-----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, HKvVDWwCabLtDRecSUhVdWkenYPLwmn6u5y1q5YIH8R23Vf0R0tGq3Lgt9ViT4px Qudcv+XCJo4Pga9yu+wCGg== 0000891804-99-001641.txt : 19990806 0000891804-99-001641.hdr.sgml : 19990806 ACCESSION NUMBER: 0000891804-99-001641 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990531 FILED AS OF DATE: 19990805 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: SEC FILE NUMBER: 811-07484 FILM NUMBER: 99678316 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-Trade Funds May 31, 1999 Annual Report Dependable, tax-free income to help you keep more of what you earn. Highlights As of May 31, 1999 NTC Connecticut NMT Massachusetts NOM Missouri NPW Washington Photo of: People reading Highlights As of May 31, 1999 Credit Quality Performance Highlights - -------------------------------------------------------------------------------- Nuveen Connecticut Premium Income Municipal Fund (NTC) o Outperformed the one-year total return of its Lipper Peer Group and the Lehman Brothers Municipal Bond Index * o Has provided steady or increasing dividends for 52 consecutive months Pie Chart: AAA/U.S. Guaranteed 77% AA 15% A 2% BBB/NR 6% Nuveen Massachusetts Premium Income Municipal Fund (NMT) o Outperformed the one-year total return of its Lipper Peer Group * o Has provided steady or increasing dividends for 67 consecutive months Pie Chart: AAA/U.S. Guaranteed 62% AA 16% A 16% BBB/NR 6% Nuveen Missouri Premium Income Municipal Fund (NOM) o Has provided steady or increasing dividends for 49 consecutive months o Taxable-equivalent yield of 8.40% ** Pie Chart: AAA/U.S. Guaranteed 74% AA 19% A 3% BBB/NR 4% Nuveen Washington Premium Income Municipal Fund (NPW) o Has provided steady or increasing dividends for 52 consecutive months o Taxable-equivalent yield of 8.41% ** Pie Chart: AAA/U.S. Guaranteed 67% AA 27% A 3% BBB/NR 3% * The Lipper Peer Group return represents the average annualized returns of the funds in the appropriate Lipper Municipal Debt category. The return assumes reinvestment of dividends and does not reflect any applicable sales charge. The Lehman Brothers Municipal Bond Index is an unleveraged index covering a broad range of investment grade municipal bonds. The return for the index does not reflect any initial or ongoing expenses. **For investors in the combined 31% federal and applicable state income tax bracket. See your fund's Performance Overview in this report for more information. Contents 1 Dear Shareholder 4 NTC's Portfolio Manager's Comments and Performance Overview 7 NMT's Portfolio Manager's Comments and Performance Overview 10 NOM's Portfolio Manager's Comments and Performance Overview 13 NPW's Portfolio Manager's Comments and Performance Overview 16 Shareholders Meeting Report 18 Report of Independent Auditors 19 Portfolio of Investments 31 Statement of Net Assets 32 Statement of Operations 33 Statement of Changes in Net Assets 34 Notes to Financial Statements 38 Financial Highlights 40 Build Your Wealth Automatically 41 Fund Information Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be preserved. Dear Shareholder It's a pleasure to report to you on the performance of your Nuveen Exchange-Traded Fund. This type of fund - with its exceptional history of stable tax-free income and its competitive market yield - offers investors an ideal way to achieve balance in their overall investment portfolio while fulfilling its primary objective of providing stable tax-free income. Over the period covered by this report, we have seen some shifts in U.S. economic trends and the fixed-income market environment in which your Nuveen fund operates. I appreciate the opportunity to discuss these changes with you. In addition, I would like to inform shareholders of the Nuveen Washington Premium Income Municipal Fund (NPW) about the purpose of the vote scheduled for July 28, 1999. You should have already received a proxy detailing the proposed merger of NPW into the Nuveen Premium Income Municipal Fund 4, Inc. (NPT). Due to the fact that this vote will have occurred after the printing of this report, I cannot comment on its outcome, but I would like to address why the vote took place. If approved, we expect the proposed merger to have four benefits for share-holders: 1) a reduction in management fees per share, 2) lower administrative expenses, 3) an increased efficiency and flexibility in portfolio manage-ment, and 4) a more liquid trading market for common shares of the combined Fund. Given the relative sizes of the Funds, NPW would significantly benefit from the reorganization. The larger combined Fund would have a significantly larger asset base than NPW currently has. Based on data presented by management of the Funds, the Board believes that administrative expenses of a larger combined Fund comprised of the assets of both Funds would be less than the aggregate expenses of NPW, resulting in a lower expense ratio for the combined Fund and corresponding higher earnings for its common shareholders. If approved, the reorganization is expected to take effect on August 12, 1999. A CHALLENGING INVESTMENT ENVIRONMENT Over the past 12 months, the U.S. economy has continued