-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Qh1uqbmlmkq24WXzMs5Ej32F4dHEEx3180Wkez5jaRVzVS2PaAHMeKQUmhQJjarC zynkp4qQ0YqCSneKhnSqeA== 0000891804-95-000015.txt : 19950516 0000891804-95-000015.hdr.sgml : 19950516 ACCESSION NUMBER: 0000891804-95-000015 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941130 FILED AS OF DATE: 19950202 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND CENTRAL INDEX KEY: 0000897419 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 367032570 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07484 FILM NUMBER: 95504830 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129177810 MAIL ADDRESS: STREET 2: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 N-30D 1 Nuveen Exchange-Traded Funds Providing tax-free income to help you live your dreams NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND SEMIANNUAL REPORT/NOVEMBER 30, 1994 Man reading statement on porch CONTENTS 3 Dear shareholder 5 Answering your questions 9 Fund performance 11 Getting to know your fund 13 Portfolio of investments 24 Statement of net assets 25 Statement of operations 26 Statement of changes in net assets 28 Notes to financial statements 36 Financial highlights Dear shareholder "Providing secure income remains our top priority" Photo of Richard J. Franke, Chairman of the Board Over the past year the municipal market experienced the most dramatic volatility we have seen in more than a decade. During the period, the Federal Reserve Board undertook one of the most aggressive inflation-fighting efforts in its history, raising interest rates six times from February through November. The prices of all bonds and bond funds were affected by the Fed's actions, and the Funds covered in this report were not exceptions. In fact, because they are newer funds, holding bonds issued when interest rates were moving lower and bond prices were correspondingly high, these Funds were especially sensitive to changing interest rates. The fact that your Fund is leveraged means that it will be more sensitive to changes in interest rates--both up and down--than unleveraged funds. Our conservative approach to portfolio management, focused on quality and income dependability, continued throughout this period. Importantly, your Nuveen Fund continued to provide an attractive level of income free from federal, state, and in some cases, local taxes. On November 30, 1994, current yields on share prices for the Funds covered in this report ranged from 6.74% to 7.26%. To equal these yields, an investor in the 36% federal income tax bracket would need to earn at least 10.53% on taxable alternatives. This taxable yield is extremely difficult to achieve on investments of comparable quality. Of course, in investing as in any endeavor, looking back is never as important as looking ahead. And when we take a long-term view of the municipal market, we believe the outlook for your Fund is positively supported by several considerations. The Federal Reserve's attempt to hold inflation in check seems to be having its desired effect. At this writing, the economy continues to expand at a moderate pace and inflation remains under control. The municipal market's supply and demand characteristics continue to be positive. In 1994, the supply of new municipal bonds fell by approximately 40% from 1993, a trend expected to continue in 1995. At the same time, demand for tax-free bonds, which was subdued over the past 12 months by the market's extraordinary volatility, is likely to resume its long-term upward trend. This combination of lower supply--which may be reduced further by the high volume of bond calls expected in 1995--and rising demand should help support municipal bond prices in the long term. Also, the financial strength of most municipal issuers continues to improve. Combined with our value approach to investing--a disciplined approach to security selection and portfolio construction supported by one of the largest and most respected research teams in the municipal industry--these factors suggest that the prospects for the municipal market and your Fund remain attractive. In closing, I want to welcome new investors to these Funds and thank those who have been with us for some time. All of us at Nuveen appreciate your confidence in our family of municipal bond funds, and we look forward to helping you reach your tax-free investment objectives in the future. Sincerely, Richard J. Franke Chairman of the Board January 16, 1995 PAGE Answering your questions In January, we spoke with Tom Spalding, head of Nuveen's portfolio management team, and asked him about recent developments in the municipal market and the outlook for Nuveen Funds. Why has my Fund's net asset value dropped so sharply in such a short time? These have been difficult times for all fixed-income investors. The Bond Buyer 40 index--a measure of municipal market performance--declined by 7.4% over the past six months. Even 30-year Treasury bonds declined by 6.3% over this period. These Funds are down somewhat further for two reasons. First, they are relatively new, and their portfolios hold bonds issued when interest rates were lower than they are today. As a result, their net asset values were affected by interest rate changes. Leverage increases the impact of interest rate changes on the Fund's net asset values per common share. Leverage also enables these funds to generate a higher level of tax-free income than unleveraged funds. Since my Fund is leveraged, will rising short-term interest rates affect my dividends? With long-term bonds yielding around 6.5% and the average 7-day rate on our short-term preferred shares just over 3.4% at November 30, leverage has provided an important income benefit to our shareholders over the past year. Although the Funds' dividends are set to provide relatively stable income, steady increases in short-term interest rates will affect dividends over time. Our leveraged funds' dividends have been highly attractive compared with both unleveraged and taxable alternatives over the past year. We expect an income advantage to persist over the long term despite short-term fluctuations. All things considered, leverage continues to provide attractive returns in a variety of market conditions to investors who understand the uses, benefits, and characteristics of leverage, and are willing to accept somewhat higher short-term NAV fluctuations in anticipation of greater long-range returns. Will bond calls affect my income or the stability of the net asset value of my shares? Since the Funds covered in this report are relatively new and primarily hold bonds that can't be called for several years, calls shouldn't significantly affect their income in the near future. In general, bond calls can mean some reduction in income for investors in both individual bonds and bond funds, because bonds issued when interest rates were higher need to be replaced with today's lower yielding bonds. Older funds often hold bonds priced at premiums to their par values, which can soften the effect of rising interest rates. However, as these bonds approach their call dates the premiums gradually decline to the bonds' par values, reducing net asset values. These Funds primarily hold bonds priced at discounts to their par values, so though they are more sensitive to interest rate changes both up and down, they are unaffected by declining premium values as bonds approach call dates. Of course, we're continuing to manage all of our portfolios with calls in mind. As part of our basic management process, we continually evaluate opportunities to sell bonds approaching their call dates and to reinvest the proceeds in bonds we think have high potential to provide above-market returns. What's the outlook for bonds issued by the states covered in this report? Our outlook is optimistic for reasons related both to the municipal market in general and to the economies of these states. Looking first at the municipal market overall, inflation remains under control, the financial condition of issuers across the country is generally strengthening, and the market's supply and demand characteristics are positive. That is all good news for tax-free investors. For the states covered in this report, the outlook is also positive. Not only are the states' financial conditions generally strengthening, the supply of investment-grade quality bonds also is beginning to shrink while demand is increasing. NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NTC In line with the Fund's objective of providing attractive, dependable tax-free income, shareholders enjoyed a dividend increase in August to 6.25 cents per share.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 12/93 $0.0605 1/94 $0.0605 2/94 $0.0605 3/94 $0.0605 4/94 $0.0605 5/94 $0.0605 6/94 $0.0605 7/94 $0.0605 8/94 $0.0625 9/94 $0.0625 10/94 $0.0625 11/94 $0.0625 FUND HIGHLIGHTS 11/30/94 Yield 6.74% Taxable-equivalent yield 11.05% Annual total return on NAV -17.45% Taxable-equivalent total return -13.95% Share price $11.125 NAV $10.72
The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund. NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND NMT In line with the Fund's objective of providing attractive, dependable tax-free income, shareholders enjoyed a dividend increase in August to 6.6 cents per share.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 12/93 $0.0600 1/94 $0.0600 2/94 $0.0600 3/94 $0.0600 4/94 $0.0600 5/94 $0.0600 6/94 $0.0600 7/94 $0.0600 8/94 $0.0660 9/94 $0.0660 10/94 $0.0660 11/94 $0.0660 FUND HIGHLIGHTS 11/30/94 Yield 6.89% Taxable-equivalent yield 12.19% Annual total return on NAV -15.55% Taxable-equivalent total return -11.35% Share price $11.50 NAV $11.16
The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund. NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND NOM Shareholders in this Fund enjoyed seven months of steady dividends, following a modest reduction in May.
