-----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, Wt5sPoi2SX7r3B2XCuQ232hvuqGaPTSC+UJZ9/OeH0CcO0xJ47coV7WHdJNjDG3+ gVdzbxiO669Rt5ykTvu2bg== 0000891804-95-000169.txt : 19950801 0000891804-95-000169.hdr.sgml : 19950801 ACCESSION NUMBER: 0000891804-95-000169 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950531 FILED AS OF DATE: 19950731 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND CENTRAL INDEX KEY: 0000897419 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 367032570 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07484 FILM NUMBER: 95557699 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 WEST WACKER DRIVE STREET 2: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 N-30D 1 NUVEEN MASSACHUSETTS PREMIUM INCOME MUNI FD (NMT) 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 ANNUAL REPORT/MAY 31, 1995 Photographic image of man seated at breakfast table with wife standing behind him. Photographic image of Nuveen Research Department. Four people around a table working. Research: a foundation Your financial plan is in place. You and your adviser have made asset allocation decisions. For the tax-free portion of your portfolio, you want dependable income, safety of principal, and diversification. Solid, reliable research helps to keep your tax-free investments on the path you have chosen. Photographic image of a grouping of awards/statuettes. The strength of Nuveen's Research Department is illustrated by the numerous awards and press coverage we receive. Annual industry polls consistently recognize the quality and depth of Nuveen Research. At Nuveen, we believe that attention to detail combined with years of experience is the foundation for sound research. Sound research means finding quality bonds that deliver timely and dependable income over many decades. Beyond this, it means adding hidden value by identifying bonds whose credit strengths are not yet understood. USING RESEARCH TO TRACK INVESTMENT VALUE With tens of thousands of bonds available for investment today, the municipal market is one of the nation's largest--and most complex--securities markets. At the same time, the number of analysts devoted to researching the municipal market is comparatively small. While more than 23,000 analysts research the 7,500 common stocks available in the equity market, fewer than 1,000 analysts cover 60,000 municipal bond issues. Selecting those bonds that will outperform the market and help you achieve your investment goals depends upon an ability to analyze and understand the complexities of every single bond issue, ranging from analyzing the demand for a new highway or airport to understanding the impact of an industry closure on the financial position of a town's water and sewer system. Today we have the largest research staff in the investment banking industry devoted exclusively to the analysis of municipal bonds. Our award-winning team of more than 30 research professionals provides invaluable support to our portfolio managers, assisting them in careful analysis of every bond issue considered for purchase--even those rated AAA. We do not rely on others' ratings, however high. We always do our own homework. On a daily basis, our research analysts prepare credit reviews to assist in the selection of bonds that offer the best combination of yields and security, conduct ongoing surveillance that monitors the continued creditworthiness of portfolio holdings, and analyze economic, political, and demographic trends affecting the markets. The scope of this analysis goes beyond the obvious and well publicized information. It can involve, for example, assessing the results of local elections in small towns, or gaining an understanding of the world market in wood pulp in order to understand the feasibility of a municipal issue in Alaska. For example, a financial adviser visiting the office of one Nuveen analyst noticed a large number of clippings on salmon fishing. In response to an inquiry prompted by their own interest in fishing, the analyst explained that each of the articles provided information on salmon spawning habits, one of the conservation issues having a major impact on river flows and hence on how much power the public hydroelectric projects in the Pacific Northwest can generate. Having the largest research staff in the industry enables us to examine subtle but essential facts and trends--and to apply this information to monitor and enhance the performance of your portfolios. BENEFITING OUR INVESTORS The Nuveen Research Department supports the investment goals of fund investors through two major activities: Primary research and surveillance Every year, our research staff reviews thousands of tax-exempt issues valued at more than $100 billion to provide our portfolio managers with the most appropriate bonds based on current yield, price, credit quality, and future prospects. Rather than forecasting inflation, interest rates, or the general economy--all factors beyond our control--we use research to focus on the principles of value investing, a strategy designed to deliver above-market performance by identifying securities that are underpriced or undervalued. Nuveen's years of experience and range and involvement in the industry give us insights into individual issuers that other bond fund managers don't have, and help us add value by finding these overlooked investments. A recent example of the way our research benefits our shareholders was our successful investment in Philadelphia water and sewer bonds. When the city of Philadelphia decided to issue bonds to fund badly needed capital improvements for its water and sewer system, the city's fiscal difficulties resulted in an issue that was priced below that of other cities for similar bonds, generating higher income. However, Nuveen's proprietary rating system--based on our own research performed independently from the rating agencies--led us to the conclusion that the city water and sewer system was economically sound and that adequate legal safeguards would be put in place to protect the investment. Our judgment was justified when following the completion of the improvements, the prices for these bonds rose to a level consistent with those of other municipal issuers, resulting in a sizable portfolio gain to our shareholders. Research reports Just as you rely on your financial adviser for seasoned, prudent advice, so too, financial advisers rely on Nuveen's research to keep informed on developments in the municipal markets. Available reports range from credit reports on specific states, to comprehensive examinations of tax-free investment strategies, to the impact of national and state elections on municipal issues. (For a list of research reports currently available to you and your adviser, please refer to the attached reply card.) At Nuveen, quality research is one of the core elements of our disciplined approach to providing you with dependable income, credit quality, and diversification--key elements of a successful investment program. Photographic image of a grouping of research reports and newspapers. Nuveen's research reports are used by the press when they cover the municipal market in depth. Photographic image of man seated at breakfast table with wife standing behind him. contents 6 Municipal market perspective 7 Dear shareholder 9 Answering your questions 13 Fund performance 15 Amendment to dividend reinvestment plan 16 Commonly used terms 18 Portfolio of investments 29 Statement of net assets 30 Statement of operations 31 Statement of changes in net assets 33 Notes to financial statements 42 Financial highlights 44 Report of independent auditors 45 Nuveen Exchange-Traded Funds dividend reinvestment program Municipal market perspective The year ending May 31, 1995, was an eventful one for the municipal bond market. During the latter half of 1994, as the Federal Reserve Board steadily raised short-term interest rates in an effort to forestall inflation, the prices of all bonds and bond funds moved lower. Then, the year concluded with the sudden announcement of the bankruptcy of Orange County, California, in December. During the first five months of 1995, as it appeared that the economy was indeed headed for a soft landing and that inflation had been thwarted, the bond market rebounded. In July, the Federal Reserve Board reversed its anti-inflation monetary policy, easing short-term interest rates. We're already beginning to see positive effects from the Fed's program. Since the beginning of the year, interest rates have moved closer to the levels prevailing before the Fed's tightenings began. However, a strong stock market and continued debate about tax reform, including a proposed flat-tax, has had a tempering effect on the performance of the municipal bond market. Dear shareholder Photographic image of Richard Franke, Chairman of Nuveen. "Over time, municipal bonds have proven to be a valuable and dependable component of successful investment programs." Over the past 12 months, we have endured somewhat of a roller-coaster ride in the municipal bond market. First, we saw the conclusion of one of the worst periods in recent bond market history, capped by the December bankruptcy of a major municipal issuer with a seemingly healthy credit rating. Then, in early 1995, we experienced a welcome rebound in the bond markets. Throughout this turbulent time, we have kept our sights focused on successfully meeting the objectives of your funds: providing you with a source of stable current income, credit quality, and enhanced share price relative to the market as a whole. As of May 31, 1995, current yields on share prices for the funds covered in this report ranged from 5.50% to 6.40%. To match these yields, an investor in the 36% federal income tax bracket would have had to earn at