to be characterized by robust growth, generally low interest rates, and unemployment levels that remain among the lowest in three decades. However, concerns about the continued persistent pace of the economy's expansion have tested the new paradigm that says improvements in productivity enable us to have both economic growth and low inflation at the same time. With investors and the various markets watching - and reacting to - every announcement concerning economic statistics, volatility has increased, especially in the equity markets. While most current indicators continue pointing to a relatively strong economy, we have entered a different environment from what we saw 12 months ago. It is a more uncertain environment, where confidence in a continued positive economic outlook is less assured. This shift has occurred primarily in response to two factors: First, the Asian financial crisis of 1998 did not produce the slowdown that was widely expected to keep economic growth from becoming too robust. Second, evidence of accelerating prices, most obvious in the sudden spike in April's Consumer Price Index, contributed to the reemergence of the spectre of inflation, accompanied by the likelihood of higher interest rates. In fact, the Fed raised interest rates by 0.25% on June 30, 1999 to combat the threat of inflation. This adjustment to the federal funds rate, which is the rate that banks charge each other on overnight loans, is a stark contrast to the three reductions to interest rates made last fall. The fed funds rate now stands at 5%, as of this report. MUNICIPAL BOND PERFORMANCE Over the past year, our exchange-traded municipal bond funds continued to offer attractive, stable income in a market that places a high premium on yield. At the end of May 1999, the ratio between long-term municipal yields and 30-year Treasury yields stood at 93%, compared with the historical average of 86% between 1986-1999. For investors, this meant that quality long-term municipal bonds offered yields comparable to those of long Treasury bonds - even before the tax advantages of municipal bonds were taken into account. On an after-tax basis, municipal bonds continued to present an exceptionally attractive investment option relative to Treasuries. In the coming months, we expect to see a healthy supply of new municipal bonds, although total volume is expected to drop from the near-record levels of 1998. This is due to the dramatic decrease in the refunding of existing bonds in the wake of higher interest rates. To date, municipal supply has declined by approximately 25% from the levels of a year ago. This, in turn, has enhanced the attractiveness of the municipal bonds that are brought to market, as demand - especially from individual investors - remains strong. We anticipate that this demand will continue to strengthen as investors increasingly look at rebalancing their portfolios. With the outlook for tighter supply and continued demand in the months ahead, Nuveen's established market position as the leading sponsor of exchange-traded municipal bond funds ensures that we will have exceptional access to the bond offerings that have the potential to add value for our shareholders. A BALANCING ACT Volatility and uncertain markets highlight the importance of maintaining balance in your investment portfolio. With a properly balanced portfolio of equities, bonds, and cash, your assets will be better positioned to weather the markets' ups and downs. A balanced portfolio can also help you increase your opportunities for capital growth while reducing risk. Your Nuveen Exchange-Traded Fund, with its holdings of quality tax-free municipal bonds, makes an excellent counterpart to your equity holdings and provides diversity in your quest to achieving a balanced portfolio. Volatility and uncertain markets highlight the importance of maintaining balance in your investment portfolio." Like most investors in the marketplace today, your goal is to capture the highest returns possible while minimizing risk. According to Nuveen research, balanced portfolios that combine equities with municipal bonds are the most successful in achieving that goal, providing both superior after-tax total returns and lower levels of risk. Over the past 20 years, portfolios containing both equities and municipal bonds produced better results with lower volatility than similar blends of equities with either Treasury or corporate bonds. Incorporating even a 20% allocation of municipal bonds into an all-equity portfolio cuts risk substan-tially, with only a small reduction in return. Purchasing shares of a Nuveen Exchange-Traded Fund provides an easy way to incorporate the benefits of municipal bonds into a balanced portfolio. NUVEEN FUNDS: AN ANSWER TO YOUR INVESTMENT NEEDS In light of the recent shifts in the economic environment, you may want to discuss your current asset allocation with your financial adviser to determine if adjustments are needed in your portfolio. As part of this process, your financial adviser can set up a reinvestment plan designed to purchase additional shares of your Nuveen Exchange-Traded Fund. Additionally, your financial adviser can