-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RNH0lx6ndMKLD7wFw76r0d2yau8JVTtfx9YgOncbPEE1U/4hwkHYfl6PGL6KQ1tF ARsYXGxn4/BPQ5pIf86+XA== 0000891804-96-000231.txt : 19960801 0000891804-96-000231.hdr.sgml : 19960801 ACCESSION NUMBER: 0000891804-96-000231 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960531 FILED AS OF DATE: 19960731 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: 96601760 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 PREM INCOME MUNI FUND (NMT) Nuveen Exchange-Traded Funds Providing tax-free income to help you live your dreams CONNECTICUT PREMIUM INCOME (NTC) MASSACHUSETTS PREMIUM INCOME (NMT) MISSOURI PREMIUM INCOME (NOM) WASHINGTON PREMIUM INCOME (NPW) ANNUAL REPORT/MAY 31, 1996 Photographic image of couple walking on beach. Photographic image of financial adviser reviewing financial statements/plans with older couple. Tax-informed investing An important part of any successful investment program is gauging how well your investments have performed and measuring your progress toward your long-term goals. The imposition of taxes dramatically alters the relative returns of the five asset classes. Graph showing after-tax returns, 1976-1996. Municipals 8.26 Treasuries 5.62 Corporates 6.11 Stocks 10.51 Treasury Bills 3.87 Traditionally, the most common way to measure performance has been to compare pre-tax rates of return for your different investments across similar time periods. The rationale behind this method is that each investor is taxed at a different rate, making pre-tax comparisons the seemingly logical way to ensure you are comparing apples to apples. This, however, is precisely the rationale that can make a pre-tax performance assessment misleading. When returns are presented on a pre-tax basis, you may lose sight of the major impact taxes can have on your earnings, and fail to get the complete picture of your progress toward your investment goals. At Nuveen, we've built our reputation help ing investors realize that it's not what you earn, it's what you keep. TAX-INFORMED INVESTING: THE KEY TO MEASURING LONG-TERM RESULTS The true measure of an investment is its performance on an after-tax basis. Analyzing after-tax returns gains added significance when you realize that the taxes you pay can never be regained. Once that money is "lost," it can't be put to work through compounding, earning additional dollars for you. To better illustrate the ways that taxes can affect the amount you keep versus the amount you earn, Nuveen Research recently studied 20 years of investment returns, both pre-tax and after-tax, to determine the impact of taxes on various asset classes. We were particularly interested in the study results for municipal bonds, an asset class that is commonly excluded from the top performance rankings when only pre-tax returns are considered. MEASURING WHAT YOU KEEP The study showed that, once the impact of taxes was figured into the equation, municipal bonds offered a distinct advantage over other fixed income investments. Over the study period, municipal bonds outperformed both corporate and Treasury bonds (see accompanying tables), as high tax rates and the loss of compounding income took their toll on corporate and Treasury results. As investors are well aware, performance over the long term--and the purchasing power of their earnings--can be eroded by inflation as well as taxes. The study showed that, over the past 20 years, only municipal bonds and stocks provided significant after-tax gains over the Consumer Price Index, the most recognized measure of inflation. ABOUT THE STUDY The study, "Measuring What You Keep: Historical After-Tax Returns," compared pre-tax and after-tax total returns over the past 20 years for five asset classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds, and large company stocks. Returns for each asset class were represented by the returns on commonly used market indexes compiled by Lehman Brothers and Ibbotson & Associates. A hypothetical investment of $100,000 was made in each of these asset classes at the beginning of 1976, with all dividends and interest reinvested through the end of 1995. In addition, the after-tax proceeds of an assumed annual 20% turnover rate were reinvested. The study assumed that taxes were paid annually at the applicable federal income tax rates for an investor earning the equivalent of $100,000 in 1995. Of course, this hypothetical investment performance neither reflects past performance nor predicts future results of any Nuveen investment. INCORPORATING TAX-INFORMED INVESTING IN YOUR PORTFOLIO The Nuveen study confirms what many investors have known for years: that municipal bonds can play a critical role in the long-term financial strategies of tax-informed investors. Balancing short-term and long-term investments Combining shorter- and longer-term tax-free investments may help you manage cumulative risk in your portfolio while still capturing the potential for attractive overall rates. Shorter term investments can help reduce the current volatility of your portfolio and provide a source of investable funds to take advantage of additional investment opportunities as they arise. Longer-term leveraged exchange-traded funds have provided attractive yields and offer trading flexibility that allows quick and easy portfolio adjustments. Dividend reinvestment Studies indicate that weathering market cycles by maintaining an investment plan with long-term goals can help shield investors in the event of a declining market. The purchase of additional shares on a regular schedule, such as through dividend reinvestment, is another strategy for navigating market changes. Dividend reinvestment is an easy and convenient way to set aside dollars on a regular basis, helping you take advantage of dollar-cost averaging while gaining the benefits of tax-free compounding. CONSISTENT AFTER-TAX PERFORMANCE For the long-term investor, performance--even after the impact of taxes and inflation--is the true meas ure of an investment's merit. While most investors choose municipal bonds for their tax-free income advantage, the positive news about their after-tax returns reinforces their potential value as part of a tax-informed investment strategy designed to meet long-term objectives. Understanding the impact of taxes can mean that you keep more of what you earn, and municipal bonds can help you do just that. Only municipals and equities generated significant increases in purchasing power over the twenty-year period, with after-tax and inflation-adjusted returns in excess of 2.75% annually. ANNUAL AFTER-TAX REAL RETURNS, 1976-1995
PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS 1976-1985 .69% -3.32% -2.14% 2.75% -2.67% 1986-1995 5.15 4.21 3.91 7.31 0.13 1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
Photographic image of couple walking on beach. CONTENTS 6 Municipal market perspective 7 Dear shareholder 9 Answering your questions 13 Fund performance 15 Commonly used terms 17 Portfolio of investments 30 Statement of net assets 31 Statement of operations 32 Statement of changes in net assets 34 Notes to financial statements 42 Financial highlights 44 Report of independent auditors 45 Nuveen Exchange-Traded Funds dividend reinvestment program Municipal market perspective Over the past 12 months, the bond market has continued to reward investors with solid returns, a welcome relief from the declines experienced in 1994. Although the beginning of 1996 saw the overall bond market soften somewhat from 1995's bullish stance, municipal bonds have maintained their edge over Treasuries in recent months. Investors are taking advantage of opportunities to purchase higher yielding bonds with strong credit quality. Currently, minor increases in consumer and producer prices, low wage pressure, and a stable money supply all point to an economy that is growing moderately. Despite these positive indicators, however, a degree of uncertainty persists, as investors continue to worry about the pace of growth and the potential for the reappearance of inflation. Investors may draw some reassurance from the fact that the Federal Reserve appears to remain committed to a policy of low inflation and modest economic growth, which bodes well for the bond markets and bond investors. Dear shareholder Photographic image of head shot of Chairman and Chief Executive Officer of Nuveen. "Municipal bonds continue to play an important role in meeting the investment goals of conservative investors." As I begin my duties as the new chairman and chief executive officer of John Nuveen & Co. Incorporated and chairman of the board of the Nuveen exchange-traded funds, I am pleased to report to you on the performance of your funds. My experience with Nuveen over 19 years has reinforced my commitment to maintaining Nuveen's successful tradition of value investing and prudent management, helping our shareholders meet their need for tax-free investment income with a full range of investment choices. Our focus will continue to be on building shareholder value, providing