least 8.59% on taxable alternatives of comparable quality; when state taxes are added to this equation, the tax advantage provided by municipal bonds is even greater. And, as we all know, taxable yields at this level can be difficult to achieve in today's markets. These yields remind us of the important role that municipal bonds--with their tax-free income--play as part of a successful investment strategy focused on diversification and long-term performance. Although, as we saw in 1994, transient fluctuations in interest rates, the markets, and the economy in general can cause us to reconsider our investment strategies. It is performance over the long-term that is the true measure of an investment--and, over time, municipal bonds have proven to be a valuable and dependable component of successful investment programs. It is your long-term goals--including secure retirement, accumulation through reinvestment, and prudent tax-advantaged strategies--that prompted you to make the initial choice to include municipal bonds as an integral part of your investment portfolio. As part of that long-term strategy, Nuveen offers you not only the income and credit safety of municipal bonds, but also the convenience of packaged investment products that provide direct access to diversification, professional management, and liquidity. Our exchange-traded funds make it easier for you to be well diversified across market sectors, while saving you the time and effort involved if you were to structure and monitor a portfolio of individual municipal bonds yourself. As 1995 unfolds, we will be keeping a close eye on credit trends. With the expansion of the economy, the financial strength of municipal issuers is continuing to improve. By now, most observers have concluded that the Orange County default was an anomaly, related to an unusually speculative investment approach rather than any inherent weakness in the municipal bond market itself. If you are interested in credit quality, you may want to read the article at the beginning of this report to learn more about the role and activities of our award-winning research department, including the tracking and monitoring of developments in the credit arena. The supply and demand situation also warrants our attention. While supplies of municipal bonds are currently running below those of last year, we still anticipate strengthening demand because of attractive tax-equivalent yields and a scarcity of alternative tax-advantaged investments. In closing, I'd like to take this opportunity to assure you that your choice of Nuveen as your fund manager is a wise one. We appreciate your continued confidence in Nuveen and look forward to many years of a mutually beneficial relationship. Sincerely, Richard J. Franke Chairman of the Board July 15, 1995 Answering your questions Photographic image of montage of letters received by Nuveen. Tom Spalding, head of Nuveen's portfolio management team, offers insights into recent developments in the municipal market and the outlook for Nuveen's Premium Income Funds. I have read that some of Nuveen's Funds are "leveraged." How exactly does leverage work? What are the advantages of leverage to me as a common shareholder? All Nuveen exchange-traded funds issue common shares and provide an attractive stream of monthly tax-free income. Many of our funds are able to generate a higher level of income for common shareholders through a strategy called leverage. Here's how leverage works: Some investors look for investments offering short-term liquidity. To meet the needs of these investors, some Nuveen exchange-traded funds issue preferred shares paying a short-term rate that is lower than the rate earned on the fund's long-term portfolio. Proceeds from the issuance of the preferred shares are used to buy additional investment-grade long-term bonds. Common shareholders benefit from these additional holdings through the extra income generated by the difference between the long-term rates earned by the fund and the short-term rates paid to preferred shareholders. For example, if we pay out 4% to investors who want short-term liquidity while investing for the long term at 7%, we can use the difference of 3% to purchase additional bonds and increase the income available to the common shareholders. However, leverage can add volatility to a portfolio because all changes in value are attributed to the common shareholder--both up and down. At Nuveen, we take a prudent approach to leverage, carefully balancing risk and return, limiting the percentage of leverage in a given portfolio, and moderating portfolio fluctuations through conservative portfolio management. Tom Spalding, head of Nuveen's portfolio management team, answers investors' questions on developments in the municipal market. Photographic image of Tom Spalding, Portfolio Manager at Nuveen. What do you see happening to dividends over the next few months? Over the past year, despite the uneven markets, the monthly dividend paid by Nuveen's exchange-traded funds has remained relatively stable. This is mainly due to two factors: our dividend policy and our emphasis on credit quality. At Nuveen, we set our core dividend rates at levels that we consider sustainable over time, factoring in such influences as short-term interest rate trends, the expected number of bond calls, and reinvestment. Nonetheless, eventually changes in dividend rates should be expected in response to interest rate movements. What impact have interest rates had on bond portfolios? Where are these rates trending over the next year? Over the past 15 months, all bond investors, including holders of exchange-traded municipal bond funds, have felt the effect of rising interest rates on the value of their fixed income portfolios. At Nuveen, we don't attempt to forecast directions in interest rates or the economy as a whole. We take the view that we cannot control these factors, but we can exercise some control over factors that directly impact bond fund performance: credit quality, relative value, and diversification. If you are concerned about the direction of interest rates, you may want to consider "laddering" your portfolio. Laddering is a strategy in which an investor purchases three or more funds with varying average maturities. Mixing the maturity dates and yields within a total portfolio reduces the overall effect of increases and decreases in interest rates. What is the outlook for municipal bonds in 1995? At Nuveen, we recommend viewing your investment as part of a long-term strategy. The benefits of taking the long view are two-fold. First, market timing is rarely successful. That is the attempt to buy when the market is at its lowest point and to sell at its peak. Statistics show that, over time, the rewards of investing tend to go to those who set and maintain clear investment objectives and strategies, rather than to those who change their approach with every change in the markets. Second, you must also consider your long-term needs for diversification and dependable income, the reasons you chose Nuveen's exchange-traded municipal funds in the first place. While the markets may fluctuate, your investment needs are more constant. With municipal bonds being one of the last remaining tax shelters, Nuveen's exchange-traded funds continue to provide the risk/reward balance and the steady source of tax-free income that are an element of a prudent investment program. NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NTC The dividends of NTC were adjusted throughout the year, to reflect changing earnings rates. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 6/94 $0.0605 7/94 $0.0605 8/94 $0.0625 9/94 $0.0625 10/94 $0.0625 11/94 $0.0625 12/94 $0.0625 1/95 $0.0625 2/95 $0.0600 3/95 $0.0600 4/95 $0.0600 5/95 $0.0600 FUND HIGHLIGHTS 5/31/95 Yield 5.70% Taxable-equivalent yield 9.34% Total return on NAV 12.74% Taxable-equivalent total return 16.63% Share price $12.625 NAV $13.20 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND NMT In keeping with the Fund's objective of providing steady tax-free income, shareholders enjoyed 10 months of steady dividends, following a dividend increase in August. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 6/94 $0.0600 7/94 $0.0600 8/94 $0.0660 9/94 $0.0660 10/94 $0.0660 11/94 $0.0660 12/94 $0.0660 1/95 $0.0660 2/95 $0.0660 3/95 $0.0660 4/95 $0.0660 5/95 $0.0660 FUND HIGHLIGHTS 5/31/95 Yield 5.92% Taxable-equivalent yield 10.48% Total return on NAV 13.58% Taxable-equivalent total return 18.38% Share price $13.375 NAV $13.76 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND NOM The dividend of NOM was adjusted in May to reflect changing earnings rates. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 6/94 $0.0580 7/94 $0.0580 8/94 $0.0580 9/94 $0.0580 10/94 $0.0580 11/94 $0.0580 12/94 $0.0580 1/95 $0.0580 2/95 $0.0580 3/95 $0.0580 4/95 $0.0580 5/95 $0.0550 FUND HIGHLIGHTS 5/31/95 Yield 5.50% Taxable-equivalent yield 9.17% Total return on NAV 14.74% Taxable-equivalent total return 18.58% Share price $12.000 NAV $13.37 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND NPW The dividends of NPW were adjusted throughout the year, to reflect changing earnings rates. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 6/94 $0.0635 7/94 $0.0635 8/94 $0.0650 9/94 $0.0650 10/94 $0.0650 11/94 $0.0650 12/94 $0.0650 1/95 $0.0650 2/95 $0.0620 3/95 $0.0620 4/95 $0.0620 5/95 $0.0620 FUND HIGHLIGHTS 5/31/95 Yield 6.40% Taxable-equivalent yield 10.00% Total return on NAV 12.36% Taxable-equivalent total return 15.77% Share price $11.625 NAV $13.71 The price, net asset value and dividend history used in this chart constitute past performance and do not necessarily predict the future price, net asset value or dividends of the Fund or of any other Nuveen Fund.