also help you invest in Nuveen Defined Portfolios to give you the proper equity exposure needed to potentially enhance your opportunities for success. A Nuveen Defined Portfolio is a fixed portfolio of securities designed to accomplish a specific investment objective. Unlike a mutual fund which is actively managed, the stocks or bonds in a defined portfolio do not change over the life of the investment. Nuveen's Defined Portfolios provide the benefits of an individual equity security enhanced by diversification and professional selection. These specialized equity portfolios concentrate on specific sectors of the market and invest in stocks we consider to have the best potential for capital appreciation within each sector. Whether the objective for your equity investment is growth, aggressive growth, or growth and income, you'll find a Nuveen Defined Portfolio designed to meet your needs. Our defined portfolios provide an excellent complement to your Nuveen Exchange-Traded Fund in structuring a balanced portfolio designed to build and sustain long-term financial security. For more information on any of the Nuveen funds, contact your adviser for a prospectus, or call Nuveen at (800) 621-7227. Please read the prospectus carefully before you invest or send money. Since 1898, Nuveen has been synonymous with investments that stand the test of time. As we look ahead to a new millennium, we are committed to maintaining that reputation and finding the best ways to serve your evolving investment needs. Thank you for your continued confidence. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board July 15, 1999 Volatility and uncertain markets highlight the importance of maintaining balance in your investment portfolio." Nuveen Connecticut Premium Income Municipal Fund (NTC) Portfolio Manager's Comments Portfolio manager Rick Huber reviews the Connecticut municipal market, recent fund performance, and the outlook for the Nuveen Connecticut Premium Income Municipal Fund. Rick, who joined Nuveen in 1997 as part of the Nuveen-Flagship merger, has worked in the industry since 1985. In addition to NTC, he also manages a range of national and state specific Nuveen funds. He assumed portfolio management responsibility for NTC in early 1999. WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE CONNECTICUT MUNICIPAL MARKET DURING THE PAST 12 MONTHS? Although it continues to lag the nation in job growth, Connecticut's economy has performed relatively well in recent months, helping to narrow the gap with the national economy. The state has now reclaimed more than 80% of the jobs it lost in the recession of the early 1990s. Once heavily reliant on the insurance, defense manufacturing, finance, and real estate industries, Connecticut has become more diversified, as it benefits from employment growth in the business and personal services sector, healthcare, legal services, private education, and gaming. In May 1999, unemployment figures for the state remained unchanged from a year earlier at 3.4%, compared with 4.2% on the national level. Since 1995, the state has experienced slow, steady population growth, although population figures remain below those of the pre-recession 1980s. Connecticut continues to rank first among the states in per capita personal income, with an income growth rate that outpaced the national average for the third consecutive year. A notable event in the municipal market over the past year was Standard & Poor's upgrade of Connecticut's general obligation debt rating to AA from AA-. S&P cited the state's strengthened financial position, conservative budget and financial practices, and steady economic growth. Moody's and Fitch have maintained their ratings of Aa3 and AA, respectively. For the 12 months ended May 31, 1999, municipal issuance in the state was down from that of the previous year, continuing the tight supply situation in Connecticut bonds and reflecting the national trend toward lower levels of municipal issuance. Demand for municipal bonds in the state has been very high relative to the supply. HOW DID THE NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND (NTC) PERFORM IN THIS ENVIRONMENT? For the 12 months ended May 31, 1999, NTC produced a total return on net asset value (NAV) of 5.22%, providing a taxable-equivalent total return(1) of 8.13% for shareholders in the combined 34% federal and state income tax bracket. The Fund's total return outperformed both the annual total return of 4.67% for NTC's benchmark, the Lehman Brothers Municipal Bond Index(2), and the 4.33% average total return for the Fund's Lipper peer group(3). The Lipper result placed the Fund first among the peer group's 18 funds. This performance reflects the Fund's excellent structure in terms of duration, maturity, and call features. Over the past year, active demand for NTC - bolstered by the Fund's competitive yield and outstanding dividend record - resulted in solid share price performance. NTC's one-year total return on share price, as of May 31, 1999, was 13.50%, providing a taxable-equivalent total return of 16.22% for investors in the combined federal and state income tax bracket of 34%. At the same