-----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, EAdrUSH3UCfa5HmzddCIB3OY35obbCHTrRu8WKWTptCcSelNCBPw1+n3G+70tRsF C8Bs125pE+OSjIrB0XIpAw== 0000891804-97-000284.txt : 19970808 0000891804-97-000284.hdr.sgml : 19970808 ACCESSION NUMBER: 0000891804-97-000284 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970531 FILED AS OF DATE: 19970807 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: 97653168 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 May 31, 1997 Annual Report Dependable, tax-free income to help you keep more of what you earn. NTC Connecticut NMT Massachusetts NOM Missouri NPW Washington Photographic image of grandfather and grandson on porch playing chess. Build Your Wealth Automatically 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 funds 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 regu larly 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 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 (continued on inside back cover) Contents 2 Dear Shareholder 4 Answering Your Questions 6 Connecticut Overview 7 Massachusetts Overview 8 Missouri Overview 9 Washington Overview 10 Independent Auditor's Report 11 Portfolio of Investments 25 Statement of Net Assets 27 Statement of Operations 29 Statement of Changes in Net Assets 31 Notes to Financial Statements 38 Financial Highlights 41 Fund Information Screen of photo on cover (grandfather and grandson playing chess). Dear Shareholder Photographic image of Timothy R. Schwertfeger, CEO. "In addition to substantial returns, shareholders continue to enjoy very attractive current yields generated by portfolios of quality bonds." It's a pleasure to report to you on the performance of Nuveen's exchange-traded funds. Over the past year, the funds covered in this report posted sizable gains. For the fiscal year ended May 31, 1997, the value of your investment rose between 10.09% and 11.01% if, you chose to reinvest your tax-free income dividends. Over this 12-month period, the total return performance for these funds outpaced the 8.28% increase (with income reinvested) produced by the Lehman Brothers Municipal Bond Index, which represents the broad municipal bond market on an unmanaged basis. Similarly, the leveraged, municipal bond funds tracked by Lipper Analytical Services rose an average of 7.43% over the past year. In addition to substantial returns, shareholders in these funds continue to enjoy very attractive current yields generated by portfolios of quality bonds, which provide excellent income for investors. As of May 31, 1997, shareholders in the funds covered in this report were receiving annual tax-free yields on the net asset value that ranged from 5.52% to 6.05%. To match these yields, investors in the 31% federal income tax bracket would have had to earn at least 8.00% on taxable alternatives of comparable quality. These results were produced against a backdrop of continued economic expansion and the lowest unemployment rates in almost two decades, a combination that in the past has foreshadowed an increase in inflation. In March, the Federal Reserve made a preemptive strike by raising short-term interest rates by 0.25%, but then maintained the status quo at its May and July meetings. Overall market returns continue to be good, but fear of inflation has hampered the performance of municipals and led to increased volatility in both the equity and bond markets. In the first six months of the year, the markets also focused on fiscal issues, including the federal budget accord and discussion of plans to reduce taxes and eliminate the deficit. The economy appeared to be moderating, corporate earnings reports continued to exhibit strength, and interest rates fell in the second quarter. All of this was positive news. The net effect is that the markets are better off now than at the beginning of the year, but the volatility in getting there has been significant. Currently, the need for diversification and a renewed emphasis on asset allocation - as well as attractive yields - have sparked increased interest in tax-free investments. The rapid rise in the stock market reminds investors to re-allocate profits to other segments of the market in order to limit risk. Nuveen exchange-traded funds provide an excellent alternative, and their current yields make them very attractive in relation to the rest of the market. In the past month, these yields have reached 80% of those offered by Treasuries, a very appealing ratio given the tax advantage provided by municipal bonds. We have also seen the discounts on many funds narrow dramatically, with the average state fund now trading at a premium of 1.18%. Consideration of these factors is leading investors to take another look at tax-free municipal bond funds and lock in at current rates. On behalf of everyone at Nuveen, I thank you for your confidence in us and our family of investments. We will continue to strive to provide you with high-quality investments that withstand the test of time. We look forward to reporting to you again in six months. Sincerely, Timothy R. Schwertfeger Chairman of the Board July 15, 1997 Answering Your Questions Photographic image of Tom Spalding, Portfolio Manager. Tom Spalding, head of Nuveen's Chicago-based portfolio management team, talks about the municipal bond market and offers insights into factors that affected fund performance over the past year. What are the investment objectives of these funds? The primary investment objective of these funds is to maintain a high level of current tax-free income consistent with preservation of capital. Their secondary objective is to enhance portfolio value through investments in tax-exempt municipal bonds that are either underrated or undervalued or that represent undervalued sectors of the municipal market. What is your strategy for meeting these objectives? To meet these funds' objectives of income and enhanced value, our portfolio management strategy relies on conservative value investing principles, sound research and credit surveillance activities, and senior management involvement. At Nuveen, value investing means taking a fundamental approach to finding bonds that offer the best balance of return with low risk regardless of the direction of interest rates. This approach focuses on the characteristics of individual bonds, such as the sector, geographic region, structure and intrinsic credit quality. The idea behind this philosophy is that we, as investment managers, can control the selection process, but not the direction of the market overall. Our goal is to determine whether an issue is undervalued by the market, that is, whether the bond's current market value, or price, is lower than its long-term value, as evidenced by yield, maturity and credit quality. We also assess whether the issue has the potential to reach intrinsic value. For example, we may find an opportunity to purchase bonds that offer extended call protection at prices similar to those with shorter calls. If rates move down, the bonds with longer call protection will appreciate in value more than those with shorter calls. Value determinations require in-depth knowledge and understanding of the municipal market, the issuers, and the characteristics of specific issues. Proper implementation of this strategy creates, well-constructed portfolios designed to provide shareholders with a dependable stream of tax-free income. What role does research play in helping you achieve the funds' objectives? As an integral part of our portfolio management strategy, Nuveen Research provides portfolio managers with objective appraisals of the creditworthiness of new municipal issues, while maintaining surveillance of the credit performance for all portfolio holdings. Creditworthiness is evaluated through our research into factors such as the credit history of the issuer, capital structure, total debt load, revenue sources and projections, call provisions, and local economic forecasts. To track the credit performance of individual holdings, each Nuveen Research analyst is responsible for a specific surveillance portfolio, which is defined in terms of geography and sector (e.g., healthcare, housing). Specialization by sector enables our Research team to focus their credit quality evaluation efforts and complement the vantage point of each portfolio manager. What is the current outlook for the municipal market? As we make our way through the seventh year of the current economic expansion, some observers believe that a fundamental shift may have occurred in our economy. Based on past experience and months of reports of economic growth, especially employment statistics, the markets have long been anticipating an increase in inflation. However, even with almost full employment, we have not seen the expected rise in hourly wages that would be considered inflationary. This change in the traditional