N-30D 1 nv28118.txt ESA-C-1102D SEMIANNUAL REPORT November 30, 2002 Nuveen Municipal Closed-End Exchange-Traded Funds CONNECTICUT NTC NFC NGK NGO MASSACHUSETTS NMT NMB MISSOURI NOM PHOTO OF: 2 WOMAN WITH GRADUATION CAP AND GOWN. PHOTO OF: MAN AND GIRL WORKING ON A LAPTOP COMPUTER. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) 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. Logo: NUVEEN Investments 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. 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 FUND INFORMATION THROUGH THE INTERNET AND BY E-MAIL... SEE THE INSIDE FRONT COVER OF THIS REPORT FOR STEP-BY-STEP INSTRUCTIONS." Dear SHAREHOLDER Once again, I am pleased to write that during the period covered by this report your Nuveen Fund continued to meet its objective of providing attractive monthly income free from federal income taxes and, where applicable, state income taxes. Detailed information on your Fund's performance can be found in the Portfolio Managers' Comments and on the Performance Overview pages within this report. Please take the time to read them. In addition to providing regular tax-free income, we believe that a municipal bond investment like your Nuveen Fund also may offer opportunities to reduce the risk of your overall investment portfolio. This is because the prices of municipal bonds may move differently than the prices of the common stocks, mutual funds or other investments you may own. Since one part of your portfolio may be going up when another is going down, portfolio diversification may reduce your overall risk. Your financial advisor can explain the advantages of portfolio diversification in more detail. I urge you to contact him or her soon for more information on this important investment strategy. I also urge you to consider receiving future Fund reports and other Fund information through the Internet and by e-mail rather than in hard copy. Not only will you be able to receive the information faster, but this also may help lower your Fund expenses. Sign up is quick and easy - see the inside front cover of this report for step-by-step instructions. For more than 100 years, Nuveen has specialized in offering quality investments such as your Nuveen Fund to those seeking to accumulate and preserve wealth. Our commitment to careful research, constant surveillance and judicious trading by our seasoned portfolio management team has never been stronger. Our mission continues to be to assist you and your financial advisor by offering the investment solutions and services that can help you meet your financial objectives. We thank you for choosing us as a partner as you work toward that goal. Sincerely, /s/ TIMOTHY R. SCHWERTFEGER TIMOTHY R. SCHWERTFEGER Chairman of the Board January 15, 2003 1 Nuveen Municipal Closed-End Exchange-Traded Funds (NTC, NFC, NGK, NGO, NMT, NMB, NOM) Portfolio Managers' COMMENTS Portfolio managers Paul Brennan and Tom Futrell discuss U.S. and state economic conditions, key investment strategies, and the recent performance of the Funds. Paul, who has eleven years of investment experience, including five with Nuveen, assumed portfolio management responsibility for NTC in 1999, NFC in 2001, and NGK and NGO upon their inceptions in March and September 2002, respectively. A 19-year veteran of Nuveen, Tom has managed NMT since 1998 and NMB and NOM since 2001. (In January 2003, as part of a general realignment of portfolio management assignments, Paul Brennan assumed primary responsibility for NMT and NMB. Rick Huber, who has 17 years' investment management experience, took over NOM. There were no changes in the investment objectives or general investment strategies of these Funds.) WHAT WERE THE MAJOR FACTORS AFFECTING THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THIS REPORTING PERIOD? In many ways, economic and market conditions did not significantly change since the last shareholder report dated May 2002. We believe the most influential factors affecting the U.S. economy and the municipal market continued to be the slow pace of economic growth and interest rates that remained at 40-year lows. The ongoing threat of terrorism and continued geopolitical uncertainty also had an economic impact during this reporting period. In the municipal market, the sluggish economic recovery and lack of inflationary pressures helped many bonds perform well during much of 2002. However, during October and, to a lesser degree, November 2002, the market environment for all fixed income investments was negatively impacted by a rebound in the equity markets, which appeared to prompt some investors to sell fixed income products and purchase common stocks. During the first eleven months of 2002, new municipal supply nationwide reached a record $328 billion, a 27% increase over January-November 2001 levels. Demand for municipal bonds also remained strong over most of this period, as many individual investors continued to seek investments offering tax-free income and diversification for their portfolios. Institutional investors, especially traditional municipal bond purchasers such as property/casualty insurance companies, also were active buyers. WHAT ABOUT ECONOMIC AND MARKET CONDITIONS IN THESE STATES? Despite weaker employment trends and a heavy debt load, Connecticut remained a very affluent state, with the highest per capita income in the nation. While the main drivers of the state's diverse economy - manufacturing, financial services, and insurance - continued to be weak, biopharmaceutical firms exhibited some growth, and housing construction remained strong. As of November 2002, the state's unemployment rate was 4.4%, up from 3.9% a year ago, but still well below the national average of 6.0%. Due to a steep drop in tax collections based on personal income and capital gains, Connecticut experienced budgetary pressures, exhausted its reserves and employed a number of one-time sources to close the gap in its fiscal 2003 budget. As a result, the state has few remaining resources to resolve its current $500 million shortfall or offset any continued revenue erosion. Reflecting the state's continued budgetary issues, Moody's and Standard & Poor's in August revised their outlooks for Connecticut to negative from 2 stable, while the state's credit ratings remained at Aa2/AA, respectively. During the first eleven months of 2002, Connecticut went against the general trend toward increased supply, issuing $4.8 billion in new municipal bonds, down 7% from January-November 2001. Both Massachusetts and Missouri maintained their Moody's and S&P credit ratings at Aa2/AA- and Aaa/AAA, respectively, although Moody's revised its outlook for Massachusetts to negative from stable in December 2001. As of November 30, 2002, Massachusetts had issued more than $13 billion in municipal debt in 2002, up 50% over the first 11 months of 2001, while new supply in Missouri totaled $5 billion, a decline of 22% from 2001 levels. Traditionally a small issuer, Missouri is expected to see increased supply over the next few years, with a $2.3 billion highway issue and a number of general obligation issues on the municipal schedule. Looking at the Massachusetts economy, the commonwealth continued to struggle with budget pressures brought on by a drop in tax revenues. The $2.3 billion shortfall in the fiscal 2003 budget was addressed by freezing a scheduled tax cut, reinstating taxes on capital gains, drawing on rainy day reserves, and further cutting expenses. However, since the 2003 budget was passed, an additional $99 million gap has emerged, and the projected deficit for fiscal 2004 is currently pegged at $2 billion. In November 2002, unemployment in Massachusetts stood at 5.0%, as the manufacturing sector continued to shed jobs. Healthcare, education, financial services, and technology remained the commonwealth's primary economic drivers, while its defense contractors stand to gain from increased government spending over the next few years. In Missouri, the state economy continued to slow, with job losses in construction and wholesale trade and a long-running decline in manufacturing, particularly in old-line sectors such as auto-making. Although the state offers diversity from an industrial perspective, the Missouri job market is expected to show continued weakness, with little new job creation in manufacturing over the short term. New job growth in the non-manufacturing sectors has also been relatively flat in past years. As of November 2002, Missouri's jobless rate remained relatively stable at 5.1%. On the plus side, the state's financial operations continued to be well managed, and debt levels remained relatively low. The combination of well-managed fiscal operations and a good reserve position has provided Missouri with some degree of financial flexibility and a potential cushion against further erosion in tax collections. HOW DID THESE FUNDS PERFORM OVER THE TWELVE MONTHS ENDED NOVEMBER 30, 2002? Individual results for the Funds are presented in the accompanying table. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 ------------------------------------------------------------------------------ 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 11/30/02 EQUIVALENT3 11/30/02 11/30/02 11/30/02 ------------------------------------------------------------------------------ NTC 5.37% 8.01% 7.68% 6.32% 7.80% ------------------------------------------------------------------------------ NFC 5.60% 8.36% 8.75% 6.32% 7.80% ------------------------------------------------------------------------------ NGK 5.48% 8.18% NA - - ------------------------------------------------------------------------------ NGO 5.36% 8.00% NA - - ------------------------------------------------------------------------------ NMT 5.68% 8.54% 6.92% 6.32% 7.80% ------------------------------------------------------------------------------ NMB 5.27% 7.92% 8.98% 6.32% 7.80% ------------------------------------------------------------------------------ NOM 5.51% 8.35% 7.08% 6.32% 7.80% ------------------------------------------------------------------------------ Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. 1 The total annual returns on common share net asset value (NAV) for these Nuveen Funds are compared with the total annual return of the Lehman Brothers Municipal Bond Index, an unleveraged national index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of these Funds are compared with the average annualized return of the 31 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%, Massachusetts 33.5%, and Missouri 34%. 3 For the twelve months ended November 30, 2002, each of the five Funds in this report having at least one year of performance history outperformed the unleveraged, unmanaged Lehman Brothers Municipal Bond Index. We believe that much of this outperformance can be attributed to the leveraged structure of these Funds, which provides the opportunity for additional income for common shareholders while adding volatility to the Fund's NAV and share price. We think it can also be attributed in some cases to the relatively long leverage-adjusted durations4 of these Funds, which should help the Funds to perform well during periods of declining interest rates. It is difficult to compare the performance of these Funds with the Lipper Average shown in the table because Lipper combines the performance of many different funds from different states into one overall multi-state average. Looking specifically at the Connecticut and Massachusetts Funds, we believe that their respective durations were the primary reasons for the performance differences. The older Funds, NTC and NMT, had significantly shorter durations as of November 30, 2002, than NFC and NMB. In a falling interest rate environment, as was the case over most of the reporting period, longer-duration Funds generally would be expected to outperform shorter-duration Funds. In addition, the performance of each of these Funds was also influenced by other factors, including call exposure, portfolio trading activity, and the price movement of specific sectors. For example, NMT also held $2.5 million in resource recovery bonds issued for the Ogden Haverhill project in Massachusetts, which were negatively impacted when the parent company declared bankruptcy. While this event hurt the price performance of the bonds, the issue continues to make coupon payments. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? As the Federal Reserve continued to keep short-term interest rates relatively low, the dividend-paying capabilities of these Funds benefited from their use of leverage, a strategy that can potentially enhance the dividends paid to common shareholders. The amount of this benefit is tied in part to the short-term rates the Funds pay their MuniPreferred, shareholders. Low short-term rates, such as those currently in effect, 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 November 30, 2002, the relatively low level of short-term interest rates enabled us to implement three dividend increases in NOM and two in both NTC and NMT. NFC and NMB, which were introduced in 2001, and NGK, which debuted in March 2002, continued to pay attractive monthly dividends during this period, while NGO, which was introduced in September 2002, paid its first dividend in November 2002. Over the course of the entire reporting period, the share prices of NTC, NGK, NMB, and NOM rose. 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. References to duration in this commentary are intended to indicate Fund duration unless otherwise noted. 4 For NFC, NGO and NMT, however, the general weakening of bond prices during October and November 2002 resulted in share prices that ended the reporting period lower than where they were six months earlier. All of the Funds covered in this report were trading at premiums to their common share net asset values as of the end of this reporting period (see charts on individual Performance Overview pages). WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED NOVEMBER 30, 2002? Over the period, our strategic focus continued to be on working to diversify Fund holdings, enhance call protection, and position the Funds more defensively in anticipation of potential changes in the interest rate environment. Specifically, that included purchasing a number of high-quality and insured bonds as well as bonds in the 15- to 20-year part of the yield curve. We believed bonds in this maturity range offered yields similar to those of longer bonds, but with less overall risk. We think the addition of these long-intermediate bonds should help to moderate the Funds' durations over time, making the portfolios less sensitive to interest rate changes while still allowing the Funds to provide competitive yields and returns. The addition of bonds with 15- to 20-year maturities resulted in a shortening of the durations for all of the Funds except the older NTC and NMT, where the reinvestment of call proceeds into this part of the yield curve actually led to a modest lengthening of duration. In addition to an emphasis on yield curve positioning and risk reduction, we also continued to look for individual issues that we believed could perform well regardless of the future direction of interest rates. As supply remained tight in Connecticut, we took full advantage of new issues as they came to market, concentrating our trading activity on general obligation and higher education issues. In Massachusetts, where supply was more plentiful, our focus was on finding attractive bonds in sectors that we believed were undervalued, including general obligation bonds. In Missouri, tight supply in both the primary and secondary markets kept trading activity relatively low. One transaction of note was the sale of bonds issued for privatized student housing at Mineral Area College, which at one time represented almost 5% of NOM's portfolio. Based on our assessment of the long-term prospects of this credit, we methodically sold more than 85% of our position over the past twelve months, and we anticipate completely eliminating this position in the near future. In the current geopolitical and economic climate, we believe that maintaining strong credit quality remains a key requirement. As of November 30, 2002, each of these Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 75% to 91%. In September 2002, we introduced the new Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO). As of November 30, 2002, this Fund 5 had completed the initial investment phase and was in the process of investing proceeds from its MuniPreferred offering. As mentioned earlier, NGO paid its first dividend in November 2002. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN PARTICULAR? In general, our outlook for the fixed income markets remains positive. We believe the U.S. economy is headed for an eventual recovery, but one that may be less robust and slower to arrive than some are predicting. We expect inflation and interest rates to remain relatively low over the near term, while new municipal volume nationally should continue to be strong, though probably below the record levels seen in 2002, as issuers take advantage of the low rate environment for both new issues and refinancings. Given the continued need for Connecticut and Massachusetts to address budgetary imbalances, issuance should remain strong in these states, while Missouri, as mentioned earlier, also is expected to see an increase in supply. Demand for tax-exempt municipal bonds should remain solid, as investors continue to look for ways to rebalance their portfolios and reduce overall investment risk. Over the next two years, we believe that these Funds generally will offer good levels of call protection, with call exposure ranging from 1% in NGK and NGO to 26% in NMT during 2003 and 2004. During the past twelve months, we worked to mitigate the call risk and improve the positions of all the Funds, particularly NTC, NMT, and NOM, which mark their 10-year anniversaries in 2003. In Connecticut, in particular, this was an incremental process due to the sporadic nature of issuance in the state. While the number of actual calls in each Fund will depend largely on market interest rates over this time, we believe the short-term call exposure of these Funds is manageable. In the months ahead, we will attempt to manage Fund durations through additional purchases of high-quality bonds in the 15- to 20-year part of the yield curve. While the projected budget deficits in Connecticut and Massachusetts could result in heavy issuance and increased trading opportunities for us, we will continue to monitor the potential impact on the states' fiscal health and position our portfolios accordingly. If Missouri supply improves during 2003, our plans include looking for opportunities to sell bonds with call dates of 2005-2007 and reinvesting the proceeds further out on the yield curve. In general, we plan to remain focused on strategies that can add value for our shareholders and provide support for the Funds' long-term dividend-paying capabilities. 6 Nuveen Connecticut Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2002 NTC Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 71% AA 18% A 4% BBB 6% NR 1% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $16.10 -------------------------------------------------- Common Share Net Asset Value $14.71 -------------------------------------------------- Market Yield 5.37% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.67% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.01% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $77,827 -------------------------------------------------- Average Effective Maturity (Years) 18.70 -------------------------------------------------- Leverage-Adjusted Duration 8.43 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/93) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year 6.12% 7.68% -------------------------------------------------- 5-Year 6.54% 6.64% -------------------------------------------------- Since Inception 6.20% 6.27% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Education and Civic Organizations 22% -------------------------------------------------- Tax Obligation/General 17% -------------------------------------------------- Tax Obligation/Limited 12% -------------------------------------------------- Healthcare 11% -------------------------------------------------- Housing/Single Family 7% -------------------------------------------------- Bar chart: 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.070 Jan 0.070 Feb 0.070 Mar 0.071 Apr 0.071 May 0.071 Jun 0.071 Jul 0.071 Aug 0.071 Sep 0.072 Oct 0.072 Nov 0.072 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/01 16.11 15.98 15.80 15.75 15.90 15.94 16.30 16.32 16.35 16.52 16.61 16.57 16.78 16.74 16.10 15.80 15.92 15.74 15.68 15.61 15.90 16.10 16.20 16.20 16.05 16.05 16.45 16.52 16.78 16.70 17.56 16.70 17.10 16.70 16.60 17.05 16.95 16.46 16.25 16.31 16.65 16.40 16.56 16.75 16.47 16.15 15.85 15.73 16.12 16.19 16.00 11/30/02 16.10 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. 7 Nuveen Connecticut Dividend Advantage Municipal Fund Performance OVERVIEW As of November 30, 2002 NFC Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 55% AA 20% A 16% BBB 7% NR 2% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $14.99 -------------------------------------------------- Common Share Net Asset Value $14.58 -------------------------------------------------- Market Yield 5.60% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.00% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.36% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $37,143 -------------------------------------------------- Average Effective Maturity (Years) 20.77 -------------------------------------------------- Leverage-Adjusted Duration 11.32 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/01) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year -1.12% 8.75% -------------------------------------------------- Since Inception 5.25% 6.74% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/General 23% -------------------------------------------------- Education and Civic Organizations 20% -------------------------------------------------- Utilities 11% -------------------------------------------------- Tax Obligation/Limited 10% -------------------------------------------------- Housing/Single Family 10% -------------------------------------------------- Bar chart: 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0700 Jan 0.0700 Feb 0.0700 Mar 0.0700 Apr 0.0700 May 0.0700 Jun 0.0700 Jul 0.0700 Aug 0.0700 Sep 0.0700 Oct 0.0700 Nov 0.0700 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/01 16.04 15.87 15.72 15.80 15.98 16.10 16.26 16.46 16.10 16.60 16.36 16.34 15.92 15.59 15.25 14.91 14.97 14.90 14.90 14.97 15.20 15.50 15.68 15.54 15.70 15.79 15.77 16.00 16.08 16.05 16.00 16.41 16.25 15.58 15.82 15.83 16.00 16.05 15.54 15.60 15.74 15.60 15.70 16.00 16.10 15.60 15.50 15.51 15.80 15.85 14.93 11/30/02 14.99 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%. 8 Nuveen Connecticut Dividend Advantage Municipal Fund 2 Performance OVERVIEW As of November 30, 2002 NGK Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 69% AA 20% A 7% BBB 4% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $15.10 -------------------------------------------------- Common Share Net Asset Value $14.93 -------------------------------------------------- Market Yield 5.48% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.83% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.18% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $34,451 -------------------------------------------------- Average Effective Maturity (Years) 20.82 -------------------------------------------------- Leverage-Adjusted Duration 11.72 -------------------------------------------------- CUMULATIVE TOTAL RETURN (Inception 3/02) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- Since Inception 3.86% 7.59% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/General 37% -------------------------------------------------- Education and Civic Organizations 24% -------------------------------------------------- Tax Obligation/Limited 10% -------------------------------------------------- Utilities 9% -------------------------------------------------- U.S. Guaranteed 6% -------------------------------------------------- Bar chart: 2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE May 0.0690 Jun 0.0690 Jul 0.0690 Aug 0.0690 Sep 0.0690 Oct 0.0690 Nov 0.0690 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/28/02 15.10 15.02 15.01 15.01 15.05 15.05 15.10 15.20 15.10 15.05 15.37 15.35 15.80 15.65 15.60 15.75 15.45 15.65 16.15 15.70 15.93 15.90 15.60 15.50 15.38 15.39 15.46 15.58 15.49 14.71 15.00 15.15 15.30 15.20 15.05 11/30/02 15.10 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%. 9 Nuveen Connecticut Dividend Advantage Municipal Fund 3 Performance OVERVIEW As of November 30, 2002 NGO Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 84% AA 7% A 6% BBB 3% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $14.56 -------------------------------------------------- Common Share Net Asset Value $13.86 -------------------------------------------------- Market Yield 5.36% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.66% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.00% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $59,834 -------------------------------------------------- Average Effective Maturity (Years) 22.04 -------------------------------------------------- Leverage-Adjusted Duration 17.31 -------------------------------------------------- CUMULATIVE TOTAL RETURN (Inception 9/02) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- Since Inception -2.50% -2.83% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/Limited 28% -------------------------------------------------- Tax Obligation/General 26% -------------------------------------------------- Education and Civic Organizations 19% -------------------------------------------------- Long-Term Care 7% -------------------------------------------------- Housing Single Family 5% -------------------------------------------------- THE FUND PAID ITS FIRST REGULAR MONTHLY DIVIDEND OF $0.0650 PER SHARE ON DECEMBER 2, 2002. Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/27/02 15.00 15.06 15.25 15.06 15.00 15.00 15.05 14.90 14.65 11/30/02 14.56 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%. 10 Nuveen Massachusetts Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2002 NMT Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 69% AA 8% A 14% BBB 7% NR 2% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $15.32 -------------------------------------------------- Common Share Net Asset Value $14.69 -------------------------------------------------- Market Yield 5.68% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.11% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.54% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $68,982 -------------------------------------------------- Average Effective Maturity (Years) 18.00 -------------------------------------------------- Leverage-Adjusted Duration 9.60 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/93) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year 0.95% 6.92% -------------------------------------------------- 5-Year 5.07% 6.08% -------------------------------------------------- Since Inception 5.86% 6.35% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Housing/Multifamily 20% -------------------------------------------------- U.S. Guaranteed 20% -------------------------------------------------- Education and Civic Organizations 18% -------------------------------------------------- Healthcare 14% -------------------------------------------------- Tax Obligation/General 12% -------------------------------------------------- Bar chart: 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0700 Jan 0.0700 Feb 0.0700 Mar 0.0700 Apr 0.0700 May 0.0700 Jun 0.0710 Jul 0.0710 Aug 0.0710 Sep 0.0725 Oct 0.0725 Nov 0.0725 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/01 15.88 15.70 15.76 15.67 15.51 15.66 15.76 15.83 15.83 15.73 15.90 15.85 16.04 15.90 15.71 15.25 14.95 14.99 15.10 15.30 15.46 15.65 15.71 15.90 15.56 15.70 15.93 16.02 15.75 15.90 16.25 16.43 16.27 16.23 16.40 16.06 15.91 16.12 16.12 16.45 16.63 16.41 16.51 16.76 16.09 15.90 15.38 15.85 15.98 15.94 15.26 11/30/02 15.32 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 Massachusetts Dividend Advantage Municipal Fund Performance OVERVIEW As of November 30, 2002 NMB Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 66% AA 15% A 6% BBB 13% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $16.63 -------------------------------------------------- Common Share Net Asset Value $14.73 -------------------------------------------------- Market Yield 5.27% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.53% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 7.92% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $28,641 -------------------------------------------------- Average Effective Maturity (Years) 24.37 -------------------------------------------------- Leverage-Adjusted Duration 12.69 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/01) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year 13.45% 8.98% -------------------------------------------------- Since Inception 11.66% 7.60% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Education and Civic Organizations 19% -------------------------------------------------- Tax Obligation/General 14% -------------------------------------------------- Healthcare 11% -------------------------------------------------- Transportation 10% -------------------------------------------------- Water and Sewer 10% -------------------------------------------------- Bar chart: 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0730 Jan 0.0730 Feb 0.0730 Mar 0.0730 Apr 0.0730 May 0.0730 Jun 0.0730 Jul 0.0730 Aug 0.0730 Sep 0.0730 Oct 0.0730 Nov 0.0730 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/01 15.62 15.20 15.08 15.22 15.47 15.54 15.60 15.36 15.50 15.20 15.20 15.31 15.36 15.51 15.32 15.57 15.70 15.74 15.72 15.78 15.80 15.92 15.90 15.90 15.85 15.95 16.25 16.29 16.68 16.69 17.05 16.75 16.70 16.40 16.95 16.80 16.43 16.39 16.62 16.78 16.73 16.65 16.83 17.22 16.64 16.95 16.61 16.50 16.50 16.45 16.35 11/30/02 16.63 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%. 12 Nuveen Missouri Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2002 NOM Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 73% AA 11% A 3% BBB 4% NR 9% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $15.80 -------------------------------------------------- Common Share Net Asset Value $14.52 -------------------------------------------------- Market Yield 5.51% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.87% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.35% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $32,124 -------------------------------------------------- Average Effective Maturity (Years) 15.58 -------------------------------------------------- Leverage-Adjusted Duration 8.91 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/93) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year 8.96% 7.08% -------------------------------------------------- 5-Year 8.03% 6.18% -------------------------------------------------- Since Inception 6.06% 5.85% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/General 21% -------------------------------------------------- Healthcare 18% -------------------------------------------------- Tax Obligation/Limited 17% -------------------------------------------------- U.S. Guaranteed 15% -------------------------------------------------- Housing/Multifamily 7% -------------------------------------------------- Bar chart: 2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0675 Jan 0.0675 Feb 0.0675 Mar 0.0695 Apr 0.0695 May 0.0695 Jun 0.0715 Jul 0.0715 Aug 0.0715 Sep 0.0725 Oct 0.0725 Nov 0.0725 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/01 15.30 15.26 15.07 15.08 15.07 15.12 15.19 15.37 15.29 15.41 15.30 15.25 15.25 15.56 15.52 15.45 15.45 15.30 15.25 15.21 15.45 15.50 15.50 15.41 15.55 15.41 15.50 15.75 16.00 16.40 16.44 16.45 16.41 16.50 16.68 16.61 16.75 16.66 16.63 16.69 16.77 16.67 16.65 17.22 17.20 16.05 15.53 15.67 16.14 15.79 15.78 11/30/02 15.80 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%. 13 Shareholder MEETING REPORT The Shareholder Meeting was held October 23, 2002 in Chicago at Nuveen's headquarters.