research-oriented management, and delivering dependable performance. With this focus, we anticipate many more years of progress and accomplishment for fund shareholders and our firm. Municipal bonds continue to play an important role in meeting the investment goals of conservative investors. The performance of the exchange-traded funds covered in this report demonstrates how quality investments can provide attractive tax-free income. As of May 31, 1996, the current annual yields on share price for these funds ranged from 5.46% to 6.33%. To match these yields, investors in the 36% federal income tax bracket would have had to earn at least 8.53% on taxable alternatives. Without question, taxable yields at this level on investments of comparable quality can be difficult to achieve in today's markets. The exemption from state taxes further enhances the advantages of these funds. With the strength of the bond market last year, these funds enjoyed an increase in share prices, further improving investors' overall experience for the year ending May 31, 1996, as well as attractive returns. The changes in net asset value, including the reinvestment of all dividends and capital gains, if any, ranged from 3.09% to 4.55%, equivalent to taxable investments with total returns of 6.53% to 9.15%. The years ahead present opportunities as well as challenges for all of us. I want to thank you for your continued confidence in Nuveen exchange-traded funds, and I look forward to sharing reports of continued progress with you. Sincerely, Timothy R. Schwertfeger Chairman of the Board July 15, 1996 Answering your questions Photographic image of montage of letters received by Nuveen. Tom Spalding, head of Nuveen's portfolio management team, discusses investment performance and recent factors affecting the municipal market. What has been Nuveen's investment approach during this period? Nuveen has continued to pursue its value investing strategy, a disciplined approach to security selection and portfolio construction designed to deliver above-market performance by identifying individual bonds with current yields, prices, credit quality, and future prospects that are exceptionally attractive in relation to other bonds in the market. This approach was rewarded over the past year, as many of our portfolio holdings were upgraded by the national rating agencies, indicating that our Research Department's judgments about credit quality were on target. As opportunity allowed, we moved to protect current income by investing a larger percentage of our portfolios in non-callable bonds. Because these bonds cannot be redeemed before maturity, their yields are assured for the long term even if interest rates decline. We also purchased an increased number of bonds at discounts from their par value. These bonds, which have coupon rates slightly below market levels, are less likely to be called from our portfolios, assuring more stable yields for our investors. Photographic image of Tom Spalding, Portfolio Manager at Nuveen. Tom Spalding, head of Nuveen's portfolio management team, answers investors' questions on developments in the municipal market. Some funds' discounts seem to have narrowed over the past few months. What caused this improvement? To understand the reasons for this improvement, it may be helpful to remember that each share has two prices: the net asset value (NAV), which represents the underlying value of the bonds, and the share price, which is the fund's price on the stock exchange. As with other securities, share prices for municipal bond funds change frequently, driven by investors' demand for shares and the available supply. When a share's NAV is higher than its share price, we say that the shares can be purchased at a discount. In 1995, the recovery of the bond market meant that the net asset values for some funds appreciated more quickly than their share prices, widening discounts for a while. This is not unusual, as the market often takes time to recognize underlying value balanced against the various factors that affect investor decisions, such as the outlook for the direction of interest rates, inflation forecasts, the relative strength of the stock market, and legislative and tax outlooks. Over the past few months, investor worries about tax reform--and the potential effect of a flat tax proposal on tax-free investments--have waned somewhat, boosting the demand for tax-free products. The combination of higher yields, concerns about the direction of the stock market, and broker recommendations has also prompted a greater demand for municipal bonds and bond funds. With increased demand, share prices have risen, resulting in narrower discounts. In fact, some exchange-traded funds are now trading at a premium, that is, their share prices are higher than their NAVs. What caused the dividends of some funds to decline recently? All Nuveen funds are structured to provide an attractive stream of tax-free income. We realize that for many investors, stability of income is another important objective. We set dividends on Nuveen funds conservatively, seeking a level that we expect will be sustainable for at least several months. Many of the funds that have had dividend reductions over the past year had previously enjoyed prolonged periods without dividend changes. Still, dividends ultimately depend on overall earnings of each fund, which can be reduced by bond calls, changes in long- and short-term interest rates, and other portfolio changes. Many of our funds use leverage as an additional way to enhance income for common shareholders. A sudden or prolonged rise in short-term interest rates can affect dividends of leveraged funds. In fact, short-term rates on average have been higher over the past two years than they were in the early 1990s. This has resulted in higher rates for preferred shareholders and less income available for common shareholders. It is important to remember that leverage can increase NAV volatility as well as investment potential. Greater stability in both long and short interest rates in 1996 has reduced some of the dividend and NAV pressures for many leveraged funds. Bond calls can also act to lower dividends. As the Federal Reserve Board cut rates between July 1995 and January 1996, long-term municipal bond yields reacted by declining almost 130 basis points from their levels at the beginning of 1995. As called bonds have been replaced in some portfolios with the bonds available in the market today, fund earnings are reduced. NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NTC Shareholders enjoyed an increase in the monthly tax-free dividend in November, as common shareholders benefitted from the effects of leverage. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 06/13/95 $0.0600 07/12/95 $0.0600 08/11/95 $0.0600 09/13/95 $0.0600 10/11/95 $0.0600 11/13/95 $0.0620 12/13/95 $0.0620 01/10/96 $0.0620 02/13/96 $0.0620 03/13/96 $0.0620 04/11/96 $0.0620 05/13/96 $0.0620 FUND HIGHLIGHTS 5/31/96 Yield 5.46% Taxable-equivalent yield 8.95% Annual total return on NAV 3.97% Taxable-equivalent total return 7.62% Share price $13.625 NAV $12.99 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 Shareholders enjoyed an increase in the monthly tax-free dividend in February, as common shareholders benefitted from the effects of leverage. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 06/13/95 $0.0660 07/12/95 $0.0660 08/11/95 $0.0660 09/13/95 $0.0660 10/11/95 $0.0660 11/13/95 $0.0660 12/13/95 $0.0660 01/10/96 $0.0660 02/13/96 $0.0680 03/13/96 $0.0680 04/11/96 $0.0680 05/13/96 $0.0680 FUND HIGHLIGHTS 5/31/96 Yield 5.93% Taxable-equivalent yield 10.50% Annual total return on NAV 4.55% Taxable-equivalent total return 9.15% Share price $13.75 NAV $13.58 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 Shareholders enjoyed an increase in the monthly tax-free dividend in February, as common shareholders benefitted from the effects of leverage. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 06/13/95 $0.0550 07/12/95 $0.0550 08/11/95 $0.0550 09/13/95 $0.0550 10/11/95 $0.0550 11/13/95 $0.0550 12/13/95 $0.0550 01/10/96 $0.0550 02/13/96 $0.0585 03/13/96 $0.0585 04/11/96 $0.0585 05/13/96 $0.0585 FUND HIGHLIGHTS 5/31/96 Yield 5.62% Taxable-equivalent yield 9.37% Annual total return on NAV 3.09% Taxable-equivalent total return 6.53% Share price $12.50 NAV $13.11 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 In line with the Fund's goal of providing attractive, dependable tax-free income, share holders enjoyed 12 months of steady dividends. 12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains 06/13/95 $0.0620 07/12/95 $0.0620 08/11/95 $0.0620 09/13/95 $0.0620 10/11/95 $0.0620 11/13/95 $0.0620 12/13/95 $0.0620 01/10/96 $0.0620 02/13/96 $0.0620 03/13/96 $0.0620 04/11/96 $0.0620 05/13/96 $0.0620 FUND HIGHLIGHTS 5/31/96 Yield 6.33% Taxable-equivalent yield 9.89% Annual total return on NAV 3.75% Taxable-equivalent total return 6.88% Share price $11.75 NAV $13.48 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.