economic cause-and-effect relationship has been variously attributed to the globalization of the economy, to increased use of technology and to corporations' recent ability to downsize as necessary. Whatever the cause, inflation has not ignited. Although structural changes in the economy appear to have suspended the relationship between faster growth and higher inflation, the risk remains that inflation may reassert itself if capacity constraints are reached and resources are stretched too thin. Speculation of Fed tightening may continue. If the Fed does act to increase rates, it will be perceived as a pre-emptive move against inflation. If the Fed does not tighten, it will be seen as an indication that the economy is moving at a moderate non-inflationary pace. Nonetheless, for the remainder of 1997, the municipal market will continue to offer attractive yields and tax advantages that make it a good alternative if and when a correction in the stock market occurs. While money continues to flow into equity mutual funds, investors are also beginning to evaluate the effect of the huge run-up in stock prices on their asset allocation, and many are rebalancing their portfolios by shifting some assets into bonds. Connecticut Premium Income NTC NTC Pie Chart: Credit Quality BBB/NR 11% A 2% AA 20% AAA 67% Pie Chart: Diversification Pollution Control 6% Housing Facilities 10% Transportation 8% Health Care Facilities 20% Water & Sewer 4% General Obligations 16% Electric Utilities 3% Other 7% Educational Facilities 21% Escrowed Bonds 5% Bar Chart: Dividend History June 1996 .062 July 1996 .062 August 1996 .062 September 1996 .062 October 1996 .062 November 1996 .0635 December 1996 .0635 January 1997 .0635 February 1997 .065 March 1997 .065 April 1997 .065 May 1997 .065 Fund Highlights - --------------------------------------------------------- Inception Date 5/93 - --------------------------------------------------------- Share Price 14 1/8 - --------------------------------------------------------- Net Asset Value $13.63 - --------------------------------------------------------- Current Yield 5.52% - --------------------------------------------------------- Taxable Equivalent Yield (Federal Only)1 8.00% - --------------------------------------------------------- Taxable Equivalent Yield (Federal and State)1 8.36% - --------------------------------------------------------- Annualized Total Return at NAV - --------------------------------------------------------- 1-Year 11.01% - --------------------------------------------------------- 3-Year 9.15% - --------------------------------------------------------- Inception 4.78% - --------------------------------------------------------- Taxable Equivalent Total Return2 - --------------------------------------------------------- 1-Year 14.11% - --------------------------------------------------------- 3-Year 12.21% - --------------------------------------------------------- Inception 7.62% - --------------------------------------------------------- 1 Taxable equivalent rate represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. The federal only rate is based on the current yield and a federal tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state taxes. It is based on a combined federal and state tax rate of 34%. 2 Taxable equivalent total return is based on the annualized total return figures above and a combined federal and state income tax rate of 34%. It represents the return on a taxable investment necessary to equal the after-tax return of the Nuveen fund. Massachusetts Premium Income NMT NMT Pie Chart: Credit Quality BBB/NR 7% A 30% AA 23% AAA 40% Pie Chart: Diversification Pollution Control 5% Housing Facilities 16% Transportation 4% Other 7% Educational Facilities 18% General Obligations 9% Health Care Facilities 22% Water & Sewer 8% Escrowed Bonds 11% Bar Chart: Dividend History June 1996 .068 July 1996 .068 August 1996 .0695 September 1996 .0695 October 1996 .0695 November 1996 .0695 December 1996 .0695 January 1997 .0695 February 1997 .0705 March 1997 .0705 April 1997 .0705 May 1997 .0705 Fund Highlights - ------------------------------------------------------- Inception Date 3/93 - ------------------------------------------------------- Share Price 14 3/4 - ------------------------------------------------------- Net Asset Value $14.11 - ------------------------------------------------------- Current Yield 5.74% - ------------------------------------------------------- Taxable Equivalent Yield (Federal Only)1 8.32% - ------------------------------------------------------- Taxable Equivalent Yield (Federal and State)1 8.83% - ------------------------------------------------------- Annualized Total Return at NAV - ------------------------------------------------------- 1-Year 10.28% - ------------------------------------------------------- 3-Year 9.38% - ------------------------------------------------------- Inception 5.80% - ------------------------------------------------------- Taxable Equivalent Total Return2 - ------------------------------------------------------- 1-Year 14.41% - ------------------------------------------------------- 3-Year 13.41% - ------------------------------------------------------- Inception 9.49% - ------------------------------------------------------- 1 Taxable equivalent rate represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. The federal only rate is based on the current yield and a federal tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state taxes. It is based on a combined federal and state tax rate of 39.50%. 2 Taxable equivalent total return is based on the annualized total return figures above and a combined federal and state income tax rate of 39.50%. It represents the return on a taxable investment necessary to equal the after-tax return of the Nuveen fund. Missouri Premium Income NOM NOM Pie Chart: Credit Quality BBB/NR 2% A 2% AA 22% AAA 74% Pie Chart: Diversification General Obligations 19% Escrowed Bonds 10% Water & Sewer 11% Educational Facilities 4% Housing Facilities 21% Health Care Facilities 10% Transportation 7% Lease Rental 14% Other 4% Bar Chart Dividend History June 1996 .0585 July 1996 .0585 August 1996 .061 September 1996 .061 October 1996 .061 November 1996 .061 December 1996 .061 January 1997 .061 February 1997 .061 March 1997 .061 April 1997 .061 May 1997 .061 Fund Highlights - ------------------------------------------------------- Inception Date 5/93 - ------------------------------------------------------- Share Price 13 1/16 - ------------------------------------------------------- Net Asset Value $13.68 - ------------------------------------------------------- Current Yield 5.60% - ------------------------------------------------------- Taxable Equivalent Yield (Federal Only)1 8.12% - ------------------------------------------------------- Taxable Equivalent Yield (Federal and State)1 8.62% - ------------------------------------------------------- Annualized Total Return at NAV - ------------------------------------------------------- 1-Year 10.09% - ------------------------------------------------------- 3-Year 9.18% - ------------------------------------------------------- Inception 4.57% - ------------------------------------------------------- Taxable Equivalent Total Return2 - ------------------------------------------------------- 1-Year 13.15% - ------------------------------------------------------- 3-Year 12.15% - ------------------------------------------------------- Inception 7.37% - ------------------------------------------------------- 1 Taxable equivalent rate represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. The federal only rate is based on the current yield and a federal tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state taxes. It is based on a combined federal and state tax rate of 35%. 