NTC NFC NMT ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Preferred Preferred Preferred Common Shares Common Shares Common Shares Shares Series-TH Shares Series-T Shares Series-TH ==================================================================================================================================== Robert P. Bremner For 4,823,132 1,501 2,498,721 769 4,417,905 1,264 Withhold 33,870 -- 9,558 -- 29,256 9 ------------------------------------------------------------------------------------------------------------------------------------ Total 4,857,002 1,501 2,508,279 769 4,447,161 1,273 ==================================================================================================================================== Lawrence H. Brown For 4,824,466 1,501 2,498,721 769 4,416,955 1,264 Withhold 32,536 -- 9,558 -- 30,206 9 ------------------------------------------------------------------------------------------------------------------------------------ Total 4,857,002 1,501 2,508,279 769 4,447,161 1,273 ==================================================================================================================================== Anne E. Impellizzeri For 4,824,466 1,501 2,498,721 769 4,417,905 1,264 Withhold 32,536 -- 9,558 -- 29,256 9 ------------------------------------------------------------------------------------------------------------------------------------ Total 4,857,002 1,501 2,508,279 769 4,447,161 1,273 ==================================================================================================================================== Peter R. Sawers For 4,824,466 1,501 2,498,721 769 4,416,955 1,264 Withhold 32,536 -- 9,558 -- 30,206 9 ------------------------------------------------------------------------------------------------------------------------------------ Total 4,857,002 1,501 2,508,279 769 4,447,161 1,273 ==================================================================================================================================== Judith M. Stockdale For 4,822,642 1,501 2,498,721 769 4,415,305 1,264 Withhold 34,360 -- 9,558 -- 31,856 9 ------------------------------------------------------------------------------------------------------------------------------------ Total 4,857,002 1,501 2,508,279 769 4,447,161 1,273 ==================================================================================================================================== William J. Schneider For -- 1,501 -- 769 -- 1,264 Withhold -- -- -- -- -- 9 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,501 -- 769 -- 1,273 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,501 -- 769 -- 1,264 Withhold -- -- -- -- -- 9 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,501 -- 769 -- 1,273 ====================================================================================================================================
14
NMB NOM ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Preferred Preferred Common Shares Common Shares Shares Series-T Shares Series-TH ==================================================================================================================================== Robert P. Bremner For 1,943,829 598 2,087,859 621 Withhold -- -- 29,376 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,943,829 598 2,117,235 621 ==================================================================================================================================== Lawrence H. Brown For 1,943,829 598 2,087,684 621 Withhold -- -- 29,551 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,943,829 598 2,117,235 621 ==================================================================================================================================== Anne E. Impellizzeri For 1,943,829 598 2,087,095 621 Withhold -- -- 30,140 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,943,829 598 2,117,235 621 ==================================================================================================================================== Peter R. Sawers For 1,943,829 598 2,088,359 621 Withhold -- -- 28,876 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,943,829 598 2,117,235 621 ==================================================================================================================================== Judith M. Stockdale For 1,943,829 598 2,087,559 621 Withhold -- -- 29,676 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,943,829 598 2,117,235 621 ==================================================================================================================================== William J. Schneider For -- 598 -- 621 Withhold -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 598 -- 621 ==================================================================================================================================== Timothy R. Schwertfeger For -- 598 -- 621 Withhold -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 598 -- 621 ====================================================================================================================================
15 Nuveen Connecticut Premium Income Municipal Fund (NTC) Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.1% $ 1,720 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 $ 1,664,908 Bonds, Series 2002 Refunding, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 32.6% Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), 1996 Series A: 1,130 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102.00 AAA 1,194,568 725 5.875%, 11/15/17 (Alternative Minimum Tax) at 102.00 AAA 757,335 780 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/09 at 102.00 AAA 826,862 Bonds (Family Education Loan Program), 1999 Series A, 6.000%, 11/15/18 (Alternative Minimum Tax) 980 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aaa 995,729 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 1,548,485 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 2,160,580 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 1,558,125 Revenue Bonds, Loomis Chaffee School Issue, Series C, 5.500%, 7/01/16 1,900 State of Connecticut Health and Educational Facilities Authority, 7/08 at 102.00 AAA 1,912,445 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 3,053,444 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 1,284,288 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 785,505 Revenue Bonds, 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 503,455 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 679,777 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 452,781 Revenue Bonds, Greenwich Academy, Series 2001B, 5.000%, 3/01/32 2,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 2,028,540 Revenue Bonds, University of Hartford Issue, Series 2002E, 5.250%, 7/01/32 1,500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,520,595 Revenue Bonds, Yale University Issue, Series 2002W, 5.125%, 7/01/27 3,060 University of Connecticut, Student Fee Revenue Bonds, 1998 11/08 at 101.00 AAA 2,983,928 Series A, 4.750%, 11/15/27 1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AAA 1,058,540 2002 Series A, 5.250%, 11/15/19 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 16.9% 1,000 State of Connecticut Health and Educational Facilities Authority, 7/04 at 102.00 AAA 1,077,160 Revenue Bonds, Newington Children's Hospital, Series A, 6.050%, 7/01/10 2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 1,988,160 Revenue Bonds, Stamford Hospital Issue, Series G, 5.000%, 7/01/24 1,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102.00 AAA 1,052,380 Revenue Bonds, The William W. Backus Hospital Issue, Series D, 5.750%, 7/01/27 16 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 3,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 101.00 Aaa $ 3,011,160 Revenue Bonds, Middlesex Health Services Issue, Series 1997H Refunding, 5.125%, 7/01/27 2,000 State of Connecticut Health and Educational Facilities Authority, 7/10 at 101.00 AA 2,176,300 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 2,226,020 Revenue Bonds, Pfizer, Inc. Project, 1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax) 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental 8/05 at 101.50 AAA 1,642,860 Control Facilities Financing Authority, Hospital Revenue Refunding Bonds (FHA-Insured Mortgage - Pila Hospital Project), 1995 Series A, 6.125%, 8/01/25 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.5% 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 12/09 at 100.00 AAA 1,047,430 Program Bonds, 1999 Series D2, 6.200%, 11/15/41 (Alternative Minimum Tax) 1,000 Housing Authority of the City of Waterbury, Connecticut, Mortgage 1/03 at 100.00 AAA 1,000,240 Refunding Revenue Bonds, Series 1998C (FHA-Insured Mortgage Loan - Waterbury NSA-II Section 8 Assisted Project), 5.450%, 7/01/23 900 Waterbury Nonprofit Housing Corporation, Connecticut Taxable 1/03 at 101.00 AAA 908,883 Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Fairmont Height Section 8 Assisted Project), Series 1993A, 6.500%, 7/01/07 1,915 Housing Authority of the City of Willimantic, Connecticut, 10/05 at 105.00 AAA 2,093,114 Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan - Village Heights Apartments Project), Series 1995A, 8.000%, 10/20/30 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.1% 3,175 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/03 at 102.00 AAA 3,268,917 Program Bonds, 1993 Series B, 6.200%, 5/15/12 1,250 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/06 at 102.00 AAA 1,303,663 Program Bonds, 1996 Series E (Subseries E-2), 6.150%, 11/15/27 (Alternative Minimum Tax) 190 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 200,784 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 505,365 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 534,445 Program Bonds, 2001 Series A (Subseries A-2), 5.450%, 5/15/32 (Alternative Minimum Tax) 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 1,008,240 Program Bonds, 2001 Series C, 5.300%, 11/15/33 (Alternative Minimum Tax) 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/12 at 100.00 AAA 1,010,780 Program Bonds, 2001 Series D (Subseries D-2), 5.350%, 11/15/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 9.7% 1,300 State of Connecticut Health and Educational Facilities Authority, 8/08 at 102.00 AAA 1,307,657 Revenue Bonds, Hebrew Home and Hospital Issue, Series B (FHA-Insured Mortgage), 5.200%, 8/01/38 2,000 State of Connecticut Health and Educational Facilities Authority, 11/03 at 102.00 AAA 2,098,960 Revenue Bonds, Nursing Home Program Issue, Series 1993, Mansfield Center for Nursing and Rehabilitation Project, 5.875%, 11/01/12 615 Connecticut Development Authority, First Mortgage Gross Revenue 9/09 at 102.00 AA 659,286 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 1,024,060 1,000 5.375%, 8/01/24 2/10 at 102.00 AA 1,020,060 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, Series 1994A: 475 6.875%, 8/15/04 No Opt. Call N/R 475,124 1,000 7.000%, 8/15/09 8/04 at 102.00 N/R 1,001,470 17 Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued) Portfolio of INVESTMENTS November 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 25.9% $ 750 City of Bridgeport, Connecticut, General Obligation Bonds, 8/12 at 100.00 Aaa $ 790,553 Series 2002A Refunding, 5.375%, 8/15/19 Town of Cheshire, Connecticut, General Obligation Bonds, Issue of 1999: 660 5.625%, 10/15/16 10/09 at 101.00 Aa3 722,462 660 5.625%, 10/15/17 10/09 at 101.00 Aa3 713,414 1,000 State of Connecticut, General Obligation Bonds, 1999 Series B, 11/09 at 101.00 AA 1,068,990 5.500%, 11/01/18 2,000 State of Connecticut, General Obligation Bonds, 2002 Series B, 6/12 at 100.00 AA 2,133,760 5.500%, 6/15/21 1,960 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA 2,289,006 6.000%, 3/15/12 1,500 State of Connecticut, General Obligation Bonds, 2002 Series A, 4/12 at 100.00 AA 1,592,940 5.375%, 4/15/19 1,650 State of Connecticut, General Fund Obligation Bonds, 1994 Series A, 10/04 at 102.00 AA 1,811,436 Issued By Connecticut Development Authority, 6.375%, 10/15/14 1,000 City of Hartford, Connecticut, General Obligation Bonds, 6/10 at 102.00 AAA 1,072,460 5.500%, 6/15/20 400 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A 415,524 Series 2000A, 6.000%, 6/01/20 500 Commonwealth of Puerto Rico, Public Improvement Refunding General 7/11 at 100.00 AAA 506,980 Obligation Bonds, Series of 2001, 5.125%, 7/01/30 1,500 Commonwealth of Puerto Rico, Public Improvement Refunding General No Opt. Call AAA 1,656,735 Obligation Bonds, Series of 2002A, 5.500%, 7/01/20 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 372,610 350 5.625%, 3/15/19 3/10 at 101.00 Aaa 376,530 350 5.700%, 3/15/20 3/10 at 101.00 Aaa 378,760 2,105 Town of Stratford, Connecticut, General Obligation Bonds, 2/12 at 100.00 AAA 2,064,016 Series 2002, 4.000%, 2/15/15 1,000 City of Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,069,600 Series 2002A, 5.375%, 4/01/17 965 City of Waterbury, Connecticut, General Obligation Tax Revenue 2/09 at 101.00 AA 1,032,019 Intercept Bonds, 2000 Issue, 6.000%, 2/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.3% 1,900 Capitol Region Education Council, Connecticut, Revenue Bonds, 10/05 at 102.00 BBB 2,021,049 Series 1995, 6.700%, 10/15/10 2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 102.00 AAA 2,107,020 Revenue Bonds, Child Care Facilities Program, Series C, 5.625%, 7/01/29 State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purpose, 2002 Series B: 2,000 5.000%, 12/01/20 12/12 at 100.00 AAA 2,048,260 1,000 5.000%, 12/01/21 12/12 at 100.00 AAA 1,017,730 1,000 State of Connecticut, Special Tax Obligation Bonds, Transportation 12/09 at 101.00 AAA 1,082,110 Infrastructure Purposes, 1999 Series A, 5.625%, 12/01/19 1,700 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 2,021,232 Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10 2,000 Puerto Rico Municipal Finance Agency, General Obligation Bonds, 2002 8/12 at 100.00 AAA 2,085,360 Series A, 5.250%, 8/01/21 (WI, settling 12/05/02) 1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101.00 BBB- 1,110,210 Islands Gross Receipts Tax Loan Note), Series 1999A, 6.500%, 10/01/24 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.2% 750 State of Connecticut, Bradley International Airport, General Airport 4/11 at 101.00 AAA 744,848 Revenue Bonds, Series 2001A, 5.125%, 10/01/26 (Alternative Minimum Tax) 2,075 State of Connecticut, Bradley International Airport, Airport Revenue 10/04 at 100.00 AAA 2,280,197 Refunding Bonds, Series 1992, 7.650%, 10/01/12 1,000 City of Hartford, Connecticut, Parking System Revenue Bonds, 2000 7/10 at 100.00 BBB 1,038,590 Series A, 6.400%, 7/01/20 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 6.4% $ 1,500 City of Bridgeport, Connecticut, General Obligation Bonds, 2000 7/10 at 101.00 AAA $ 1,751,250 Series A, 6.000%, 7/15/19 (Pre-refunded to 7/15/10) 1,415 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 1,558,240 Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 40 State of Connecticut, General Obligation Bonds, 1993 No Opt. Call AA*** 46,714 Series E, 6.000%, 3/15/12 1,000 State of Connecticut, Second Injury Fund Special Assessment Revenue 1/11 at 101.00 AAA 1,110,090 Bonds, Series 2000A, 5.250%, 1/01/14 (Pre-refunded to 1/01/11) 500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 533,280 Bonds, 2000 Series A, 5.500%, 10/01/40 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.0% 1,500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 1,567,575 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 2,450 Connecticut Resources Recovery Authority, Resource Recovery 5/03 at 101.50 AAA 2,550,328 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 Resource 12/11 at 102.00 Baa2 980,030 Recovery Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut, Series A, 5.500%, 11/15/15 (Alternative Minimum Tax) 395 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 385,698 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 1,418,955 Revenue Bonds (Bridgeport Hydraulic Company Project, 1993B Series, 5.500%, 6/01/28 2,500 Connecticut Development Authority, Water Facilities Revenue Bonds 9/06 at 102.00 AAA 2,739,400 (Bridgeport Hydraulic Company Project), 1996 Series, 6.000%, 9/01/36 (Alternative Minimum Tax) 1,000 State of Connecticut, Clean Water Fund Revenue Bonds, Series 2001, 10/11 at 100.00 AAA 1,071,820 5.500%, 10/01/20 1,795 South Central Connecticut Regional Water Authority, Water System 8/03 at 102.00 AAA 1,872,040 Revenue Bonds, Eleventh Series, 5.570%, 8/01/12 ------------------------------------------------------------------------------------------------------------------------------------ $ 110,320 Total Long-Term Investments (cost $110,763,720) - 148.8% 115,822,229 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.4% 305,185 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.2)% (38,300,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 77,827,414 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