Commonly used terms Yield An exchange-traded fund's annualized monthly dividend on a given date (in the case of this report, May 31, 1996) 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, 43.5% for MA, 40% for MO, and 36% for WA, based on 1996 incomes of $121,300-$263,750 for investors filing singly, $147,700-$263,750 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 per share, 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, 1996. Any future repurchases will be reported to shareholders in the next annual or semiannual report. PORTFOLIO OF INVESTMENTS NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND (NTC)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,400,000 Connecticut Development Authority, Water Facilities Revenue Bonds, Bridgeport Hydraulic Company Project, 1993 B Series, 5.500%, 6/01/28 6/03 at 102 Aaa $ 1,315,076 1,130,000 Connecticut Development Authority, Water Facilities Refunding Revenue Bonds (Stamford Water Company Project-1993 Series), 5.300%, 9/01/28 9/03 at 102 A+ 1,003,756 2,795,000 Connecticut Development Authority, Water Facilities Revenue Bonds, Bridgeport Hydraulic Company Project, 1993 A Series, 5.600%, 6/01/28 (Alternative Minimum Tax) 6/03 at 102 Aaa 2,586,521 2,000,000 Connecticut Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Pfizer Inc. Project, 1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax) 7/05 at 102 Aaa 2,227,100 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, 1994 Series A: 1,500,000 6.875%, 8/15/04 No Opt. Call N/R 1,540,605 1,000,000 7.000%, 8/15/09 8/04 at 102 N/R 1,041,440 3,175,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1993 Series B, 6.200%, 5/15/12 5/03 at 102 Aa 3,216,180 2,465,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1992 Series A, 6.050%, 11/15/25 (Alternative Minimum Tax) 11/02 at 102 Aa 2,395,684 3,250,000 Connecticut Municipal Electric Energy Cooperative, Power Supply System Revenue Bonds, 1993 Series A, 5.000%, 1/01/18 1/04 at 102 Aaa 2,900,853 2,200,000 Connecticut Resources Recovery Authority, Bridgeport Resco Company, L.P. Project Bonds, Series A, Adjustable Convertible Extendible Securities-Aces., 7.625%, 1/01/09 1/97 at 103 A 2,291,014 3,475,000 Connecticut Resources Recovery Authority, Resource Recovery Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut Project, 1989 Series A, 7.700%, 11/15/11 11/98 at 103 AA- 3,797,550 2,000,000 State of Connecticut, General Obligation Bonds, 1993 Series E, 6.000%, 3/15/12 No Opt. Call Aa 2,086,140 3,250,000 State of Connecticut, General Obligation Bonds, 1993 Series D, 5.100%, 8/01/11 8/03 at 101 1/2 Aa 3,056,008 3,525,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford Issue, Series C, 8.000%, 7/01/18 (Pre-refunded to 7/01/03) 7/03 at 100 Aaa 3,941,796 1,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Newington Children's Hospital, Series A, 6.050%, 7/01/10 7/04 at 102 Aaa 1,026,120 2,725,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Saint Francis Hospital and Medical Center Issue, Series B, 6.200%, 7/01/22 7/02 at 102 Aaa 2,777,674 2,500,000 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Middlesex Hospital Issue, Series A, 6.250%, 7/01/22 7/02 at 102 Aaa 2,549,825 1,700,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lawrence and Memorial Hospital Issue, Series C, 6.250%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 1,850,807 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,020,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College Issue, Series C, 6.000%, 7/01/22 7/02 at 102 Aaa $ 2,032,080 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, The Taft School Issue, Series B: 1,300,000 5.250%, 7/01/13 7/00 at 102 A 1,202,500 1,120,000 5.400%, 7/01/20 7/00 at 102 A 1,036,918 4,450,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac College Issue, Series D, 6.000%, 7/01/23 7/03 at 102 BBB- 4,004,155 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University Issue, Series B: 1,000,000 5.000%, 7/01/13 7/03 at 102 Aaa 905,400 975,000 5.000%, 7/01/18 7/03 at 102 Aaa 867,955 2,500,000 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Saint Francis Hospital and Medical Center Issue, Series C, 5.000%, 7/01/23 7/03 at 102 Aaa 2,165,750 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart University Issue, Series B: 2,600,000 5.700%, 7/01/16 7/03 at 102 Baa 2,264,704 1,000,000 5.800%, 7/01/23 7/03 at 102 Baa 871,930 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital of Saint Raphael Issue, Series H: 2,585,000 5.100%, 7/01/07 No Opt. Call Aaa 2,523,994 2,000,000 5.200%, 7/01/08 No Opt. Call Aaa 1,950,880 1,500,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lawrence and Memorial Hospital Issue, Series D, 5.000%, 7/01/22 7/03 at 102 Aaa 1,304,295 1,250,000 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%, 7/01/25 7/04 at 101 Aaa 1,367,463 2,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home Program Issue, Series 1994, AHF/Hartford, Inc. Project, 7.125%, 11/01/24 11/04 at 102 AA- 2,246,880 2,000,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Nursing Home Program Issue, Series 1993, Mansfield Center for Nursing and Rehabilitation Project, 5.875%, 11/01/12 11/03 at 102 Aaa 2,020,040 2,200,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Day Kimball Hospital Issue Series A, 5.375%, 7/01/26 7/06 at 102 Aaa 2,016,542 1,575,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital Issue, Series C, 5.375%, 7/01/25 7/06 at 102 AAA 1,427,249 1,800,000 State of Connecticut, Special Tax Obligation Bonds, Transportation Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10 No Opt. Call AA- 1,968,282 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE State of Connecticut, Special Tax Obligation Refunding Bonds, Transportation Infrastructure Purposes, 1993 Series A: $ 750,000 5.250%, 9/01/06 9/03 at 102 AA- $ 747,877 1,000,000 5.400%, 9/01/09 9/03 at 102 AA- 984,400 1,000,000 State of Connecticut, Special Tax Obligation Refunding Bonds, Transportation Infrastructure Purposes, 1993 Series B, 4.600%, 10/01/06 10/03 at 102 AA- 936,980 3,000,000 State of Connecticut, Airport Revenue Refunding Bonds, Bradley International Airport, Series 1992, 7.650%, 10/01/12 10/04 at 100 Aaa 3,429,450 1,650,000 State of Connecticut, General Fund Obligation Bonds, 1994 Series A, Issued by Connecticut Development Authority, 6.375%, 10/15/14 10/04 at 102 AA- 1,718,458 3,000,000 State of Connecticut, Clean Water Fund Subordinate Revenue Refunding Bonds, 1996 Series, 5.250%, 7/01/10 1/05 at 101 Aaa 2,877,330 1,900,000 Capitol Region Education Council, Revenue Bonds, 6.700%, 10/15/10 10/05 at 102 BBB 1,898,936 City of New Haven, Connecticut, Air Rights Parking Facility Revenue Bonds, Series 1991: 3,000,000 6.625%, 12/01/05 12/01 at 102 Aaa 3,251,220 1,500,000 6.500%, 12/01/15 12/01 at 102 Aaa 1,560,825 2,000,000 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Eleventh Series, 5.750%, 8/01/12 8/03 at 102 Aaa 2,003,340 1,275,000 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Twelfth Series, 5.125%, 8/01/07 8/03 at 102 Aaa 1,255,748 3,250,000 City of Waterbury Connecticut, General Obligation Tax Revenue Intercept Refunding Bonds, 1993 Issue, 5.375%, 4/15/08 4/03 at 102 Aaa 3,220,295 1,580,000 Waterbury Nonprofit Housing Corporation, Connecticut Taxable Mortgage Revenue Refunding Bonds, FHA Insured Mortgage Loan-Fairmont Heights Section 8 Assisted Project, Series 1993A, 6.500%, 7/01/07 7/02 at 101 Aaa 1,696,146 1,930,000 Housing Authority of the City of Willimantic, Multi-Family Housing Revenue Bonds, Series 1995A, GNMA Collateralized Mortgage Loan-Village Heights Apartments Project, 8.000%, 10/20/30 10/05 at 105 AAA 2,191,167 