12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 12/93 $0.0595 1/94 $0.0595 2/94 $0.0595 3/94 $0.0595 4/94 $0.0595 5/94 $0.0580 6/94 $0.0580 7/94 $0.0580 8/94 $0.0580 9/94 $0.0580 10/94 $0.0580 11/94 $0.0580 FUND HIGHLIGHTS 11/30/94 Yield 6.79% Taxable-equivalent yield 11.32% Annual total return on NAV -17.65% Taxable-equivalent total return -14.14% Share price $10.25 NAV $10.67
The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund. PAGE NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND NPW In line with the Fund's objective of providing attractive, dependable tax-free income, shareholders enjoyed a dividend increase in August to 6.5 cents per share.
12 MONTH DIVIDEND HISTORY (as of 12/31/94) Date Monthly Dividends Supplemental Dividends Capital Gains 12/93 $0.0635 $0.0140 1/94 $0.0635 2/94 $0.0635 3/94 $0.0635 4/94 $0.0635 5/94 $0.0635 6/94 $0.0635 7/94 $0.0635 8/94 $0.0650 9/94 $0.0650 10/94 $0.0650 11/94 $0.0650 FUND HIGHLIGHTS 11/30/94 Yield 7.26% Taxable-equivalent yield 11.34% Annual total return on NAV -17.01% Taxable-equivalent total return -13.92% Share price $10.75 NAV $11.24
The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund. Getting to know your fund Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, November 30, 1994) divided by its closing price per share on that date. Taxable equivalent yield The return an investor who is subject to a given income tax rate would need to obtain from a fully taxable investment to equal the fund's stated annualized yield on share price. In this report, those tax rates are assumed to be 39% for NTC, 43.5% for NMT, 40% for NOM, and 36% for NPW, based on incomes of $115,000-$250,000 for investors filing singly, $140,000-$250,000 for those filing jointly. Net Asset Value (NAV) The market value of all securities and other assets held by an exchange-traded fund, minus any liabilities. The NAV per share is the fund's net assets, less the value of its preferred shares, divided by its total number of common shares outstanding. Annual total return on NAV The percentage change in a fund's NAV per share over the previous 12 months, assuming reinvestment of all dividends and capital gains distributions, if any. Taxable equivalent total return The total return an investor, who is subject to a given income tax rate would need to obtain from a fully taxable investment to equal the Fund's stated total return on NAV. Leverage A fund structure that enhances the income produced for common shareholders by a long-term municipal bond fund through the issuance of short-term preferred shares. Preferred shareholders receive short-term tax-free income, while the proceeds can be used to purchase additional long-term bonds, thus increasing the portfolio's income for common shareholders. Changes in net asset value per common share, both up and down, are also magnified. Each Fund intends to repurchase shares of its common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 6-month period ended November 30, 1994. Any future repurchases will be reported to shareholders in the next annual or semiannual report. PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND (NTC)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 3,000,000 Connecticut State Airport (Bradley International), 7.650%, 10/01/12 10/04 at 100 Aaa $ 3,189,150 1,650,000 Connecticut Development Authority, 6.375%, 10/15/14 10/04 at 102 AA- 1,570,553 Connecticut Development Authority (Alzheimer's Resource Center of Connecticut): 1,500,000 6.875%, 8/15/04 No Opt. Call N/R 1,454,970 1,000,000 7.000%, 8/15/09 8/04 at 102 N/R 964,350 2,450,000 Connecticut Development Authority (Bridgeport Hydraulic Company), 5.500%, 6/01/28 6/03 at 102 Aaa 1,974,700 2,795,000 Connecticut Development Authority (Bridgeport Hydraulic Company), Alternative Minimum Tax, 5.600%, 6/01/28 6/03 at 102 Aaa 2,249,612 2,130,000 Connecticut Development Authority (Stamford Water Company Project), 5.300%, 9/01/28 9/03 at 102 A+ 1,612,879 Connecticut General Obligation: 3,250,000 5.100%, 8/01/11 8/05 at 101 1/2 AA- 2,658,793 2,000,000 6.000%, 3/15/12 No Opt. Call AA- 1,836,580 3,575,000 Connecticut Health and Educational Facilities Authority (University of Hartford), 8.000%, 7/01/18 (Pre-refunded to 7/01/03) 7/03 at 100 Aaa 3,945,549 1,000,000 Connecticut Health and Educational Facilities Authority (Newington Children's Hospital), 6.050%, 7/01/10 7/04 at 102 Aaa 934,890 2,500,000 Connecticut Health and Educational Facilities Authority (Bridgeport Hospital), 6.250%, 7/01/22 7/02 at 102 Aaa 2,274,900 1,700,000 Connecticut Health and Educational Facilities Authority (Lawrence and Memorial Hospital), 6.250%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 1,742,993 2,020,000 Connecticut Health and Educational Facilities Authority (Trinity College), 6.000%, 7/01/22 7/02 at 102 Aaa 1,774,509 Connecticut Health and Educational Facilities Authority (The Taft School): 1,300,000 5.250%, 7/01/13 7/00 at 102 A 1,040,117 1,120,000 5.400%, 7/01/20 7/00 at 102 A 882,493 2,000,000 Connecticut Health and Educational Facilities Authority (Mansfield Center Nursing and Rehabilitation), 5.875%, 11/01/12 11/03 at 102 AA- 1,735,420 4,450,000 Connecticut Health and Educational Facilities Authority (Quinnipiac College), 6.000%, 7/01/23 7/03 at 102 BBB- 3,455,247 Connecticut Health and Educational Facilities Authority (Fairfield University): 1,000,000 5.000%, 7/01/13 7/03 at 102 Aaa 792,000 975,000 5.000%, 7/01/18 7/03 at 102 Aaa 748,576 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 5,500,000 Connecticut Health and Educational Facilities