time, however, the Fund's NAV was lower than it was a year ago due to the prevailing economic environment of relatively higher interest rates compared to May 1998. As a result of these factors, NTC saw its premium (share price over NAV) widen by almost 9% over the past 12 months. HOW WAS THE FUND'S DIVIDEND AFFECTED? Good call protection helped support the dividend of NTC and shield the income of this fund from erosion. In addition, excellent dividend management strategies over this period, including the prudent use of leverage, enabled us to increase the dividend effective May 1999, enhancing the competitiveness of the Fund's market yield. As a leveraged fund, NTC issues preferred shares that pay short-term rates to investors seeking short-term liquidity. The proceeds from the preferred shares are used to buy additional long-term bonds for the Fund's portfolio. When short-term interest rates remain below long-term interest rates, common shareholders have the potential to earn extra income from the difference between the rate earned on the Fund's long-term portfolio and the short-term rate paid to preferred shareholders. Not only did NTC have a dividend increase in May, but the Fund had also provided shareholders with stable or increasing dividends for 52 consecutive months. As of May 31, 1999, the market yield for the Fund was 4.87%, equivalent to a taxable yield(4) of 7.38% for investors in the combined 34% federal and state income tax bracket. WHAT KEY STRATEGIES WERE USED TO MANAGE NTC DURING THE PAST 12 MONTHS? NTC is a fund that has been well structured for the long term. The focus of our management strategies over the past year was on maintaining the income level of the Fund. To that end, we carried out relatively little trading, as the majority of the bonds in this portfolio were purchased during prior periods of higher interest rates. As a result, these bonds carry high embedded yields. If we had attempted to trade these bonds, we would have faced replacing them with the lower-yielding issues currently available in the marketplace. This, in turn, could have negatively affected the monthly dividend. Overall, the Fund continues to offer excellent credit quality. At the end of May 1999, NTC had 92% of its portfolio invested in bonds rated AAA and AA, with a 6% allocation of BBB and non-rated bonds, which generally provide higher yields. A number of pre-refundings of BBB/non-rated bonds in 1998 served to decrease the Fund's investment in that sector by half, while further increasing its AAA allocation. In the area of bond calls, the Fund currently provides good levels of call protection, with only 14% of its portfolio subject to calls prior to 2003. This should offer some protection for the Fund's dividend over this period. To minimize the impact of any future calls, we are already at work on strategies for managing through this period. WHAT IS NUVEEN'S OUTLOOK FOR NTC? Looking ahead for NTC, our focus will remain on supporting the income stream of this fund at the highest level consistent with capital preservation. As part of our strategies for achieving this goal, we will continue searching for investments that capture incremental yield. We plan to keep the Fund's duration neutral to provide protection against interest rate volatility. As opportunities arise and credit risk allows, we will also consider investing in additional lower-rated investment-grade securities, again with the goal of adding yield. Connecticut is known for its education bonds, especially for universities and private colleges, and we will continue monitoring the market for unique issues that can enhance the Fund's holdings. These strategies demonstrate the value that can be added by an active bond manager such as Nuveen. As an experienced investment manager knowledgeable about the unique aspects of the Connecticut municipal market, we are in the marketplace every day, monitoring market dynamics, looking for opportunities, and capitalizing on them to the benefit of shareholders. 1 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 34%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. 2 NTC is compared with the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. The return for the Lehman index does not reflect any initial or ongoing expenses. 3 The Lipper Peer Group return represents the average annualized total return of the 18 funds in the Lipper Other States Municipal Debt category. The return assumes reinvestment of dividends and does not reflect any applicable sales charges. 