Amendment to Dividend Reinvestment Plan Effective November 1, 1995, your Fund's Dividend Reinvestment Plan will be amended in order to enhance the ability of the Plan Agent to obtain the best execution when making open-market purchases of Fund shares in connection with the Plan. As of the effective date, the Plan Agent, United States Trust Company of New York, may make Plan purchases in advance of the payment date of the applicable Fund distribution, provided that settlement for such purchases shall occur no earlier than the payment date for such distribution. Commonly used terms Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, May 31, 1995) divided by its closing price per share on that date. Taxable equivalent yield The return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the fund's stated annualized yield on share price. In this report, these tax rates are assumed to be 39% for CT, 40% for MO, 43.5% for MA, and 36% for WA, based on incomes of $117,950-$256,500 if investors filing singly, $143,600-$256,500 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 the total number of common shares outstanding. Total Return on NAV The percentage change in a fund's NAV per common share for a given period, assuming reinvestment of all dividends and capital gains distributions, if any. Taxable equivalent total return The total return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the Fund's stated total return on NAV. Leverage A technique used to enhance the income produced for common shareholders by a long-term municipal bond fund through the issuance of short-term preferred shares. The proceeds from the sale of the preferred shares can be used to purchase additional long-term bonds, thus increasing the portfolio's income stream. Changes in net asset value, both up and down, are also magnified by leverage. Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 12-month period ended May 31, 1995. Any future repurchases will be reported to shareholders. PORTFOLIO OF INVESTMENTS 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 $ 3,576,960 1,650,000 Connecticut Development Authority, 6.375%, 10/15/14 10/04 at 102 AA- 1,725,257 Connecticut Development Authority (Alzheimer's Resource Center of Connecticut): 1,500,000 6.875%, 8/15/04 No Opt. Call N/R 1,563,615 1,000,000 7.000%, 8/15/09 8/04 at 102 N/R 1,059,650 2,450,000 Connecticut Development Authority (Bridgeport Hydraulic Company), 5.500%, 6/01/28 6/03 at 102 Aaa 2,402,470 2,795,000 Connecticut Development Authority (Bridgeport Hydraulic Company), Alternative Minimum Tax, 5.600%, 6/01/28 6/03 at 102 Aaa 2,683,507 2,130,000 Connecticut Development Authority (Stamford Water Company Project), 5.300%, 9/01/28 9/03 at 102 A+ 1,924,540 2,000,000 Connecticut Development Authority, Solid Waste (Pfizer, Inc. Project), Alternative Minimum Tax, 7.000%, 7/01/25 7/05 at 102 Aaa 2,179,000 Connecticut General Obligation: 3,250,000 5.100%, 8/01/11 8/03 at 101 1/2 AA- 3,111,680 2,000,000 6.000%, 3/15/12 No Opt. Call AA- 2,108,500 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 4,182,214 1,000,000 Connecticut Health and Educational Facilities Authority (Newington Children's Hospital), 6.050%, 7/01/10 7/04 at 102 Aaa 1,042,600 2,500,000 Connecticut Health and Educational Facilities Authority (Middlesex Hospital), 6.250%, 7/01/22 7/02 at 102 Aaa 2,576,625 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 1,884,841 2,020,000 Connecticut Health and Educational Facilities Authority (Trinity College), 6.000%, 7/01/22 7/02 at 102 Aaa 2,060,945 Connecticut Health and Educational Facilities Authority (The Taft School): 1,300,000 5.250%, 7/01/13 7/00 at 102 A 1,193,218 1,120,000 5.400%, 7/01/20 7/00 at 102 A 1,031,990 4,450,000 Connecticut Health and Educational Facilities Authority (Quinnipiac College), 6.000%, 7/01/23 7/03 at 102 BBB- 3,901,093 Connecticut Health and Educational Facilities Authority (Fairfield University): 1,000,000 5.000%, 7/01/13 7/03 at 102 Aaa 925,840 975,000 5.000%, 7/01/18 7/03 at 102 Aaa 891,433 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 4,942,410 Connecticut Health and Educational Facilities Authority (Sacred Heart University): 2,600,000 5.700%, 7/01/16 7/03 at 102 BBB- 2,289,846 1,000,000 5.800%, 7/01/23 7/03 at 102 BBB- 854,410 Connecticut Health and Educational Facilities Authority (Hospital of Saint Raphael): 2,585,000 5.100%, 7/01/07 No Opt. Call Aaa 2,541,417 2,000,000 5.200%, 7/01/08 No Opt. Call Aaa 1,964,540 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,250,000 Connecticut Health and Educational Facilities Authority (Choate Rosemary Hall), 7.000%, 7/01/25 7/04 at 101 Aaa $ 1,401,638 2,000,000 Connecticut Health and Educational Facilities Authority, Nursing Home Program (AHF/Hartford), 7.125%, 11/01/24 11/04 at 102 AA- 2,207,260 2,000,000 Connecticut Health and Educational Facilities Authority (Mansfield Nursing and Rehabilitation Center), 5.875%, 11/01/12 11/03 at 102 Aaa 2,038,100 3,175,000 Connecticut Housing Finance Authority, 6.200%, 5/15/12 5/03 at 102 AA 3,289,332 2,485,000 Connecticut Housing Finance Authority, Alternative Minimum Tax, 6.050%, 11/15/25 11/02 at 102 AA 2,457,615 4,250,000 Connecticut Municipal Electric Energy Co-op, 5.000%, 1/01/18 1/04 at 102 Aaa 3,894,700 2,200,000 Connecticut Resource Recovery Authority (Bridgeport Resco Company), 7.625%, 1/01/09 1/97 at 103 A 2,322,430 3,580,000 Connecticut Resource Recovery Authority (American Ref-Fuel Company), 7.700%, 11/15/11 11/98 at 103 AA- 3,857,736 Connecticut Special Tax Obligation: 750,000 5.250%, 9/01/06 9/03 at 102 AA- 753,473 1,000,000 4.600%, 10/01/06 10/03 at 102 AA- 930,360 1,000,000 5.400%, 9/01/09 9/03 at 102 AA- 985,260 Cheshire General Obligation: 620,000 5.100%, 8/15/08 8/03 at 102 Aa 615,834 630,000 5.100%, 8/15/09 8/03 at 102 Aa 619,328 620,000 5.200%, 8/15/10 8/03 at 102 Aa 608,456 1,800,000 6.500%, 10/01/10 No Opt. Call AA- 1,998,522 630,000 5.200%, 8/15/11 8/03 at 102 Aa 616,449 New Haven Parking Facilities: 3,000,000 6.625%, 12/01/05 12/01 at 102 Aaa 3,321,810 1,500,000 6.500%, 12/01/15 12/01 at 102 Aaa 1,599,705 South Central Connecticut Regional Water Authority: 1,275,000 5.125%, 8/01/07 8/03 at 102 Aaa 1,298,690 2,100,000 5.200%, 8/01/08 8/03 at 102 Aaa 2,114,679 2,000,000 5.750%, 8/01/12 8/03 at 102 Aaa 2,032,140 5,250,000 Waterbury General Obligation, 5.375%, 4/15/08 4/03 at 102 Aaa 5,291,633 1,620,000 Waterbury Nonprofit Housing Corporation (Fairmont Heights), 6.500%, 7/01/07 7/02 at 101 Aaa 1,769,701 3,500,000 Puerto Rico Ports Authority, Special Facilities (American Airlines, Inc. Project), 6.300%, 6/01/23 6/03 at 102 Baa3 3,423,490 $103,335,000 Total Investments - (cost $105,311,936) - 98.3% 104,066,942 ============ Other Assets Less Liabilities - 1.7% 1,783,630 Net Assets - 100% $105,850,572 ============ NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 24 $ 58,617,598 56% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 25,885,062 25 PORTFOLIO OF A+ A1 1 1,924,540 2 INVESTMENTS: A, A- A, A2, A3 3 4,547,638 4 BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 10,468,839 10 Non-rated Non-rated 2 2,623,265 3 TOTAL 49 $104,066,942 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. See accompanying notes to financial statements.