1,500,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Hospital Revenue Refunding Bonds, 1995 Series A, FHA Insured Mortgage-Doctor Pila Hospital Project, 6.125%, 8/01/25 8/05 at 101 1/2 AAA 1,503,344 $103,300,000 Total Investments - (cost $104,836,240) - 98.2% 103,056,682 ============ TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.3% $ 300,000 Connecticut Development Authority Pollution Control ========== Revenue Refunding Bonds (Connecticut Light and Power Company Project-1993B Series), Variable Rate Demand Bonds, 3.650%, 9/01/28+ VMIG-1 300,000 Other Assets Less Liabilities - 1.5% 1,571,006 Net Assets - 100% $104,927,688 ============ NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 30 $ 62,746,285 61% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 23,154,439 22 PORTFOLIO OF A+ A1 1 1,003,756 1 INVESTMENTS A, A- A, A2, A3 3 4,530,432 4 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 9,039,725 9 TEMPORARY Non-rated Non-rated 2 2,582,045 3 INVESTMENTS): TOTAL 51 $103,056,682 100% * 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. + 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 MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND (NMT)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE Massachusetts Health and Educational, Facilities Authority, Revenue Refunding Bonds, Youville Hospital Issue (FHA Insured Project), Series B: $ 3,030,000 6.125%, 2/15/15 2/04 at 102 Aa $ 3,038,242 1,000,000 6.000%, 2/15/25 2/04 at 102 Aa 989,090 2,250,000 Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1990 Series A, 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 2,517,638 1,000,000 Massachusetts Educational Financing Authority, Education Loan Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10 (Alternative Minimum Tax) 7/04 at 102 Aaa 1,031,770 3,310,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Deaconess Hospital Issue, Series D, 6.625%, 4/01/12 4/02 at 102 A 3,421,779 1,600,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Children's Hospital Issue, Series E, 5.500%, 10/01/19 10/02 at 102 Aa 1,485,883 3,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15 7/03 at 102 Aaa 2,864,820 2,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Massachusetts General Hospital Issue, Series G, 5.375%, 7/01/11 7/00 at 100 Aaa 1,938,640 2,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds (Daughters of Charity National Health System-The Carney Hospital), Series D, 6.100%, 7/01/14 7/04 at 102 Aa 2,012,580 3,800,000 Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 6.300%, 10/01/13 4/03 at 102 A1 3,817,442 645,000 Massachusetts Housing Finance Agency, Housing Development Revenue, Series 1986-A, 7.500%, 12/01/06 (Alternative Minimum Tax) 12/96 at 102 Aaa 663,828 2,450,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 9, 8.100%, 12/01/21 (Alternative Minimum Tax) 12/98 at 102 Aa 2,540,136 2,500,000 Massachusetts Housing Finance Agency, Insured Rental Housing Bonds, 1994 Series A, 6.650%, 7/01/19 (Alternative Minimum Tax) 7/04 at 102 Aaa 2,571,925 3,850,000 Massachusetts Industrial Finance Agency, Pollution Control Revenue Bonds, 1993 Series (Eastern Edison Company Project), 5.875%, 8/01/08 8/03 at 102 BBB 3,694,653 3.175,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds, Semass Project Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 3,452,432 1,125,000 Massachusetts Industrial Financial Agency, Revenue Bonds, Heights Crossing Limited Partnership Issue (FHA Insured Project), Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) 2/06 at 102 AAA 1,108,755 2,500,000 Massachusetts Industrial Finance Agency, Revenue Refunding Bonds, College of the Holy Cross - 1992 Issue II, 6.375%, 11/01/15 (Pre-refunded to 11/01/02) 11/02 at 102 A1 2,744,000 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,400,000 Massachusetts Industrial Finance Agency, Revenue Bonds, Merrimack College Issue, Series 1992, 7.125%, 7/01/12 7/02 at 102 BBB- $ 1,486,282 1,175,000 Massachusetts Industrial Finance Agency, Revenue Bonds (Brooks School Issue), Series 1993, 5.950%, 7/01/23 7/03 at 102 A 1,158,597 3,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds, Phillips Academy Issue, Series 1993, 5.375%, 9/01/23 9/08 at 102 Aa1 3,218,845 2,645,000 Massachusetts Industrial Finance Agency, Revenue Bonds (Whitehead Institute for Biomedical Research - 1993 Issue), 5.125%, 7/01/26 7/03 at 102 Aa 2,309,402 3,000,000 Massachusetts Industrial Finance Agency, Revenue Bonds, Harvard Community Health Plan, Inc., Issue 1988 Series 3 (Refunding Bonds), 8.125%, 10/01/17 10/98 at 102 A 3,236,010 1,420,000 Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1994 Series B, 5.000%, 7/01/17 7/04 at 102 Aaa 1,252,085 2,000,000 Massachusetts Municipal Wholesale Electric Company, A Public Corporation of The Commonwealth of Massachusetts, Power Supply System Revenue Bonds, 6.000%, 7/01/18 7/02 at 100 Aaa 2,003,400 1,000,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 7/01/13 No Opt. Call Aaa 1,652,260 4,750,000 Massachusetts Port Authority, Revenue Refunding Bonds, Series 1993-B, 5.000%, 7/01/18 (Alternative Minimum Tax) 7/03 at 100 Aa 4,133,403 2,090,000 Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement Revenue Bonds (Pool Loan Program), Series 1, 5.600%, 8/01/13 8/03 at 102 Aa 2,039,213 3,000,000 Massachusetts Water Resources Authority, General Revenue Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 3/03 at 100 A 2,561,790 3,000,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1991 Series A, 5.750%, 12/01/21 12/01 at 100 A 2,841,000 Town of Barnstable, Massachusetts, General Obligation Bonds: 1,020,000 5.750%, 9/15/10 9/04 at 102 Aa 1,030,557 1,020,000 5.750%, 9/15/11 9/04 at 102 Aa 1,026,589 965,000 5.750%, 9/15/12 9/04 at 102 Aa 967,509 1,420,000 City of Boston, Massachusetts, Revenue Refunding Bonds, Boston City Hospital (FHA Insured Mortgage), Series B, 5.750%, 2/15/23 8/00 at 102 Aa 1,344,925 2,500,000 Boston Water and Sewer Commission, General Revenue Bonds, 1993 Series A (Senior Series), 5.250%, 11/01/11 11/01 at 102 Aaa 2,369,525 1,000,000 City of Chelsea, Massachusetts, General Obligation Bonds, School Project Loan, Act of 1948, 7.000%, 6/15/03 No Opt. Call Aaa 1,114,600 1,600,000 City of Chicopee, Massachusetts, Electric System Revenue Bonds, Series of 1983, 9.125%, 1/01/17 No Opt. Call Aaa 2,178,848 4,875,000 City of Lowell, Massachusetts, General Obligation State Qualified Bonds, 5.600%, 11/01/12 11/03 at 102 Aaa 4,757,269 1,765,000 The New England Education Loan Marketing Corporation, Student Loan Revenue Bonds, 1992 Subordinated Issue C, 6.750%, 9/01/02 (Alternative Minimum Tax) No Opt. Call A1 1,898,487 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 4,000,000 The New England Loan Marketing Corporation, Student Loan Revenue Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax) No Opt. Call A1 $ 4,307,200 1,750,000 Puerto Rico Aqueduct and Sewer Authority, Revenue Bonds, Series 1988A, 7.875%, 7/01/17 (Pre-refunded to 7/01/98) 7/98 at 102 AAA 1,912,698 3,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series P, 7.000%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 3,359,641 $93,130,000 Total Investments - (cost $93,265,262) - 97.7% 94,053,748 =========== Other Assets Less Liabilities - 2.3% 2,249,353 Net Assets - 100% $96,303,101 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 16 $33,297,702 35% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 26,136,374 28 PORTFOLIO OF A+ A1 4 12,767,129 14 INVESTMENTS: A, A- A, A2, A3 5 13,219,176 14 BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 5,180,935 5 Non-rated Non-rated 1 3,452,432 4 TOTAL 41 $94,053,748 100% * 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.
