights (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ----------------------------------------------------------- --------------------------- Distributions from and From and in Excess Distributions in Excess of Net from of Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ===================================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) $14.26 $1.03 $ .13 $(.11) $-- $1.05 $(.83) $-- $(.83) 2001 13.17 1.05 1.10 (.24) -- 1.91 (.82) -- (.82) 2000 14.72 1.05 (1.54) (.21) -- (.70) (.85) -- (.85) 1999 14.91 1.02 (.16) (.20) -- .66 (.85) -- (.85) 1998 14.11 1.06 .83 (.24) -- 1.65 (.85) -- (.85) MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) 13.88 1.03 .25 (.12) -- 1.16 (.88) -- (.88) 2001(a) 14.33 .24 (.24) (.05) -- (.05) (.22) -- (.22) MISSOURI PREMIUM INCOME (NOM) --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) 13.97 1.01 .31 (.13) -- 1.19 (.81) -- (.81) 2001 12.77 1.02 1.18 (.26) -- 1.94 (.74) -- (.74) 2000 14.20 .99 (1.39) (.26) -- (.66) (.77) -- (.77) 1999 14.44 .97 (.22) (.22) -- .53 (.77) -- (.77) 1998 13.68 .99 .78 (.25) -- 1.52 (.76) -- (.76) =====================================================================================================================
Total Returns ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ================================================================================ MASSACHUSETTS PREMIUM INCOME (NMT) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) $ -- $14.48 $15.7000 8.04% 7.51% 2001 -- 14.26 15.3300 15.71 14.72 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 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) -- 14.16 15.9500 14.15 8.46 2001(a) (.18) 13.88 14.8000 .13 (1.61) MISSOURI PREMIUM INCOME (NOM) -------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) -- 14.35 15.4100 14.11 8.65 2001 -- 13.97 14.2500 17.41 15.48 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 ================================================================================
Ratios/Supplemental Data ------------------------------------------------------------------------- Municipal Auction Rate Cumulative Before After Credit/ Preferred Stock at End of Period Credit/Reimbursement Reimbursement*** ---------------------------------- ----------------------- ------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Aggregate Liquidation Applicable Applicable Applicable Applicable Applicable Portfolio Amount and Market Asset to Common to Common to Common to Common to Common Turnover Outstanding Value Coverage Shares (000) Shares++ Shares++ Shares++ Shares++ Rate (000) Per Share Per Share ============================================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(b) $67,856 1.31% 7.11% 1.30% 7.12% 13% $34,000 $25,000 $74,894 2001 66,579 1.37 7.46 1.35 7.48 14 34,000 25,000 73,955 2000 61,323 1.32 7.71 1.31 7.73 11 34,000 25,000 70,091 1999 68,288 1.30 6.87 1.30 6.88 11 34,000 25,000 75,212 1998 68,936 1.31 7.22 1.31 7.22 17 34,000 25,000 75,688 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(b) 27,519 1.47 6.70 .94 7.24 9 15,000 25,000 70,865 2001(a) 26,951 1.28* 4.84* .84* 5.28* 18 15,000 25,000 69,919 MISSOURI PREMIUM INCOME (NOM) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2002(b) 31,619 1.38 7.08 1.36 7.10 8 16,000 25,000 74,405 2001 30,508 1.39 7.48 1.38 7.50 31 16,000 25,000 72,669 2000 27,701 1.48 7.49 1.47 7.51 23 16,000 25,000 68,282 1999 30,603 1.44 6.72 1.43 6.72 10 16,000 25,000 72,817 1998 30,935 1.47 7.03 1.47 7.03 25 16,000 25,000 73,336 ==============================================================================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share net asset value per share. Total returns are not annualized. ***After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares, where applicable. (a)For the period January 31, 2001 (commencement of operations) through May 31, 2001. (b)As required, effective June 1, 2001, the Funds have adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. The effect of this change for the fiscal year ended May 31, 2002, was to increase net investment income per share with a corresponding decrease in net realized/unrealized investment gain (loss) per share and increase each ratio of net investment income to average net assets as follows: MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME (NMT) ADVANTAGE (NMB) INCOME (NOM) ---------------------------------------------- 2002 per share impact ($) .01 -- -- 2002 income ratio impact (%) .06 .03 .01 The Financial Highlights for the prior periods have not been restated to reflect this change in presentation. 58-59 Trustees and Officers The management of the Funds, including general supervision of the duties performed for the Funds under the Management Agreement, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at seven, one of whom is an "interested person" (as the term is defined in the Investment Company Act of 1940) and six of whom are not interested persons. None of the trustees who are not interested persons of the Funds have ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below. The Funds' Statement of Additional Information ("SAI") includes more information about the Trustees. To request a free copy, call Nuveen Investments at (800) 257-8787.