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 $ 2,582,843 1,700,000 5.500%, 3/01/21 3/03 at 100 A+ 1,623,330 1,310,000 Massachusetts Health and Educational Facilities Authority (New England Deaconess Hospital), 6.625%, 4/01/12 4/02 at 102 A 1,340,130 1,600,000 Massachusetts Health and Educational Facilities Authority (Children's Hospital), 5.500%, 10/01/19 10/02 at 102 AA 1,490,416 3,000,000 Massachusetts Health and Educational Facilities Authority (Lahey Clinic Medical Center), 5.625%, 7/01/15 7/03 at 102 Aaa 2,955,480 3,000,000 Massachusetts Health and Educational Facilities Authority (Massachusetts General Hospital), 5.375%, 7/01/11 7/00 at 100 Aaa 2,921,130 1,750,000 Massachusetts Health and Educational Facilities Authority (Massachusetts Institute of Technology), 5.000%, 7/01/11 7/03 at 102 Aaa 1,660,873 3,000,000 Massachusetts Health and Educational Facilities Authority (Baystate Medical Center), 5.000%, 7/01/12 7/03 at 102 Aaa 2,794,170 1,500,000 Massachusetts Health and Educational Facilities Authority (Boston College), 5.250%, 6/01/23 6/03 at 102 A1 1,390,350 1,400,000 Massachusetts Health and Educational Facilities Authority (Daughters of Charity), 6.100%, 7/01/14 7/04 at 102 Aa 1,415,638 Massachusetts Health and Educational Facilities Authority (Youville Hospital): 3,375,000 6.125%, 2/15/15 2/04 at 102 Aa 3,386,441 1,000,000 6.000%, 2/15/25 2/04 at 102 Aa 984,890 4,000,000 Massachusetts Housing Finance Agency, 6.300%, 10/01/13 4/03 at 102 A1 4,061,040 2,000,000 Massachusetts Housing Finance Agency, Alternative Minimum Tax, 8.100%, 12/01/21 12/98 at 102 Aa 2,138,820 2,500,000 Massachusetts Housing Finance Authority, Insured Rental Housing, Alternative Minimum Tax, 6.650%, 7/01/19 7/04 at 102 Aaa 2,604,300 4,850,000 Massachusetts Industrial Finance Agency, Pollution Control (Eastern Edison), 5.875%, 8/01/08 8/03 at 102 Baa2 4,700,572 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 3,300,570 2,500,000 Massachusetts Industrial Finance Agency (College of the Holy Cross), 6.375%, 11/01/15 11/02 at 102 A1 2,615,925 1,400,000 Massachusetts Industrial Finance Agency (Merrimack College), 7.125%, 7/01/12 7/02 at 102 BBB- 1,474,900 1,175,000 Massachusetts Industrial Finance Agency (Brooks School), 5.950%, 7/01/23 7/03 at 102 A 1,188,242 4,750,000 Massachusetts Industrial Finance Agency (Phillips Academy), 5.375%, 9/01/23 9/08 at 102 Aa1 4,572,730 2,645,000 Massachusetts Industrial Finance Agency (Whitehead Institute for Biomedical Research), 5.125%, 7/01/26 7/03 at 102 Aa 2,267,849 1,420,000 Massachusetts Municipal Wholesale Electric Company, 5.000%, 7/01/17 7/04 at 102 Aaa 1,289,317 1,000,000 Massachusetts Port Authority, 13.000%, 7/01/13 No Opt. Call Aaa 1,815,320 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 4,750,000 Massachusetts Port Authority, Alternative Minimum Tax, 5.000%, 7/01/18 7/03 at 100 AA- $ 4,228,165 3,090,000 Massachusetts Water Pollution Abatement (Pool Loan Program), 5.600%, 8/01/13 8/03 at 102 AA- 3,058,482 Massachusetts Water Resources Authority: 1,750,000 5.250%, 3/01/13 3/03 at 102 A 1,658,878 3,000,000 5.750%, 12/01/21 12/01 at 100 A 2,955,870 3,000,000 5.000%, 3/01/22 3/03 at 100 A 2,686,800 Barnstable General Obligation: 1,020,000 5.750%, 9/15/10 9/04 at 102 Aa 1,032,566 1,020,000 5.750%, 9/15/11 9/04 at 102 Aa 1,030,445 965,000 5.750%, 9/15/12 9/04 at 102 Aa 972,874 3,515,000 Boston General Obligation, 4.875%, 9/01/11 9/03 at 102 Aaa 3,210,039 1,420,000 Boston City Hospital, 5.750%, 2/15/23 8/00 at 102 AA- 1,364,776 2,500,000 Boston Water and Sewer Commission, 5.250%, 11/01/11 11/03 at 102 Aaa 2,417,125 1,600,000 Chicopee Electric System, 9.125%, 1/01/17 No Opt. Call Aaa 2,309,056 4,875,000 Lowell General Obligation, 5.600%, 11/01/12 11/03 at 102 Aaa 4,847,895 1,765,000 New England Education Loan Marketing Corporation, Student Loan, Alternative Minimum Tax, 6.750%, 9/01/02 No Opt. Call A 1,873,600 1,750,000 Puerto Rico Aqueduct and Sewer Authority, 7.875%, 7/01/17 7/98 at 102 A 1,950,830 3,000,000 Puerto Rico Electric Power Authority, 7.000%, 7/01/21 7/01 at 102 A- 3,307,350 $95,145,000 Total Investments - (cost $94,170,773) - 98.3% 95,480,027 =========== TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 150,000 Massachusetts Dedicated Income Tax, Variable Rate Demand Bonds, 4.150%, 12/01/97t VMIG-1 150,000 Other Assets Less Liabilities - 1.5% 1,440,621 Net Assets - 100% $97,070,648 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 12 $31,407,548 33% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 27,944,092 29 PORTFOLIO OF A+ A1 4 9,690,645 10 INVESTMENTS A, A- A, A2, A3 8 16,961,700 18 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 6,175,472 7 TEMPORARY Non-rated Non-rated 1 3,300,570 3 INVESTMENTS): TOTAL 40 $95,480,027 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. 