PORTFOLIO OF INVESTMENTS NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND (NOM)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,000,000 Health Facilities Revenue Bonds (Barnes-Jewish, Inc./ Christian Health Services), Series 1993, 5.150%, 5/15/10 No Opt. Call Aa $ 937,910 1,000,000 Health and Educational Facilities Authority, of the State of Missouri, Health Facilities Revenue Bonds (BJC Health System), Series 1994A, 6.750%, 5/15/12 No Opt. Call Aa 1,100,170 1,000,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Refunding Revenue Bonds (SSM Health Care), Series 1992AA, 6.250%, 6/01/07 6/02 at 102 Aaa 1,066,320 2,000,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Revenue Bonds (Saint Luke's Health System), Series 1993, 5.125%, 11/15/19 11/03 at 102 Aaa 1,773,140 1,290,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Revenue Bonds (SSM Health Care Obligated Group Projects), Series 1990B, 7.000%, 6/01/15 No Opt. Call Aaa 1,495,433 1,000,000 Health and Educational Facilities Authority of the State of Missouri, Educational Facilities Revenue Bonds (Saint Louis University), Series 1996, 5.000%, 10/01/10 10/06 at 102 Aaa 935,240 585,000 Missouri Housing Development Commission, Mortgage Purchase Bonds, Series May 15, 1979 (FHA Insured or VAGuaranteed Mortgage Loans), 6.600%, 11/15/10 11/96 at 101 5/16 AA+ 593,518 2,270,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds, Series 1991-A (GNMA Mortgage-Backed Securities Program), 7.375%, 8/01/23 (Alternative Minimum Tax) 2/01 at 102 AAA 2,395,213 1,835,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds (Homeownership Loan Program), 1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax) 3/06 at 105 AAA 1,985,323 1,000,000 Regional Convention and Sports Complex Authority, Convention and Sports Facility Project and Refunding Bonds, Series A 1993, (State of Missouri Sponsor), 5.500%, 8/15/13 8/03 at 102 A1 954,440 1,225,000 State Environmental Improvement and Energy Resources Authority State of Missouri, Water Pollution Control Revenue Bonds (State Revolving Fund Program-City of Kansas City Project), Series 1995B, 7.750%, 1/01/08 1/05 at 102 Aa1 1,463,740 1,000,000 State Environmental Improvement and Energy Resources Authority (State of Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program-City of Branson Project), Series 1995A, 6.050%, 7/01/16 7/04 at 102 Aaa 1,013,110 1,400,000 Boone County, Missouri, Hospital Revenue Bonds, Series 1993, 5.500%, 8/01/09 8/02 at 102 A 1,367,240 1,000,000 City of Cape Girardeau, Missouri, Waterworks System Refunding Revenue Bonds, Series 1995, 5.200%, 3/01/09 3/06 at 100 Aaa 968,850 1,000,000 Union Reorganized School District No. R-XI of Franklin County, Missouri, General Obligation School Building and Refunding Bonds, Series 1993, 5.750%, 3/01/13 3/03 at 100 Aaa 1,006,840 2,785,000 Greene County, Missouri, Single Family Mortgage Revenue Bonds, Series 1984, 0.000%, 3/01/16 No Opt. Call Aaa 854,911 1,000,000 Consolidated School District No. 2 (Raytown) of Jackson County, Missouri, General Obligation Refunding Bonds, Series 1993, 5.250%, 3/15/11 3/03 at 102 Aaa 965,510 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,550,000 Jackson County, Missouri, Single Family Mortgage Revenue Bonds, Series 1983, 0.000%, 3/01/15 No Opt. Call Aaa $ 502,386 1,140,000 City of Kansas City, Missouri, General Improvement Airport Refunding Revenue Bonds, Series 1995, 6.750%, 9/01/09 9/05 at 101 Aaa 1,252,062 1,500,000 City of Kansas City, Missouri, General Improvement Airport Revenue Bonds, Series 1994 A, 6.900%, 9/01/11 (Alternative Minimum Tax) 9/04 at 101 Aaa 1,630,035 1,000,000 Land Clearance For Redevelopment Authority of Kansas City, Missouri, Lease Revenue Bonds (Municipal Auditorium and Muehlebach Hotel Redevelopment Projects), Series 1995A, 5.900%, 12/01/18 12/05 at 102 Aaa 984,710 2,000,000 School District of Kansas City, Missouri, Building Corporation, Insured Leasehold Revenue Bonds, Series 1993 (The School District of Kansas City, Missouri, Capital Improvements Project), 5.000%, 2/01/14 2/04 at102 Aaa 1,819,300 2,020,000 Ritenour School District of St. Louis County, Missouri, General Obligation School Bonds, Series 1995, 7.375%, 2/01/12 No Opt. Call Aaa 2,396,387 1,500,000 Francis Howell School District, St. Charles County, Missouri, General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08 No Opt. Call Aaa 1,823,955 1,400,000 School District of the City of St. Charles, Missouri, General Obligation Bonds (Missouri Direct Deposit Program), Series 1996A, 5.625%, 3/01/14 (WI) 3/06 at 100 Aa 1,391,936 1,500,000 Certificates of Receipt, Series 1993, St. Louis County, Missouri, GNMA Collateralized Mortgage Revenue Bonds, Series 1989A, 5.650%, 7/01/20 (Alternative Minimum Tax) No Opt. Call AAA 1,480,485 1,395,000 The Board of Education of the City of St. Louis (Missouri), General Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07 No Opt. Call Aaa 1,767,814 500,000 St. Louis Municipal Finance Corporation, Leasehold Revenue Refunding Bonds, 5.850%, 7/15/09 7/03 at 102 Aa3 492,545 1,275,000 St. Louis Municipal Finance Corporation, Leasehold Revenue Improvement and Refunding Bonds, Series 1992 (City of St. Louis, Missouri, Lessee), 6.250%, 2/15/12 2/03 at 102 Aaa 1,316,731 500,000 City of Sikeston, Missouri, Electric System Revenue Refunding Bonds, 1996 Series, 6.000%, 6/01/16 No Opt. Call Aaa 515,645 1,000,000 The School District of Springfield R-12, Springfield, Missouri, General Obligation Refunding Bonds, Series A 1993, 5.250%, 3/01/11 3/03 at 100 Aaa 965,570 625,000 Reorganized School District No. R-IV of Stone County, Missouri (Reeds Spring, Missouri), General Obligation School Building Refunding and Improvement Bonds, Series 1995, 7.600%, 3/01/10 No Opt. Call Aaa 752,075 1,250,000 The Industrial Development Authority of the City of University City, Missouri, Multifamily Housing Revenue Refunding Bonds, (GNMA Collateralized-Canterbury Gardens Project), Series 1995A, 5.900%, 12/20/20 12/05 at 102 AAA 1,235,574 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,075,000 University Development Foundation, Power Plant Equipment Leasehold Revenue Refunding Bonds, Series 1993 (The Curators of the University of