2 Taxable equivalent total return is based on the annualized total return figures above and a combined federal and state income tax rate of 35%. It represents the return on a taxable investment necessary to equal the after-tax return of the Nuveen fund. Washington Premium Income NPW NPW Pie Chart: Credit Quality A 3% AA 33% AAA 64% Pie Chart: Diversification General Obligations 18% Water & Sewer 17% Health Care Facilities 14% Electric Utilities 16% Transportation 7% Educational Facilities 8% Housing Facilities 18% Escrowed Bonds 2% Bar Chart Dividend History June 1996 .062 July 1996 .062 August 1996 .062 September 1996 .062 October 1996 .062 November 1996 .063 December 1996 .063 January 1997 .063 February 1997 .063 March 1997 .063 April 1997 .063 May 1997 .063 Fund Highlights - ------------------------------------------------------- Inception Date 3/93 - ------------------------------------------------------- Share Price 12 1/2 - ------------------------------------------------------- Net Asset Value $14.07 - ------------------------------------------------------- Current Yield 6.05% - ------------------------------------------------------- Taxable Equivalent Yield (31% Tax Bracket) 8.77% - ------------------------------------------------------- Annualized Total Return at NAV - ------------------------------------------------------- 1-Year 10.16% - ------------------------------------------------------- 3-Year 8.67% - ------------------------------------------------------- Inception 5.50% - ------------------------------------------------------- Taxable Equivalent Total Return1 - ------------------------------------------------------- 1-Year 12.72% - ------------------------------------------------------- 3-Year 11.27% - ------------------------------------------------------- Inception 7.94% - ------------------------------------------------------- 1 Taxable equivalent total return is based on the annualized total return figures above and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the after-tax return of the Nuveen fund. Independent Auditor's Report To the Board 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, 1997, and the related statements of operations, changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsi bility of the Funds' management. Our responsibility is to express an opinion on these financial statements and the 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, 1997, by correspondence with the custodian. 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, as of May 31, 1997, the results of their operations, changes in their net assets and financial highlights for the periods indicated therein in conformity with generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois July 14, 1997 Portfolio of Investments Nuveen Connecticut Premium Income Municipal Fund (NTC)
Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 1,400,000 Connecticut Development Authority, Water Facilities 6/03 at 102 Aaa $ 1,348,648 Revenue Bonds, Bridgeport Hydraulic Company Project, 1993 B Series, 5.500%, 6/01/28 2,795,000 Connecticut Development Authority, Water Facilities 6/03 at 102 Aaa 2,701,340 Revenue Bonds, Bridgeport Hydraulic Company Project, 1993 A Series, 5.600%, 6/01/28 (Alternative Minimum Tax) 2,000,000 Connecticut Development Authority, Solid Waste Disposal 7/05 at 102 Aaa 2,285,060 Facilities Revenue Bonds, Pfizer Inc. Project, 1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax) 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 1,569,465 1,000,000 7.000%, 8/15/09 8/04 at 102 N/R 1,056,800 Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), 1996 Series A: 1,580,000 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102 Aaa 1,589,148 1,000,000 5.875%, 11/15/17 (Alternative Minimum Tax) 11/06 at 102 Aaa 984,770 3,175,000 Connecticut Housing Finance Authority, Housing 5/03 at 102 Aa 3,283,522 Mortgage Finance Program Bonds, 1993 Series B, 6.200%, 5/15/12 2,500,000 Connecticut Housing Finance Authority, Housing 11/06 at 102 Aa 2,516,250 Mortgage Finance Program Bonds, 1996 Subseries E-2, 6.150%, 11/15/27 (Alternative Minimum Tax) 3,250,000 Connecticut Municipal Electric Energy Cooperative, 1/04 at 102 Aaa 3,011,450 Power Supply System Revenue Bonds, 1993 Series A, 5.000%, 1/01/18 2,200,000 Connecticut Resources Recovery Authority, Bridgeport 1/03 at 100 A 2,272,754 Resco Company, L.P. Project Bonds, Series A, Adjustable Convertible Extendable Securities-Aces, 7.625%, 1/01/09 3,360,000 Connecticut Resources Recovery Authority, Resource 11/98 at 103 AA- 3,657,830 Recovery Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut Project, 1989 Series A, 7.700%, 11/15/11 2,000,000 State of Connecticut, General Obligation Bond, 1993 No Opt. Call AA- 2,145,300 Series E, 6.000%, 3/15/12 3,250,000 State of Connecticut, General Obligation Bonds, 1993 8/03 at 101 1/2 AA- 3,161,893 Series D, 5.100%, 8/01/11 3,405,000 State of Connecticut Health and Educational Facilities 7/03 at 100 Aaa 3,787,586 Authority, Revenue Bonds, University of Hartford Issue, Series C, 8.000%, 7/01/18 (Pre-refunded to 7/01/03) Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 1,000,000 State of Connecticut Health and Educational Facilities 7/04 at 102 Aaa $ 1,051,050 Authority, Revenue Bonds, Newington Children's Hospital, Series A, 6.050%, 7/01/10 2,725,000 State of Connecticut Health and Educational Facilities 7/02 at 102 Aaa 2,836,344 Authority, Revenue Bonds, Saint Francis Hospital and Medical Center Issue, Series B, 6.200%, 7/01/22 1,700,000 State of Connecticut Health and Educational Facilities 7/02 at 102 Aaa 1,847,560 Authority, Revenue Bonds, Lawrence and Memorial Hospital Issue, Series C, 6.250%, 7/01/22 (Pre-refunded to 7/01/02) 2,020,000 State of Connecticut Health and Educational Facilities 7/02 at 102 Aaa 2,076,701 Authority, Revenue Bonds, Trinity College Issue, Series C, 6.000%, 7/01/22 4,450,000 State of Connecticut Health and Educational Facilities 7/03 at 102 BBB- 4,332,565 Authority, Revenue Bonds, Quinnipiac College Issue, Series D, 6.000%, 7/01/23 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart University Issue, Series G: 1,000,000 5.000%, 7/01/13 7/03 at 102 Aaa 951,640 475,000 5.000%, 7/01/18 7/03 at 102 Aaa 438,582 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 BBB- 2,462,486 1,000,000 5.800%, 7/01/23 7/03 at 102 BBB- 941,780 2,000,000 State of Connecticut Health and Educational Facilities No Opt. Call Aaa 2,018,200 Authority, Revenue Bonds, Hospital of Saint Raphael Issue, Series H, 5.200%, 7/01/08 1,500,000 State of Connecticut Health and Educational Facilities 7/03 at 102 Aaa 1,352,385 Authority, Revenue Bonds, Lawrence and Memorial Hospital Issue, Series D, 5.000%, 7/01/22 2,500,000 State of Connecticut Health and Educational Facilities 7/02 at 102 Aaa 2,622,850 Authority, Revenue Bonds, Middlesex Hospital Issue, Series G, 6.250%, 7/01/22 1,250,000 State of Connecticut Health and Educational Facilities 7/04 at 101 Aaa 1,387,813 Authority, Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%, 7/01/25 2,000,000 State of Connecticut Health and Educational Facilities 11/04 at 102 AA- 2,240,000 Authority, Revenue Bonds, Nursing Home Program Issue, Series 1994, AHF/Hartford, Inc. Project, 7.125%, 11/01/24 2,000,000 State of Connecticut Health and Educational Facilities 11/03 at 102 Aaa 2,062,120 Authority, Revenue Bonds, Nursing Home Program Issue, Series 1993, Mansfield Center for Nursing and Rehabilitation Project, 5.875%, 11/01/12 Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 2,200,000 State of Connecticut Health and Educational Facilities 7/06 at 102 Aaa $ 2,124,628 Authority, Revenue Bonds, Day Kimball Hospital Issue Series A, 5.375%, 7/01/26 2,000,000 State of Connecticut Health and Educational Facilities 7/06 at 102 Aaa 2,031,640 Authority, Revenue Bonds, Trinity College Issue, Series C, 5.875%, 7/01/26 5,160,000 State of Connecticut Health and Educational Facilities 7/06 at 102 Aaa 5,163,922 Authority, Revenue Bonds, Kent School Issue, Series B, 5.625%, 7/01/16 2,040,000 State of Connecticut Health and Educational Facilities 7/06 at 102 Aaa 2,029,168 Authority, Revenue Bonds, The Loomis Chaffee School Issue, Series C, 5.500%, 7/01/16 2,920,000 State of Connecticut Health and Educational Facilities 7/07 at 102 Aaa 2,876,696 Authority, Revenue Bonds, Connecticut College Issue, Series C-1, 5.500%, 7/10/20 1,000,000 State of Connecticut Health and Educational Facilities 7/07 at 102 Aaa 1,002,100 Authority, Revenue Bonds, The William W. Backus Hospital Issue, Series D, 5.750%, 7/01/27 1,800,000 State of Connecticut, Special Tax Obligation Bonds, No Opt. Call AA-- 2,020,140 Transportation Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10 3,000,000 State of Connecticut, Airport Revenue Refunding Bonds, 10/04 at 100 Aaa 3,412,860 Bradley International Airport, Series 1992, 7.650%, 10/01/12 1,650,000 State of Connecticut, General Fund Obligation Bonds, 10/04 at 102 AA- 1,783,122 1994 Series A, Issued By Connecticut Development Authority, 6.375%, 10/15/14 2,000,000 State of Connecticut, Clean Water Fund Subordinate 1/05 at 101 Aaa 1,995,220 Revenue Refunding Bonds, 1996 Series, 5.250%, 7/01/10 1,900,000 Capitol Region Educational Council, Revenue Bonds, 10/05 at 102 BBB 1,985,766 6.700%, 10/15/10 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 3,256,350 1,500,000 6.500%, 12/01/15 12/01 at 102 Aaa 1,626,705 2,000,000 South Central Connecticut Regional Water Authority, 8/03 at 102 Aaa 2,042,260 Water System Revenue Bonds, Eleventh Series, 5.750%, 8/01/12 3,250,000 City of Waterbury Connecticut, General Obligation Tax 4/03 at 102 Aaa 3,290,364 Revenue Intercept Refunding Bonds, 1993 Issue, 5.375%, 4/15/08 Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 1,495,000 Waterbury Nonprofit Housing Corporation, Connecticut 7/02 at 101 Aaa $ 1,603,387 Taxable Mortgage Revenue Refunding