Authority (Saint Francis Hospital and Medical Center), 5.000%, 7/01/23 7/03 at 102 Aaa $ 4,088,920 Connecticut Health and Educational Facilities Authority (Sacred Heart University): 2,600,000 5.700%, 7/01/16 7/03 at 102 BBB- 2,011,698 1,000,000 5.800%, 7/01/23 7/03 at 102 BBB- 754,120 Connecticut Health and Educational Facilities Authority (Hospital of Saint Raphael): 3,085,000 5.100%, 7/01/07 No Opt. Call Aaa 2,608,830 2,000,000 5.200%, 7/01/08 No Opt. Call Aaa 1,679,780 2,000,000 Connecticut Health and Educational Facilities Authority (Sharon Health Care Project), 6.250%, 11/01/21 11/04 at 102 AA- 1,738,180 1,250,000 Connecticut Health and Educational Facilities Authority (Choate Rosemary Hall), 7.000%, 7/01/25 (WI) 7/04 at 101 Aaa 1,243,638 3,175,000 Connecticut Housing Finance Authority, 6.200%, 5/15/12 5/03 at 102 AA 2,915,190 2,490,000 Connecticut Housing Finance Authority, Alternative Minimum Tax, 6.050%, 11/15/25 11/02 at 102 AA 2,080,918 4,250,000 Connecticut Municipal Electric Energy Co-op, 5.000%, 1/01/18 1/04 at 102 Aaa 3,283,465 2,200,000 Connecticut Resource Recovery Authority (Bridgeport Resco Company Project), 7.625%, 1/01/09 1/97 at 103 A 2,266,506 3,580,000 Connecticut Resource Recovery Authority (American Ref-Fuel Company), 7.700%, 11/15/11 11/98 at 103 AA- 3,672,257 Connecticut Special Tax Obligation: 1,500,000 5.250%, 9/01/06 9/03 at 102 AA- 1,324,830 1,000,000 4.600%, 10/01/06 10/03 at 102 AA- 811,000 1,000,000 5.400%, 9/01/09 9/03 at 102 AA- 853,320 1,800,000 6.500%, 10/01/10 No Opt. Call AA- 1,766,682 Cheshire General Obligation: 620,000 5.100%, 8/15/08 8/03 at 102 Aa 530,869 630,000 5.100%, 8/15/09 8/03 at 102 Aa 530,296 620,000 5.200%, 8/15/10 8/03 at 102 Aa 525,078 630,000 5.200%, 8/15/11 8/03 at 102 Aa 529,087 New Haven Parking Facilities: 3,000,000 6.625%, 12/01/05 12/01 at 102 Aaa 3,082,770 1,500,000 6.500%, 12/01/15 12/01 at 102 Aaa 1,445,205 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE South Central Connecticut Regional Water Authority: $ 1,275,000 5.125%, 8/01/07 8/03 at 102 Aaa $ 1,108,153 2,100,000 5.200%, 8/01/08 8/03 at 102 Aaa 1,808,792 2,000,000 5.750%, 8/01/12 8/03 at 102 Aaa 1,791,360 5,250,000 Waterbury General Obligation, 5.375%, 4/15/08 4/03 at 102 Aaa 4,673,234 3,500,000 Puerto Rico Ports Authority, Special Facilities (American Airlines, Inc. Project), 6.300%, 6/01/23 6/03 at 102 Baa3 2,916,654 $100,970,000 Total Investments - (cost $103,201,354) - 95.5% 88,879,113 ============ TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 3.4% $ 3,200,000 Connecticut Development Authority, Pollution ============ Control (Connecticut Light and Power Company Project), Variable Rate Demand Bonds, 3.550%, 9/01/28t VMIG-1 3,200,000 Other Assets Less Liabilities - 1.1% 941,257 Net Assets - 100% $93,020,370 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 21 $46,441,026 52% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 16 25,079,053 28% PORTFOLIO OF A+ A1 1 1,612,879 2% INVESTMENTS A, A- A, A2, A3 3 4,189,116 5% (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 9,137,719 10% TEMPORARY Non-rated Non-rated 2 2,419,320 3% INVESTMENTS): TOTAL 47 $88,879,113 100% * 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. (WI) Security purchased on a when-issued basis (note 1). t The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND (NMT)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE Massachusetts Bay Transportation Authority: $ 2,250,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa $ 2,467,755 1,700,000 5.500%, 3/01/21 3/03 at 100 A+ 1,378,037 1,000,000 5.500%, 3/01/22 3/03 at 102 Aaa 812,270 1,310,000 Massachusetts Health and Educational Facilities Authority (New England Deaconess Hospital), 6.625%, 4/01/12 4/02 at 102 A 1,200,812 3,000,000 Massachusetts Health and Educational Facilities Authority (Children's Hospital), 5.500%, 10/01/19 10/02 at 102 AA 2,356,110 3,000,000 Massachusetts Health and Educational Facilities Authority (Lahey Clinic Medical Center), 5.625%, 7/01/15 7/03 at 102 Aaa 2,527,590 3,000,000 Massachusetts Health and Educational Facilities Authority (Massachusetts General Hospital), 5.375%, 7/01/11 7/00 at 100 Aaa 2,528,430 1,750,000 Massachusetts Health and Educational Facilities Authority (Massachusetts Institute of Technology), 5.000%, 7/01/11 7/03 at 102 Aaa 1,415,505 4,500,000 Massachusetts Health and Educational Facilities Authority (Baystate Medical Center), 5.000%, 7/01/12 7/03 at 102 Aaa 3,605,175 1,500,000 Massachusetts Health and Educational Facilities Authority (Boston College), 5.250%, 6/01/23 6/03 at 102 A1 1,155,210 1,000,000 Massachusetts Health and Educational Facilities Authority (Daughters of Charity), 6.100%, 7/01/14 6/04 at 102 Aa 885,370 Massachusetts Health and Educational Facilities Authority (Youville Hospital): 3,375,000 6.125%, 2/15/15 2/04 at 102 Aa 3,044,250 1,000,000 6.000%, 2/15/25 2/04 at 102 Aa 849,650 4,000,000 Massachusetts Housing Finance Agency, 6.300%, 10/01/13 4/03 at 102 A1 3,620,000 2,000,000 Massachusetts Housing Finance Agency, Alternative Minimum Tax, 8.100%, 12/01/21 12/98 at 102 Aa 2,064,920 2,500,000 Massachusetts Housing Finance Authority, Insured Rental Housing, Alternative Minimum Tax, 6.650%, 7/01/19 7/04 at 102 Aaa 2,326,100 4,850,000 Massachusetts Industrial Finance Agency, Pollution Control (Eastern Edison), 5.875%, 8/01/08 8/03 at 102 Baa2 4,208,782 3,000,000 Massachusetts Industrial Finance Agency, Resource Recovery (SEMASS Project), Alternative Minimum Tax, 9.250%, 7/01/15 7/01 at 103 N/R 3,187,530 2,000,000 Massachusetts Industrial Finance