Missouri, Lessee), 5.750%, 5/01/18 5/03 at 102 A $ 1,004,577 700,000 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series U, 6.000%, 7/01/14 7/04 at 102 Aaa 707,077 $44,320,000 Total Investments - (cost $42,207,106) - 97.5% 42,915,772 =========== TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 1.1% $ 500,000 Health and Educational Facilities Authority of the State ========== of Missouri, Educational Facilities Adjustable Demand Revenue Bonds, St. Louis University, Series 1985, Variable Rate Demand Bonds, 3.750%, 12/01/05+ VMIG-1 500,000 Other Assets Less Liabilities - 1.4% 598,201 Net Assets - 100% $44,013,973 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT SUMMARY OF AAA Aaa 26 $33,609,696 78% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 6 5,979,819 14 PORTFOLIO OF A+ A1 1 954,440 2 INVESTMENTS A, A- A, A2, A3 2 2,371,817 6 (EXCLUDING TEMPORARY INVESTMENTS): TOTAL 35 $42,915,772 100% * 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. (WI) Security purchased on a when-issued basis (note 1). + 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 WASHINGTON PREMIUM INCOME MUNICIPAL FUND (NPW)
PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 2,000,000 State of Washington, General Obligation Bonds, Series 1994B, 6.000%, 5/01/19 5/04 at 100 Aa $ 2,005,500 1,250,000 Washington Health Care Facilities Authority, Revenue Bonds, Refunding Series 1992 (Franciscan Health System/Saint Clare Hospital, Tacoma), 6.625%, 7/01/20 7/02 at 102 Aaa 1,306,288 2,000,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (The Children's Hospital and Medical Center, Seattle), 6.125%, 10/01/13 10/02 at 102 Aaa 2,027,120 2,400,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Swedish Hospital Medical Center, Seattle), 6.300%, 11/15/22 11/02 at 102 Aaa 2,432,040 650,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1993 (Empire Health Services, Spokane), 5.625%, 11/01/19 11/03 at 102 Aaa 609,057 1,000,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1993A (The Heart Institute of Spokane), 5.800%, 8/15/18 8/04 at 102 AA- 934,330 1,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 7/03 at 102 Aaa 961,430 1,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09 No Opt. Call Aa 1,090,640 980,000 Washington State Housing Finance Commission, Multifamily Mortgage Revenue Bonds (GNMA Mortgage Backed Securities Program), Series 1989A, 7.700%, 7/01/32 (Alternative Minimum Tax) 1/00 at 103 AAA 1,032,244 1,610,000 Washington State Housing Finance Commission, Single-Family Mortgage Revenue Bonds (Mortgage Backed Securities Program), Series 1992D-1, 6.150%, 1/01/26 (Alternative Minimum Tax) No Opt. Call AAA 1,588,297 1,400,000 Washington State University, Housing and Dining System Revenue and Refunding Bonds, Series 1994, 6.375%, 10/01/18 10/04 at 101 Aaa 1,442,574 1,050,000 City of Bellevue, King County, Washington, Water and Sewer Revenue Refunding Bonds, 1994, 5.875%, 7/01/09 7/04 at 100 Aa 1,066,800 1,000,000 Public Utility District No. 1 of Benton County, Washington, Electric Revenue Bonds, Series B 1982, 13.500%, 11/01/02 (Pre-refunded to 11/01/97) 11/97 at 100 Aaa 1,127,470 1,895,000 Public Utility District No. 1 of Chelan County, Washington, Columbia River-Rock Island Hydro-Electric System Revenue Bonds, Series of 1976, 6.375%, 6/01/29 6/96 at 102 A1 1,906,749 1,035,000 Covington Water District, Water Revenue Bonds, Refunding Series 1995, 6.050%, 3/01/20 3/05 at 100 Aaa 1,041,521 2,000,000 Housing Authority of the County of King Washington, Housing Revenue Bonds, 1995 (Woodridge Park Project), 6.350%, 5/01/25 (Alternative Minimum Tax) 5/05 at 100 AA+ 2,006,600 1,000,000 Federal Way School District No. 210, King County, Washington, Unlimited Tax General Obligation and Refunding Bonds, 1993, 5.750%, 12/01/12 No Opt. Call Aaa 1,001,590 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,600,000 Public Utility District No. 1 of Klickitat County, Washington, Electric Revenue Bonds, 1995, 5.650%, 10/01/15 10/05 at 101 Aaa $ 1,556,784 1,000,000 Public Utility District No. 1 of Lewis County, Washington, Cowlitz Falls Hydroelectric Project, Revenue Refunding Bonds, Series 1993, 5.500%, 10/01/09 10/03 at 102 Aa 978,220 1,000,000 Peninsula School District No. 401, Pierce County, Washington, Unlimited Tax General Obligation Refunding Bonds, 1993, 5.500%, 12/01/08 No Opt. Call Aaa 1,000,450 1,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1990A, 6.000%, 12/01/14 12/00 at 100 AA- 986,280 1,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1996A, 5.500%, 9/01/21 9/06 at 102 Aaa 942,100 1,000,000 Port of Vancouver, Clark County, Washington, Limited Tax General Obligation Bonds, 1994 Series B, 6.000%, 12/01/04 (Alternative Minimum Tax) No Opt. Call Aaa 1,063,930 1,160,000 City of Richland, Washington, Water and Sewer Improvement Revenue Bonds, 1993, 5.625%, 4/01/12 4/03 at 100 Aaa 1,146,741 Seattle Indian Services Commission, Special Obligation Bonds, 1994: 1,525,000 6.000%, 11/01/16 11/04 at 100 Aa1 1,534,409 750,000 6.150%, 11/01/24 11/04 at 100 Aa1 756,563 1,500,000 The City of Seattle, Washington, Drainage and Wastewater Utility Revenue Bonds, 1992, 5.750%, 12/01/22 12/02 at 101 Aa 1,406,250 500,000 The City of Seattle, Washington, Municipal Light and Power Revenue Bonds, 1992A, 5.750%, 8/01/12 8/02 at 102 Aa 490,930 1,000,000 Municipality of Metropolitan Seattle (Seattle, Washington), Sewer Refunding Revenue Bonds, Series Z, 5.450%, 1/01/19 1/03 at 102 Aaa 930,650 500,000 The City of Seattle, Washington, Water System and Refunding Revenue Bonds, 1993, 5.250%, 12/01/23 6/03 at 101 Aa 441,745 1,640,000 Housing Authority of Skagit County, Low-Income Housing Assistance Revenue Bonds, 1993 (GNMA Collateralized Mortgage Loan-Sea Mar Project), 7.000%, 6/20/35 11/04 at 104 AAA 1,746,649 1,385,000 Public Utility District No. 1 of Snohomish County, Washington, Generation System Revenue Bonds, Series 1993B, 5.750%, 1/01/09 (Alternative Minimum Tax) 1/04 at 102 A1 1,359,419 1,500,000 Mukilteo School District No. 6, Snohomish County, Washington, Unlimited Tax General Obligation and Refunding Bonds, 1993, 5.700%, 12/01/12 No Opt. Call Aaa 1,499,205 500,000 Edmonds School District No. 15, Snohomish County, Washington, Unlimited