Bonds, FHA Insured Mortgage Loan - Fairmont Heights Section 8 Assisted Project, Series 1993A, 6.500%, 7/01/07 1,930,000 Housing Authority of the City of Willimantic, 10/05 at 105 AAA 2,199,794 Multi-Family Housing Revenue Bonds, Series 1995A, GNMA Collateralized Mortgage Loan - Village Heights Apartments Project, 8.000%, 10/20/30 1,500,000 Puerto Rico Industrial, Tourist, Educational, Medical 8/05 at 101 1/2 AAA 1,565,444 andEnvironmental Control Facilities Financing Authority, Hospital Revenue Refunding Bonds, 1995 Series A, FHA Insured Mortgage, Doctor Pila Hospital Project, 6.125%, 8/01/25 $102,980,000 Total Investments - (cost $104,175,078) - 97.7% 106,003,458 ============ Temporary Investments in Short-Term Municipal Securities - 0.6% $ 700,000 Connecticut Second Lien Transportation Infrastructure, VMIG-1 700,000 ============ Variable Rate Demand Bonds, 3.850%, 12/01/10+ Other Assets Less Liabilities - 1.7% 1,820,218 Net Assets - 100% $108,523,676 ============================================================================================= * 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 os Investments Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 1,000,000 Massachusetts Health & Ed FACS Authority Revenue 2/07 at 102 Aa2 $ 1,012,730 Bonds, Youville House Issue (FHA Insured Project), Series A, 6.250%, 2/15/41 1,000,000 Massachusetts Educational Financing Authority, 7/04 at 102 Aaa 1,033,660 Education Loan Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10 (Alternative Minimum Tax) 1,250,000 Massachusetts Health and Educational Facilities 9/02 at 102 A2 1,388,450 Authority, Revenue Refunding Bonds, Worcester Polytechnic Institute Issue, Series E, 6.750%, 9/01/11 (Pre-refunded to 9/01/02) Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England and Deaconess Hospital Issue, Series D: 3,310,000 6.625%, 4/01/12 4/02 at 102 A 3,474,342 1,000,000 6.875%, 4/01/22 4/02 at 102 A 1,075,850 3,000,000 Massachusetts Health and Educational Facilities 7/03 at 102 Aaa 2,988,030 Authority, Revenue Bonds, Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15 1,000,000 Massachusetts Health and Educational Facilities 7/00 at 100 Aaa 1,001,900 Authority, Revenue Bonds, Massachusetts General Hospital Issue, Series G, 5.375%, 7/01/11 1,970,000 Massachusetts Health and Educational Facilities 6/03 at 102 Aaa 1,839,172 Authority, Revenue Bonds, Boston College Issue, Series K, 5.250%, 6/01/23 4,000,000 Massachusetts Health and Educational Facilities 7/04 at 102 Aaa 3,771,560 Authority, Revenue Bonds, New England Medical Center Hospitals, Series 1993-G1, 5.375%, 7/01/24 2,000,000 Massachusetts Health and Educational Facilities 7/04 at 102 Aa 2,079,720 Authority, Revenue Bonds (Daughters of Charity National Health System - The Carney Hospital), Series D, 6.100%, 7/01/14 700,000 Massachusetts Health and Educational, Facilities 7/99 at 102 1/2 N/R 720,286 Authority, Revenue Refunding Bonds (Cardinal Cushing General Hospital), Series 1989-A, 8.500%, 7/01/00 Massachusetts Health and Educational, Facilities Authority, Revenue Refunding Bonds, Youville Hospital Issue (FHA Insured Project), Series B: 2,810,000 6.125%, 2/15/15 2/04 at 102 Aa 2,885,561 1,000,000 6.000%, 2/15/25 2/04 at 102 Aa 1,011,580 3,800,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102 A1 3,908,300 Revenue Bonds, 6.300%, 10/01/13 2,450,000 Massachusetts Housing Finance Agency, Single Family 12/98 at 102 Aa 2,532,247 Housing Revenue Bonds, Series 9, 8.100%, 12/01/21 (Alternative Minimum Tax) Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 2,500,000 Massachusetts Housing Finance Agency, Insured Rental 7/04 at 102 Aaa $ 2,596,425 Housing Bonds, 194 Series A, 6.650%, 7/01/19 (Alternative Minimum Tax) 1,955,000 Massachusetts Housing Finance Agency, Rental Housing 1/05 at 102 Aaa 2,100,882 Mortgage Revenue Bonds, 1995 Series A (FHA Insured Mortgage Loans), 7.350%, 1/01/35 (Alternative Minimum Tax) 1,350,000 Massachusetts Industrial Finance Agency, Pollution 8/03 at 102 Baa2 1,331,316 Control Revenue Bonds, 1993 Series (Eastern Edison Company Project), 5.875%, 8/01/08 3,175,000 Massachusetts Industrial Finance Agency, Resource 7/01 at 103 N/R 3,564,668 Recovery Revenue Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 1,125,000 Massachusetts Industrial Finance Agency, Revenue 2/06 at 102 AAA 1,135,474 Bonds, Heights Crossing Limited Partnership Issue (FHA Insured Project), Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) 2,500,000 Massachusetts Industrial Finance Agency, Revenue 11/02 at 102 A1 2,738,950 Refunding Bonds, College of the Holy Cross, 1992 Series II, 6.375%, 11/01/15 (Pre-refunded to 11/01/02) 1,355,000 Massachusetts Industrial Finance Agency, Revenue 7/02 at 102 BBB- 1,461,042 Bonds, Merrimack College Issue, Series 1992, 7.125%, 7/01/12 1,175,000 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102 A3 1,184,294 (Brooks School Issue), Series 1993, 5.950%, 7/01/23 3,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 102 Aa1 3,417,890 Phillips Academy Issue, Series 1993, 5.375%, 9/01/23 2,645,000 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102 Aa2 2,445,937 (Whitehead Institute for Biomedical Research - 1993 Issue), 5.125%, 7/01/26 3,000,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 10/98 at 102 A 3,183,000 Harvard Community Health Plan, Inc., Issue 1988 Series B (Refunding Bonds), 8.125%, 10/01/17 500,000 Massachusetts Industrial Finance Agency, Revenue Bonds 8/07 at 105 AAA 510,170 Briscoe House Assisted Living Issue (FHA Insured Project), 6.050%, 2/01/17 (Alternative Minimum Tax) 1,420,000 Massachusetts Municipal Wholesale Electric Company, 7/04 at 102 Aaa 1,305,917 Power Supply System Revenue Bonds, 1994 Series B, 5.000%, 7/01/17 2,000,000 Massachusetts Municipal Wholesale Electric Company, 7/02 at 100 Aaa 2,032,660 A Public Corporation of The Commonwealth of Massachusetts, Power Supply System Revenue Bonds, 6.000%, 7/01/18 1,000,000 Massachusetts Port Authority, Revenue Bonds, Series No Opt. Call Aaa 1,676,210 1982, 13.000%, 7/01/13 Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 4,750,000 Massachusetts Port Authority, Revenue Refunding Bonds, 7/03 at 100 Aa $ 4,358,410 Series 1993-B, 5.000%, 7/01/18 (Alternative Minimum Tax) 4,000,000 Massachusetts Port Authority, Special Facilities Revenue 9/06 at 102 Aaa 4,007,800 Bonds (US Air Project), Series 1996-A, 5.750%, 9/01/16 (Alternative Minimum Tax) 3,000,000 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 A 2,691,870 Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 1,880,000 Massachusetts Water Resources Authority, 5.000%, 3/01/22 3/03 at 100 Aaa 1,698,336 3,000,000 Massachusetts Water Resources Authority, General 12/01 at 100 A 2,963,130 Revenue Bonds, 1991 Series A, 5.750%, 12/01/21 Town of Barnstable, Massachusetts, General Obligation Bonds: 1,020,000 5.750%, 9/15/10 9/04 at 102 Aa3 1,052,864 1,020,000 5.750%, 9/15/11 9/04 at 102 Aa3 1,048,346 965,000 5.750%, 9/15/12 9/04 at 102 Aa3 988,276 1,000,000 City of Chelsea, Massachusetts, General Obligation No Opt. Call Aaa 1,111,680 Bonds, School Project Loan, Act of 1948, 7.000%, 6/15/03 4,375,000 City of Lowell, Massachusetts, General Obligation State 11/03 at 102 Aaa 4,400,418 Qualified Bonds, 5.600%, 11/01/12 1,765,000 The New England Education Loan Marketing Corporation, No Opt. Call A1 1,879,160 Student Loan Revenue Bonds, 1992 Subordinated Issue C, 6.750%, 9/01/02 (Alternative Minimum Tax) 4,000,000 The New England Loan Marketing Corporation, Student No Opt. Call A1 4,379,840 Loan Revenue Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax) 1,750,000 Puerto Rico Aqueduct and Sewer Authority, Revenue Bonds, 7/98 at 102 AAA 1,859,270 Series 1988A, 7.875%, 7/01/17 (Pre-refunded to 7/01/98) 3,000,000 Puerto Rico Electric Power Authority, Power Revenue 7/01 at 102 Aaa 3,335,910 Bonds, Series P, 7.000%, 7/01/21 (Pre-refunded to 7/01/01) $ 95,015,000 Total Investments - (cost $93,844,998) - 98.2% 97,183,533 ============ Temporary Investments in Short-Term Municipal Securities - 0.2% $ 200,000 The Commonwealth of Massachusetts, Dedicated Income VMIG-1 200,000 ============ Tax Bonds, Fiscal Recovery Loan, Act of 1990, Series E, Variable Rate Demand Bonds, 4.000%, 12/01/97 Other Assets Less Liabilities - 1.6% 1,622,555 Net Assets - 100% $99,006,088 ============================================================================================= * 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 os Investments Nuveen Missouri Premium Income Municipal Fund (NOM)
Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 1,000,000 Health Facilities Revenue Bonds (Barnes-Jewish, Inc. /No Opt. Call Aa $ 989,360 Christian Health Services), Series 1993, 5.150%, 5/15/10 1,000,000 Health and Educational Facilities Authority, of the No Opt. Call AA 1,138,410 State of Missouri, Health Facilities Revenue Bonds (BJC Health System), Series 1994A, 6.750%, 5/15/12 1,000,000 Health and Educational Facilities Authority of the State 6/02 at 102 Aaa 1,068,510 of Missouri, Health Facilities Refunding Revenue Bonds (SSM Health Care), Series 1992AA, 6.250%, 6/01/07 1,290,000 Health and Educational Facilities Authority of the State 6/00 at 102 Aaa 1,465,608 of Missouri, Health Facilities Revenue Bonds (SSM Health Care Obligated Group Projects), Series 1990B, 7.000%, 6/01/15 1,000,000 Health and Educational Facilities Authority of the State 2/06 at 102 BBB+ 1,029,970 of Missouri, Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital, Inc.), Series 1996, 6.500%, 2/15/21 1,750,000 Health and Educational Facilities Authority of the 10/06 at 102 Aaa 1,662,868 State of Missouri, Educational Facilities Revenue Bonds (Saint Louis University), Series 1996, 5.200%, 10/01/26 555,000 Missouri Housing Development Commission, Mortgage 11/97 at 101 AA+ 565,362 Purchase Bonds, Series May 15, 1979 (FHA Insured or VA Guaranteed Mortgage Loans), 6.600%, 11/15/10 2,270,000 Missouri Housing Development Commission, Single 2/01 at 102 AAA 2,400,026 Family Mortgage Revenue Bonds, Series 1991-A (GNMA Mortgage-Backed Securities Program), 7.375%, 8/01/23 (Alternative Minimum Tax) 1,835,000 Missouri Housing Development Commission, Single 3/06 at 105 AAA 2,015,069 Family Mortgage Revenue Bonds (Homeownership Loan Program), 1995 Series C., 7.250%, 9/01/26 (Alternative Minimum Tax) 1,550,000 Missouri Housing Development Commission, Multifamily 12/06 at 102 Aaa 1,555,084 Housing Revenue Bonds (Brookstone Village Apartments Project), 1996 Series A, 6.100%, 12/01/21 (Alternative Minimum Tax)4 1,000,000 Regional Convention and Sports Complex Authority, 8/03 at 102 A1 988,820 Convention and Sports Facility Project and Refunding Bonds, Series A 1993 (State of Missouri Sponsor), 5.500%, 8/15/13 1,000,000 State Environmental Improvement and Energy Resources 12/06 at 101 AA 1,004,720 Authority (Missouri), Pollution Control Revenue Refunding Bonds, Series 1996 (Associated Electric Cooperative, Inc. Thomas Hill Project), 5.250%, 12/01/09 Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 1,225,000 State Environmental Improvement and Energy Resources 1/05 at 102 Aa1 $ 1,459,588 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 1,000,000 State Environmental Improvement and Energy Resources 7/04 at 102 Aaa 1,039,220 Authority (State of Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program - City of Branson Project), Series 1995A, 6.050%, 7/01/16 1,000,000 State Environmental Improvement and Energy Resources 1/06 at 101 Aa2 1,020,480 Authority (State of Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program - Multiple Participant Series), Series 1996D, 5.875%, 1/01/15 350,000 State Environmental Improvement and Energy Resources No Opt. Call Aa1 400,124 Authority (State of Missouri), Water Pollution Control Revenue Bonds (State Revolving Fund Program - City of Kansas City Project), Series 1997C, 6.750%, 1/01/12 1,000,000 Fort Zumwalt School District Impt Corp Leasehold 3/07 at 100 Aaa 999,780 Revenue Bonds Fort Zumwalt S.D., St Charles County - 97, 5.600%, 3/01/17 1,140,000 City of Kansas City, Missouri, General Improvement 9/05 at 101 Aaa 1,269,971 Airport Refunding Revenue Bonds, Series 1995, 6.750%, 9/01/09 1,500,000 City of Kansas City, Missouri, General Improvement 9/04 at 101 Aaa 1,654,485 Airport Revenue Bonds Series 1994 A., 6.900%, 9/01/11 (Alternative Minimum Tax) 1,000,000 Land Clearance For Redevelopment Authority, of Kansas 12/05 at 102 Aaa 1,022,650 City, Missouri, Lease Revenue Bonds (Municipal Auditorium and Muehlebach Hotel Redevelopment Projects), Series 1995A, 5.900%, 12/01/18 500,000 The Industrial Development Authority of the City of 4/07 at 100 AAA 500,890 Kansas City, Missouri (Ewing Marion Kauffman Foundation Project), Fixed Rate Revenue Bonds, Series 1997B, 5.700%, 4/01/27 2,020,000 Ritenour School District of St. Louis County, Missouri, No Opt. Call Aaa 2,435,635 General Obligation School Bonds, Series 1995, 7.375%, 2/01/12 1,500,000 Francis Howell School District, St. Charles County, No Opt. Call Aaa 1,838,445 Missouri, General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08 1,400,000 School District of the City of St. Charles, Missouri, 3/06 at 100 AA 1,424,934 General Obligation Bonds (Missouri Direct Deposit Program), Series 1996A, 5.625%, 3/01/14 1,045,000 The Industrial Development Authority of the County of 4/07 at 102 AAA 1,055,575 St. Louis, Missouri, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997A, 5.950%, 4/20/17 Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 600,000 Multifamily Housing Revenue Refunding Bonds (GNMA 4/07 at 102 AAA $ 603,504 Collateralized - South Summit Apartments Project), Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax) 1,500,000 Certificates of Receipt, Series 1993, St. Louis County, No Opt. Call AAA 1,533,690 Missouri, GNMA Collateralized Mortgage Revenue Bonds, Series1989A, 5.650%, 7/01/20 (Alternative Minimum Tax) 1,395,000 The Board of Education of the City of St. Louis No Opt. Call Aaa 1,771,190 (Missouri), General Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07 1,800,000 St. Louis Municipal Finance Corporation, City Justice 2/06 at 102 Aaa 1,852,776 Center, Leasehold Revenue Improvement Bonds, Series 1996A (City of St. Louis, Missouri, Lessee), 5.750%, 2/15/11 1,500,000 St. Louis Municipal Finance Corporation, Leasehold 7/03 at 102 Aa3 1,513,875 Revenue Refunding Bonds, 5.850%, 7/15/09 1,275,000 St. Louis Municipal Finance Corporation, Leasehold 2/05 at 100 Aaa 1,391,548 Revenue Improvement and Refunding Bonds, Series 1992 (City of St. Louis, Missouri, Lessee), 6.250% 2/15/12 (Pre-refunded to 2/15/05) 750,000 The City of St. Louis, Missouri, Water Revenue 7/04 at 102 Aaa 777,307 Refunding and Improvement Bonds, Series 1994, 6.000%, 7/01/14 500,000 City of Sikeston, Missouri, Electric System Revenue No Opt. Call Aaa 534,444 Refunding Bonds, 1996 Series, 6.000%, 6/01/16 625,000 Reorganized School District No. R-IV of Stone County, No Opt. Call Aaa 760,543 Missouri (Reeds Spring, Missouri), General Obligation School Building Refunding and Improvement Bonds, Series 1995, 7.600%, 3/01/10 1,250,000 The Industrial Development Authority of The City of 12/05 at 102 AAA 1,259,712 University City, Missouri, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - Canterbury Gardens Project), Series 1995A, 5.900%, 12/20/20 $ 41,125,000 Total Investments - (cost $42,268,775) - 97.3% 44,004,173 ============ Principal Optional Call Market Amount Description Provisions* Ratings** Value Temporary Investments in Short-Term Municipal Securities - 7.3% $ 700,000 Kansas City Industrial Development Authority, (Research VMIG-1 $ 700,000 Health System), Variable Rate Demand Bonds, 4.000%, 10/15/14+ 1,300,000 Kansas City Industrial Development Authority, (Research VMIG-1 1,300,000 Health System), Variable Rate Demand Bonds, 4.000%, 10/15/15+ 1,300,000 Health and Educational Facilities Authority of the State A-1+ 1,300,000 of Missouri, Health Facilities Revenue Bonds (St. Francis Medical Center), Series 1996A, Variable Rate Demand Bonds, 3.950%, 6/01/26+ $ 3,300,000 Total Temporary Investments - 7.3% 3,300,000 ============ Other Assets Less Liabilities - (4.6)% (2,079,851) Net Assets - 100% $45,224,322 =========================================================================================== * 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.
Portfolio os Investments Nuveen Washington Premium Income Municipal Fund (NPW)
Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 2,000,000 State of Washington, General Obligation Bonds, Series 5/04 at 100 Aa $ 2,045,840 1994B, 6.000%, 5/01/19 1,250,000 Washington Health Care Facilities Authority, Revenue 7/02 at 102 Aaa 1,348,775 Bonds, Refunding Series 1992 (Franciscan Health System/Saint Clare Hospital, Tacoma), 6.625%, 7/01/20 2,000,000 Washington Health Care Facilities Authority, Revenue 10/02 at 102 Aaa 2,064,100 Bonds, Series 1992 (The Children's Hospital and Medical Center, Seattle), 6.125%, 10/01/13 2,400,000 Washington Health Care Facilities Authority, Revenue 11/02 at 102 Aaa 2,496,024 Bonds, Series 1992 (Swedish Hospital Medical Center, Seattle), 6.300%, 11/15/22 1,000,000 Washington Health Care Facilities Authority, Revenue 8/04 at 102 AA- 992,070 Bonds, Series 1993A (The Heart Institute of Spokane), 5.800%, 8/15/18 1,000,000 Washington Public Power Supply System, Nuclear 7/03 at 102 Aaa 989,920 Project No. 1 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 1,000,000 Washington Public Power Supply System, Nuclear No Opt. Call Aa1 1,138,710 Project No. 3 Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09 975,000 Washington State Housing Finance Commission, Multi- 1/00 at 103 AAA 1,022,444 Family Mortgage Revenue Bonds (GNMA Mortgage Backed Securities Program), Series 1989A, 7.700%, 