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 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 $ 1,924,040 1,225,000 Missouri Environmental Improvement and Energy Resource Authority, Water Pollution Control (Kansas City Project), 7.750%, 1/01/08 1/05 at 102 Aa1 1,461,976 1,000,000 Missouri Environmental Improvement and Energy Resource Authority, Water Pollution Control (City of Branson Project), 6.050%, 7/01/16 7/04 at 102 Aaa 1,025,100 1,300,000 Missouri General Obligation, 5.625%, 4/01/17 4/05 at 102 Aaa 1,315,015 1,200,000 Missouri Health and Educational Facilities Authority (St. Louis University), 4.750%, 10/01/16 10/03 at 102 Aaa 1,075,212 Missouri Health and Educational Facilities Authority (SSM Health Care Obligated Group): 1,000,000 6.250%, 6/01/07 6/02 at 102 Aaa 1,068,780 1,290,000 7.000%, 6/01/15 6/00 at 102 Aaa 1,571,104 2,000,000 Missouri Health and Educational Facilities Authority (St. Luke's Health System), 5.125%, 11/15/19 11/03 at 102 Aaa 1,864,180 Missouri Health and Educational Facilities Authority (Barnes Jewish Christian): 1,000,000 5.150%, 5/15/10 No Opt. Call AA 951,870 1,000,000 6.750%, 5/15/12 No Opt. Call AA 1,108,510 665,000 Missouri Housing Development Commission, 6.600%, 11/15/10 11/95 at 101 1/2 AA+ 678,081 2,270,000 Missouri Housing Development Commission, Single Family Mortgage, Alternative Minimum Tax, 7.375%, 8/01/23 2/01 at 102 AAA 2,395,145 1,000,000 Missouri Regional Convention and Sports Complex Authority, 5.500%, 8/15/13 8/03 at 103 A1 961,010 1,400,000 Boone County Hospital, 5.500%, 8/01/09 8/02 at 102 A 1,364,944 885,000 Clayton Industrial Development Authority (Park Place Project), 5.375%, 5/01/08 5/98 at 103 AA 892,310 1,000,000 Franklin County Union Reorganized School District No. R-X1, General Obligation, 5.750%, 3/01/13 3/03 at 100 Aaa 1,011,730 2,785,000 Greene County, Single Family Mortgage, 0.000%, 3/01/16 No Opt. Call Aaa 792,416 1,500,000 Jackson County Consolidated School District No. 2, General Obligation, 5.250%, 3/15/11 3/03 at 102 Aaa 1,477,725 1,550,000 Jackson County Single Family Mortgage, 0.000%, 3/01/15 No Opt. Call Aaa 473,076 2,000,000 Kansas City School District Building Corporation, 5.000%, 2/01/14 2/04 at 102 Aaa 1,881,840 2,020,000 Ritenour Consolidated School District, General Obligation, 7.375%, 2/01/12 No Opt. Call Aaa 2,467,208 1,500,000 St. Charles County, Francis Howell School District, General Obligation, 7.800%, 3/01/08 No Opt. Call Aaa 1,863,225 1,400,000 St. Louis County General Obligation, 5.500%, 2/01/13 2/03 at 100 Aa1 1,390,508 1,500,000 St. Louis County (GNMA), Alternative Minimum Tax, 5.650%, 7/01/20 No Opt. Call AAA 1,468,425 2,000,000 St. Louis County Pattonville R3 School District, General Obligation, 5.000%, 2/01/10 2/03 at 100 Aaa 1,927,360 1,395,000 St. Louis Board of Education, General Obligation, 8.500%, 4/01/07 No Opt. Call Aaa 1,803,651 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,275,000 St. Louis Municipal Finance Corporation, 6.250%, 2/15/12 2/03 at 102 Aaa $ 1,369,860 1,000,000 Sikeston Electric System, 6.250%, 6/01/12 6/02 at 102 Aaa 1,050,510 1,400,000 Springfield School District R-12, General Obligation, 5.250%, 3/01/11 3/03 at 100 Aaa 1,388,030 1,400,000 Springfield Waterworks System, 5.600%, 5/01/23 5/03 at 102 Aa 1,378,552 1,075,000 University Development Foundation Power Plant, 5.750%, 5/01/18 5/03 at 102 A 1,024,991 1,500,000 Puerto Rico Highway and Transportation Authority, 5.250%, 7/01/20 7/03 at 101 1/2 Aaa 1,427,685 $45,535,000 Total Investments - (cost $42,646,070) - 98.4% 43,854,069 =========== Other Assets Less Liabilities - 1.6% 711,455 Net Assets - 100% $44,565,524 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 21 $30,717,277 70% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 8 9,785,847 22 PORTFOLIO OF A+ A1 1 961,010 2 INVESTMENTS: A, A- A, A2, A3 2 2,389,935 6 TOTAL 32 $43,854,069 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements.