Tax General Obligation Bonds, Series 1994, 6.500%, 12/01/08 No Opt. Call AA- 541,940 1,000,000 University of Washington, Housing and Dining System Revenue Refunding Bonds, Junior Lien Series 1996, 5.125%, 12/01/15 12/06 at 102 Aaa 910,370 1,910,000 Housing Authority of the City of Vancouver Revenue Bonds, 1993, Series B (Fishers Mill Project) (Junior Lien Bonds), 6.000%, 3/01/23 3/03 at 100 Aa 1,860,205 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE $ 1,500,000 Western Washington University, Housing and Dining System, Revenue Bonds, Series 1992, 6.375%, 10/01/22 10/02 at 101 Aaa $ 1,536,810 1,000,000 Yakima-Tieton Irrigation District, Yakima County, Washington, Refunding Revenue Bonds, 1992, 6.125%, 6/01/13 6/03 at 102 Aaa 1,023,590 $47,240,000 Total Investments - (cost $47,425,545) - 98.0% 47,293,490 =========== TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.6% $ 300,000 Washington Health Care Facilities Authority, Variable ========== Rate Demand Revenue Bonds (Sisters of Providence), Series 1985E, Variable Rate Demand Bonds, 3.700%, 10/01/05+ VMIG-1 300,000 Other Assets Less Liabilities - 1.4% 672,565 Net Assets - 100% $48,266,055 =========== NUMBER MARKET MARKET STANDARD & POOR'S MOODY'S OF ISSUES VALU PERCENT SUMMARY OF AAA Aaa 22 $27,926,910 59% RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 16,100,412 34 PORTFOLIO OF A+ A1 2 3,266,168 7 INVESTMENTS (EXCLUDING TEMPORARY INVESTMENTS): TOTAL 38 $47,293,490 100% * 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. + 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) $103,056,682 $ 94,053,748 $ 42,915,772 $ 47,293,490 Temporary investments in short-term municipal securities, at amortized cost (note 1) 300,000 -- 500,000 300,000 Cash 19,982 846,457 47,197 53,961 Receivables: Interest 1,976,735 1,830,685 715,508 853,144 Investments sold -- -- 1,377,504 -- Other assets 16,340 13,363 6,785 3,392 ------------ ------------ ------------ ------------ Total assets 105,369,739 96,744,253 45,562,766 48,503,987 ------------ ------------ ------------ ------------ LIABILITIES Payable for investments purchased -- -- 1,369,156 -- Accrued expenses: Management fees (note 6) 57,831 53,126 24,267 26,631 Other 63,175 73,947 29,200 65,711 Preferred share dividends payable 3,147 2,050 1,183 1,747 Common share dividends payable 317,898 312,029 124,987 143,843 ------------ ------------ ------------ ------------ Total liabilities 442,051 441,152 1,548,793 237,932 ------------ ------------ ------------ ------------ Net assets (note 7) $104,927,688 $ 96,303,101 $ 44,013,973 $ 48,266,055 ============ ============ ============ ============ 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 5,127,384 4,588,661 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) $ 12.99 $ 13.58 $ 13.11 $ 13.48 ============ ============ ============ ============ See accompanying notes to financial statements
STATEMENT OF OPERATIONS Year ended May 31, 1996
NTC NMT NOM NPW INVESTMENT INCOME Tax-exempt interest income (note 1) $ 5,965,455 $ 5,670,600 $ 2,492,297 $ 2,817,930 ----------- ----------- ----------- ----------- Expenses: Management fees (note 6) 691,606 632,818 290,371 318,581 Preferred shares--auction fees 95,881 85,115 40,055 42,559 Preferred shares--dividend disbursing agent fees 16,695 15,020 15,021 12,740 Shareholders' servicing agent fees and expenses 17,992 2,151 7,224 3,200 Custodian's fees and expenses 41,213 41,933 37,244 35,676 Trustees' fees and expenses (note 6) 1,828 1,635 1,536 1,439 Professional fees 18,653 17,557 16,146 15,268 Shareholders' reports--printing and mailing expenses 29,394 18,218 23,715 16,064 Stock exchange listing fees 19,333 16,552 1,998 1,149 Investor relations expense 7,429 5,741 3,301 3,433 Other expenses 11,158 16,854 13,076 9,963 ----------- ----------- ----------- ----------- Total expenses 951,182 853,594 449,687 460,072 ----------- ----------- ----------- ----------- Net investment income 5,014,273 4,817,006 2,042,610 2,357,858 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (note 3) (521,214) (356,375) (126,266) 43,444 Net change in unrealized appreciation (depreciation) of investments (534,565) (520,768) (499,333) (580,097) ----------- ----------- ----------- ----------- Net gain (loss) from investments (1,055,779) (877,143) (625,599) (536,653) ----------- ----------- ----------- ----------- Net increase in net assets from operations $ 3,958,494 $ 3,939,863 $ 1,417,011 $ 1,821,205 =========== =========== =========== =========== See accompanying notes to financial statements
STATEMENT OF CHANGES IN NET ASSETS
NTC NMT Year ended Year ended Year ended Year ended 5/31/96 5/31/95 5/31/96 5/31/95 OPERATIONS Net investment income $ 5,014,273 $ 4,985,001 $ 4,817,006 $ 4,749,143 Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (521,214) (1,734,762) (356,375) (1,683,784) Net change in unrealized appreciation (depreciation) of investments (534,565) 5,546,402 (520,768) 5,569,783 ------------- ------------- ------------- ------------- Net increase in net assets from operations 3,958,494 8,796,641 3,939,863 8,635,142 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (3,758,689) (3,756,444) (3,669,476) (3,574,337) Preferred shareholders (1,262,953) (1,174,880) (1,099,146) (1,107,248) ------------- ------------- ------------- ------------- Decrease in net assets from distributions to shareholders (5,021,642) (4,931,324) (4,768,622) (4,681,585) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 140,264 390,670 61,212 38,944 ------------- ------------- ------------- ------------- Net increase in net assets derived from capital share transactions 140,264 390,670 61,212 38,944 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets (922,884) 4,255,987 (767,547) 3,992,501 Net assets at beginning of year 105,850,572 101,594,585 97,070,648 93,078,147 ------------- ------------- ------------- ------------- Net assets at end of year $ 104,927,688 $ 105,850,572 $ 96,303,101 $ 97,070,648 ============= ============= ============= ============= Balance of undistributed net investment income at end of year $ 228,874 $ 236,243 $ 295,314 $ 246,930 ============= ============= ============= ============= See accompanying notes to financial statements.