4 Taxable-equivalent yield repre-sents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The rate is based on a combined federal and state income tax rate of 34%. Nuveen Connecticut Premium Income Municipal Fund Performance Overview As of May 31, 1999 NTC Portfolio Statistics - -------------------------------------------------- Inception Date 5/93 Share Price $16 3/4 Net Asset Value $14.44 Market Yield 4.87% Taxable-Equivalent Yield (Federal Tax Rate)(1) 7.06% Taxable-Equivalent Yield (Federal and State Tax Rate)(1) 7.38% Fund Net Assets ($000) $113,465 Effective Maturity (Years) 17.89 Leverage-Adjusted Duration 10.01 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- Taxable-Equivalent Total Return(2) 1-Year 13.50% 5.22% 5-Year 10.87% 8.99% Since Inception 7.34% 6.09% - -------------------------------------------------- Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 16.22% 8.13% 5-Year 13.81% 12.02% Since Inception 10.13% 8.98% - -------------------------------------------------- Top Five Sectors (as of % of total investments) Healthcare 24% Education and Civic Organizations 15% U.S. Guaranteed 12% Tax Obligation/General 9% Utilities 8% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The federal only rate is based on the current market yield and a federal income tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 34%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share 6/98 0.0665 7/98 0.0665 8/98 0.0665 9/98 0.0665 10/98 0.0665 11/98 0.0665 12/98 0.0665 1/99 0.0665 2/99 0.0665 3/99 0.0665 4/99 0.0665 5/99 0.068 Share Price Performance 6/5/98 15.875 16.125 16.125 15.688 15.938 16.313 15.625 15.875 15.875 15.813 15.875 16 15.875 15.938 15.813 15.938 16.063 16.875 16.875 16.75 16.5 16.63 16.69 16.38 16.31 16.44 16.5 16.5 16.44 16.06 15.56 15.56 15.69 16.06 16.19 16.25 16.13 16.38 16.5 16.44 16.63 16.5 16.56 16.81 16.75 16.81 16.69 16.75 5/31/99 16.75 Weekly Closing Price Past performance is not predictive of future results. Nuveen Massachusetts Premium Income Municipal Fund (NMT) Portfolio Manager's Comments Portfolio manager Tom Futrell describes the Massachusetts municipal market, fund performance, and management strategies for the Nuveen Massachusetts Premium Income Municipal Fund. A 16-year veteran of Nuveen, Tom assumed portfolio management responsibility for NMT in July 1998. WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MASSACHUSETTS MUNICIPAL MARKET DURING THE PAST 12 MONTHS? The economy of Massachusetts has fully recovered from the recession of the early 1990s and continues to grow at a healthy pace. Unemployment figures show a tightening labor market in the common-wealth, with a rate of 3.2% in May 1999. This is down from the 3.5% posted in May 1998 and well below the current national average of 4.2%. Continued job losses in the manufacturing sector are being offset by gains in the services and construction sectors. The growth in construction jobs is being largely driven by major public works projects in Boston, such as the Central Artery project and the $3.7 billion Boston Harbor clean-up, which is nearing completion. The harbor project, which was started in 1988 to bring the city into EPA compliance, involved building a waste water treatment facility on Deer Island to serve 43 communities in the Boston metropolitan area. This facility, the second largest in the U.S., is now the world's most technologically advanced water treatment plant. In terms of personal wealth, Massachusetts ranks third in the nation, with per capita income levels well above the national average. The growth rate for per capita income also continues to outpace national figures. For the 12 months ended May 1999, issuance of Massachusetts bonds totaled $9.7 billion, down 8% from the previous 12-month period. Over the past six months (December 1998-May 1999), the decline in the commonwealth's issuance, in keeping with national trends, was even more evident, falling 14% from June-November 1998 levels. Demand for Massachusetts bonds has remained relatively strong, enhanced by the attractive yields currently available in the commonwealth's municipal market. HOW DID THE NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND (NMT) PERFORM IN THIS ENVIRONMENT? For the 12 months ended May 31, 1999, NMT produced a total return on net asset value (NAV) of 4.47%, providing a taxable-equivalent total return(1) of 7.61% for shareholders 35% federal and state income tax bracket. The Fund's total return outperformed the 4.33% average total return for the Fund's Lipper peer group(2), while falling short of the annual total return of 4.67% for NMT's benchmark, the Lehman Brothers Municipal Bond Index(3). Over the past year, NMT saw its share price and NAV fall from a year ago due to the prevailing economic environment of relatively higher interest rates compared to May 1998. As a result of these factors, NMT's premium (share price over NAV) narrowed by approximately 1.5% over the past 12 months. As of May 31, 1999, NMT was trading at a premium of 9.12%, and the Fund's total return on share price was 2.48%, providing a taxable-equivalent total return of 5.31% for investors in the combined federal and state income tax bracket of 35%. HOW WAS THE FUND'S DIVIDEND AFFECTED? Good call protection and the prudent use of leverage helped support the dividend of NMT and shield the income of this fund from erosion. As a leveraged fund, NMT issues preferred shares that pay short-term rates to investors seeking short-term liquidity. The proceeds from the preferred shares are used to buy additional long-term bonds for the Fund's portfolio. When short-term interest rates remain below long-term interest rates, common shareholders have the potential to earn extra income from the difference between the rate earned on the Fund's long-term portfolio and the short-term