19 Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.2% Guam Economic Development Authority, Asset-Backed Bonds, Series 2001A: $ 210 5.000%, 5/15/22 5/11 at 100.00 A2 $ 210,643 500 5.400%, 5/15/31 5/11 at 100.00 A2 508,305 1,270 Guam Economic Development Authority, Asset-Backed Bonds, 5/11 at 100.00 A2 1,218,146 Series 2001B, 5.500%, 5/15/41 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 29.6% 775 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aaa 787,439 Bonds, Family Education Loan Program, 2001 Series A, 5.250%, 11/15/18 (Alternative Minimum Tax) 50 State of Connecticut Health and Educational Facilities Authority, 7/08 at 101.00 AA 49,008 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- 516,160 Revenue Bonds, University of New Haven Issue, Series D, 6.700%, 7/01/26 2,500 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 2,517,275 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 1,045,810 Revenue Bonds, 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 628,863 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 1,014,270 Revenue Bonds, University of Hartford Issue, Series 2002E, 5.250%, 7/01/32 1,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,013,730 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, Series 1999 (Ana G. Mendez University System Project): 125 5.375%, 2/01/19 2/09 at 101.00 BBB 125,811 270 5.375%, 2/01/29 2/09 at 101.00 BBB 264,044 University of Connecticut, General Obligation Bonds, 2001 Series A: 1,000 5.250%, 4/01/20 4/11 at 101.00 AA 1,046,130 1,000 4.750%, 4/01/20 4/11 at 101.00 AA 1,002,560 1,000 4.750%, 4/01/21 4/11 at 101.00 AA 994,490 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 3.1% 125 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 124,260 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 1,040,400 Revenue Bonds, Bristol Hospital Issue, Series 2002B, 5.500%, 7/01/32 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.3% 2,000 Housing Authority of the City of Stamford, Connecticut, Multifamily No Opt. Call A3 1,972,300 Housing Revenue Refunding Bonds (The Fairfield Apartments Project), Series 1998, 4.750%, 12/01/28 (Alternative Minimum Tax) (Mandatory put 12/01/08) 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 14.4% $ 1,855 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/05 at 102.00 AAA $ 1,981,863 Program Bonds, 1995 Series F (Subseries F-1), 6.000%, 5/15/17 1,265 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 1,278,573 Program Bonds, 2001 Series A-1, 5.250%, 11/15/28 1,065 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 1,084,159 Program Bonds, 2001 Series A (Subseries A-2), 5.450%, 5/15/32 (Alternative Minimum Tax) 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 1,008,240 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 467,965 Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, Series 1994A, 7.250%, 8/15/21 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 33.6% 750 State of Connecticut, General Obligation Bonds, Series 2002B, 6/12 at 100.00 AA 800,160 5.500%, 6/15/21 1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,061,960 5.375%, 4/15/19 500 Town of East Lyme, Connecticut, General Obligation Bonds, 7/11 at 102.00 Aaa 520,010 Series 2001, 5.125%, 7/15/20 700 Farmington, Connecticut, General Obligation Bonds, 3/11 at 101.00 Aa1 714,644 Series 2001, 4.875%, 3/15/20 Town of Hamden, Connecticut, General Obligation Bonds: 640 5.250%, 8/15/18 8/11 at 102.00 AAA 684,045 635 5.000%, 8/15/19 8/11 at 102.00 AAA 655,974 300 5.000%, 8/15/20 8/11 at 102.00 AAA 308,886 1,000 City of Hartford, Connecticut, General Obligation Bonds, Series 1998, 1/08 at 102.00 AAA 1,030,170 4.700%, 1/15/15 375 City of New Haven, Connecticut, General Obligation Bonds, 2/08 at 101.00 AAA 382,039 Series 1999, 4.700%, 2/01/15 1,000 City of New Haven, Connecticut, General Obligation Bonds, 11/10 at 101.00 AAA 1,025,650 Series 2001A, 5.000%, 11/01/20 250 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A 259,703 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 610,945 245 5.000%, 4/01/16 4/09 at 100.00 Aaa 254,207 575 5.000%, 4/01/17 4/09 at 100.00 Aaa 593,711 475 5.000%, 4/01/18 4/09 at 100.00 Aaa 487,811 575 5.000%, 4/01/19 4/09 at 100.00 Aaa 587,328 275 5.000%, 4/01/20 4/09 at 100.00 Aaa 279,535 1,000 City of Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,069,600 Series 2002A, 5.375%, 4/01/17 Town of Windsor, Connecticut, General Obligation Bonds, Series 2001: 390 5.000%, 7/15/18 7/09 at 100.00 Aa2 400,936 390 5.000%, 7/15/19 7/09 at 100.00 Aa2 398,693 370 5.000%, 7/15/20 7/09 at 100.00 Aa2 376,346 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.4% 1,000 State of Connecticut Health and Educational Facilities Authority, 7/08 at 105.00 A 1,077,190 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 1,676,043 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- 608,382 1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 990,300 500 Virgin Islands Public Finance Authority, Revenue and Refunding 10/08 at 101.00 AA 518,680 Bonds (Virgin Islands Matching Fund Loan Notes), Series 1998A (Senior Lien/Refunding), 5.500%, 10/01/18 750 Virgin Islands Public Finance Authority Revenue Bonds (Virgin 10/10 at 101.00 BBB- 834,383 Islands Gross Receipts Tax Loan Note), Series 1999A, 6.375%, 10/01/19 21 Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) (continued) Portfolio of INVESTMENTS November 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.7% $ 2,500 State of Connecticut, General Airport Revenue Bonds, Series 2001A, 4/11 at 101.00 AAA $ 2,482,825 Bradley International Airport, 5.125%, 10/01/26 (Alternative Minimum Tax) 1,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 4/11 at 101.00 N/R 735,890 Special Facilities Revenue Bonds, Northwest Airlines, Inc. Project, Series 2001A, 7.000%, 4/01/25 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 9.9% 685 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 754,343 Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, 2000 Series A: 1,425 5.500%, 10/01/32 10/10 at 101.00 AAA 1,523,054 1,300 5.500%, 10/01/40 10/10 at 101.00 AAA 1,386,528 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 17.1% 1,500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 1,567,574 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 1,000 Connecticut Resources Recovery Authority, Corporate Credit Resource 12/11 at 102.00 Baa2 980,030 Recovery Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut, Series A, 5.500%, 11/15/15 (Alternative Minimum Tax) 1,000 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 976,450 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 2,029,172 Series HH, 5.250%, 7/01/29 790 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/05 at 100.00 A- 810,412 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 2,143,640 Series 2001, 5.500%, 10/01/20 ------------------------------------------------------------------------------------------------------------------------------------ $ 54,165 Total Long-Term Investments (cost $54,456,724) - 149.4% 55,497,693 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.1% 1,145,486 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.5)% (19,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 37,143,179 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. 22
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.4% $ 860 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 $ 832,454 Bonds, Series 2002 Refunding, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 35.4% 500 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- 516,160 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 505,800 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 2,033,820 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 1,006,180 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 1,014,270 Revenue Bonds, University of Hartford Issue, Series 2002E, 5.250%, 7/01/32 2,250 State of Connecticut Health and Educational Facilities Authority, 11/11 at 100.00 AAA 2,266,830 Revenue Bonds, Connecticut State University System, Series 2002D-2, 5.000%, 11/01/21 1,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,013,730 Revenue Bonds, Yale University Issue, Series 2002W, 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 520,510 2,000 5.000%, 11/15/29 11/12 at 101.00 AAA 2,014,240 1,230 University of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,305,953 5.375%, 4/01/19 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 2.9% 1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 995,630 Revenue Bonds, Saint Francis Hospital and Medical Center, Series 2002D, 5.000%, 7/01/22 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.9% 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/11 at 100.00 AAA 1,023,960 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 1,030,940 Program Bonds, 2002 Series A (Subseries A-2), 5.600%, 11/15/28 (Alternative Minimum Tax) 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/12 at 100.00 AAA 1,010,780 Program Bonds, 2001 Series D (Subseries D-2), 5.350%, 11/15/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.3% 450 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AAA 460,575 Revenue Bonds, The Village for Families and Children, Inc. Issue, Series A, 5.000%, 7/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 54.7% 1,000 City of Bridgeport, Connecticut, General Obligation Bonds, Series C, 8/11 at 100.00 AAA 1,059,090 5.375%, 8/15/18 2,000 State of Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,266,480 5.500%, 12/15/12 1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,061,960 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 759,758 750 5.000%, 5/01/21 5/10 at 100.00 Aaa 760,410 750 5.000%, 5/01/22 5/10 at 100.00 Aaa 759,008 2,105 Fairfield, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 2,214,755 5.000%, 4/01/16 23 Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) (continued) Portfolio of INVESTMENTS November 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Farmington, Connecticut, General Obligation Bonds, Series 2002: $ 1,000 5.000%, 9/15/20 9/12 at 101.00 Aa1 $ 1,031,890 1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,485,641 1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,326,963 Obligation Bonds, Series 2002, 5.000%, 4/01/22 Regional School District No. 008, Towns of Andover, Hebron and Marlborough, County of Tolland, Connecticut, General Obligation Bonds, Series 2002: 1,390 5.000%, 5/01/20 5/11 at 101.00 Aaa 1,427,252 1,535 5.000%, 5/01/22 5/11 at 101.00 Aaa 1,557,411 2,105 City of Stamford, Connecticut, General Obligation Bonds, 8/12 at 100.00 AAA 2,218,270 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 534,800 400 5.000%, 4/01/20 4/12 at 100.00 AAA 405,488 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.5% 1,625 State of Connecticut, Special Tax Obligation Bonds, Transportation 7/12 at 100.00 AAA 1,722,338 Infrastructure Purposes, 2002 Series A, 5.375%, 7/01/20 500 State of Connecticut, Special Tax Obligation Bonds, Transportation 10/11 at 100.00 AAA 552,105 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 521,340 Infrastructure Purposes, 1997 Series A, 5.000%, 11/01/15 2,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call AAA 2,184,500 Bonds, 2002 Series E, 5.500%, 8/01/27 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.3% 1,950 City of New Haven, Connecticut, Air Rights Parking Facility Revenue 12/12 at 101.00 AAA 2,162,297 Bonds, Series 2002 Refunding, 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 1,068,810 2,000 5.500%, 10/01/40 10/10 at 101.00 AAA 2,133,120 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 13.9% 750 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 783,788 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 1,000 Connecticut Resources Recovery Authority, Corporate Credit Resource 12/11 at 102.00 Baa2 980,030 Recovery Revenue Bonds, America Ref-Fuel Company of Southeastern Connecticut Project, Series A, 5.500%, 11/15/15 (Alternative Minimum Tax) 500 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 467,273 Revenue Bonds (Wheelabrator Lisbon Project), Series 1993A, 5.500%, 1/01/15 (Alternative Minimum Tax) 1,000 Guam Power Authority, Revenue Bonds, 1999 Series A, 10/09 at 101.00 AAA 1,012,290 5.125%, 10/01/29 1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,541,144 Series HH, 5.250%, 7/01/29 ------------------------------------------------------------------------------------------------------------------------------------ $ 49,655 Total Long-Term Investments (cost $50,050,320) - 149.6% 51,550,043 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 401,052 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.8)% (17,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 34,451,095 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 24