YEAR FIRST PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS NAME, BIRTHDATE POSITION(S) HELD ELECTED OR APPOINTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX AND ADDRESS WITH THE FUND AND TERM OF OFFICE DURING PAST 5 YEARS OVERSEEN BY TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ TRUSTEE WHO IS AN INTERESTED PERSON OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger Chairman of the 1994 Chairman and Director (since July 1996) 130 (1) Board, President Term of The John Nuveen Company, Nuveen 3/28/1949 and Trustee Indefinite (2) Investments, Nuveen Advisory Corp. and 333 West Wacker Drive Nuveen Institutional Advisory Corp.; Chicago, IL 60606 prior thereto, Executive Vice President and Director of The John Nuveen Company and Nuveen Investments; Director (since 1992) and Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; Chairman and Director (since January 1997) of Nuveen Asset Management, Inc.; Director (since 1996) of Institutional Capital Corporation; Chairman and Director (since 1999) of Rittenhouse Financial Services Inc.; Chief Executive Officer (since September 1999) of Nuveen Senior Loan Asset Management Inc. TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ ROBERT P. BREMNER Trustee 1997 Private Investor and Management Consultant. 112 8/22/1940 Term 333 W. Wacker Drive Indefinite (2) Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ LAWRENCE H. BROWN Trustee 1993 Retired (August 1989) as Senior Vice President 112 7/29/1934 Term of The Northern Trust Company. 333 W. Wacker Drive Indefinite (2) Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ ANNE E. IMPELLIZZERI Trustee 1994 Retired (2002); formerly, Executive Director 112 1/26/1933 Term (since 1998) of Manitoga (Center for Russel 333 W. Wacker Drive Indefinite (2) Wright's Design with Nature); prior thereto, Chicago, IL 60606 President and Chief Executive Officer of Blanton-Peale Institutes of Religion and Health (since December 1990); prior thereto, Vice President, Metropolitan Life Insurance Co. ------------------------------------------------------------------------------------------------------------------------------------ PETER R. SAWERS Trustee 1991 Adjunct Professor of Business and Economics, 112 4/3/1933 Term University of Dubuque, Iowa; Director, Executive 333 W. Wacker Drive Indefinite (2) Service Corps of Chicago (not-for-profit); Director, Chicago, IL 60606 Hadley School for the Blind (not-for-profit); formerly (1991-2000) Adjunct Professor, Lake Forest Graduate School of Management, Lake Forest, Illinois; prior thereto, Executive Director, Towers Perrin Australia, a management consulting firm; Chartered Financial Analyst; Certified Management Consultant. 60 YEAR FIRST PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS NAME, BIRTHDATE POSITION(S) HELD ELECTED OR APPOINTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX AND ADDRESS WITH THE FUND AND TERM OF OFFICE DURING PAST 5 YEARS OVERSEEN BY TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ WILLIAM J. SCHNEIDER Trustee 1997 Senior Partner and Chief Operating Officer, 112 9/24/1944 Term Miller-Valentine Group, Vice President, 333 W. Wacker Drive Indefinite (2) Miller-Valentine Realty, a development and Chicago, IL 60606 contract company; Chair, Miami Valley Hospital; Vice Chair, Miami Valley Economic Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio; and Business Advisory Council, Cleveland Federal Reserve Bank. ------------------------------------------------------------------------------------------------------------------------------------ JUDITH M. STOCKDALE Trustee 1997 Executive Director, Gaylord and Dorothy 112 12/29/1947 Term Donnelley Foundation (since 1994); prior 333 W. Wacker Drive Indefinite (2) thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX AND ADDRESS WITH THE FUND OR APPOINTED (3) DURING PAST 5 YEARS OVERSEEN BY OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ MICHAEL T. ATKINSON Vice President 2002 Vice President (since January 2002), formerly, 130 2/3/1966 Assistant Vice President (since 2000), previously, 333 W. Wacker Drive Associate of Nuveen Investments. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ PAUL L. BRENNAN Vice President 2002 Vice President (since January 2002), formerly, 126 11/10/1966 Assistant Vice President, of Nuveen 333 W. Wacker Drive Advisory Corp. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ PETER H. D'ARRIGO Vice President 1999 Vice President of Nuveen Investments (since 130 11/28/1967 and Treasurer January 1999), prior thereto, Assistant Vice 333 W. Wacker Drive President (from January 1997); formerly, Chicago, IL 60606 Associate of Nuveen Investments; Vice President and Treasurer (since September 1999) of Nuveen Senior Loan Asset Management Inc.; Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ MICHAEL S. DAVERN Vice President 1997 Vice President of Nuveen Advisory Corp. 126 6/26/1957 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ SUSAN M. DESANTO Vice President 2001 Vice President of Nuveen Advisory Corp. (since 130 9/8/1954 August 2001); previously, Vice President of 333 W. Wacker Drive Van Kampen Investment Advisory Corp. Chicago, IL 60606 (since 1998); prior thereto, Assistant Vice President of Van Kampen Investment Advisory Corp. 61 Trustees and Officers (continued) PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX AND ADDRESS WITH THE FUND OR APPOINTED (3) DURING PAST 5 YEARS OVERSEEN BY OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ JESSICA R. DROEGER Vice President 2002 Vice President (since January 2002) and Assistant 130 9/24/1964 General Counsel (since May 1998), formerly 333 W. Wacker Drive Assistant Vice President of Nuveen Investments; Chicago, IL 60606 Assistant Vice President and Assistant Secretary (since 1998) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; prior