rate paid to preferred shareholders. As of the end of May 1999, NMT had provided shareholders with steady or increasing dividends for 67 consecutive months. On May 31, 1999, the market yield for the Fund was a competitive 5.27%, equivalent to a taxable yield(4) of 8.11% for investors in the combined 35% federal and state income tax bracket. WHAT KEY STRATEGIES WERE USED TO MANAGE NMT DURING THE PAST 12 MONTHS? The focus of our management strategies for the Fund over the past year was on purchasing bonds that captured substantial incremental yield and enhanced the structure of the portfolio. An example of these purchases involved industrial development bonds issued to finance pollution control facilities, such as the Massachusetts Industrial Finance Agency resource recovery bonds for the Ogden Haverhill project. These BBB rated bonds offered an incremental yield of 45 basis points over high-grade market levels. In addition, because these bonds mature in 20 years rather than 30, we were able to increase the yield with minimal interest rate risk. Overall, the Fund continues to offer excellent credit quality. At the end of May 1999, NMT had 78% of its portfolio invested in bonds rated AAA and AA, with a 6% allocation of BBB and non-rated bonds, which generally provide a higher level of yield. In the area of bond calls, the Fund currently offers good levels of call protection, with only 11% of its portfolio subject to calls prior to 2002. This should provide some protection for the Fund's dividend over this period. To minimize the impact of future calls, we are already at work on strategies for managing through this period. WHAT IS NUVEEN'S OUTLOOK FOR NMT? In the coming months, our focus will remain on supporting the income stream of this fund at the highest level consistent with capital preservation. As part of our strategies for achieving this goal, we will continue searching for attractive bonds that have the best potential to benefit the shareholders of NMT. In July, a small segment of hospital bonds is scheduled to be called from the portfolio. We plan to actively manage through that call by reinvesting the proceeds in ways that further enhance the structure of the portfolio. These strategies demonstrate the value that can be added by an active bond manager such as Nuveen. As an experienced investment manager knowledgeable about the unique aspects of the Massachusetts municipal market, we are in the marketplace every day, monitoring market dynamics, looking for opportunities, and capitalizing on them to the benefit of shareholders. 1 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 35%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. 2 The Lipper Peer Group return represents the average annualized total return of the 18 funds in the Lipper Other States Municipal Debt category. The return assumes reinvestment of dividends and does not reflect any applicable sales charges. 3 NMT is compared with the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. The return for the Lehman index does not reflect any initial or ongoing expenses. 4 Taxable-equivalent yield repre-sents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The rate is based on a combined federal and state income tax rate of 35%. Nuveen Massachusetts Premium Income Municipal Fund Performance Overview As of May 31, 1999 NMT Portfolio Statistics - -------------------------------------------------- Inception Date 3/93 Share Price $16 1/16 Net Asset Value $14.72 Market Yield 5.27% Taxable-Equivalent Yield (Federal Tax Rate)(1) 7.64% Taxable-Equivalent Yield (Federal and State Tax Rate)(1) 8.11% Fund Net Assets ($000) $102,288 Effective Maturity (Years) 17.19 Leverage-Adjusted Duration 9.47 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 2.48% 4.47% 5-Year 11.33% 8.88% Since Inception 6.78% 6.55% - -------------------------------------------------- Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 5.31% 7.61% 5-Year 14.55% 12.16% Since Inception 9.80% 9.65% - -------------------------------------------------- Top Five Sectors (as a % of total investments) U.S. Guaranteed 21% Education and Civic Organizations 20% Healthcare 18% Housing/Multifamily 13% Tax Obligation/General 8% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The federal only rate is based on the current market yield and a federal income tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 35%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. 3 The fund also paid shareholders net ordinary income distributions in December of $0.0051 per share. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share(3) 6/98 0.0705 7/98 0.0705 8/98 0.0705 9/98 0.0705 10/98 0.0705 11/98 0.0705 12/98 0.0705 1/99 0.0705 2/99 0.0705 3/99 0.0705 4/99 0.0705 5/99 0.0705 Line Chart: Share Price Performance 6/5/98 16.375 16.375 16.625 16.25 16.875 16.688 16.625 16.313 16.375 16.5 16.375 16.563 16.688 16.75 16.438 16.563 16.75 17.5 16.875 16.75 16.75 16.69 16.88 16.56 16.44 16.69 16.75 16.75 16.81 16.44 16.25 16 16 16.63 16.81 16.88 16.81 17 16.94 16.94 16.94 16.94 16.75 16.75 16.5 16.38 16.06 15.94 5/31/99 16.06 Weekly Closing Price Past performance is not predictive of future results. Nuveen Missouri Premium Income Municipal Fund (NOM) Portfolio Manager's Comments Portfolio manager Mike Davern discusses the Missouri municipal market, recent fund performance, and key strategies for the Nuveen Missouri Premium Income Municipal Fund. Mike, who has been with Nuveen since 1991, assumed portfolio management responsibility for NOM in July 1998. WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MISSOURI MUNICIPAL MARKET DURING THE PAST 12 MONTHS? The Missouri economy continues to see strong growth in the wholesale and retail trade sector (Walmart stores, for example). This sector accounts for approximately 24% of employment in the state. This represents an increase of 11% over the past decade. Other major employers in the state include the services sector, with 30% of the workforce; the government, at 16%; and manufacturing, with 15%. While manufacturing jobs have declined somewhat from previous years, they remain an important factor in the state's economy, with Boeing and several automakers providing the majority of jobs in this sector. As of May 1999, unemployment in the state totaled 3.5%, down from 4.5% in May 1998, and below the national average of 4.2%. Since 1990, population growth in Missouri has been fairly stable. Missouri's financial picture is very strong, and its conservative approach to fiscal management is reflected in the state's rating of AAA/Aaa/AAA by the three major rating agencies. For the 12 months ended May 31, 1999, issuance in the Missouri municipal market countered the national trend toward a decline in new issuance and remained relatively flat compared to the prior 12-month period. Overall, however, Missouri ranks among the smaller states in terms of municipal issuance, and supply remains tight. Given this scenario, demand for Missouri paper is very strong, especially from individual investors. HOW DID THE NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND (NOM) PERFORM IN THIS ENVIRONMENT? For the 12 months ended May 31, 1999, NOM produced a total return on net asset value (NAV) of 3.64%, providing a taxable-equivalent total return(1) of 6.52% for shareholders in the combined 35% federal and state income tax bracket. The Fund's total return trailed both the 4.33% average total return for the Fund's Lipper peer group(2), and the annual total return of 4.67% for NOM's benchmark, the Lehman Brothers Municipal Bond Index(3). The major factor in the Fund's performance over the past 12 months was the tight supply of Missouri bonds, which limited trading opportunities for the Fund. As mentioned earlier, Missouri's new issuance is among the lowest in the nation, making it a challenge to actively buy and sell the bonds needed to implement new strategies designed to add value. This was especially true over the past year, when we found few attractive bonds that offered the structure we favor for our exchange-traded funds. Over the past year, NOM's share price remained unchanged, while the Fund's NAV was lower than it was a year ago due to the prevailing economic environment of relatively higher interest rates. As a result of these factors, NOM saw its discount (share price under NAV) narrow by more than 1.6% over the past 12 months. As of May 31, 1999, NOM was trading at a discount of 0.09%, and the Fund's total return on share price was 5.24%, providing a taxable-equivalent total return of 8.18% for investors in the combined federal and state income tax bracket of 35%. HOW WAS THE FUND'S DIVIDEND AFFECTED? Good call protection helped support the dividend of NOM and shield the income of this fund from erosion. In addition, excellent dividend manage-ment strategies over this period, including the prudent use of leverage, enabled us to make two increases to the Fund's dividend over the past 12 months, effective in August 1998 and May 1999. As a leveraged fund, NOM issues preferred shares that pay short-term rates to investors seeking short-term liquidity. The proceeds from the preferred shares are used to buy additional long-term bonds for the Fund's portfolio. When short-term interest rates remain below long-term interest rates, common shareholders have the potential to earn extra income from the difference between the rate earned on the Fund's long-term portfolio and the short-term rate paid to preferred shareholders. As of the end of May 1999, NOM had provided shareholders with steady or increasing income for 49 consecutive months. The market yield for the Fund was a competitive 5.46%, equivalent to a taxable yield(4) of 8.40% for investors in the combined 35% federal and state income tax bracket. WHAT KEY STRATEGIES WERE USED TO MANAGE NOM DURING THE PAST 12 MONTHS? NOM is an income-oriented fund and, over the past year, the focus of our management strategies was on supporting and enhancing the dividend. As part of these strategies, we made the decision to hold bonds purchased during prior periods of higher interest rates. If we had sold these bonds in an effort to capture slightly higher total returns, we would have been faced with replacing the sold bonds with the lower-yielding issues currently available in the marketplace. This, in turn, would have