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO) Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.4% $ 2,750 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 $ 2,661,918 Bonds, Series 2002 Refunding, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 11.4% 3,100 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 3,170,246 Revenue Bonds, Trinity College, Series 2001G, 5.000%, 7/01/21 1,595 State of Connecticut Health and Educational Facilities Authority, 11/11 at 100.00 AAA 1,606,931 Revenue Bonds, Connecticut State University System, Series 2002D-2, 5.000%, 11/01/21 1,500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,520,595 Revenue Bonds, Yale University Issue, Series 2002W, 5.125%, 7/01/27 500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AAA 520,510 Series 2002A, 5.250%, 11/15/22 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.5% 1,075 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/08 at 101.50 AAA 1,095,414 Program Bonds, 1997 Series D (Subseries D-2), 5.450%, 11/15/24 1,860 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/05 at 102.00 AAA 1,987,205 Program Bonds, 1995 Series F (Subseries F-1), 6.000%, 5/15/17 2,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 2,005,920 Program Bonds, 2001 Series D (Subseries D-2), 5.150%, 11/15/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 10.6% Connecticut Housing Finance Authority, Special Needs Housing Mortgage Finance Program, Special Obligation Bonds, Series SNH-1: 1,000 5.000%, 6/15/22 (WI, settling 12/10/02) 6/12 at 101.00 AAA 1,001,190 1,000 5.000%, 6/15/32 (WI, settling 12/10/02) 6/12 at 101.00 AAA 985,550 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Village for Families and Children, Inc. Issue, Series A: 430 5.000%, 7/01/18 7/12 at 101.00 AAA 443,364 475 5.000%, 7/01/20 7/12 at 101.00 AAA 482,201 260 7/01/23 7/12 at 101.00 AAA 260,517 1,000 5.000%, 7/01/32 7/12 at 101.00 AAA 993,080 Connecticut Development Authority, Revenue Bonds, Duncaster, Inc. Project, Series 2002: 650 5.125%, 8/01/22 8/12 at 101.00 AA 646,763 1,665 4.750%, 8/01/32 8/12 at 101.00 AA 1,544,154 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 40.9% Bethel, Connecticut, General Obligation Bonds, Series 2002: 525 5.000%, 11/01/18 11/12 at 100.00 Aaa 542,194 525 5.000%, 11/01/19 11/12 at 100.00 Aaa 539,243 525 5.000%, 11/01/20 11/12 at 100.00 Aaa 536,729 525 5.000%, 11/01/21 11/12 at 100.00 Aaa 533,815 525 5.000%, 11/01/22 11/12 at 100.00 Aaa 530,917 3,510 City of Bridgeport, Connecticut, General Obligation Bonds, 8/11 at 100.00 AAA 3,717,406 Series C, 5.375%, 8/15/18 2,500 State of Connecticut, General Obligation Bonds, Series 2002D, 11/12 at 100.00 AA 2,638,050 5.375%, 11/15/21 1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,016,800 5.000%, 4/15/21 450 Farmington, Connecticut, General Obligation Bonds, Series 2002, 9/12 at 101.00 Aa1 464,351 5.000%, 9/15/20 25 Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO) (continued) Portfolio of INVESTMENTS November 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) New Canaan, Connecticut, General Obligation Bonds, Series 2002, Lot A: $ 950 4.240%, 5/01/18 (WI, settling 12/05/02) 5/11 at 100.00 Aaa $ 917,092 950 4.500%, 5/01/19 (WI, settling 12/05/02) 5/11 at 100.00 Aaa 937,489 900 4.600%, 5/01/20 (WI, settling 12/05/02) 5/11 at 100.00 Aaa 892,620 500 4.700%, 5/01/21 (WI, settling 12/05/02) 5/11 at 100.00 Aaa 496,995 755 4.750%, 5/01/22 (WI, settling 12/05/02) 5/11 at 100.00 Aaa 747,888 1,445 New Haven, Connecticut, General Obligation Bonds, Series 2002A, 11/11 at 101.00 AAA 1,550,658 5.250%, 11/01/17 2,910 Commonwealth of Puerto Rico, Public Improvement Refunding General 7/08 at 101.00 AAA 2,932,727 Obligation Bonds, Series 1998B, 5.000%, 7/01/24 2,250 Commonwealth of Puerto Rico, Public Improvement Refunding General 7/11 at 100.00 AAA 2,281,410 Obligation Bonds, Series 2001, 5.125%, 7/01/30 Town of Stratford, Connecticut, General Obligation Bonds, Series 2002: 1,445 4.000%, 2/15/18 2/12 at 100.00 AAA 1,339,284 1,375 4.000%, 2/15/19 2/12 at 100.00 AAA 1,261,728 630 4.125%, 2/15/20 2/12 at 100.00 AAA 583,670 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 37.7% State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purpose, 2002 Series B: 2,810 5.000%, 12/01/20 12/12 at 100.00 AAA 2,877,805 1,000 5.000%, 12/01/21 12/12 at 100.00 AAA 1,017,730 1,000 5.000%, 12/01/22 12/12 at 100.00 AAA 1,011,380 400 State of Connecticut, Special Tax Obligation Bonds, Transportation 10/11 at 100.00 AAA 406,752 Infrastructure Purposes, 2001 Series A, 4.800%, 10/01/18 2,500 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 AAA 2,512,175 Revenue Bonds, Series D, 5.000%, 7/01/32 3,500 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue 1/08 at 101.00 AAA 3,518,515 Bonds, Series 1997A, 5.000%, 7/01/28 1,000 Puerto Rico Public Buildings Authority, Guaranteed Government 7/07 at 101.50 AAA 1,005,530 Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/27 Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series 2002G: 890 5.250%, 7/01/17 7/12 at 100.00 A- 934,758 1,000 5.250%, 7/01/20 7/12 at 100.00 A- 1,030,720 1,045 5.250%, 7/01/21 7/12 at 100.00 A- 1,070,665 2,500 Puerto Rico Municipal Finance Agency, General Obligation Bonds, 8/12 at 100.00 AAA 2,516,800 2002 Series A, 5.000%, 8/01/27 (WI, settling 12/05/02) 3,010 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call AAA 3,117,728 Bonds, 1998 Series A, 5.125%, 6/01/24 765 Puerto Rico Public Finance Corporation, Commonwealth Appropriation 2/12 at 100.00 BBB+ 793,091 Bonds, 2002 Series E, 5.500%, 8/01/29 750 Virgin Islands Public Finance Authority, Revenue and Refunding 10/08 at 101.00 BBB- 742,350 Bonds (Virgin Islands Matching Fund Loan Notes), Series 1998A (Senior Lien/Refunding), 5.500%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.3% 220 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 229,911 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 1,000 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 976,450 Revenue Bonds (Wheelabrator Lisbon Project), Series 1993A, 5.500%, 1/01/14 (Alternative Minimum Tax) 3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,133,662 Series HH, 5.250%, 7/01/29 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.3% $ 2,000 Birmingham, Alabama, Waterworks and Sewer Board, Water and 1/13 at 100.00 AAA $ 1,947,238 Sewer Revenue Bonds, Series 2002B, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ $ 73,495 Total Long-Term Investments (cost $75,110,836) - 124.1% 74,229,884 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 34.3% 4,000 Chester County Industrial Development Authority, Pennsylvania, VMIG-1 4,000,000 Revenue Bonds, Archdiocese of Philadelphia, Variable Rate Demand Bonds, Series 2001, 1.200%, 7/01/31+ 5,000 Connecticut Health and Educational Facilities Authority, Revenue VMIG-1 5,000,000 Bonds, Yale University Issue, Variable Rate Demand Bonds, Series 1997, 1.200%, 7/01/29+ 4,000 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's Regional VMIG-1 4,000,000 Medical Center, Variable Rate Demand Bonds, Series 1995, 1.250%, 5/01/22+ 1,000 Health and Educational Facilities Authority of the State of Missouri, VMIG-1 1,000,000 Health Facilities Revenue Bonds, Series 2001A, Variable Rate Demand Bonds, Bethesda Health Group, 1.300%, 8/01/31+ 4,000 New York City Transitional Finance Authority, New York, Recovery VMIG-1 4,000,000 Revenue Bonds, Fiscal 2003 (Subseries 3-H), Variable Rate Demand Obligations, 1.250%, 11/01/22+ 2,000 Ohio Higher Educational Facilities, Revenue Bonds, Case Western VMIG-1 2,000,000 Reserve University Project, Series 2002A, Variable Rate Demand Obligations, 1.300%, 10/01/31+ 500 Puerto Rico Government Development Bank, Adjustable Refunding VMIG-1 500,000 Bonds, Series 1985, Variable Rate Demand Bonds, 1.020%, 12/01/15+ ------------------------------------------------------------------------------------------------------------------------------------ $ 20,500 Total Short-Term Investments (cost $20,500,000) 20,500,000 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (4.9)% (2,895,834) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.5)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 59,834,050 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. (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. 27
Nuveen Massachusetts Premium Income Municipal Fund (NMT) Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER CYCLICALS - 2.1% $ 1,500 Boston, Massachusetts, Industrial Development Financing Authority, 9/12 at 102.00 Baa3 $ 1,455,360 Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 26.8% 540 Massachusetts Educational Financing Authority, Education Loan 7/04 at 102.00 AAA 561,551 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 1,791,917 Revenue Bonds, 2002 Series E, 5.000%, 1/01/13 (Alternative Minimum Tax) 2,090 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call A3 2,224,115 Series 1999P, Boston University Refunding, 6.000%, 5/15/29 890 Massachusetts Development Finance Authority, Revenue Bonds, 3/09 at 101.00 A 925,520 Curry College Issue, Series A, 6.000%, 3/01/20 500 Massachusetts Development Finance Authority, Revenue Bonds, 9/11 at 101.00 A 512,275 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 1,524,810 Bonds, UMASS-Worcester Campus, Series 2001B, 5.250%, 10/01/31 2,645 Massachusetts Industrial Finance Agency, Revenue Bonds (Whitehead 7/03 at 102.00 Aa1 2,651,401 Institute for Biomedical Research) Series 1993, 5.125%, 7/01/26 1,500 Massachusetts Industrial Finance Agency, Revenue Bonds, Phillips 9/08 at 102.00 AAA 1,550,775 Academy Issue, Series 1993, 5.375%, 9/01/23 2,300 Massachusetts Industrial Finance Agency, Education Revenue Bonds 9/08 at 101.00 A 2,234,979 (Belmont Hill School Issue), Series 1998, 5.250%, 9/01/28 4,000 New England Education Loan Marketing Corporation, Massachusetts, No Opt. Call A3 4,532,360 Student Loan Revenue Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 21.3% 3,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/04 at 102.00 AAA 3,030,990 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 3,093,450 Bonds, Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15 600 Massachusetts Health and Educational Facilities Authority, Revenue 5/12 at 100.00 AAA 622,506 Bonds, New England Medical Center Hospitals, Series 2002H, 5.375%, 5/15/19 2,500 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AA- 2,559,975 Bonds, Partners HealthCare System Issue, Series C, 5.750%, 7/01/32 1,395 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 102.00 AAA 1,371,759 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 991,740 Bonds, Cape Cod Health Care, Inc., Series 2001C, 5.250%, 11/15/31 2,000 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 101.00 BBB+ 2,014,660 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 993,790 Bonds, Caritas Christi Obligated Group, Series 2002B, 6.250%, 7/01/22 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 30.0% $ 3,000 Massachusetts Development Finance Agency, Assisted Living Facility 9/10 at 105.00 AAA $ 3,549,450 Revenue Bonds, GNMA Collateralized, The Monastery at West Springfield Project, Series 1999A, 7.625%, 3/20/41 (Alternative Minimum Tax) 2,500 Massachusetts Development Finance Agency, Revenue Bonds, GNMA 10/11 at 105.00 AAA 2,866,800 Collateralized, VOA Concord Assisted Living, Inc. Project, Series 2000A, 6.900%, 10/20/41 1,980 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102.00 N/R 1,989,167 Revenue Bonds (Prospect House Apartments), Series 1999, 7.000%, 12/01/31 2,000 Massachusetts Development Finance Agency, Assisted Living Facility 6/11 at 105.00 AAA 2,218,380 Revenue Bonds, GNMA Collateralized, Haskell House on Parker Hill Project, Series 2000A, 6.500%, 12/20/41 (Alternative Minimum Tax) 1,500 Massachusetts Development Finance Agency, Assisted Living Facility 3/12 at 105.00 AAA 1,608,045 Revenue Bonds, GNMA Collateralized, The Arbors at Chicopee Project, 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+ 3,931,518 Bonds, Series 1993A Refunding, 6.300%, 10/01/13 1,460 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 101.00 AAA 1,524,065 Revenue Bonds, Series 1999D, 5.500%, 7/01/13 (Alternative Minimum Tax) 1,865 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/05 at 102.00 AAA 1,957,075 Revenue Bonds, Series 1995A (FHA Insured Mortgage Loans), 7.350%, 1/01/35 (Alternative Minimum Tax) 1,000 Somerville Housing Authority, Massachusetts, Mortgage Revenue 5/12 at 103.00 AAA 1,012,910 Bonds, Clarendon Hill Towers Project, GNMA Collateralized, Series 2002 Refunding, 5.200%, 11/20/22 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 6.1% 1,270 City of Boston, Massachusetts, Revenue Bonds (Deutsches Altenheim, 10/08 at 105.00 AAA 1,353,820 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 1,953,960 Revenue Bonds, Series 1997B (Jewish Geriatric Services, Inc. Obligated Group), 5.500%, 5/15/27 845 Massachusetts Industrial Finance Agency, Revenue Bonds, Heights 2/06 at 102.00 AAA 885,180 Crossing Limited Partnership Issue (FHA-Insured Project), Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.9% 2,500 Massachusetts Bay Transportation Authority, General Transportation No Opt. Call AAA 3,141,000 System Bonds, 1991 Series A, 7.000%, 3/01/21 4,275 Commonwealth of Massachusetts, General Obligation Bonds, No Opt. Call AAA 4,978,067 Consolidated Loan of 2001, Series D, 6.000%, 11/01/13 980 Monson, Massachusetts, General Obligation Bonds, Series 2002, 5/12 at 101.00 Aaa 1,014,692 5.250%, 5/15/22 1,000 Narragansett Regional School District, Massachusetts, General 6/10 at 101.00 Aaa 1,177,040 Obligation Bonds, Series 2000, 6.500%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.0% 1,300 Massachusetts Development Finance Agency, Revenue Bonds, 6/09 at 101.00 AA 1,365,000 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 4,171,440 (US Air Project), Series 1996A, 5.750%, 9/01/16 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 29.2% Town of Barnstable, Massachusetts, General Obligation Bonds, Series 1994: 1,020 5.750%, 9/15/10 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA*** 1,112,351 1,020 5.750%, 9/15/11 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA*** 1,112,351 4,375 City of Lowell, Massachusetts, General Obligation State Qualified 11/03 at 102.00 AAA 4,630,588 Bonds, 5.600%, 11/01/12 (Pre-refunded to 11/01/03) 1,250 Commonwealth of Massachusetts, General Obligation Bonds, 2/10 at 101.00 AAA 1,448,188 Consolidated Loan, Series 2000A, 6.000%, 2/01/14 (Pre-refunded to 2/01/10) 29 Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued) Portfolio of INVESTMENTS November 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 2,500 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call AAA $ 2,679,350 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 2,152,000 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: 1,435 6.125%, 2/15/15 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,540,975 1,000 6.000%, 2/15/25 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,072,360 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 2/07 at 102.00 Aa2*** 1,158,230 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 417,712 Bonds, Caregroup Issue, Series A, 5.000%, 7/01/25 1,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 1/03 at 100.00 AAA 1,539,970 13.000%, 7/01/13 1,175 Massachusetts Industrial Finance Agency, Revenue Bonds (Brooks 7/03 at 102.00 A3*** 1,230,002 School Issue), Series 1993, 5.950%, 7/01/23 (Pre-refunded to 7/01/03) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.7% 1,000 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 AAA 1,069,860 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 2,184,375 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.1% 750 Massachusetts Water Resources Authority, General Revenue 3/03 at 100.00 AA 749,931 Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 (Pre-refunded to 3/01/03) ------------------------------------------------------------------------------------------------------------------------------------ $ 93,400 Total Long-Term Investments (cost $94,481,801) - 144.2% 99,439,785 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 2.9% 2,000 The Commonwealth of Massachusetts, General Obligation Bonds, VMIG-1 2,000,000 Central Artery Ted Williams Infrastructure Loan Act of 2000, Series A, Variable Rate Demand Bonds, 1.250%, 12/01/30+ ------------------------------------------------------------------------------------------------------------------------------------ $ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 1,542,260 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.3)% (34,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 68,982,045 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 30