NOM NPW Year ended Year ended Year ended Year ended 5/31/96 5/31/95 5/31/96 5/31/95 OPERATIONS Net investment income $ 2,042,610 $ 2,023,496 $ 2,357,858 $ 2,333,554 Net realized gain (loss) from investment transactions, net of taxes, if applicable (notes 1 and 3) (126,266) (780,117) 43,444 (381,623) Net change in unrealized appreciation (depreciation) of investments (499,333) 2,955,027 (580,097) 2,157,234 ------------ ------------ ------------ ------------ Net increase in net assets from operations 1,417,011 4,198,406 1,821,205 4,109,165 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS (note 1) From undistributed net investment income: Common shareholders (1,440,028) (1,479,743) (1,726,118) (1,774,839) Preferred shareholders (528,534) (549,597) (641,034) (616,848) ------------ ------------ ------------ ------------ Decrease in net assets from distributions to shareholders (1,968,562) (2,029,340) (2,367,152) (2,391,687) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 53,910 -- -- ------------ ------------ ------------ ------------ Net increase in net assets derived from capital share transactions -- 53,910 -- -- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets (551,551) 2,222,976 (545,947) 1,717,478 Net assets at beginning of year 44,565,524 42,342,548 48,812,002 47,094,524 ------------ ------------ ------------ ------------ Net assets at end of year $ 44,013,973 $ 44,565,524 $ 48,266,055 $ 48,812,002 ============ ============ ============ ============ Balance of undistributed net investment income at end of year $ 131,343 $ 57,295 $ 60,836 $ 70,130 ============ ============ ============ ============ See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At May 31, 1996, 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. Each Fund invests primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with 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 Board of Trustees. Temporary investments in 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, 1996, NOM had outstanding purchase commitments of $1,369,156. There were no such purchase commitments in the other 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 to shareholders all of their tax-exempt net investment income, in addition to any significant amounts of net realized capital gains from investments and/or market discount realized upon the sale of securities. The Funds currently consider significant net realized capital gains and/or market discount 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 personal income taxes, if applicable, to retain such tax-exempt status when distributed to shareholders of the Funds. All income dividends paid during the year ended May 31, 1996, have been designated Exempt Interest Dividends which are entirely exempt from federal and designated state personal income taxes, if applicable. 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 capital 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 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 net realized gains from investment transactions, if applicable. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one Series. The dividend rate may change every seven days, as set by the Auction Agent. The number of shares outstanding at May 31, 1996, 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 year ended May 31, 1996. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period.
2. FUND SHARES Transactions in Common shares were as follows:
NTC NMT Year ended Year ended Year ended Year ended 5/31/96 5/31/95 5/31/96 5/31/95 Shares issued to shareholders due to reinvestment of distributions 10,325 31,483 4,528 3,350 ====== ====== ===== ===== NOM NPW Year ended Year ended Year ended Year ended 5/31/96 5/31/95 5/31/96 5/31/95 Shares issued to shareholders due to reinvestment of distributions -- 4,393 -- -- ===== ====== ===== =====
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the year ended May 31, 1996, were as follows:
NTC NMT NOM NPW PURCHASES Investments in municipal securities $16,155,976 $16,768,141 $14,886,970 $10,016,012 Temporary municipal investments 6,900,000 7,100,000 11,000,000 7,700,000 SALES AND MATURITIES Investments in municipal securities 15,815,297 17,095,321 15,182,271 9,850,345 Temporary municipal investments 6,600,000 7,250,000 10,500,000 7,700,000 =========== =========== =========== =========== At May 31, 1996, 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, 1996, 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 2004 1,105,901 945,779 708,417 70,082 ---------- ---------- ---------- ---------- Total $2,387,889 $2,193,042 $2,136,311 $ 650,882 ========== ========== ========== ==========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS On June 3, 1996, the Funds declared Common share dividend distributions from their ordinary income which were paid July 1, 1996, to shareholders of record on June 15, 1996, as follows:
NTC NMT NOM NPW Dividend per share $.0620 $.0680 $.0585 $.0620 ====== ====== ====== ====== 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 1996, were as follows: NTC NMT NOM NPW Gross unrealized: Appreciation $ 1,450,345 $ 1,950,691 $ 998,374 $ 458,983 Depreciation (3,229,903) (1,162,205) (289,708) (591,038) ----------- ----------- ----------- ----------- Net unrealized appreciation (depreciation) $(1,779,558) $ 788,486 $ 708,666 $ (132,055) =========== =========== =========== ===========
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, 1996, 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 51,274 45,887 21,365 23,201 Paid-in surplus 70,819,727 63,462,435 29,327,360 31,971,263 Balance of undistributed net investment income 228,874 295,314 131,343 60,836 Accumulated net realized gain (loss) from investment transactions (2,692,629) (2,289,021) (2,174,761) (657,190) Net unrealized appreciation (depreciation) of investments (1,779,558) 788,486 708,666 (132,055) ------------- ------------- ------------- ------------- Net assets $ 104,927,688 $ 96,303,101 $ 44,013,973 $ 48,266,055 ============= ============= ============= ============= 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, 1996, 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: Housing Facilities 10% 22% 14% 17% Health Care Facilities 20 17 15 16 Electric Utilities 3 3 3 18 Educational Facilities 14 16 4 8 Water / Sewer Facilities 6 10 8 15 Lease Rental Facilities -- -- 12 -- Transportation 8 4 7 6 Pollution Control Facilities 7 4 -- -- Other 10 4 1 -- General Obligation Bonds 16 10 26 18 Escrowed Bonds 6 10 10 2 --- --- --- --- 100% 100% 100% 100% === === === === Certain long-term and intermediate-term investments owned by the Funds are either 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, both of which ensure the timely payment of principal and interest in the event of default (57% for NTC, 32% for NMT, 65% for NOM and 50% 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 investments++ shareholders shareholders+ NTC Year ended 5/31, 1996 $13.200 $ .979 $ (.208) $(.734) $(.247) 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, 1996 13.760 1.050 (.190) (.800) (.240) 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, 1996 13.370 .956 (.295) (.674) (.247) 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, 1996 13.710 1.016 (.226) (.744) (.276) 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 shareholders+ discounts of period of period NTC Year ended 5/31, 1996 $ -- $ -- $ -- $12.990 $13.625 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, 1996 -- -- -- 13.580 13.750 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, 1996 -- -- -- 13.110 12.500 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, 1996 -- -- -- 13.480 11.750 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, 1996 14.06% 3.97% $104,928 .89% 4.71% 15% 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, 1996 8.99 4.55 96,303 .88 4.95 18 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, 1996 10.07 3.09 44,014 1.01 4.57 34 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, 1996 7.44 3.75 48,266 .94 4.81 20 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. + The amounts shown are based on Common share equivalents. ++ Net of taxes, if applicable. @ Ratios do not reflect the effect of dividend payments to Preferred shareholders.
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, 1996, 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, 1996, 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, 1996, 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, 1996 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 add to 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 can be 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. 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, Chase Manhattan Bank. 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. Income or capital gains taxes may be payable on dividends or distributions that are reinvested. 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 may, 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. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial adviser or call us toll-free at 1.800.257.8787. Photographic image of Customer Service Rep at Nuveen. "When it comes to financial planning, your investment adviser knows your situation best. Nuveen is pleased to provide the account information you and your adviser need to plan effectively." 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. "When questions come up about your investment, we're happy to provide the up-to-date information you and your adviser need." More than just a number If you've ever called our toll-free customer service line, you've spoken with one of Nuveen's customer service representatives. These reps are ready to assist you with answers to your questions about current account balances, yields, and previous transactions on your accounts. They can also supply additional information about any of Nuveen's tax-free unit trusts and mutual funds. If you have a question about your account, or whenever you need help, just call 800.257.8787. Our customer service reps are available Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern time. Photographic image of woman seated and man standing behind her representing Nuveen investors. Your investment partner 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. Since 1898, John Nuveen & Co. Incorporated has worked to bring together the various participants in the municipal bond industry and build strong partnerships that benefit all concerned. Investors, financial advisers, municipal officials, investment bankers--Nuveen believes that forging relationships with these groups based on trust and value is the ey to successful investing. As the oldest and largest municipal bond specialist in the United States, Nuveen's investment bankers work with issuers to understand and meet their needs in structuring and selling their bond issues. Nuveen also works closely with financial advisers around the country, including brokerage firms, banks, insurance companies, and independent financial planners, to bring the benefits of tax-free investing to you. These advisers are experts at identifying your needs and recommending the best solutions for your situation. Together we make a powerful team, helping you create a successful investment plan that meets your needs today and in the future. John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, Illinois 60606-1286 ETF3-JULY 96 -----END PRIVACY-ENHANCED MESSAGE-----