PORTFOLIO OF INVESTMENTS 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 $ 2,023,260 2,000,000 Washington Health Care Facilities Authority (Children's Hospital and Medical Center), 6.125%, 10/01/13 10/02 at 102 Aaa 2,040,360 2,400,000 Washington Health Care Facilities Authority (Swedish Hospital Medical Center of Seattle), 6.300%, 11/15/22 11/02 at 102 Aaa 2,447,808 650,000 Washington Health Care Facilities Authority (Empire Health Services), 5.625%, 11/01/19 11/03 at 102 Aaa 622,941 1,000,000 Washington Health Care Facilities Authority (The Heart Institute of Spokane), 5.800%, 8/15/18 8/04 at 102 AA- 942,820 1,400,000 Washington Housing Development Corporation, FHA-Insured, 5.950%, 1/01/25 7/03 at 103 Aaa 1,375,066 980,000 Washington Housing Finance Commission (GNMA), Alternative Minimum Tax, 7.700%, 7/01/32 1/00 at 103 AAA 1,046,601 1,610,000 Washington Housing Finance Commission, Single Family Mortgage, Alternative Minimum Tax, 6.150%, 1/01/26 No Opt. Call AAA 1,636,726 1,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 5.700%, 7/01/17 7/03 at 102 Aaa 975,430 1,000,000 Washington Public Power Supply System, Nuclear Project No. 3, 7.000%, 7/01/09 No Opt. Call AA 1,101,130 1,400,000 Washington State University, 6.375%, 10/01/18 10/04 at 101 Aaa 1,465,464 1,050,000 Bellevue Water and Sewer System, 5.875%, 7/01/09 7/04 at 100 AA- 1,070,276 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 1,208,430 1,895,000 Chelan County Public Utility District No. 1 (Columbia River-Rock Island Hydroelectric System), 6.375%, 6/01/29 6/95 at 102 A1 1,912,870 1,035,000 Covington Water District, 6.050%, 3/01/20 3/05 at 100 Aaa 1,057,811 1,000,000 King County School District No. 210 (Federal Way), General Obligation, 5.750%, 12/01/12 No Opt. Call Aaa 1,011,020 1,000,000 Lewis County Public Utility District (Cowlitz Falls Hydroelectric Project), 5.500%, 10/01/09 10/03 at 102 AA 1,016,470 1,000,000 Pierce County (Peninsula School District No. 401), General Obligation, 5.500%, 12/01/08 No Opt. Call Aaa 1,019,110 1,000,000 Port of Seattle, 6.000%, 12/01/14 12/00 at 100 AA- 1,009,770 1,500,000 Port of Seattle, Alternative Minimum Tax, 6.000%, 12/01/14 12/00 at 100 AA- 1,504,860 1,000,000 Port of Vancouver, Limited Tax, Alternative Minimum Tax, 6.000%, 12/01/04 No Opt. Call Aaa 1,074,110 1,160,000 Richland Water and Sewer System, 5.625%, 4/01/12 4/03 at 100 Aaa 1,156,775 Seattle Indian Services Commission: 1,525,000 6.000%, 11/01/16 11/04 at 100 Aa1 1,550,117 750,000 6.150%, 11/01/24 11/04 at 100 Aa1 764,708 1,500,000 Seattle Drain and Wastewater Utility System, 5.750%, 12/01/22 12/02 at 101 AA 1,463,595 1,500,000 Seattle Municipal Light and Power, 5.750%, 8/01/12 8/02 at 102 AA 1,507,275 1,000,000 Seattle Metropolitan Municipality General Obligation, 5.625%, 1/01/12 1/03 at 102 Aa 986,690 1,000,000 Seattle Metropolitan Municipality Sewer System, 5.450%, 1/01/19 1/03 at 102 Aaa 954,030 1,500,000 Seattle Water System, 5.250%, 12/01/23 6/03 at 101 AA 1,371,060 1,385,000 Snohomish County Public Utility District No. 1, Alternative Minimum Tax, 5.750%, 1/01/09 1/04 at 102 A1 1,359,350 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,500,000 Snohomish County School District No. 6 (Mukilteo District), General Obligation, 5.700%, 12/01/12 No Opt. Call Aaa $ 1,508,265 Snohomish County School District No. 15, General Obligation: 1,500,000 5.550%, 12/01/07 12/03 at 102 Aaa 1,537,184 500,000 6.500%, 12/01/08 No Opt. Call AA- 546,205 1,000,000 Spokane Regional Solid Waste Management System, 6.250%, 12/01/11 12/02 at 102 Aaa 1,046,630 1,940,000 Vancouver Housing Authority (Fishers Mill Project), 6.000%, 3/01/23 3/03 at 100 Aa 1,881,198 1,500,000 Western Washington University Housing and Dining System, 6.375%, 10/01/22 10/02 at 101 Aaa 1,555,860 1,000,000 Yakima-Tieton Irrigation District, 6.125%, 6/01/13 6/03 at 102 Aaa 1,034,360 $47,180,000 Total Investments - (cost $47,337,592) - 97.9% 47,785,635 =========== TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.6% $ 300,000 Washington Health Care Facilities Authority (Sisters of Providence), Variable Rate Demand Bonds, 4.000%, 10/01/05t VMIG-1 300,000 Other Assets Less Liabilities - 1.5% 726,367 Net Assets - 100% $48,812,002 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 20 $25,773,981 54% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 18,739,434 39 PORTFOLIO OF A+ A1 2 3,272,220 7 INVESTMENTS (EXCLUDING TEMPORARY INVESTMENTS): TOTAL 37 $47,785,635 100% * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. 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.
STATEMENT OF NET ASSETS
NTC NMT NOM NPW ASSETS Investments in municipal securities, at market value (note 1) $104,066,942 $95,480,027 $43,854,069 $47,785,635 Temporary investments in short-term municipal securities, at amortized cost (note 1) -- 150,000 -- 300,000 Cash 201,229 -- 234,351 48,021 Receivables: Interest 2,014,821 1,939,140 650,259 934,995 Investments sold 5,025 -- -- -- Other assets 29,278 27,656 10,706 -- ------------ ----------- ----------- ----------- Total assets 106,317,295 97,596,823 44,749,385 49,068,651 ------------ ----------- ----------- ----------- LIABILITIES Cash overdraft -- 38,986 -- -- Accrued expenses: Management fees (note 6) 57,427 52,655 24,149 26,551 Other 82,444 109,063 31,050 74,796 Preferred share dividends payable 19,828 22,918 11,152 11,459 Common share dividends payable 307,024 302,553 117,510 143,843 ------------ ----------- ----------- ----------- Total liabilities 466,723 526,175 183,861 256,649 ------------ ----------- ----------- ----------- Net assets (note 7) $105,850,572 $97,070,648 $44,565,524 $48,812,002 ============ =========== =========== =========== 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 5,117,059 4,584,133 2,136,537 2,320,051 ============ =========== =========== =========== Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 13.20 $ 13.76 $ 13.37 $ 13.71 ============ =========== =========== =========== See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Year ended May 31, 1995
NTC NMT NOM NPW INVESTMENT INCOME Interest income (note 1) $5,903,546 $5,603,207 $2,471,733 $2,814,448 ---------- ---------- ---------- ---------- Expenses: Management fees (note 6) 649,228 593,430 270,804 300,787 Preferred shares--auction fees 95,750 85,000 40,000 42,500 Preferred shares--dividend disbursing agent fees 15,000 15,000 15,000 15,000 Shareholders' servicing agent fees and expenses 18,729 14,536 8,160 2,910 Custodian's fees and expenses 45,824 45,554 40,244 46,628 Trustees' fees and expenses (note 6) 1,519 1,334 928 1,381 Professional fees 22,069 24,705 20,746 22,468 Shareholders' reports--printing and mailing expenses 32,809 26,494 25,961 25,506 Stock exchange listing fees 11,116 12,337 4,495 1,584 Investor relations expense 7,436 9,258 5,984 4,008 Other expenses 19,065 26,416 15,915 18,122 ---------- ---------- ---------- ---------- Total expenses 918,545 854,064 448,237 480,894 ---------- ---------- ---------- ---------- Net investment income 4,985,001 4,749,143 2,023,496 2,333,554 ---------- ---------- ---------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (1,734,762) (1,683,784) (780,117) (381,623) Net change in unrealized appreciation or depreciation of investments 5,546,402 5,569,783 2,955,027 2,157,234 ---------- ---------- ---------- ---------- Net gain from investments 3,811,640 3,885,999 2,174,910 1,775,611 ---------- ---------- ---------- ---------- Net increase in net assets from operations $8,796,641 $8,635,142 $4,198,406 $4,109,165 ========== ========== ========== ========== See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