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER CYCLICALS - 1.7% $ 500 Boston, Massachusetts, Industrial Development Financing Authority, 9/12 at 102.00 Baa3 $ 485,120 Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 28.7% 1,500 Massachusetts Educational Financing Authority, Educational Loan 7/10 at 100.00 AAA 1,541,985 Revenue Bonds, Issue E, Series 2001, 5.300%, 1/01/16 (Alternative Minimum Tax) 2,000 Massachusetts Development Finance Authority, Revenue Bonds, 5/29 at 105.00 A3 2,107,540 Series 1999P, Boston University Refunding, 6.000%, 5/15/59 1,250 Massachusetts Health and Educational Facilities Authority, Revenue 10/09 at 101.00 Aaa 1,245,600 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- 2,075,240 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 1,289,563 Bonds, Senior Series 2000-2, 5.250%, 11/01/20 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 16.3% 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/09 at 101.00 AA- 994,430 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- 1,023,990 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 1,272,813 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- 382,433 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+ 1,007,330 Bonds, Berkshire Health System Issue, Series 2001E, 6.250%, 10/01/31 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 11.8% 1,000 Massachusetts Development Finance Agency, Assisted Living Facility 3/12 at 105.00 AAA 1,072,030 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 1,295,188 Revenue Bonds, Series 2001A, 5.850%, 7/01/35 (Alternative Minimum Tax) 1,000 Somerville Housing Authority, Massachusetts, Mortgage Revenue 5/12 at 103.00 AAA 1,012,910 Bonds, Clarendon Hill Towers Project, GNMA Collateralized, Series 2002 Refunding, 5.200%, 11/20/22 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 11.7% 1,095 Massachusetts Housing Finance Agency, Single Family Housing 12/04 at 102.00 AA 1,137,048 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 2,205,146 Revenue Bonds, Series 82, 5.375%, 12/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.3% 655 Massachusetts Development Finance Agency, First Mortgage Revenue 7/11 at 102.00 BBB- 666,639 Bonds, Edgecombe Project, Series 2001A, 6.750%, 7/01/21 31 Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) (continued) Portfolio of INVESTMENTS November 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 20.5% $ 1,000 City of Boston, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aa2 $ 1,022,480 Series 2001A, 5.000%, 2/01/20 2,000 Town of Brookline, Massachusetts, General Obligation Bonds, 4/10 at 101.00 Aaa 2,128,460 Series 2000, 5.375%, 4/01/17 1,675 City of Lawrence, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aaa 1,703,542 Series 2001, 5.000%, 2/01/21 1,020 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101.00 AAA 1,014,665 System Bonds, 1997 Series A, 5.000%, 3/01/27 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 11.4% 1,000 Massachusetts Bay Transportation Authority, Assessment Bonds, 2000 7/10 at 100.00 AAA 1,015,900 Series A, 5.250%, 7/01/30 1,000 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101.00 AAA 1,127,170 6.000%, 8/01/16 1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101.00 BBB- 1,112,510 Islands Gross Receipts Tax Loan Note), Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 14.8% 2,000 Massachusetts Port Authority, Revenue Bonds, Series 1998-D, 7/08 at 101.00 AAA 1,971,500 5.000%, 7/01/28 1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 7/07 at 102.00 AAA 1,031,970 (BOSFUEL Project), Series 1997, 5.500%, 7/01/18 (Alternative Minimum Tax) 1,250 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102.00 AAA 1,222,913 Revenue Bonds, 1997 Series A (Senior), 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 12.8% 1,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 1,165,680 Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded to 7/01/10) 1,250 Commonwealth of Massachusetts, General Obligation Bonds, 10/10 at 100.00 AAA 1,432,525 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 1,066,560 Bonds, 2000 Series A, 5.500%, 10/01/40 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.1% 1,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102.00 BBB 873,750 Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 14.6% 2,000 Boston Water and Sewer Commission, Massachusetts, General 11/08 at 101.00 AAA 1,981,840 Revenue Bonds (Senior Series), 1998 Series D, 5.000%, 11/01/28 1,750 Massachusetts Water Pollution Abatement Trust, Water Pollution 8/09 at 101.00 AAA 1,875,736 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 320,870 2000 Series A, 5.750%, 8/01/30 ------------------------------------------------------------------------------------------------------------------------------------ $ 41,545 Total Long-Term Investments (cost $41,789,282) - 149.7% 42,883,076 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.7% 757,507 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.4)% (15,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 28,640,583 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 32
Nuveen Missouri Premium Income Municipal Fund (NOM) Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.1% $ 1,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA- $ 1,000,630 Revenue Bonds (Procter & Gamble Paper Products Company Project), Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 8.2% 250 Junior College District of Mineral Area, Missouri, Mineral Area 9/10 at 102.00 N/R 250,393 College, Student Housing System Revenue Bonds, Series 2000, 7.200%, 9/01/20 1,400 Health and Educational Facilities Authority of the State of Missouri, 6/10 at 100.00 Baa2 1,475,922 Educational Facilities Revenue Bonds (Maryville University of Saint 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 513,805 Educational Facilities Revenue Bonds (Saint Louis Priory School Project), 5.650%, 2/01/25 365 Health and Educational Facilities Authority of the State of Missouri, 4/11 at 100.00 Aaa 387,645 Educational Facilities Revenue Bonds (Webster University), Series 2001, 5.500%, 4/01/18 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 26.0% 1,800 Johnson County, Missouri, Hospital Revenue Bonds, Western Missouri 6/10 at 100.00 AA 1,914,390 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 2,522,525 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 505,030 Health Facilities Revenue Bonds, Saint 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+ 436,326 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 Missouri, 12/10 at 101.00 A 1,044,400 Health Facilities Revenue Bonds (Saint Anthony's Medical Center), Series 2000, 6.250%, 12/01/30 1,000 Ray County, Missouri, Hospital Revenue Bonds (Ray County Memorial 5/05 at 101.50 N/R 986,280 Hospital), Series 1997, 5.750%, 11/15/12 950 Texas County, Missouri, Hospital Revenue Bonds (Texas County 6/10 at 100.00 N/R 951,587 Memorial Hospital), Series 2000, 7.250%, 6/15/25 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 10.9% 995 Missouri Housing Development Commission, Multifamily Housing 12/11 at 100.00 AA 1,032,949 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 1,260,063 Multifamily Housing Revenue Bonds (Ashwood Apartments Project), Series 1998A, 5.600%, 4/01/30 (Alternative Minimum Tax) 545 Industrial Development Authority of the County of St. Louis, Missouri, 4/07 at 102.00 AAA 572,114 Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997A, 5.950%, 4/20/17 600 Industrial Development Authority of the County of St. Louis, Missouri, 4/07 at 102.00 AAA 620,514 Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.3% 710 Missouri Housing Development Commission, Single Family Mortgage 3/06 at 105.00 AAA 759,026 Revenue Bonds (Homeownership Loan Program), 1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax) 1,380 Missouri Housing Development Commission, Single Family Mortgage 9/06 at 105.00 AAA 1,446,212 Revenue Bonds (Homeownership Loan Program), 1996 Series B, 7.550%, 9/01/27 (Alternative Minimum Tax) 735 Missouri Housing Development Commission, Single Family Mortgage 3/10 at 100.00 AAA 769,773 Revenue Bonds (Homeownership Loan Program), 2000 Series B-1, 6.250%, 3/01/31 (Alternative Minimum Tax) 33 Nuveen Missouri Premium Income Municipal Fund (NOM) (continued) Portfolio of INVESTMENTS November 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 30.7% $ 500 Lees Summit Reorganized School District No.7 of Jackson County, 3/12 at 100.00 AAA $ 525,200 Missouri, General Obligation Bonds, Series 2002 Refunding and Improvement, 5.250%, 3/01/18 1,000 State of Missouri, General Obligation Bonds, Series 2002A, Fourth 10/12 at 100.00 AAA 1,038,130 State Building Refunding, 5.000%, 10/01/18 2,020 Ritenour Consolidated School District of Saint Louis County, Missouri, No Opt. Call AAA 2,513,466 General Obligation Bonds, Series 1995, 7.375%, 2/01/12 1,500 Francis Howell School District, Saint Charles County, Missouri, No Opt. Call AAA 1,767,015 General Obligation Bonds, Series 1994A Refunding, 7.800%, 3/01/08 1,000 School District of the City of Saint Charles, Missouri, General 3/06 at 100.00 AA+ 1,079,470 Obligation Bonds, Series 1996A, 5.625%, 3/01/14 1,000 Pattonville R-3 School District, Saint Louis County, Missouri, 3/10 at 101.00 AAA 1,086,070 General 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 1,099,132 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 786,750 Missouri, General Obligation School Building Refunding and Improvement Bonds, Series 1995, 7.600%, 3/01/10 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 24.2% 750 Fenton, Missouri, Tax Increment Bonds, Gravois Bluffs Project, 10/12 at 100.00 N/R 743,130 Series 2002 Refunding and Improvement, 6.125%, 10/01/21 1,000 Land Clearance for Redevelopment Authority of Kansas City, 12/05 at 102.00 AAA 1,095,930 Missouri, 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 2,139,820 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 482,945 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 1,107,250 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 2,209,760 Leasehold Revenue Bonds, Series 2000A, Jordan Valley Park Projects, 6.125%, 6/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.9% 500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 AAA 488,425 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 1,073,650 Missouri, Tax-Exempt Parking Facility Revenue Refunding and Improvement Bonds (LCRA Parking Facilities Project), Series of 1999C, 7.000%, 9/01/19 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.3% 675 Health and Educational Facilities Authority of the State of Missouri, 2/06 at 102.00 BBB+*** 770,249 Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital, Inc.), Series 1996, 6.500%, 2/15/21 (Pre-refunded to 2/15/06) 825 Health and Educational Facilities Authority of the State of Missouri, 3/10 at 101.00 Aaa 955,903 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 576,433 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 601,663 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) 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 1,000 St. Louis County, Missouri, Certificates of Receipt, Series 1993D No Opt. Call AAA $ 1,087,070 GNMA Collateralized Mortgage Revenue Bonds, 5.650%, 7/01/20 (Alternative Minimum Tax) 1,275 St. Louis Municipal Finance Corporation, Leasehold Revenue 2/05 at 100.00 AAA 1,393,040 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 1,794,272 Leasehold Revenue Improvement Bonds (City of St. Louis, Missouri, Lessee), Series 1996A, 5.750%, 2/15/11 (Pre-refunded to 2/15/06) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.2% 600 City of Sikeston, Missouri, Electric System Revenue Refunding Bonds, No Opt. Call AAA 697,908 1996 Series, 6.000%, 6/01/13 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.6% 350 State Environmental Improvement and Energy Resources Authority, No Opt. Call Aaa 424,360 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 504,891 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 229,235 Missouri, Water Pollution Control Revenue Bonds, State Revolving Fund, Multi-Participant Program, Series 1996D, 5.875%, 1/01/15 ------------------------------------------------------------------------------------------------------------------------------------ $ 43,220 Total Long-Term Investments (cost $43,828,746) - 145.4% 46,720,751 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.4% 1,403,541 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.8)% (16,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 32,124,292 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 35
Statement of ASSETS AND LIABILITIES November 30, 2002 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in municipal securities, at market value $115,822,229 $55,497,693 $51,550,043 $ 74,229,884 Temporary investments in short-term securities, at amortized cost, which approximates market value -- -- -- 20,500,000 Cash 141,602 345,908 -- 8,216,240 Receivables: Interest 1,647,709 733,361 726,557 836,866 Investments sold 699,034 145,822 -- 140,793 Other assets 7,288 5,110 31,372 160 ----------------------------------------------------------------------------------------------------------------------------------- Total assets 118,317,862 56,727,894 52,307,972 103,923,943 ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft -- -- 316,035 -- Payable for investments purchased 2,091,947 -- -- 11,787,916 Accrued expenses: Management fees 62,396 16,378 15,057 19,996 Organization and offering costs -- 7,713 4,674 140,830 Other 33,273 58,489 20,589 135,852 Preferred share dividends payable 2,832 2,135 522 5,299 ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 2,190,448 84,715 356,877 12,089,893 ----------------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 38,300,000 19,500,000 17,500,000 32,000,000 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 77,827,414 $37,143,179 $34,451,095 $ 59,834,050 =================================================================================================================================== Common shares outstanding 5,289,257 2,547,563 2,307,073 4,318,000 =================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.71 $ 14.58 $ 14.93 $ 13.86 =================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ----------------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 52,893 $ 25,476 $ 23,071 $ 43,180 Paid-in surplus 73,326,245 36,058,937 32,676,236 60,921,340 Undistributed net investment income 786,651 95,818 98,796 12,698 Accumulated net realized gain (loss) from investments (1,396,884) (78,021) 153,269 (262,216) Net unrealized appreciation (depreciation) of investments 5,058,509 1,040,969 1,499,723 (880,952) ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 77,827,414 $37,143,179 $34,451,095 $ 59,834,050 =================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited =================================================================================================================================== See accompanying notes to financial statements.