Agency (College of the Holy Cross), 6.375%, 11/01/15 11/02 at 102 A1 1,861,540 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,400,000 Massachusetts Industrial Finance Agency, (Merrimack College), 7.125%, 7/01/12 7/02 at 102 BBB- $ 1,342,460 1,175,000 Massachusetts Industrial Finance Agency (Brooks School), 5.950%, 7/01/23 7/03 at 102 A 1,000,419 4,750,000 Massachusetts Industrial Finance Agency (Phillips Academy), 5.375%, 9/01/23 9/08 at 102 Aa1 3,769,933 2,645,000 Massachusetts Industrial Finance Agency (Whitehead Institute for Biomedical Research), 5.125%, 7/01/26 7/03 at 102 Aa 1,913,578 1,250,000 Massachusetts Municipal Wholesale Electric Company, 5.000%, 7/01/05 No Opt. Call Aaa 1,085,475 1,000,000 Massachusetts Port Authority, 13.000%, 7/01/13 No Opt. Call Aaa 1,612,440 4,750,000 Massachusetts Port Authority, Alternative Minimum Tax, 5.000%, 7/01/18 7/03 at 100 AA- 3,550,340 3,090,000 Massachusetts Water Pollution Abatement (Pool Loan Program), 5.600%, 8/01/13 8/03 at 102 AA- 2,648,439 Massachusetts Water Resources Authority: 1,750,000 5.250%, 3/01/13 3/03 at 102 A 1,435,350 3,000,000 5.750%, 12/01/21 12/01 at 100 A 2,488,350 3,000,000 5.000%, 3/01/22 3/03 at 100 A 2,202,300 Barnstable General Obligation: 1,020,000 5.750%, 9/15/10 9/04 at 102 Aa 900,956 1,020,000 5.750%, 9/15/11 9/04 at 102 Aa 894,183 965,000 5.750%, 9/15/12 9/04 at 102 Aa 840,573 Boston General Obligation: 1,000,000 4.875%, 9/01/09 9/03 at 102 Aaa 799,250 3,515,000 4.875%, 9/01/11 9/03 at 102 Aaa 2,746,691 1,420,000 Boston City Hospital, 5.750%, 2/15/23 8/00 at 102 AA- 1,151,052 2,500,000 Boston Water and Sewer Commission, 5.250%, 11/01/11 11/03 at 102 Aaa 2,082,975 1,600,000 Chicopee Electric System, 9.125%, 1/01/17 No Opt. Call Aaa 2,039,423 4,875,000 Lowell General Obligation, 5.600%, 11/01/12 11/03 at 102 Aaa 4,152,915 1,765,000 New England Education Loan Marketing Corporation, Student Loan, Alternative Minimum Tax, 6.750%, 9/01/02 No Opt. Call A 1,776,366 $94,225,000 Total Investments - (cost $93,142,864) - 96.2% 81,928,504 =========== Other Assets Less Liabilities - 3.8% 3,204,060 Net Assets - 100% $85,132,564 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 14 $30,201,994 37% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 24,869,354 30% PORTFOLIO OF A+ A1 4 8,014,787 10% INVESTMENTS: A, A- A, A2, A3 6 10,103,597 12% BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 5,551,242 7% Non-rated Non-rated 1 3,187,530 4% TOTAL 40 $81,928,504 100% * 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.
PORTFOLIO OF INVESTMENTS NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND (NOM)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,000,000 Missouri Environmental Improvement and Energy Resource Authority, Water Pollution Control, 5.400%, 7/01/15 7/03 at 102 Aa $ 1,610,940 1,200,000 Missouri Health and Educational Facilities Authority (St. Louis University), 4.750%, 10/01/16 10/03 at 102 Aaa 894,624 Missouri Health and Educational Facilities Authority (Barnes Jewish Christian): 1,000,000 5.150%, 5/15/10 No Opt. Call AA 821,170 1,000,000 6.750%, 5/15/12 No Opt. Call AA 980,890 845,000 Missouri Health and Educational Facilities Authority (Sisters of Mercy), 5.000%, 6/01/19 6/03 at 102 AA 617,137 Missouri Health and Educational Facilities Authority (SSM Health Care Obligated Group): 1,000,000 6.250%, 6/01/07 6/02 at 102 Aaa 983,010 1,290,000 7.000%, 6/01/15 6/00 at 102 Aaa 1,367,026 700,000 6.250%, 6/01/16 6/02 at 102 Aaa 648,648 2,000,000 Missouri Health and Educational Facilities Authority (St. Luke's Health System), 5.125%, 11/15/19 11/03 at 102 Aaa 1,533,480 665,000 Missouri Housing Development Commission, 5/95 at 6.600%, 11/15/10 101 25/32 AA+ 648,980 1,230,000 Missouri Housing Development Commission, Single Family Mortgage, Alternative Minimum Tax, 7.375%, 8/01/23 1/01 at 102 AAA 1,229,078 1,000,000 Missouri Regional Convention and Sports Complex Authority, 5.500%, 8/15/13 8/03 at 103 A1 823,960 1,400,000 Boone County Hospital, 5.500%, 8/01/09 8/02 at 102 A 1,214,976 885,000 Clayton Industrial Development Authority (Park Place Project), 5.375%, 5/01/08 5/98 at 103 AA 791,579 1,000,000 Franklin County Union Reorganized School District No. R-X1, General Obligation, 5.750%, 3/01/13 3/03 at 100 Aaa 893,900 2,785,000 Greene County, Single Family Mortgage, 0.000%, 3/01/16 No Opt. Call Aaa 606,545 1,000,000 Jackson County Public Finance Authority, 6.125%, 12/01/15 12/04 at 100 Aaa 924,050 1,500,000 Jackson County Consolidated School District No. 2, General Obligation, 5.250%, 3/15/11 3/03 at 102 Aaa 1,258,620 1,550,000 Jackson County Single Family Mortgage, 0.000%, 3/01/15 No Opt. Call Aaa 362,669 2,200,000 Kansas City Municipal Assistance Corporation, Leasehold Improvement (H. Roe Bartle Convention Center Project), 6.000%, 4/15/20 4/01 at 100 Aaa 1,981,078 2,000,000 Kansas City School District Building Corporation, 5.000%, 2/01/14 2/04 at 102 Aaa 1,581,180 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,500,000 St. Charles County Francis Howell School District, General Obligation, 7.800%, 3/01/08 No Opt. Call Aaa $ 1,675,500 1,400,000 St. Louis County General Obligation, 5.500%, 2/01/13 2/03 at 100 Aa1 1,197,308 St. Louis County (GNMA), Alternative Minimum Tax: 470,000 5.400%, 7/01/15 No Opt. Call AAA 391,275 1,500,000 5.650%, 7/01/20 No Opt. Call AAA 1,251,075 2,000,000 St. Louis County Pattonville R3 School District, General Obligation, 5.000%, 2/01/10 2/03 at 100 Aaa 1,634,460 1,395,000 St. Louis Board of Education, General Obligation, 8.500%, 4/01/07 No Opt. Call Aaa 1,640,785 1,400,000 