7/01/32 (Alternative Minimum Tax) 1,610,000 Washington State Housing Finance Commission, Single- No Opt. Call AAA 1,626,181 Family Mortgage Revenue Bonds (Mortgage Backed Securities Program), Series 1992D-1, 6.150%, 1/01/26 (Alternative Minimum Tax) 500,000 Washington State Housing Finance Commission, Single 6/07 at 102 Aaa 506,385 Family Program Bonds, 1997 Series 2A, 6.050%, 12/01/16 1,400,000 Washington State University, Housing and Dining System 10/04 at 101 Aaa 1,480,234 Revenue and Refunding Bonds, Series 1994, 6.375%, 10/01/18 1,050,000 City of Bellevue, King County, Washington, Water and 7/04 at 100 Aa 1,088,357 Sewer Revenue Refunding Bonds, 1994, 5.875%, 7/01/09 1,000,000 Public Utility District No. 1 of Benton County, 11/97 at 100 Aaa 1,040,070 Washington, Electric Revenue Bonds, Series B 1982, 13.500%, 11/01/02 (Pre-refunded to 11/01/97) 1,035,000 Covington Water District, Water Revenue Bonds, 3/05 at 100 Aaa 1,060,264 Refunding Series 1995, 6.050%, 3/01/20 Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 2,000,000 Housing Authority of the County of King Washington, 5/05 at 100 AA+ $ 2,038,440 Housing Revenue Bonds, 1995 (Woodridge Park Project), 6.350%, 5/01/25 (Alternative Minimum Tax) 1,000,000 Federal Way School District No. 210, King County, No Opt. Call Aaa 1,041,250 Washington, Unlimited Tax General Obligation and Refunding Bonds, 1993, 5.750%, 12/01/12 800,000 Kitsap County, Washington, Sewer Revenue Bonds, 1996, 7/06 at 100 Aaa 810,968 5.750%, 7/01/16 1,600,000 Public Utility District No. 1 of Klickitat County, 10/05 at 101 Aaa 1,616,400 Washington, Electric Revenue Bonds, 1995, 5.650%, 10/01/15 1,000,000 Lewis County Public Utility District, Cowlitz Falls 10/03 at 102 Aa1 967,030 Hydroelectric Project, Revenue Refunding Bonds, Series 1993, 5.500%, 10/01/22 1,000,000 Peninsula School District No. 401, Pierce County, No Opt. Call Aaa 1,034,920 Washington, Unlimited Tax General Obligation Refunding Bonds, 1993, 5.500%, 12/01/08 1,000,000 Port of Seattle, Washington, Revenue Bonds, Series 12/00 at 100 AA- 1,016,850 1990A, 6.000%, 12/01/14 1,300,000 Port of Seattle, Washington, Revenue Bonds, Series 9/06 at 101 Aaa 1,263,431 1996A, 5.500%, 9/01/21 1,000,000 Port of Vancouver, Clark County, Washington, Limited No Opt. Call Aaa 1,072,580 Tax General Obligation Bonds, 1994 Series B, 6.000%, 12/01/04 (Alternative Minimum Tax) 1,000,000 The City of Renton, Washington, Limited Tax General 6/07 at 100 Aaa 1,010,220 Obligation Bonds, General Purpose/Public Improvement Bonds, 1977B, 5.750%, 12/01/17 900,000 City of Richland, Washington, Water and Sewer 4/03 at 100 Aaa 910,089 Improvement Revenue Bonds, 1993, 5.625%, 4/01/12 1,200,000 Sammamish Plateau Water and Sewer District, King 12/06 at 100 Aaa 1,175,412 County, Washington, Water and Sewer Revenue Refunding Bonds, 1996, 5.500%, 12/01/16 Seattle Indian Services Commission, Special Obligation Bonds, 1994: 1,000,000 6.000%, 11/01/16 11/04 at 100 Aa1 1,029,770 750,000 6.150%, 11/01/24 11/04 at 100 Aa1 772,658 1,500,000 The City of Seattle, Washington, Drainage and 12/02 at 101 Aa 1,491,060 Wastewater Utility Revenue Bonds, 1992, 5.750%, 12/01/22 500,000 The City of Seattle, Washington, Municipal Light and 8/02 at 102 Aa 505,365 Power Revenue Bonds, 1992A, 5.750%, 8/01/12 Principal Optional Call Market Amount Description Provisions* Ratings** Value $ 1,000,000 The City of Seattle, Washington, Municipal Light and 10/06 at 102 Aaa $ 985,580 Power Revenue Bonds, 5.625%, 10/01/21 500,000 The City of Seattle, Washington, Water System and 6/03 at 101 AA 465,620 Refunding Revenue Bonds, 1993, 5.250%, 12/01/23 1,640,000 Housing Authority of Skagit County, Low- Income Housing 11/04 at 104 AAA 1,748,699 Assistance Revenue Bonds, 1993 (GNMA Collateralized Mortgage Loan - Sea Mar Project), 7.000%, 6/20/35 1,385,000 Public Utility District No. 1 of Snohomish County, 1/04 at 102 A1 1,400,817 Washington, Generation System Revenue Bonds, Series 1993B, 5.750%, 1/01/09 (Alternative Minimum Tax) 1,500,000 Mukilteo School District No. 6, Snohomish County, No Opt. Call Aaa 1,554,045 Washington, Unlimited Tax General Obligation and Refunding Bonds, 1993, 5.700%, 12/01/12 500,000 Edmonds School District No. 15, Snohomish County, No Opt. Call AA- 557,580 Washington, Unlimited Tax General Obligation Bonds, Series 1994, 6.500%, 12/01/08 1,000,000 University of Washington, Housing and Dining System 12/06 at 102 Aaa 947,910 Revenue Refunding Bonds, Junior Lien Series 1996, 5.125%, 12/01/15 1,880,000 Housing Authority of the City of Vancouver Revenue No Opt. Call Aa 1,892,105 Bonds, 1993, Series B (Fishers Mill Project) (Junior Lien Bonds), 6.000%, 3/01/23 1,500,000 Western Washington University, Housing and Dining 10/02 at 101 Aaa 1,567,185 System, Revenue Bonds, Series 1992, 6.375%, 10/01/22 1,000,000 Yakima Tieton Irrigation District, Yakima County, 6/03 at 102 Aaa 1,038,390 Washington, Refunding Revenue Bonds, 1992, 6.125%, 6/01/13 $ 47,675,000 Total Investments - (cost $47,621,048) - 98.3% 48,813,748 Other Assets Less Liabilities - 1.7% 826,125 Net Assets - 100% $49,639,873 ============================================================================================= * 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.
Statement of Net Assets May 31, 1997
Connecticut Massachusetts Missouri Premium Income Premium Income Premium Income - --------------------------------------------------------------------------------------------------------- Assets Investments in municipal securities, at market value (note 1) $106,003,458 $97,183,533 $44,004,173 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) 700,000 200,000 3,300,000 Cash 215,372 -- -- Receivables: Interest 1,983,316 1,894,288 806,255 Investments sold 65,000 200,000 -- Other assets 13,252 11,372 4,786 - --------------------------------------------------------------------------------------------------------- Total assets 108,980,398 99,489,193 48,115,214 - --------------------------------------------------------------------------------------------------------- Liabilities Cash overdraft -- 36,763 2,698,970 Accrued expenses: Management fees (note 6) 59,624 54,384 24,851 Other 56,086 60,811 33,418 Preferred share dividends payable 6,084 6,334 3,324 Common share dividends payable 334,928 324,813 130,329 - --------------------------------------------------------------------------------------------------------- Total liabilities 456,722 483,105 2,890,892 - --------------------------------------------------------------------------------------------------------- Net assets (note 7) $108,523,676 $99,006,088 $45,224,322 ========================================================================================================= Preferred shares, at liquidation value $ 38,300,000 $34,000,000 $16,000,000 ========================================================================================================= Preferred shares outstanding 1,532 1,360 640 ========================================================================================================= Common shares outstanding 5,152,746 4,607,270 2,136,537 ========================================================================================================= Netasset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 13.63 $ 14.11 $ 13.68 ========================================================================================================= See accompanying notes to financial statements.
Statement of Net Assets
Washington Premium Income - ------------------------------------------------------------------- Assets Investments in municipal securities, at market value (note 1) $48,813,748 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) -- Cash 194,044 Receivables: Interest 868,302 Investments sold -- Other assets 3,137 - ------------------------------------------------------------------- Total assets 49,879,231 - ------------------------------------------------------------------- Liabilities Cash overdraft -- Accrued expenses: Management fees (note 6) 27,262 Other 62,486 Preferred share dividends payable 3,447 Common share dividends payable 146,163 - ------------------------------------------------------------------- Total liabilities 239,358 - ------------------------------------------------------------------- Net assets (note 7) $49,639,873 =================================================================== Preferred shares, at liquidation value $17,000,000 =================================================================== Preferred shares outstanding 680 =================================================================== Common shares outstanding 2,320,051 =================================================================== Netasset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 14.07 =================================================================== See accompanying notes to financial statements.