36
MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME (NMT) (NMB) (NOM) ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in municipal securities, at market value $ 99,439,785 $42,883,076 $46,720,751 Temporary investments in short-term securities, at amortized cost, which approximates market value 2,000,000 -- -- Cash 77,047 85,263 500,975 Receivables: Interest 1,517,574 692,282 850,818 Investments sold 30,000 56,513 86,405 Other assets 1,423 4,897 7,717 ----------------------------------------------------------------------------------------------------------------------------------- Total assets 103,065,829 43,722,031 48,166,666 ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft -- -- -- Payable for investments purchased -- -- -- Accrued expenses: Management fees 55,337 12,632 25,860 Organization and offering costs -- 7,713 -- Other 27,250 59,049 15,914 Preferred share dividends payable 1,197 2,054 600 ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 83,784 81,448 42,374 ----------------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 34,000,000 15,000,000 16,000,000 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 68,982,045 $28,640,583 $32,124,292 =================================================================================================================================== Common shares outstanding 4,696,845 1,944,324 2,212,834 =================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.69 $ 14.73 $ 14.52 =================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ----------------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 46,968 $ 19,443 $ 22,128 Paid-in surplus 65,109,548 27,481,596 30,439,166 Undistributed net investment income 767,525 79,952 310,444 Accumulated net realized gain (loss) from investments (1,899,980) (34,202) (1,539,451) Net unrealized appreciation (depreciation) of investments 4,957,984 1,093,794 2,892,005 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 68,982,045 $28,640,583 $32,124,292 =================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited =================================================================================================================================== See accompanying notes to financial statements. 37
Statement of OPERATIONS Six Months Ended November 30, 2002 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO)* ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $3,120,608 $1,433,480 $1,282,836 $ 367,336 ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 380,049 185,423 170,327 77,431 Preferred shares - auction fees 48,006 26,486 21,935 3,507 Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014 438 Shareholders' servicing agent fees and expenses 11,677 1,329 1,554 638 Custodian's fees and expenses 22,939 17,040 26,950 5,857 Trustees' fees and expenses 703 501 501 135 Professional fees 4,822 5,086 4,612 2,985 Shareholders' reports - printing and mailing expenses 12,614 6,509 5,677 5,156 Stock exchange listing fees 6,065 187 -- -- Investor relations expense 6,974 3,621 -- -- Other expenses 6,327 4,073 2,942 254 ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 505,190 255,269 239,512 96,401 Custodian fee credit (3,893) (1,266) (15,478) (2,105) Expense reimbursement -- (85,580) (78,613) (38,120) ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 501,297 168,423 145,421 56,176 ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 2,619,311 1,265,057 1,137,415 311,160 ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments 902,736 24,134 155,656 (262,216) Change in net unrealized appreciation (depreciation) of investments 264,157 749,673 810,528 (880,952) ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments 1,166,893 773,807 966,184 (1,143,168) ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (206,174) (104,675) (104,109) (17,792) From accumulated net realized gains from investments -- -- (2,387) -- ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (206,174) (104,675) (106,496) (17,792) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $3,580,030 $1,934,189 $1,997,103 $ (849,800) =================================================================================================================================== * For the period September 26, 2002 (commencement of operations) through November 30, 2002. See accompanying notes to financial statements. 38
MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME (NMT) (NMB) (NOM) ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $2,805,794 $1,134,801 $1,305,045 ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 337,377 142,332 157,907 Preferred shares - auction fees 42,616 20,374 20,055 Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014 Shareholders' servicing agent fees and expenses 6,290 1,096 4,608 Custodian's fees and expenses 20,828 14,170 17,498 Trustees' fees and expenses 651 375 375 Professional fees 5,739 4,467 4,269 Shareholders' reports - printing and mailing expenses 11,862 6,910 6,758 Stock exchange listing fees 11,306 143 161 Investor relations expense 6,391 1,361 2,945 Other expenses 6,125 3,951 4,791 ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 454,199 200,193 224,381 Custodian fee credit (2,994) (929) (3,293) Expense reimbursement -- (65,692) -- ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 451,205 133,572 221,088 ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 2,354,589 1,001,229 1,083,957 ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments 212,247 60,103 23,982 Change in net unrealized appreciation (depreciation) of investments 596,179 974,249 284,982 ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments 808,426 1,034,352 308,964 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (173,783) (76,200) (93,893) From accumulated net realized gains from investments -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (173,783) (76,200) (93,893) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $2,989,232 $1,959,381 $1,299,028 =================================================================================================================================== See accompanying notes to financial statements. 39
Statement of CHANGES IN NET ASSETS (Unaudited)
CONNECTICUT CONNECTICUT PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) ---------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 11/30/02 5/31/02 11/30/02 5/31/02 ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,619,311 $ 5,259,938 $ 1,265,057 $ 2,549,084 Net realized gain (loss) from investments 902,736 544,946 24,134 (44,913) Change in net unrealized appreciation (depreciation) of investments 264,157 474,512 749,673 840,819 Distributions to Preferred Shareholders: From net investment income (206,174) (546,694) (104,675) (291,100) From accumulated net realized gains from investments -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 3,580,030 5,732,702 1,934,189 3,053,890 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,267,025) (4,403,107) (1,069,436) (2,135,321) ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 187,556 355,425 45,120 60,234 Preferred shares offering costs -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets applicable to Common shares from capital share transactions 187,556 355,425 45,120 60,234 ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets applicable to Common shares 1,500,561 1,685,020 909,873 978,803 Net assets applicable to Common shares at the beginning of period 76,326,853 74,641,833 36,233,306 35,254,503 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $77,827,414 $76,326,853 $37,143,179 $36,233,306 =================================================================================================================================== Undistributed net investment income at the end of period $ 786,651 $ 645,815 $ 95,818 $ 6,243 =================================================================================================================================== See accompanying notes to financial statements. 40
CONNECTICUT CONNECTICUT DIVIDEND MASSACHUSETTS PREMIUM DIVIDEND ADVANTAGE 2 (NGK) ADVANTAGE 3 (NGO) INCOME (NMT) ------------------------------ ----------------- ------------------------------ FOR THE FOR THE PERIOD 3/26/02 PERIOD 9/26/02 SIX (COMMENCEMENT (COMMENCEMENT SIX MONTHS ENDED OF OPERATIONS) OF OPERATIONS) MONTHS ENDED YEAR ENDED 11/30/02 THROUGH 5/31/02 THROUGH 11/30/02 11/30/02 5/31/02 ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,137,415 $ 188,643 $ 311,160 $ 2,354,589 $ 4,829,981 Net realized gain (loss) from investments 155,656 -- (262,216) 212,247 511,753 Change in net unrealized appreciation (depreciation) of investments 810,528 689,408 (880,952) 596,179 56,519 Distributions to Preferred Shareholders: From net investment income (104,109) (9,064) (17,792) (173,783) (513,588) From accumulated net realized gains from investments (2,387) -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 1,997,103 868,987 (849,800) 2,989,232 4,884,665 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (955,119) (159,183) (280,670) (2,020,250) (3,887,315) ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- 32,878,500 61,625,745 -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 1,142 -- -- 156,604 280,344 Preferred shares offering costs -- (280,610) (761,500) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets applicable to Common shares from capital share transactions 1,142 32,597,890 60,864,245 156,604 280,344 ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets applicable to Common shares 1,043,126 33,307,694 59,733,775 1,125,586 1,277,694 Net assets applicable to Common shares at the beginning of period 33,407,969 100,275 100,275 67,856,459 66,578,765 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $34,451,095 $33,407,969 $59,834,050 $68,982,045 $67,856,459 =================================================================================================================================== Undistributed net investment income at the end of period $ 98,796 $ 20,396 $ 12,698 $ 767,525 $ 659,569 =================================================================================================================================== See accompanying notes to financial statements. 41
Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
MASSACHUSETTS MISSOURI PREMIUM DIVIDEND ADVANTAGE (NMB) INCOME (NOM) ------------------------------ ---------------------------- SIX SIX MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED 11/30/02 5/31/02 11/30/02 5/31/02 ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,001,229 $ 2,001,715 $ 1,083,957 $ 2,228,230 Net realized gain (loss) from investments 60,103 (68,781) 23,982 (29,238) Change in net unrealized appreciation (depreciation) of investments 974,249 555,011 284,982 669,418 Distributions to Preferred Shareholders: From net investment income (76,200) (238,070) (93,893) (283,065) From accumulated net realized gains from investments -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 1,959,381 2,249,875 1,299,028 2,585,345 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (851,433) (1,701,593) (954,175) (1,770,473) ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 13,460 19,714 160,114 296,123 Preferred shares offering costs -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets applicable to Common shares from capital share transactions 13,460 19,714 160,114 296,123 ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets applicable to Common shares 1,121,408 567,996 504,967 1,110,995 Net assets applicable to Common shares at the beginning of period 27,519,175 26,951,179 31,619,325 30,508,330 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $28,640,583 $27,519,175 $32,124,292 $31,619,325 =================================================================================================================================== Undistributed net investment income at the end of period $ 79,952 $ 9,113 $ 310,444 $ 286,262 =================================================================================================================================== See accompanying notes to financial statements. 42
Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state Funds (the "Funds") covered in this report and their corresponding Common share 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 Connecticut Dividend Advantage Municipal Fund 3 (NGO), 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), Connecticut Dividend Advantage 3 (NGO), 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 2 (NGK) and Connecticut Dividend Advantage 3 (NGO) 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 ($11,500 per Fund) 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 or its designee 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 November 30, 2002, Connecticut Premium Income (NTC) and Connecticut Dividend Advantage 3 (NGO) had outstanding when-issued purchase commitments of $2,091,947 and $8,565,858, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. 43 Notes to FINANCIAL STATEMENTS (Unaudited) (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. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared and paid monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from 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 pursuant to a dutch auction process by the auction agent, and is payable at or near the end of each rate period. The number of Preferred shares outstanding for each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) --------------------------------------------------------------------------------------------------------- Number of shares: Series T -- 780 -- -- Series W -- -- 700 -- Series TH 1,532 -- -- -- Series F -- -- -- 1,280 ========================================================================================================= MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME (NMT) (NMB) (NOM) --------------------------------------------------------------------------------------------------------- Number of shares: Series T -- 600 -- Series W -- -- -- Series TH 1,360 -- 640 Series F -- -- -- =========================================================================================================
Effective November 15, 2002, Connecticut Dividend Advantage 3 (NGO) issued 1,280 Series F $25,000 stated value Preferred shares. 44 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 November 30, 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 2 (NGK) and Connecticut Dividend Advantage 3 (NGO). Connecticut Dividend Advantage 2's (NGK) and Connecticut Dividend Advantage 3's (NGO) share of offering costs ($69,000 and $129,330, respectively) were recorded as a reduction of the proceeds from the sale of Common shares. Costs incurred by Connecticut Dividend Advantage 2 (NGK) and Connecticut Dividend Advantage 3 (NGO) in connection with their offering of Preferred shares ($280,610 and $761,500, 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. 2. FUND SHARES Transactions in Common and Preferred shares were as follows:
CONNECTICUT DIVIDEND CONNECTICUT CONNECTICUT DIVIDEND CONNECTICUT DIVIDEND ADVANTAGE 3 PREMIUM INCOME (NTC) ADVANTAGE (NFC) ADVANTAGE 2 (NGK) (NGO) ---------------------------- ------------------------------ ---------------------------- ---------------- FOR THE FOR THE PERIOD 9/26/02 PERIOD 3/26/02 (COMMENCE- SIX MONTHS (COMMENCEMENT MENT OF SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED OF OPERATIONS) OPERATIONS) ENDED 11/30/02 5/31/02 ENDED 11/30/02 5/31/02 11/30/02 THROUGH 5/31/02 THROUGH 11/30/02 ------------------------------------------------------------------------------------------------------------------------------------ Common shares: Shares sold -- -- -- -- -- 2,300,000 4,311,000 Shares issued to shareholders due to reinvestment of distributions 11,505 22,147 3,074 3,869 73 -- -- ------------------------------------------------------------------------------------------------------------------------------------ 11,505 22,147 3,074 3,869 73 2,300,000 4,311,000 ==================================================================================================================================== Preferred shares sold -- -- -- -- -- 700 1,280 ==================================================================================================================================== MASSACHUSETTS MASSACHUSETTS DIVIDEND MISSOURI PREMIUM INCOME (NMT) ADVANTAGE (NMB) PREMIUM INCOME (NOM) ---------------------------- ----------------------------- --------------------------- SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED 11/30/02 5/31/02 ENDED 11/30/02 5/31/02 ENDED 11/30/02 5/31/02 ---------------------------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- -- -- -- Shares issued to shareholders due to reinvestment of distributions 9,822 18,094 1,022 1,301 9,879 19,877 ---------------------------------------------------------------------------------------------------------------------------- 9,822 18,094 1,022 1,301 9,879 19,877 ============================================================================================================================ Preferred shares sold -- -- -- -- -- -- ============================================================================================================================