Southeast Missouri Correctional Facilities, Certificates of Participation, 5.750%, 10/15/16 10/02 at 100 AA 1,210,972 1,400,000 Springfield School District R-12, General Obligation, 5.250%, 3/01/11 3/03 at 100 Aaa 1,179,234 1,400,000 Springfield Waterworks System, 5.600%, 5/01/23 5/03 at 102 Aa 1,172,990 2,775,000 University Development Foundation Power Plant, 5.750%, 5/01/18 5/03 at 102 A 2,330,778 1,500,000 Puerto Rico Highway and Transportation Authority, 5.250%, 7/01/20 7/03 at 101 1/2 A 1,150,155 $44,990,000 Total Investments - (cost $41,425,097) - 94.4% 36,608,072 =========== TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 2.8% $ 1,100,000 Missouri Health and Educational Facilities Authority =========== (Washington University), Variable Rate Demand Bonds, 3.600%, 3/01/17t VMIG-1 1,100,000 Other Assets Less Liabilities - 2.8% 1,066,749 Net Assets - 100% $38,774,821 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 19 $22,036,237 60% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 9,051,966 25% PORTFOLIO OF A+ A1 1 823,960 2% INVESTMENTS A, A- A, A2, A3 3 4,695,909 13% (EXCLUDING TEMPORARY INVESTMENTS): TOTAL 32 $36,608,072 100% * 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. t The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS (Unaudited) NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND (NPW)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,000,000 Washington General Obligation, 6.000%, 5/01/19 5/04 at 100 AA $ 1,769,500 2,400,000 Washington Health Care Facilities Authority (Swedish Hospital Medical Center of Seattle), 6.300%, 11/15/22 11/02 at 102 Aaa 2,146,656 650,000 Washington Health Care Facilities Authority (Empire Health Services), 5.625%, 11/01/19 11/03 at 102 Aaa 528,327 1,000,000 Washington Health Care Facilities Authority (The Heart Institute of Spokane), 5.800%, 8/15/18 8/04 at 102 AA- 816,540 1,400,000 Washington Housing Development Corporation, FHA-Insured, 5.950%, 1/01/25 7/03 at 103 Aaa 1,176,826 980,000 Washington Housing Finance Commission (GNMA), Alternative Minimum Tax, 7.700%, 7/01/32 1/00 at 103 AAA 984,234 1,610,000 Washington Housing Finance Commission, Single Family Mortgage, Alternative Minimum Tax, 6.150%, 1/01/26 No Opt. Call AAA 1,378,337 1,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 5.700%, 7/01/17 7/03 at 102 Aaa 834,720 1,000,000 Washington Public Power Supply System, Nuclear Project No. 3, 7.000%, 7/01/09 No Opt. Call AA 1,013,610 1,400,000 Washington State University, 6.375%, 10/01/18 10/04 at 101 Aaa 1,303,652 1,050,000 Bellevue Water and Sewer System, 5.875%, 7/01/09 7/04 at 100 AA- 951,038 1,000,000 Benton County Public Utility District No. 1, 13.500%, 11/01/02 (Pre-refunded to 11/01/97) 11/97 at 100 Aaa 1,220,510 1,895,000 Chelan County Public Utility District No. 1 (Columbia River-Rock Island Hydroelectric System), 6.375%, 6/01/29 1/95 at 102 A1 1,709,991 1,000,000 King County School District No. 210 (Federal Way), General Obligation, 5.750%, 12/01/12 No Opt. Call Aaa 875,940 1,000,000 Lewis County Public Utility District (Cowlitz Falls Hydroelectric Project), 5.500%, 10/01/09 10/03 at 102 AA 887,300 1,000,000 Pierce County (Peninsula School District No. 401), General Obligation, 5.500%, 12/01/08 No Opt. Call Aaa 877,200 1,000,000 Port of Seattle, 6.000%, 12/01/14 12/00 at 100 AA- 889,280 1,500,000 Port of Seattle, Alternative Minimum Tax, 6.000%, 12/01/14 12/00 at 100 AA- 1,330,995 1,000,000 Port of Vancouver, Limited Tax, Alternative Minimum Tax, 6.000%, 12/01/04 No Opt. Call Aaa 986,710 1,160,000 Richland Water and Sewer System, 5.625%, 4/01/12 4/03 at 100 Aaa 996,974 Seattle Indian Services Commission: 1,525,000 6.000%, 11/01/16 11/04 at 100 Aa1 1,353,697 750,000 6.150%, 11/01/24 11/04 at 100 Aa1 662,873 1,500,000 Seattle Drain and Wastewater Utility System, 5.750%, 12/01/22 12/02 at 101 AA 1,256,790 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,500,000 Seattle Municipal Light and Power, 5.750%, 8/01/12 8/02 at 102 AA $ 1,321,050 2,000,000 Seattle Metropolitan Municipality General Obligation, 5.625%, 1/01/12 1/03 at 102 Aa 1,749,880 Seattle Metropolitan Municipality Sewer System: 1,000,000 5.450%, 1/01/19 1/03 at 102 Aaa 801,110 1,300,000 6.200%, 1/01/32 1/02 at 102 AA- 1,132,443 1,500,000 Seattle Water System, 5.250%, 12/01/23 6/03 at 101 AA 1,141,560 1,385,000 Snohomish County Public Utility District No. 1, Alternative Minimum Tax, 5.750%, 1/01/09 1/04 at 102 A1 1,192,471 1,500,000 Snohomish County School District No. 6 (Mukilteo District), General Obligation, 5.700%, 12/01/12 No Opt. Call Aaa 1,302,135 Snohomish County School District No. 15, General Obligation: 1,500,000 5.550%, 12/01/07 12/03 at 102 Aaa 1,326,810 500,000 6.500%, 12/01/08 No Opt. Call AA- 490,114 2,000,000 Spokane Regional Solid Waste Management System, 6.250%, 12/01/11 12/02 at 102 Aaa 1,880,540 1,970,000 Vancouver Housing Authority (Fishers Mill Project), 6.000%, 3/01/23 3/03 at 100 Aa 1,667,230 1,500,000 Western Washington University, Housing and Dining System, 6.375%, 10/01/22 10/02 at 101 Aaa 1,366,920 1,000,000 Yakima-Tieton Irrigation District, 6.125%, 6/01/13 6/03 at 102 Aaa 914,820 $47,475,000 Total Investments - (cost $47,709,578) - 98.1% 42,238,783 =========== Other Assets Less Liabilities - 1.9% 838,133 Net Assets - 100% $43,076,916 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 18 $20,902,421 49% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 16 18,433,900 44% PORTFOLIO OF A+ A1 2 2,902,462 7% INVESTMENTS: TOTAL 36 $42,238,783 100% * 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.