NTC NMT Year ended Year ended Year ended Year ended 5/31/95 5/31/94 5/31/95 5/31/94 Operations Net investment income $ 4,985,001 $ 3,894,437 $ 4,749,143 $ 3,990,933 Net realized gain (loss) from investment transactions, net of taxes, if applicable (1,734,762) (436,653) (1,683,784) (248,862) Net change in unrealized appreciation or depreciation of investments 5,546,402 (6,804,091) 5,569,783 (4,504,954) ------------ ------------ ----------- ----------- Net increase (decrease) in net assets from operations 8,796,641 (3,346,307) 8,635,142 (762,883) ------------ ------------ ----------- ----------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (3,756,444) (3,070,429) (3,574,337) (3,376,550) Preferred shareholders (1,174,880) (650,074) (1,107,248) (683,990) From accumulated net realized gains from investment transactions: Common shareholders -- -- -- -- Preferred shareholders -- -- -- -- ------------ ------------ ----------- ----------- Decrease in net assets from distributions to shareholders (4,931,324) (3,720,503) (4,681,585) (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 390,670 259,597 38,944 190,321 Preferred shares--net proceeds from sale of shares -- 37,573,371 -- 33,334,587 ------------ ------------ ----------- ----------- Net increase in net assets derived from capital share transactions 390,670 41,128,560 38,944 33,524,908 ------------ ------------ ----------- ----------- Net increase in net assets 4,255,987 34,061,750 3,992,501 28,701,485 Net assets at beginning of year 101,594,585 67,532,835 93,078,147 64,376,662 ------------ ------------ ----------- ----------- Net assets at end of year $105,850,572 $101,594,585 $97,070,648 $93,078,147 ============ ============ =========== =========== Balance of undistributed net investment income at end of year $ 236,243 $ 182,566 $ 246,930 $ 179,372 ============ ============ =========== =========== See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
NOM NPW Year ended Year ended Year ended Year ended 5/31/95 5/31/94 5/31/95 5/31/94 Operations Net investment income $ 2,023,496 $ 1,614,778 $ 2,333,554 $ 2,101,335 Net realized gain (loss) from investment transactions, net of taxes, if applicable (780,117) (1,268,378) (381,623) (279,375) Net change in unrealized appreciation or depreciation of investments 2,955,027 (1,750,627) 2,157,234 (1,918,979) ----------- ----------- ----------- ----------- Net increase (decrease) in net assets from operations 4,198,406 (1,404,227) 4,109,165 (97,019) ----------- ----------- ----------- ----------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (1,479,743) (1,263,788) (1,774,839) (1,767,480) Preferred shareholders (549,597) (290,070) (616,848) (358,644) From accumulated net realized gains from investment transactions: Common shareholders -- -- -- (32,481) Preferred shareholders -- -- -- (6,518) ----------- ----------- ----------- ----------- Decrease in net assets from distributions to shareholders (2,029,340) (1,553,858) (2,391,687) (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 53,910 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 53,910 16,004,807 -- 16,703,317 ----------- ----------- ----------- ----------- Net increase in net assets 2,222,976 13,046,722 1,717,478 14,441,175 Net assets at beginning of year 42,342,548 29,295,826 47,094,524 32,653,349 ----------- ----------- ----------- ----------- Net assets at end of year $44,565,524 $42,342,548 $48,812,002 $47,094,524 =========== =========== =========== =========== Balance of undistributed net investment income at end of year $ 57,295 $ 63,139 $ 70,130 $ 128,263 =========== =========== =========== =========== See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At May 31, 1995, 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 investmentsin securities that have variable rate and demand features qualifying them as short-term securities are traded and valued at amortized cost. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of their purchase commitments. At May 31, 1995, there were no such purchase commitments in any of the Funds. Interest Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing 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 Funds. All income dividends paid during the fiscal year ended May 31, 1995, have been designated Exempt Interest Dividends. 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 securities 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 capital gains 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 accumulated net realized gains, 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 seven days, as set by the Auction Agent. The number of shares outstanding by Series at May 31, 1995, for each Fund is as follows:
NTC NMT NOM NPW Number of shares: Series Th 1,532 1,360 640 680 ===== ===== === === Derivative Financial Instruments In October 1994, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 119 Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments which prescribes disclosure requirements for transactions in certain derivative financial instruments including futures, forward, swap, and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended May 31, 1995, other than occasional purchases of high quality synthetic money market securities which were held temporarily pending the re-investment in long-term portfolio securities.
2. FUND SHARES Transactions in Common and Preferred shares were as follows:
NTC NMT Year ended Year ended Year ended Year ended 5/31/95 5/31/94 5/31/95 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 31,483 18,458 3,350 8,665 ------ ------- ----- ----- Net increase 31,483 248,458 3,350 8,665 ====== ======= ===== ===== Preferred shares sold -- 1,532 -- 1,360 ====== ======= ===== ===== NOM NPW Year ended Year ended Year ended Year ended 5/31/95 5/31/94 5/31/95 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 4,393 5,026 -- 2,933 ----- ------ ----- ----- Net increase 4,393 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 May 31, 1993.
3. Securities Transactions Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the fiscal year ended May 31, 1995, were as follows:
NTC NMT NOM NPW PURCHASES Investments in municipal securities $18,351,130 $26,695,261 $16,563,465 $7,396,232 Temporary municipal investments 6,000,000 22,250,000 6,300,000 7,800,000 SALES AND MATURITIES Investments in municipal securities 17,313,351 26,012,297 13,967,795 7,571,366 Temporary municipal investments 6,000,000 22,100,000 8,000,000 7,500,000 =========== =========== =========== ========== At May 31, 1995, 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, 1995, the Funds had unused capital loss carryovers available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryovers will expire as follows: NTC NMT NOM NPW Expiration year: 2002 $ 9,146 $ -- $ -- $ -- 2003 1,272,842 1,247,263 1,427,894 580,800 ---------- ---------- ---------- -------- Total $1,281,988 $1,247,263 $1,427,894 $580,800 ========== ========== ========== ========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS On June 1, 1995, the Funds declared Common share dividend distributions from their ordinary income which were paid July 3, 1995, to shareholders of record on June 15, 1995, as follows:
NTC NMT NOM NPW Dividend per share $.0600 $.0660 $.0550 $.0620 ====== ====== ====== ====== 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 1995, were as follows: NTC NMT NOM NPW Gross unrealized: Appreciation $ 1,693,318 $ 2,368,649 $1,441,004 $ 755,989 Depreciation (2,938,312) (1,059,395) (233,005) (307,946) ------------ ------------ ---------- --------- Net unrealized appreciation (depreciation) $(1,244,994) $ 1,309,254 $1,207,999 $ 448,043 =========== =========== ========== ========= 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 May 31, 1995, 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 51,171 45,841 21,365 23,201 Paid-in surplus 70,679,567 63,401,269 29,327,360 31,971,262 Balance of undistributed net investment income 236,243 246,930 57,295 70,130 Accumulated net realized gain (loss) from investment transactions (2,171,415) (1,932,646) (2,048,495) (700,634) Net unrealized appreciation or depreciation of investments (1,244,994) 1,309,254 1,207,999 448,043 ------------ ---------- ------------ ----------- Net assets $105,850,572 $97,070,648 $44,565,524 $48,812,002 ============ =========== =========== =========== 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 May 31, 1995, 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: Educational Facilities 14% 18% 5% 6% Water / Sewer Facilities 9 15 13 17 Electric Utilities 4 5 2 16 Health Care Facilities 15 14 15 13 Housing Facilities 7 15 7 12 Lease Rental Facilities -- -- 10 -- Transportation 8 4 -- 8 Pollution Control Facilities 8 5 -- -- Other 11 4 5 2 General Obligation Bonds 18 13 33 23 Escrowed Bonds 6 7 