45 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term securities for the six months ended November 30, 2002, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO)* ------------------------------------------------------------------------------------------------------------ Purchases: Long-term municipal securities $16,709,525 $1,294,823 $4,046,168 $80,060,019 Short-term securities -- -- -- 23,900,000 Sales and maturities: Long-term municipal securities 14,262,145 1,427,833 4,882,766 4,663,530 Short-term securities -- -- 1,900,000 3,400,000 ============================================================================================================ * For the period September 26, 2002 (commencement of operations) through November 30, 2002. MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $5,585,228 $1,857,280 $4,693,274 Short-term securities 4,000,000 -- 2,000,000 Sales and maturities: Long-term municipal securities 7,076,050 1,901,105 4,998,501 Short-term securities 2,000,000 -- 2,000,000 =============================================================================================================
4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At November 30, 2002, the cost of investments were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) --------------------------------------------------------------------------------------------------------- Cost of investments $110,733,975 $54,445,373 $50,047,484 $95,610,817 ========================================================================================================= MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME (NMT) (NMB) (NOM) --------------------------------------------------------------------------------------------------------- Cost of investments $96,288,133 $41,777,663 $43,813,205 =========================================================================================================
46 Gross unrealized appreciation and gross unrealized depreciation on investments at November 30, 2002, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ---------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $5,324,221 $1,353,097 $1,507,763 $ 133,270 Depreciation (235,967) (300,777) (5,204) (1,014,203) ---------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments $5,088,254 $1,052,320 $1,502,559 $ (880,933) ========================================================================================================== MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME (NMT) (NMB) (NOM) ---------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $5,478,609 $1,202,501 $3,021,326 Depreciation (326,957) (97,088) (113,780) ---------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments $5,151,652 $1,105,413 $2,907,546 ==========================================================================================================
The tax components of undistributed net investment income and net realized gains at May 31, 2002, the Fund's last fiscal year end, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME (NTC) (NFC) (NGK) (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------------- Undistributed tax-exempt income $897,969 $176,278 $188,577 $750,534 $141,123 $409,490 Undistributed ordinary income * 34,265 -- -- -- -- -- Undistributed net long-term capital gains -- -- -- -- -- -- ===================================================================================================================
The tax character of distributions paid during the period ended May 31, 2002, the Fund's last fiscal year end, were designated for purposes of the dividends paid deduction as follows:
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME (NTC) (NFC) (NGK) (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------------------------------ Distributions from tax-exempt income $4,936,883 $2,427,472 $-- $4,408,553 $1,940,760 $2,047,062 Distributions from ordinary income * 12,951 -- -- -- -- -- Distributions from net long-term capital gains -- -- -- -- -- -- ====================================================================================================================================
* Ordinary income consists of taxable market discount income and net short-term capital gains, if any. 47 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) At May 31, 2002, the Funds' last fiscal year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME ADVANTAGE INCOME (NTC) (NFC) (NMT) (NMB) (NOM) ------------------------------------------------------------------------------------------------------------------ Expiration year: 2003 $ 170,060 $ -- $ 41,189 $ -- $ 768,346 2004 1,105,901 -- 945,779 -- 708,417 2005 847,914 -- 195,761 -- -- 2006 -- -- -- -- -- 2007 -- -- -- -- -- 2008 7,281 -- 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 $2,112,227 $57,481 $1,540,794 ==================================================================================================================
The following Funds have elected to defer net realized losses from investments incurred from November 1, 2001 through May 31, 2002 ("post-October losses") in accordance with Federal income tax regulations. The following post-October losses are treated as having arisen in the following year: CONNECTICUT MASSACHUSETTS MISSOURI DIVIDEND DIVIDEND PREMIUM ADVANTAGE ADVANTAGE INCOME (NFC) (NMB) (NOM) -------------------------------------------------------------------------------- $2,886 $36,824 $22,638 ================================================================================ 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under Connecticut Premium Income's (NTC), 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% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ 48 Under Connecticut Dividend Advantage's (NFC), Connecticut Dividend Advantage 2's (NGK), Connecticut Dividend Advantage 3's (NGO) 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% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For net assets over $2 billion .5750 ================================================================================ 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. 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. 49 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) For the first eight years of Connecticut Dividend Advantage 3's (NGO) 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, -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Connecticut Dividend Advantage 3 (NGO) for any portion of its fees and expenses beyond September 30, 2010. 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. 6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 30, 2002, to shareholders of record on December 15, 2002, as follows: CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) -------------------------------------------------------------------------------- Dividend per share $.0720 $.0700 $.0690 $.0650 ================================================================================ MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE INCOME (NMT) (NMB) (NOM) -------------------------------------------------------------------------------- Dividend per share $.0735 $.0730 $.0725 ================================================================================ At the same time, Connecticut Premium Income (NTC) declared an ordinary taxable income distribution of $.0127 per share and Connecticut Dividend Advantage 2 (NGK) declared a capital gains distribution of $.0124 per share. 50 Financial HIGHLIGHTS (Unaudited) 51 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- ------------------------------ Distributions Distributions from Net from From Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total =================================================================================================================================== CONNECTICUT PREMIUM INCOME (NTC) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2003(c) $14.46 $ .50 $ .22 $(.04) $-- $ .68 $(.43) $-- $(.43) 2002 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: 2003(c) 14.24 .50 .30 (.04) -- .76 (.42) -- (.42) 2002 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: 2003(c) 14.48 .49 .42 (.05) -- .86 (.41) -- (.41) 2002(b) 14.33 .08 .30 -- -- .38 (.07) -- (.07) CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2003(d) 14.33 .07 (.26) -- -- (.19) (.07) -- (.07) =================================================================================================================================== 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: 2003(c) $-- $14.71 $16.1000 2.98% 4.70% 2002 -- 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: 2003(c) -- 14.58 14.9900 (2.49) 5.35 2002 -- 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: 2003(c) -- 14.93 15.1000 3.05 5.97 2002(b) (.16) 14.48 15.0500 .79 1.53 CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) ------------------------------------------------------------------------------------ Year Ended 5/31: 2003(d) (.21) 13.86 14.5600 (2.50) (2.83) ==================================================================================== Ratios/Supplemental Data -------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** --------------------------- ----------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ==================================================================================================================== CONNECTICUT PREMIUM INCOME (NTC) -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2003(c) $77,827 1.29%* 6.66%* 1.28%* 6.67%* 12% 2002 76,327 1.34 6.90 1.34 6.91 12 2001 74,642 1.33 7.36 1.31 7.39 8 2000 67,579 1.36 7.87 1.32 7.91 19 1999 75,165 1.32 6.83 1.30 6.84 7 1998 75,084 1.33 7.02 1.33 7.02 13 CONNECTICUT DIVIDEND ADVANTAGE (NFC) -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2003(c) 37,143 1.36* 6.28* .90* 6.74* 2 2002 36,233 1.38 6.56 .88 7.06 20 2001(a) 35,255 1.22* 4.10* .80* 4.52* 29 CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2003(c) 34,451 1.37* 5.98* .83* 6.52* 8 2002(b) 33,408 1.06* 2.90* .73* 3.23* -- CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2003(d) 59,834 .92* 2.58* .53* 2.96* 9 ==================================================================================================================== Preferred Shares at End of Period ------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ============================================================ CONNECTICUT PREMIUM INCOME (NTC) ------------------------------------------------------------ Year Ended 5/31: 2003(c) $38,300 $25,000 $75,801 2002 38,300 25,000 74,822 2001 38,300 25,000 73,722 2000 38,300 25,000 69,112 1999 38,300 25,000 74,063 1998 38,300 25,000 74,010 CONNECTICUT DIVIDEND ADVANTAGE (NFC) ------------------------------------------------------------ Year Ended 5/31: 2003(c) 19,500 25,000 72,619 2002 19,500 25,000 71,453 2001(a) 19,500 25,000 70,198 CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) ------------------------------------------------------------ Year Ended 5/31: 2003(c) 17,500 25,000 74,216 2002(b) 17,500 25,000 72,726 CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) ------------------------------------------------------------ Year Ended 5/31: 2003(d) 32,000 25,000 71,745 ============================================================ * 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 six months ended November 30, 2002. (d) For the period September 26, 2002 (commencement of operations) through November 30, 2002. See accompanying notes to financial statements. 52-53 SPREAD
Financial HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- ------------------------------ Distributions Distributions from Net from From Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total =================================================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) $14.48 $ .50 $ .18 $(.04) $-- $ .64 $(.43) $-- $(.43) 2002 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) 14.16 .52 .53 (.04) -- 1.01 (.44) -- (.44) 2002 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) 14.35 .49 .15 (.04) -- .60 (.43) -- (.43) 2002 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) $-- $14.69 $15.3200 .25% 4.43% 2002 -- 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) -- 14.73 16.6300 7.05 7.15 2002 -- 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) -- 14.52 15.8000 5.29 4.19 2002 -- 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 -------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** --------------------------- ----------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ==================================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) $68,982 1.30%* 6.74%* 1.29%* 6.75%* 6% 2002 67,856 1.31 7.11 1.30 7.12 13 2001 66,579 1.37 7.46 1.35 7.48 14 2000 61,323 1.32 7.71 1.31 7.73 11 1999 68,288 1.30 6.87 1.30 6.88 11 1998 68,936 1.31 7.22 1.31 7.22 17 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) 28,641 1.39* 6.50* .93* 6.96* 4 2002 27,519 1.47 6.70 .94 7.24 9 2001(a) 26,951 1.28* 4.84* .84* 5.28* 18 MISSOURI PREMIUM INCOME (NOM) -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2002(b) 32,124 1.38* 6.64* 1.36* 6.66* 10 2002 31,619 1.38 7.08 1.36 7.10 8 2001 30,508 1.39 7.48 1.38 7.50 31 2000 27,701 1.48 7.49 1.47 7.51 23 1999 30,603 1.44 6.72 1.43 6.72 10 1998 30,935 1.47 7.03 1.47 7.03 25 ==================================================================================================================== Preferred Shares at End of Period ------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share =============================================================== MASSACHUSETTS PREMIUM INCOME (NMT) --------------------------------------------------------------- Year Ended 5/31: 2002(b) $34,000 $25,000 $75,722 2002 34,000 25,000 74,894 2001 34,000 25,000 73,955 2000 34,000 25,000 70,091 1999 34,000 25,000 75,212 1998 34,000 25,000 75,688 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) --------------------------------------------------------------- Year Ended 5/31: 2002(b) 15,000 25,000 72,734 2002 15,000 25,000 70,865 2001(a) 15,000 25,000 69,919 MISSOURI PREMIUM INCOME (NOM) --------------------------------------------------------------- Year Ended 5/31: 2002(b) 16,000 25,000 75,194 2002 16,000 25,000 74,405 2001 16,000 25,000 72,669 2000 16,000 25,000 68,282 1999 16,000 25,000 72,817 1998 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) For the six months ended November 30, 2002. See accompanying notes to financial statements. 54-55 SPREAD
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 distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of 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. 56 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 State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. LEVERAGE-ADJUSTED DURATION: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A fund's NAV is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. --------- 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 November 30, 2002. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 57 Serving Investors FOR GENERATIONS Photo of: John Nuveen, Sr. For over a century, generations of Americans have relied on Nuveen Investments to help them grow and keep the money they've earned. Financial advisors, investors and their families have associated Nuveen Investments with quality, expertise and dependability since 1898. That is why financial advisors have entrusted the assets of more than 1.3 million investors to Nuveen. With the know-how that comes from a century of experience, Nuveen continues to build upon its reputation for quality. Now, financial advisors and investors can count on Nuveen Investments to help them design customized solutions that meet the far-reaching financial goals unique to family wealth strategies - solutions that can translate into legacies. To find out more about how Nuveen Investments' products and services can help you preserve your financial security, talk with your financial advisor, or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before you invest. Logo: NUVEEN Investments Nuveen Investments o 333 West Wacker Drive Chicago, IL 60606 o www.nuveen.com ESA-C-1102D