STATEMENT OF NET ASSETS (Unaudited)
NTC NMT NOM NPW ASSETS Investments in municipal securities, at market value (note 1) $88,879,113 $81,928,504 $36,608,072 $42,238,783 Temporary investments in short-term municipal securities, at market value which equals cost (note 1) 3,200,000 -- 1,100,000 -- Cash 744,788 1,835,074 374,715 98,142 Receivables: Interest 1,917,565 1,806,989 617,639 986,563 Investments sold -- -- 242,440 -- Other assets 26,989 24,396 18,346 -- ----------- ----------- ----------- ----------- Total assets 94,768,455 85,594,963 38,961,212 43,323,488 ----------- ----------- ----------- ----------- LIABILITIES Payable for investments purchased 1,253,889 -- -- -- Accrued expenses: Management fees (note 6) 49,776 45,379 20,679 22,957 Other 102,732 98,764 31,755 62,612 Preferred share dividends payable 22,665 15,924 10,105 10,200 Common share dividends payable 319,023 302,332 123,852 150,803 ----------- ----------- ----------- ----------- Total liabilities 1,748,085 462,399 186,391 246,572 ----------- ----------- ----------- ----------- Net assets (note 7) $93,020,370 $85,132,564 $38,774,821 $43,076,916 =========== =========== =========== =========== Preferred shares, at liquidation value $38,300,000 $34,000,000 $16,000,000 $17,000,000 =========== =========== =========== =========== Preferred shares outstanding 1,532 1,360 640 680 =========== =========== =========== =========== Common shares outstanding 5,104,366 4,580,783 2,135,374 2,320,051 =========== =========== =========== =========== Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 10.72 $ 11.16 $ 10.67 $ 11.24 =========== =========== =========== =========== See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Six months ended November 30, 1994 (Unaudited)
NTC NMT NOM NPW INVESTMENT INCOME Interest income (note 1) $ 2,940,793 $ 2,793,858 $ 1,239,676 $ 1,407,738 ----------- ----------- ----------- ----------- Expenses: Management fees (note 6) 323,975 295,608 134,769 149,877 Preferred shares--auction fees 48,006 42,616 20,055 21,308 Preferred shares--dividend disbursing agent fees 7,521 7,521 7,521 7,521 Shareholders' servicing agent fees and expenses 11,766 4,202 3,799 1,391 Custodian's fees and expenses 24,903 22,297 20,055 20,780 Trustees' fees and expenses (note 6) 370 649 689 730 Professional fees 13,468 11,880 10,245 10,623 Shareholders' reports--printing and mailing expenses 17,125 13,042 11,751 14,570 Stock exchange listing fees 7,807 6,224 3,572 3,510 Investor relations expense 4,200 4,261 2,859 1,511 Other expenses 6,988 6,850 6,229 6,947 ----------- ----------- ----------- ----------- Total expenses 466,129 415,150 221,544 238,768 ----------- ----------- ----------- ----------- Net investment income 2,474,664 2,378,708 1,018,132 1,168,970 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (note 3) (1,340,906) (1,139,886) (583,799) (261,676) Net change in unrealized appreciation or depreciation of investments (7,530,845) (6,953,831) (3,069,997) (3,761,605) ----------- ----------- ----------- ----------- Net gain (loss) from investments (8,871,751) (8,093,717) (3,653,796) (4,023,281) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets from operations $(6,397,087) $(5,715,009) $(2,635,664) $(2,854,311) =========== =========== =========== =========== See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
NTC NMT 6 months ended Year ended 6 months ended Year ended 11/30/94 5/31/94 11/30/94 5/31/94 OPERATIONS Net investment income $ 2,474,664 $ 3,894,437 $ 2,378,708 $ 3,990,933 Net realized gain (loss) from investment transactions (1,340,906) (436,653) (1,139,886) (248,862) Net change in unrealized appreciation or depreciation of investments (7,530,845) (6,804,091) (6,953,831) (4,504,954) ------------ ------------ ----------- ----------- Net increase (decrease) in net assets from operations (6,397,087) (3,346,307) (5,715,009) (762,883) ------------ ------------ ----------- ----------- Distributions to Shareholders (note 1) From net investment income: Common shareholders (1,890,758) (3,070,429) (1,759,021) (3,376,550) Preferred shareholders (521,760) (650,074) (471,553) (683,990) In excess of net realized gains from investment transactions: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- ------------ ------------ ----------- ----------- Decrease in net assets from distributions to shareholders (2,412,518) (3,720,503) (2,230,574) (4,060,540) ------------ ------------ ----------- ----------- CAPITAL SHARE TRANSACTIONS (note 2) Common shares: Net proceeds from sale of Common shares -- 3,295,592 -- -- Net proceeds from Common shares issued to shareholders due to reinvestment of distributions from net investment income and from net realized gains from investment transactions 235,390 259,597 -- 190,321 Preferred shares--net proceeds from sale of shares -- 37,573,371 -- 33,334,587 ------------ ------------ ----------- ----------- Net increase in net assets derived from capital share transactions 235,390 41,128,560 -- 33,524,908 ------------ ------------ ----------- ----------- Net increase (decrease) in net assets (8,574,215) 34,061,750 (7,945,583) 28,701,485 Net assets at beginning of period 101,594,585 67,532,835 93,078,147 64,376,662 ------------ ------------ ----------- ----------- Net assets at end of period $ 93,020,370 $101,594,585 $85,132,564 $93,078,147 ============ ============ =========== =========== Balance of undistributed net investment income at end of period $ 244,712 $ 182,566 $ 327,506 $ 179,372 ============ ============ =========== =========== See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
NOM NPW 6 months ended Year ended 6 months ended Year ended 11/30/94 5/31/94 11/30/94 5/31/94 OPERATIONS Net investment income $ 1,018,132 $ 1,614,778 $ 1,168,970 $ 2,101,335 Net realized gain (loss) from investment transactions (583,799) (1,268,378) (261,676) (279,375) Net change in unrealized appreciation or depreciation of investments (3,069,997) (1,750,627) (3,761,605) (1,918,979) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets from operations (2,635,664) (1,404,227) (2,854,311) (97,019) ----------- ----------- ----------- ----------- Distributions to Shareholders (note 1) From net investment income: Common shareholders (742,772) (1,263,788) (897,861) (1,767,480) Preferred shareholders (229,337) (290,070) (265,436) (358,644) In excess of net realized gains from investment transactions: Common shareholders -- -- -- (32,481) Preferred shareholders -- -- -- (6,518) ----------- ----------- ----------- ----------- Decrease in net assets from distributions to shareholders (972,109) (1,553,858) (1,163,297) (2,165,123) ----------- ----------- ----------- ----------- CAPITAL SHARE TRANSACTIONS (note 2) Common shares: Net proceeds from sale of Common shares -- 323,772 -- -- Net proceeds from Common shares issued to shareholders due to reinvestment of distributions from net investment income