10 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 (54% for NTC, 31% for NMT, 62% for NOM, and 45% 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 SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Operating performance Dividends from net investment income Net realized and Net asset unrealized value Net gain (loss) beginning investment from To Common To Preferred of period income investmentstt shareholders shareholderst NTC Year ended 5/31, 1995 $12.450 $ .977 $ .739 $(.736) $(.230) 1994 13.960 .768 (1.400) (.605) (.129) 5/20/93 to 5/31/93 14.050 .002 .001 -- -- NMT Year ended 5/31, 1995 12.900 1.036 .846 (.780) (.242) 1994 14.080 .872 (1.020) (.738) (.149) 3/18/93 to 5/31/93 14.050 .054 .056 -- -- NOM Year ended 5/31, 1995 12.350 .948 1.022 (.693) (.257) 1994 13.900 .759 (1.397) (.594) (.136) 5/20/93 to 5/31/93 14.050 .001 (.001) -- -- NPW Year ended 5/31, 1995 12.970 1.006 .765 (.765) (.266) 1994 14.090 .906 (.923) (.762) (.155) 3/18/93 to 5/31/93 14.050 .066 .088 -- -- Distributions from capital gains Organization Per and offering Common costs and share Preferred share Net asset market To Common To Preferred underwriting value end value end shareholders shareholderst discounts of period of period NTC Year ended 5/31, 1995 $ -- $ -- $ -- $13.200 $12.625 1994 -- -- (.144) 12.450 13.125 5/20/93 to 5/31/93 -- -- (.093) 13.960 15.000 NMT Year ended 5/31, 1995 -- -- -- 13.760 13.375 1994 -- -- (.145) 12.900 12.500 3/18/93 to 5/31/93 -- -- (.080) 14.080 15.250 NOM Year ended 5/31, 1995 -- -- -- 13.370 12.000 1994 -- -- (.182) 12.350 12.000 5/20/93 to 5/31/93 -- -- (.150) 13.900 15.125 NPW Year ended 5/31, 1995 -- -- -- 13.710 11.625 1994 (.014)## (.003)## (.169) 12.970 12.375 3/18/93 to 5/31/93 -- -- (.114) 14.090 15.750 Ratios/Supplemental data Ratio Total of net investment Total Ratio of investment return return Net assets expenses to income Portfolio on market on net asset end of period average net to average turnover value** value** (in thousands) assets# net assets# rate NTC Year ended 5/31, 1995 2.22% 12.74% $105,851 .92% 4.99% 18% 1994 (8.73) (6.74) 101,595 .95 3.95 9 5/20/93 to 5/31/93 -- (.64) 67,533 1.04* 1.17* -- NMT Year ended 5/31, 1995 14.12 13.58 97,071 .94 5.20 29 1994 (13.64) (3.38) 93,078 .97 4.26 33 3/18/93 to 5/31/93 1.67 .21 64,377 .93* 2.17* -- NOM Year ended 5/31, 1995 6.13 14.74 44,566 1.08 4.86 34 1994 (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 Year ended 5/31, 1995 .41 12.36 48,812 1.04 5.04 16 1994 (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 Net of taxes, if applicable. # Ratios do not reflect the effect of dividend payments to Preferred shareholders. ## The amounts shown reflect distributions in excess of net realized gains from investment transactions (note 1).
REPORT OF INDEPENDENT AUDITORS The Boards of Trustees and Shareholders Nuveen Connecticut Premium Income Municipal Fund Nuveen Massachusetts Premium Income Municipal Fund Nuveen Missouri Premium Income Municipal Fund Nuveen Washington Premium Income Municipal Fund We have audited the accompanying statements of net assets, including the portfolios of investments, of Nuveen Connecticut Premium Income Municipal Fund, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Missouri Premium Income Municipal Fund and Nuveen Washington Premium Income Municipal Fund as of May 31, 1995, and the related statements of operations, changes in net assets and financial highlights for the periods then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of May 31, 1995, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Nuveen Connecticut Premium Income Municipal Fund, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Missouri Premium Income Municipal Fund and Nuveen Washington Premium Income Municipal Fund at May 31, 1995, and the results of their operations, changes in their net assets and financial highlights for the periods then ended in conformity with generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois July 12, 1995 Build your wealth automatically Photographic image of Customer Service Rep at Nuveen. Managing your portfolio takes skill, experience, and informed judgment, but our efforts to help you build your wealth don't stop there. At Nuveen, we offer a number of convenient ways to build your tax-free portfolio and earn the tax-free income you need to achieve your financial goals. Nuveen Exchange-traded fund Dividend Reinvestment Plan Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. If you do not elect to reinvest distributions, all distributions are paid by check, or are deposited directly into your bank or brokerage account. By choosing to reinvest, you'll be able to set aside money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Income or capital gains taxes may be payable on dividends or distributions that are reinvested. You'll also benefit from dollar-cost averaging, a technique of investing at regular intervals, which allows you to build a high-quality, tax-free portfolio conveniently and cost effectively over time. All reinvestments are invested in full and fractional shares and are kept in non-certificated form by the Plan Agent, U.S. Trust. 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. The shares you acquire by reinvesting will either be purchased on the open market or be 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 be invested within 30 days of 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. You can, of course, 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 also can reinvest if your shares are registered in the name of a brokerage firm, bank, or other nominee. Just ask your investment adviser if the firm will participate on your behalf. If not, it's easy to have the shares registered in your name and to apply for a reinvestment account directly. 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. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in the Plan, speak with your investment adviser or call us toll-free at 1.800.257.8787. Photographic image of Customer Service Rep at Nuveen. "When questions come up that your investment adviser can't answer, we're happy to provide the up-to-date information you need." Photographic image of Customer Service Rep at Nuveen. "At Nuveen, we make reinvesting easy. A phone call is all it takes to set up your reinvestment account." Photographic image of Customer Service Rep at Nuveen. "Your investment adviser knows your situation best. And when we can give you the account information you need, our motto is simple: We're here to help." Useful numbers Nuveen Shareholder Services: 1.800.257.8787 Call Monday through Friday, 9 a.m. to 6 p.m., EST for information on your Nuveen Fund's current account balances, yield/dividends, net asset value/closing price, and general information. Dividend Reinvestment: 1.800.257.8787 Monday through Friday, 9 a.m. to 6 p.m., EST Taking Stock (Newsletter): 1.800.257.8787 Call Monday through Friday, 9 a.m. to 6 p.m., EST if you're not currently getting our quarterly newsletter and would like to do so. We will be happy to add your name to our mailing list. Many conservative investors are comfortable with Nuveen's emphasis on long term value. That's why they depend on Nuveen for the tax-free income they need to reach their goals. Photographic image of woman seated and man standing behind her representing Nuveen investors. Our commitment to you Photographic image of John Nuveen, Sr., founder of Nuveen. For nearly 100 years, Nuveen has earned its reputation as a tax-free income specialist by focusing on municipal bonds. For almost a century, John Nuveen & Co. Incorporated has concentrated its resources and expertise on one area: municipal bonds. We are one of the oldest and largest investment banking firms 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 invest-ments we may foster opportunity for our investors. Through careful research, attention to detail, and our philosophy of managing for long-term value, we hope to provide our shareholders with the attractive level of income they need to achieve their personal goals and aspirations. John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, Illinois 60606-1286 ETF3-May 95 -----END PRIVACY-ENHANCED MESSAGE-----