thereto, Associate at the law firm D'Ancona Partners LLC ------------------------------------------------------------------------------------------------------------------------------------ LORNA C. FERGUSON Vice President 1998 Vice President of Nuveen Investments; Vice 130 10/24/1945 President (since January 1998) of Nuveen 333 W. Wacker Drive Advisory Corp. and Nuveen Institutional Chicago, IL 60606 Advisory Corp. ------------------------------------------------------------------------------------------------------------------------------------ WILLIAM M. FITZGERALD Vice President 1995 Managing Director of Nuveen Advisory Corp. and 130 3/2/1964 Nuveen Institutional Advisory Corp. (since February 333 W. Wacker Drive 2001); prior thereto, Vice President of Nuveen Chicago, IL 60606 Advisory Corp.; Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ STEPHEN D. FOY Vice President 1998 Vice President of Nuveen Investments and 130 5/31/1954 and Controller (since May 1998) The John Nuveen Company; Vice 333 W. Wacker Drive President (since September 1999) of Nuveen Chicago, IL 60606 Senior Loan Asset Management Inc.; Certified Public Accountant. ------------------------------------------------------------------------------------------------------------------------------------ J. THOMAS FUTRELL Vice President 1992 Vice President of Nuveen Advisory Corp.; 126 7/5/1955 Chartered Financial Analyst. 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ RICHARD A. HUBER Vice President 1997 Vice President of Nuveen Institutional Advisory 126 3/26/1963 Corp. (since March 1998) and Nuveen 333 W. Wacker Drive Advisory Corp. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ STEVEN J. KRUPA Vice President 1990 Vice President of Nuveen Advisory Corp. 126 8/21/1957 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ DAVID J. LAMB Vice President 2000 Vice President (since March 2000) of Nuveen 130 3/22/1963 Investments, previously Assistant Vice 333 W. Wacker Drive President (since January 1999); prior thereto, Chicago, IL 60606 Associate of Nuveen Investments; Certified Public Accountant. ------------------------------------------------------------------------------------------------------------------------------------ TINA M. LAZAR Vice President 2002 Vice President (since 1999), previously, 130 8/27/1961 Assistant Vice President (since 1993) of 333 W. Wacker Drive Nuveen Investments. Chicago, IL 60606 62 PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX AND ADDRESS WITH THE FUND OR APPOINTED (3) DURING PAST 5 YEARS OVERSEEN BY OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ LARRY W. MARTIN Vice President 1992 Vice President, Assistant Secretary and 130 7/27/1951 and Assistant Assistant General Counsel of Nuveen 333 W. Wacker Drive Secretary Investments; Vice President and Assistant Chicago, IL 60606 Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; Vice President and Assistant Secretary of The John Nuveen Company and Nuveen Asset Management, Inc.; Vice President and Assistant Secretary (since September 1999) of Nuveen Senior Loan Asset Management Inc. ------------------------------------------------------------------------------------------------------------------------------------ EDWARD F. NEILD, IV Vice President 1996 Managing Director (since September 1997), previously 130 7/7/1965 Vice President of Nuveen Advisory Corp. and 333 W. Wacker Drive Nuveen Institutional Advisory Corp.; Chartered Chicago, IL 60606 Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ THOMAS J. O'SHAUGHNESSY Vice President 2002 Vice President (since January 2002), formerly, 126 9/4/1960 Assistant Vice President (1998), of Nuveen 333 W. Wacker Drive Advisory Corp.; prior thereto, Portfolio Manager. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ THOMAS C. SPALDING, JR. Vice President 1982 Vice President of Nuveen Advisory Corp. and 126 7/31/1951 Nuveen Institutional Advisory Corp.; Chartered 333 W. Wacker Drive Financial Analyst. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ GIFFORD R. ZIMMERMAN Vice President 1992 Managing Director (since January 2002), 130 9/9/1956 and Secretary Assistant Secretary and Associate General 333 W. Wacker Drive Counsel, formerly Assistant General Counsel Chicago, IL 60606 and Vice President of Nuveen Investments; Managing Director (since January 2002), General Counsel and Assistant Secretary, formerly Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; Vice President and Assistant Secretary of The John Nuveen Company; Managing Director (since January 2002), and Assistant Secretary (since September 1999), formerly Vice President of Nuveen Senior Loan Asset Management Inc.; Managing Director (since January 2002), Assistant Secretary and Associate General Counsel, formerly Vice President (since 2000), of Nuveen Asset Management Inc.; Chartered Financial Analyst. (1)Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and director of Nuveen Advisory Corp. (2)Trustees serve an indefinite term until his/her successor is elected. (3)Officers serve one year terms through July of each year.
63 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 tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distrib utions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of 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. 64 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 JPMorgan Chase Bank P.O. Box 660086 Dallas, TX 75266-0086 (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 period ended May 31, 2002. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 65 Serving Investors for Generations Photo of: John Nuveen, Sr. 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. Logo: NUVEEN Investments Nuveen Investments o 333 West Wacker Drive Chicago, IL 60606 o www.nuveen.com FAN-C-0502