and from net realized gains from investment transactions 40,046 68,297 -- 95,029 Preferred shares--net proceeds from sale of shares -- 15,612,738 -- 16,608,288 ----------- ----------- ----------- ----------- Net increase in net assets derived from capital share transactions 40,046 16,004,807 -- 16,703,317 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets (3,567,727) 13,046,722 (4,017,608) 14,441,175 Net assets at beginning of period 42,342,548 29,295,826 47,094,524 32,653,349 ----------- ----------- ----------- ----------- Net assets at end of period $38,774,821 $42,342,548 $43,076,916 $47,094,524 =========== =========== =========== =========== Balance of undistributed net investment income at end of period $ 109,162 $ 63,139 $ 133,936 $ 128,263 =========== =========== =========== =========== See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At November 30, 1994, the state Funds (the "Funds") covered in this report and their corresponding stock exchange symbols are Nuveen Connecticut Premium Income Municipal Fund (NTC), Nuveen Massachusetts Premium Income Municipal Fund (NMT), Nuveen Missouri Premium Income Municipal Fund (NOM) and Nuveen Washington Premium Income Municipal Fund (NPW). NTC and NMT are traded on the New York Stock Exchange while NOM and NPW are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with generally accepted accounting principles. Securities Valuation Portfolio securities for which market quotations are readily available are valued at the mean between the quoted bid and asked prices or the yield equivalent. Portfolio securities for which market quotations are not readily available are valued at fair value by consistent application of methods determined in good faith by the Trustees. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are traded and valued at principal amount. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of their purchase commitments. At November 30, 1994, NTC had outstanding purchase commitments which amounted to $1,253,889. There were no such purchase commitments in any of the other Funds. Interest Income Interest income is determined on the basis of interest accrued and discount earned, adjusted for amortization of premiums or discounts on long-term debt securities when required for federal income tax purposes. Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing all of their net investment income, in addition to any significant amounts of net realized gains from investments, to shareholders. The Funds currently consider significant net realized gains as amounts in excess of $.01 per Common share. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax exempt status when distributed to shareholders of the respective Funds. Dividends and Distributions to Shareholders Net investment income is declared as a dividend monthly and payment is made or reinvestment is credited to shareholder accounts after month-end. Net realized gains from investment transactions are distributed to shareholders not less frequently than annually only to the extent they exceed available capital loss carryovers. Distributions to shareholders of net investment income and net realized gains from investment transactions are recorded on the ex-dividend date. The amount and timing of such distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. Accordingly, temporary over-distributions as a result of these differences may result and will be classified as either distributions in excess of net investment income or distributions in excess of net realized gains from investment transactions, if applicable. Preferred Shares The following 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 7 days, as set by the Auction Agent. The number of shares outstanding by Series at November 30, 1994, for each Fund is as follows:
NTC NMT NOM NPW Number of Shares: Series Th 1,532 1,360 640 680 ===== ===== === ===
2. FUND SHARES Transactions in Common and Preferred shares were as follows:
NTC NMT 6 months ended Year ended 6 months ended Year ended 11/30/94 5/31/94 11/30/94 5/31/94 Common shares: Shares sold -- 230,000* -- -- Shares issued to shareholders due to reinvestment of distributions from net investment income and from net realized gains from investment transactions 18,790 18,458 -- 8,665 ------ -------- ---- ----- Net increase 18,790 248,458 -- 8,665 ====== ======= ==== ===== Preferred shares sold -- 1,532 -- 1,360 ====== ======= ==== ===== NOM NPW 6 months ended Year ended 6 months ended Year ended 11/30/94 5/31/94 11/30/94 5/31/94 Common shares: Shares sold -- 20,000* -- -- Shares issued to shareholders due to reinvestment of distributions from net investment income and from net realized gains from investment transactions 3,230 5,026 -- 2,933 ----- ------ ---- ----- Net increase 3,230 25,026 -- 2,933 ===== ====== ==== ===== Preferred shares sold -- 640 -- 680 ===== ====== ==== ===== *Amounts shown reflect overallotments for shares sold in the initial public offering, which occurred during the Fund's initial period ended 5/31/93.
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the six months ended November 30, 1994, were as follows:
NTC NMT NOM NPW PURCHASES Investments in municipal securities $10,794,770 $19,671,986 $7,168,273 $4,397,497 Temporary municipal investments 4,700,000 14,700,000 4,600,000 3,200,000 SALES AND MATURITIES Investments in municipal securities 12,404,081 20,628,094 5,977,059 4,374,020 Temporary municipal investments 1,500,000 14,700,000 5,200,000 3,200,000 =========== =========== ========== ========== At November 30, 1994, the identified cost of investments owned for federal income tax purposes was the same as the cost for financial reporting purposes for each Fund. At May 31, 1994, the Funds' last fiscal year end, the Funds had unused capital loss carryovers available for federal income tax purposes to be applied against future security gains, if any. If not applied the carryovers will expire as follows: NTC NMT NOM NPW Expiration Year: 2002 $436,653 $248,862 $1,268,378 $279,375 ======== ======== ========== ======== 4. DISTRIBUTIONS TO COMMON SHAREHOLDERS On December 1, 1994, the Funds declared Common share dividend distributions from their ordinary income which were paid December 30, 1994, to shareholders of record on December 15, 1994, as follows: NTC NMT NOM NPW Dividend per share $.0625 $.0660 $.0580 $.0650 ====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 1994, were as follows:
NTC NMT NOM NPW Gross unrealized: Appreciation $ -- $ -- $ 3,930 $ -- Depreciation (14,322,241) (11,214,360) (4,820,955) (5,470,795) ------------ ------------ ----------- ----------- Net unrealized appreciation (depreciation) $(14,322,241) $(11,214,360) $(4,817,025) $(5,470,795) =========== =========== ========== =========== 6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays to the Adviser an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net asset value of each Fund. Average daily net asset value Management fee For the first $125,000,000 .65 of 1% For the next $125,000,000 .6375 of 1 For the next $250,000,000 .625 of 1 For the next $500,000,000 .6125 of 1 For the next $1,000,000,000 .6 of 1 For net assets over $2,000,000,000 .5875 of 1 The fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS At November 30, 1994, net assets consisted of:
NTC NMT NOM NPW Preferred shares, $25,000 stated value per share, at liquidation value $ 38,300,000 $ 34,000,000 $16,000,000 $17,000,000 Common shares, $.01 par value per share 51,044 45,808 21,354 23,201 Paid-in surplus 70,524,414 63,362,358 29,313,507 31,970,624 Undistributed net investment income 244,712 327,506 109,162 133,936 Accumulated net realized gain (loss) from investment transactions (1,777,559) (1,388,748) (1,852,177) (541,051) Accumulated distributions in excess of net realized gains from investment transactions -- -- -- (38,999) Net unrealized appreciation (depreciation) of investments (14,322,241) (11,214,360) (4,817,025) (5,470,795) ------------ ------------ ----------- ----------- Net assets $ 93,020,370 $ 85,132,564 $38,774,821 $43,076,916 ============ ============ =========== =========== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ============ ============ =========== ===========
8. INVESTMENT COMPOSITION Each Fund invests in municipal securities which include general obligation, escrowed and revenue bonds. At November 30, 1994, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows:
NTC NMT NOM NPW Revenue Bonds: Health Care Facilities 20% 16% 18% 8% Educational Facilities 14 18 9 6 Lease Rental Facilities -- -- 18 -- Water / Sewer Facilities 12 13 8 17 Electric Utilities 4 1 -- 17 Housing Facilities 6 16 5 12 Transportation 9 4 -- 8 Pollution Control Facilities 3 5 -- -- Other 12 4 5 4 General Obligation Bonds 14 15 26 25 Escrowed Bonds 6 8 11 3 ----- ----- ----- ----- 100% 100% 100% 100% ===== ===== ===== =====
Certain long-term and intermediate-term investments owned by the Funds are covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, either of which ensure the timely payment of principal and interest in the event of default (52% for NTC, 31% for NMT, 57% for NOM, and 44% for NPW). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of any of the Funds' shares. All of the temporary investments in short-term municipal securities have credit enhancements (letters of credit, guarantees or insurance) issued by third party domestic or foreign banks or other institutions. For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. Financial Highlights (Unaudited) selected data for a common share outstanding throughout each period is as follows:
Operating performance Dividends from net investment income Net realized & Net asset unrealized value Net gain (loss) To To beginning investment from Common Preferred of period income investments shareholders shareholderst NTC 6 Mos. ended 11/30/94 $12.450 $.485 $(1.742) $(.371) $(.102) Year ended 5/31/94 13.960 .768 (1.400) (.605) (.129) 5/20/93 to 5/31/93 14.050 .002 .001 -- -- NMT 6 Mos. ended 11/30/94 12.900 .519 (1.772) (.384) (.103) Year ended 5/31/94 14.080 .872 (1.020) (.738) (.149) 3/18/93 to 5/31/93 14.050 .054 .056 -- -- NOM 6 Mos. ended 11/30/94 12.350 .477 (1.702) (.348) (.107) Year ended 5/31/94 13.900 .759 (1.397) (.594) (.136) 5/20/93 to 5/31/93 14.050 .001 (.001) -- -- NPW 6 Mos. ended 11/30/94 12.970 .504 (1.733) (.387) (.114) Year ended 5/31/94 14.090 .906 (.923) (.762) (.155) 3/18/93 to 5/31/93 14.050 .066 .088 -- -- Distributions from capital gains Per Common share To To Organization Net asset market Common Preferred and value end value end shareholders shareholderst offering costs of period of period NTC 6 Mos. ended 11/30/94 $ -- $ -- $ -- $10.720 $11.125 Year ended 5/31/94 -- -- (.144) 12.450 13.125 5/20/93 to 5/31/93 -- -- (.093) 13.960 15.000 NMT 6 Mos. ended 11/30/94 -- -- -- 11.160 11.500 Year ended 5/31/94 -- -- (.145) 12.900 12.500 3/18/93 to 5/31/93 -- -- (.080) 14.080 15.250 NOM 6 Mos. ended 11/30/94 -- -- -- 10.670 10.250 Year ended 5/31/94 -- -- (.182) 12.350 12.000 5/20/93 to 5/31/93 -- -- (.150) 13.900 15.125 NPW 6 Mos. ended 11/30/94 -- -- -- 11.240 10.750 Year ended 5/31/94 (.014)tt (.003)tt (.169) 12.970 12.375 3/18/93 to 5/31/93 -- -- (.114) 14.090 15.750 Ratios/Supplemental data Ratio of Total net investment Total Net assets Ratio of investment return return end of expenses income Portfolio on market on net asset period (in to average to average turnover value** value** thousands) net assets net assets rate NTC 6 Mos. ended 11/30/94 (12.61)% (11.18)% $93,020 .94*% 4.97*% 11% Year ended 5/31/94 (8.73) (6.74) 101,595 .95 3.95 9 5/20/93 to 5/31/93 -- (.64) 67,533 1.04* 1.17* -- NMT 6 Mos. ended 11/30/94 (4.98) (10.74) 85,133 .91* 5.23* 22 Year ended 5/31/94 (13.64) (3.38) 93,078 .97 4.26 33 3/18/93 to 5/31/93 1.67 .21) 64,377 .93* 2.17* -- NOM 6 Mos. ended 11/30/94 (12.02) (11.02) 38,775 1.07* 4.91* 15 Year ended 5/31/94 (17.26) (7.16) 42,343 1.05 3.92 39 5/20/93 to 5/31/93 .83 (1.07) 29,296 1.34* .69* -- NPW 6 Mos. ended 11/30/94 (10.22) (10.60) 43,077 1.04* 5.07* 10 Year ended 5/31/94 (16.88) (2.73) 47,095 1.08 4.42 29 3/18/93 to 5/31/93 5.00 .28 32,653 1.02* 2.63* -- * Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. t The amounts shown are based on Common share equivalents. tt The amounts shown reflect distributions in excess of net realized gains from investment transactions (note 1).
The human bond Photo of John Nuveen At John Nuveen & Co. Incorporated, where our tax-free municipal bonds have helped people live their dreams for nearly 100 years, we still believe our strongest bond is human.TM For almost a century, John Nuveen & Company has concentrated its resources and expertise in one area: municipal bonds. We are the oldest and largest investment banking firm specializing exclusively in municipal securities, and we strive to be the best. Our approach to managing our shareholders' investments endures. We maintain a sharp focus on the needs of prudent investors and their families, offer investments of quality, and then work to make them better by seeking out opportunity. We hold to a dedicated belief in the importance of research. And we sustain a commitment to sound financial management through value investing. Our hope is that by providing quality investments we may foster opportunity for our investors. Through careful research, attention to detail, and our philosophy of managing for long-term value, we strive to provide our shareholders with the attractive level of income they need to achieve their personal goals and aspirations. These are the things that matter most, and it's why we say that, at Nuveen, our strongest bond is human. ETF3-JAN 95 John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, Illinois 60606-1286 -----END PRIVACY-ENHANCED MESSAGE-----