Statement of Operations Year ended May 31, 1997
Connecticut Massachusetts Missouri Premium Income Premium Income Premium Income - --------------------------------------------------------------------------------------------------------- Investment Income Tax-exempt interest income (note 1) $ 6,083,486 $ 5,747,637 $ 2,568,963 - --------------------------------------------------------------------------------------------------------- Expenses: Management fees (note 6) 696,406 637,033 291,118 Preferred shares - auction fees 95,749 84,999 40,001 Preferred shares - dividend disbursing agent fees 12,038 11,205 12,038 Shareholders' servicing agent fees and expenses 16,164 8,450 7,141 Custodian's fees and expenses 38,718 34,446 32,312 Trustees' fees and expenses (note 6) 1,377 1,433 909 Professional fees 17,288 17,351 18,032 Shareholders' reports - printing and mailing expenses 35,226 31,703 22,861 Stock exchange listing fees 16,212 16,180 1,877 Investor relations expense 9,037 7,410 3,993 Other expenses 10,972 9,890 13,491 - --------------------------------------------------------------------------------------------------------- Total expenses 949,187 860,100 443,773 - --------------------------------------------------------------------------------------------------------- Net investment income 5,134,299 4,887,537 2,125,190 - --------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain (loss) from investment transactions (notes 1 and 4) (580,033) (139,469) 135,827 Net change in unrealized appreciation or depreciation of investments 3,607,938 2,550,049 1,026,731 - --------------------------------------------------------------------------------------------------------- Net gain from investments 3,027,905 2,410,580 1,162,558 - --------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 8,162,204 $ 7,298,117 $ 3,287,748 =========================================================================================================
Statement of Operations Year ended May 31, 1997
Washington Premium Income - ------------------------------------------------------------------- Investment Income Tax-exempt interest income (note 1) $ 2,831,854 - ------------------------------------------------------------------- Expenses: Management fees (note 6) 319,233 Preferred shares - auction fees 42,501 Preferred shares - dividend disbursing agent fees 11,205 Shareholders' servicing agent fees and expenses 3,069 Custodian's fees and expenses 32,292 Trustees' fees and expenses (note 6) 950 Professional fees 17,285 Shareholders' reports - printing and mailing expenses 16,628 Stock exchange listing fees 2,269 Investor relations expense 3,583 Other expenses 11,146 - ------------------------------------------------------------------- Total expenses 460,161 - ------------------------------------------------------------------- Net investment income 2,371,693 - ------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain (loss) from investment transactions (notes 1 and 4) 22,234 Net change in unrealized appreciation or depreciation of investments 1,324,756 - ------------------------------------------------------------------- Net gain from investments 1,346,990 - ------------------------------------------------------------------- Net increase in net assets from operations $ 3,718,683 ===================================================================
Statement of Changes in Net Assets
Connecticut Premium Income Massachusetts Premium Income - -------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 5/31/97 5/31/96 5/31/97 5/31/96 - -------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 5,134,299 $ 5,014,273 $ 4,887,537 $ 4,817,006 Net realized gain (loss) from investment transactions (notes 1 and 4) (580,033) (521,214) (139,469) (356,375) Net change in unrealized appreciation or depreciation of investments 3,607,938 (534,565) 2,550,049 (520,768) - -------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 8,162,204 3,958,494 7,298,117 3,939,863 - -------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (3,909,724) (3,758,689) (3,840,666) (3,669,476) Preferred shareholders (1,050,779) (1,262,953) (1,017,157) (1,099,146) - -------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (4,960,503) (5,021,642) (4,857,823) (4,768,622) - -------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 394,287 140,264 262,693 61,212 - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 3,595,988 (922,884) 2,702,987 (767,547) Net assets at beginning of year 104,927,688 105,850,572 96,303,101 97,070,648 - -------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $108,523,676 $104,927,688 $ 99,006,088 $96,303,101 ================================================================================================================================ Balance of undistributed net investment income at end of year $ 402,670 $ 228,874 $ 325,028 $ 295,314 ================================================================================================================================ Missouri Premium Income Washington Premium Income - -------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 5/31/97 5/31/96 5/31/97 5/31/96 - -------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 2,125,190 $ 2,042,610 $ 2,371,693 $ 2,357,858 Net realized gain (loss) from investment transactions (notes 1 and 4) 135,827 (126,266) 22,234 43,444 Net change in unrealized appreciation or depreciation of investments 1,026,731 (499,333) 1,324,756 (580,097) - -------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 3,287,748 1,417,011 3,718,683 1,821,205 - -------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (1,553,262) (1,440,028) (1,742,358) (1,726,118) Preferred shareholders (524,137) (528,534) (602,507) (641,034) - -------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (2,077,399) (1,968,562) (2,344,865) (2,367,152) - -------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 1,210,349 (551,551) 1,373,818 (545,947) Net assets at beginning of year 44,013,973 44,565,524 48,266,055 48,812,002 - -------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 45,224,322 $ 44,013,973 $ 49,639,873 $ 48,266,055 ================================================================================================================================ Balance of undistributed net investment income at end of year $ 179,134 $ 131,343 $ 87,664 $ 60,836 ================================================================================================================================
Statement of Changes in Net Assets
Connecticut Premium Income Massachusetts Premium Income - ---------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 5/31/97 5/31/96 5/31/97 5/31/96 - ---------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 5,134,299 $ 5,014,273 $ 4,887,537 $ 4,817,006 Net realized gain (loss) from investment transactions (notes 1 and 4) (580,033) (521,214) (139,469) (356,375) Net change in unrealized appreciation or depreciation of investments 3,607,938 (534,565) 2,550,049 (520,768) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 8,162,204 3,958,494 7,298,117 3,939,863 - ---------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (3,909,724) (3,758,689) (3,840,666) (3,669,476) Preferred shareholders (1,050,779) (1,262,953) (1,017,157) (1,099,146) - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (4,960,503) (5,021,642) (4,857,823) (4,768,622) - ---------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 394,287 140,264 262,693 61,212 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 3,595,988 (922,884) 2,702,987 (767,547) Net assets at beginning of year 104,927,688 105,850,572 96,303,101 97,070,648 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $108,523,676 $104,927,688 $ 99,006,088 $96,303,101 ================================================================================================================================== Balance of undistributed net investment income at end of year $ 402,670 $ 228,874 $ 325,028 $ 295,314 ================================================================================================================================== Missouri Premium Income Washington Premium Income - ---------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 5/31/97 5/31/96 5/31/97 5/31/96 - ---------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 2,125,190 $ 2,042,610 $ 2,371,693 $ 2,357,858 Net realized gain (loss) from investment transactions (notes 1 and 4) 135,827 (126,266) 22,234 43,444 Net change in unrealized appreciation or depreciation of investments 1,026,731 (499,333) 1,324,756 (580,097) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 3,287,748 1,417,011 3,718,683 1,821,205 - ---------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (1,553,262) (1,440,028) (1,742,358) (1,726,118) Preferred shareholders (524,137) (528,534) (602,507) (641,034) - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (2,077,399) (1,968,562) (2,344,865) (2,367,152) - ---------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 1,210,349 (551,551) 1,373,818 (545,947) Net assets at beginning of year 44,013,973 44,565,524 48,266,055 48,812,002 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 45,224,322 $ 44,013,973 $ 49,639,873 $ 48,266,055 ================================================================================================================================== Balance of undistributed net investment income at end of year $ 179,134 $ 131,343 $ 87,664 $ 60,836 ==================================================================================================================================
Notes to Financial Statements 1. General Information and Significant Accounting Policies At May 31, 1997, 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 prepa ration of their financial statements in accordance with generally accepted accounting principles. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers and general market conditions. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. Any 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 when-issued and delayed delivery purchase commitments. At May 31, 1997, 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 as required for federal income tax purposes. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute to all of its tax-exempt net investment income, in addition to any significant amounts of net realized capital gains and/or market discount realized from investment transactions. 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 income taxes, if any, to retain such tax-exempt status when distributed to share holders of the Funds. All income dividends paid during the fiscal year ended May 31, 1997, have been designated Exempt Interest Dividends. Net realized capital gain and market discount distributions are subject to federal taxation. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared as a dividend monthly and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryovers. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either distributions in excess of net invest ment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one Series. The dividend rate may change every seven days, as set by the Auction Agent. The number of shares outstanding for each of the Funds is as follows:
Connecticut Massachusetts Premium Income Premium Income - -------------------------------------------------------------------------- Number of shares: Series Th 1,532 1,360 - -------------------------------------------------------------------------- Missouri Washington Premium Income Premium Income - -------------------------------------------------------------------------- Number of shares: Series Th 640 680 - --------------------------------------------------------------------------
Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap, and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended May 31, 1997. 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:
Connecticut Premium Income Massachusetts Premium Income - ----------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 5/31/97 5/31/96 5/31/97 5/31/96 - ----------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions 25,362 10,325 18,609 4,528 - ----------------------------------------------------------------------------------------------------------- Missouri Washington Premium Income Premium Income - ----------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended 5/31/97 5/31/96 5/31/97 5/31/96 - ----------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- -- -- -- - -----------------------------------------------------------------------------------------------------------
3. Distributions to Shareholders On June 2, 1997, the Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid July 1, 1997, to shareholders of record on June 15, 1997, as follows:
Connecticut Premium Income Massachusetts Premium Income - ------------------------------------------------------------------------------------------------------------ Dividend per share $.0650 $.0705 - ------------------------------------------------------------------------------------------------------------ Missouri Premium Income Washington Premium Income - ------------------------------------------------------------------------------------------------------------ Dividend per share $.0610 $.0630 - ------------------------------------------------------------------------------------------------------------
4. Securities Transactions Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the fiscal year ended May 31, 1997, were as follows:
Connecticut Premium Income Massachusetts Premium Income - ------------------------------------------------------------------------------------------------------------ Purchases: Investments in municipal securities $19,372,256 $22,187,232 Temporary municipal investments 10,200,000 11,400,000 Sales: Investments in municipal securities 19,173,260 21,199,306 Temporary municipal investments 9,800,000 11,200,000 Missouri Premium Income Washington Premium Income - ------------------------------------------------------------------------------------------------------------ Purchases: Investments in municipal securities $15,647,459 $5,693,162 Temporary municipal investments 11,400,000 8,410,000 Sales: Investments in municipal securities 15,682,617 5,394,784 Temporary municipal investments 8,600,000 8,710,000
At May 31, 1997, 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, 1997, 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: Connecticut Premium Income Massachusetts Premium Income - ------------------------------------------------------------------------------------------------------------- Expiration year: 2002 $ 9,146 $ -- 2003 1,272,842 1,247,263 2004 1,105,901 945,779 2005 847,914 195,761 - ------------------------------------------------------------------------------------------------------------- Total $3,235,803 $2,388,803 =============================================================================================================
Missouri Premium Income Washington Premium Income - ------------------------------------------------------------------------------------------------------------- Expiration year: 2002 $-- $ -- 2003 1,329,874 564,873 2004 708,417 70,082 2005 -- -- - ------------------------------------------------------------------------------------------------------------- Total $2,038,291 $634,955 =============================================================================================================
5. Unrealized Appreciation (Depreciation) Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 1997, were as follows:
Connecticut Premium Income Massachusetts Premium Income - ------------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $2,799,131 $3,474,076 depreciation (970,751) (135,541) - ------------------------------------------------------------------------------------------------------------- Net unrealized appreciation $1,828,380 $3,338,535 ============================================================================================================= Missouri Premium Income Washington Premium Income - ------------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $1,748,828 $1,247,186 depreciation (13,430) (54,486) - ------------------------------------------------------------------------------------------------------------- Net unrealized appreciation $1,735,398 $1,192,700 =============================================================================================================
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 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 as follows:
Average daily net asset value Management fee - ------------------------------------------------------------------------------ For the first $125 million .6500 of 1% For the next $125 million .6375 of 1 For the next $250 million .6250 of 1 For the next $500 million .6125 of 1 For the next $1 billion .6000 of 1 For net assets over $2 billion .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, 1997, net assets consisted of:
Connecticut Premium Income Massachusetts Premium Income - ------------------------------------------------------------------------------------------------------------- Preferred shares, $25,000 stated value per share, at liquidation value $ 38,300,000 $34,000,000 Common shares, $.01 par value per share 51,527 46,073 Paid-in surplus 71,213,481 63,724,942 Balance of undistributed net investment income 402,670 325,028 Accumulated net realized gain (loss) from investment transactions (3,272,382) (2,428,490) Net unrealized appreciation of investments 1,828,380 3,338,535 - ------------------------------------------------------------------------------------------------------------- Net assets $108,523,676 $99,006,088 ============================================================================================================= Authorized shares: Common Unlimited Unlimited Preferred Unlimited Unlimited ============================================================================================================= Missouri Premium Income Washington Premium Income - ------------------------------------------------------------------------------------------------------------- Preferred shares, $25,000 stated value per share, at liquidation value $16,000,000 $17,000,000 Common shares, $.01 par value per share 21,365 23,201 Paid-in surplus 29,326,716 31,971,263 Balance of undistributed net investment income 179,134 87,664 Accumulated net realized gain (loss) from investment transactions (2,038,291) (634,955) Net unrealized appreciation of investments 1,735,398 1,192,700 - ------------------------------------------------------------------------------------------------------------- Net assets $45,224,322 $49,639,873 ============================================================================================================= Authorized shares: Common Unlimited Unlimited Preferred Unlimited Unlimited =============================================================================================================
8. Investment Composition Each Fund invests in municipal securities which include general obligation, escrowed and revenue bonds. At May 31, 1997, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows:
Connecticut Premium Income Massachusetts Premium Income - ------------------------------------------------------------------------------------------------------------ Revenue Bonds: Health Care Facilities 20% 22% Housing Facilities 10 16 Educational Facilities 21 18 Water / Sewer Facilities 4 8 Electric Utilities 3 3 Lease Rental Facilities -- -- Transportation 8 4 Pollution Control Facilities 6 5 Other 7 4 General Obligation Bonds 16 9 Escrowed Bonds 5 11 - ------------------------------------------------------------------------------------------------------------ 100% 100% ============================================================================================================ Missouri Premium Income Washington Premium Income - ------------------------------------------------------------------------------------------------------------ Revenue Bonds: Health Care Facilities 10% 14% Housing Facilities 21 18 Educational Facilities 4 8 Water / Sewer Facilities 11 17 Electric Utilities 1 16 Lease Rental Facilities 14 -- Transportation 7 7 Pollution Control Facilities 2 -- Other 1 -- General Obligation Bonds 19 18 Escrowed Bonds 10 2 - ------------------------------------------------------------------------------------------------------------ 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 (61% for Connecticut Premium Income, 42% for Massachusetts Premium Income, 56% for Missouri Premium Income and 54% for Washington Premium Income). 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:
Dividends from tax-exempt Operating performance net investment income Net asset Net realized value Net and unrealized beginning investment gain (loss) To Common To Preferred of period income from investments shareholders shareholders+ CONNECTICUT PREMIUM INCOME Year ended 5/31: 1997 $12.990 $ .998 $ .607 $(.761) $(.204) 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 -- -- MASSACHUSETTS PREMIUM INCOME Year ended 5/31: 1997 13.580 1.062 .524 (.835) (.221) 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 -- -- MISSOURI PREMIUM INCOME Year ended 5/31: 1997 13.110 .995 .547 (.727) (.245) 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) -- -- WASHINGTON PREMIUM INCOME Year ended 5/31: 1997 13.480 1.022 .579 (.751) (.260) 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 and offering costs and Per common preferred share Net asset share To Common To Preferred underwriting value market value shareholders shareholders+ discounts end of period end of period CONNECTICUT PREMIUM INCOME Year ended 5/31: 1997 $ -- $ -- $ -- $13.630 $14.125 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 MASSACHUSETTS PREMIUM INCOME Year ended 5/31: 1997 -- -- -- 14.110 14.750 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 MISSOURI PREMIUM INCOME Year ended 5/31: 1997 -- -- -- 13.680 13.063 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 WASHINGTON PREMIUM INCOME Year ended 5/31: 1997 -- -- -- 14.070 12.500 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 of net Total Ratio of investment investment Total return Net assets expenses to income to Portfolio return on on net end of period average average turnover market value** asset value** (in thousands) net assets++ net assets++ rate CONNECTICUT PREMIUM INCOME Year ended 5/31: 1997 9.58% 11.01% $108,524 .89% 4.79% 18% 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* -- MASSACHUSETTS PREMIUM INCOME Year ended 5/31: 1997 13.76 10.28 99,006 .88 4.99 22 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* -- MISSOURI PREMIUM INCOME Year ended 5/31: 1997 10.53 10.09 45,224 .99 4.74 36 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* -- WASHINGTON PREMIUM INCOME Year ended 5/31: 1997 12.94 10.16 49,640 .94 4.83 11 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. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders.
Fund Information Board of Directors Lawrence H. Brown Anthony T. Dean Anne E. Impellizzeri Peter R. Sawers Timothy R. Schwertfeger Judith M. Stockdale Fund Manager Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 Custodian The Chase Manhattan Bank 4 New York Plaza New York, NY 10004 Legal Counsel Fried, Frank, Harris Shriver & Jacobson Washington, D.C. Public Accountants Ernst & Young LLP Chicago, IL "At Nuveen, we make reinvesting easy. A phone call is all it takes to set up your reinvestment account." (continued from inside front cover) 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 can also 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 (800) 257-8787. Serving Investors for Generations Photographic image of John Nuveen, Sr. Since our founding in 1898, John Nuveen &Co. has been synonymous with investments that withstand the test of time. Today, we offer a broad range of investments designed for mature investors whose portfolios are the principal source of their ongoing financial security. More than 1.3 million investors have trusted Nuveen to help them maintain the lifestyle they currently enjoy. A value investing approach - purchasing securities of strong companies and communities that represent good long-term value - is the cornerstone of Nuveen's investment philosophy. It is a careful, long-term strategy that offers the potential for attractive returns with moderated risk. Successful value investing begins with in-depth research and a discerning eye for marketplace opportunity. Nuveen's team of investment professionals is backed by the discipline, resources and expertise of almost a century of investment experience, including one of the most recognized research departments in the industry. To meet the unique circumstances and financial planning needs of mature investors, Nuveen offers a wide array of equity and fixed-income mutual funds, unit trusts, exchange-traded funds, individual managed account services, and cash management products, including many that generate tax-free income. To find out more about how Nuveen investment products and services can help you preserve your financial security, talk with your financial adviser, or call us at (800) 621-7227 for more information, including a prospectus where applicable. Please read that information carefully before you invest. Nuveen John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, IL 60606-1286 (800) 621-7227 www.nuveen.com FAN-3 5-97 -----END PRIVACY-ENHANCED MESSAGE-----