negatively affected the monthly dividend. Despite the tight supply in the Missouri municipal market, we were able to make a few purchases that have the potential to enhance the Fund's performance and benefit shareholders. One of these involved the purchase of $1 million of Missouri State Development Finance Board bonds, which are being used to finance a solid waste disposal project for Procter & Gamble. This illustrates Nuveen's ability to find good quality bonds offering above-market yields, even in a less-than-favorable supply environment. Overall, the Fund continues to offer excellent credit quality. At the end of May 1999, NOM had 93% of its portfolio invested in bonds rated AAA and AA, with a 4% allocation of BBB and non-rated bonds, which generally provide higher levels of yield. In the area of bond calls, the Fund currently offers good levels of call protection, with less than 7% of its portfolio subject to calls prior to 2004. This should provide some protection for the Fund's dividend over this period. To minimize the impact of future calls, we are already at work on strategies for managing through this period. WHAT IS NUVEEN'S OUTLOOK FOR NOM? Looking ahead for NOM, our focus will remain on supporting the Fund's income stream as the major component of its total return. With the increase in market opportunities in recent months due to rising interest rates, we are continuing to search for opportunities to capture incremental yield. Given current market conditions, we plan to remain conservative in our approach to duration, maturity, and interest rate risk. These decisions demonstrate the value that can be added by an active bond manager such as Nuveen. As an experienced investment manager knowledgeable about the unique aspects of the Missouri municipal market, we are in the marketplace every day, monitoring market dynamics and looking for opportunities that will benefit our shareholders. Although municipal supply has declined over the past 12 months, we have confidence in our ability to find attractive values in the market, when they arise. 1 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 35%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. 2 The Lipper Peer Group return represents the average annualized total return of the 18 funds in the Lipper Other States Municipal Debt category. The return assumes reinvestment of dividends and does not reflect any applicable sales charges. 3 NOM is compared with the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. The return for the Lehman index does not reflect any initial or ongoing expenses. 4 Taxable-equivalent yield repre-sents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The rate is based on a combined federal and state income tax rate of 35%. Nuveen Missouri Premium Income Municipal Fund Performance Overview As of May 31, 1999 NOM Portfolio Statistics - -------------------------------------------------- Inception Date 5/93 Share Price $14 3/16 Net Asset Value $14.20 Market Yield 5.46% Taxable-Equivalent Yield (Federal Tax Rate)(1) 7.91% Taxable-Equivalent Yield (Federal and State Tax Rate)(1) 8.40% Fund Net Assets ($000) $46,603 Effective Maturity (Years) 17.34 Leverage-Adjusted Duration 10.83 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 5.24% 3.64% 5-Year 9.22% 8.46% Since Inception 4.45% 5.51% - -------------------------------------------------- Taxable-Equivalent Total Return(2) - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 8.18% 6.52% 5-Year 12.34% 11.43% Since Inception 7.39% 8.35% - -------------------------------------------------- Top Five Sectors (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 17% Tax Obligation/Limited 15% Housing/Multifamily 14% U.S. Guaranteed 11% Water and Sewer 11% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The federal only rate is based on the current market yield and a federal income tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 35%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. 3 The fund also paid shareholders net ordinary income distributions in December of $0.0095 per share. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share(3) 6/98 0.062 7/98 0.062 8/98 0.063 9/98 0.063 10/98 0.063 11/98 0.063 12/98 0.063 1/99 0.063 2/99 0.063 3/99 0.063 4/99 0.063 5/99 0.0645 Line Chart: Share Price Performance 6/5/98 14.75 14.25 14.375 14.25 14.5 14.25 14.75 14.75 14.688 16.625 14.75 14.75 14.625 14.688 15 15 15.063 15.125 15.25 15.375 15.13 15.06 15.5 15.19 15.38 15.38 15.13 15.31 15.56 15.31 15 14.88 14.5 15.06 14.94 15.13 15.06 15.25 15 15.13 15.13 15.375 15.5 15.38 15.13 14.81 14.88 14.38 5/31/99 14.19 Weekly Closing Price Past performance is not predictive of future results. Nuveen Washington Premium Income Municipal Fund (NPW) Portfolio Manager's Comments Portfolio manager Mike Davern talks about the Washington municipal market, fund performance, and the outlook for the Nuveen Washington Premium Income Municipal Fund. An eight-year veteran of Nuveen, Mike assumed portfolio management responsibility for NPW in July 1998. WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE WASHINGTON STATE MUNICIPAL MARKET DURING THE PAST 12 MONTHS? Washington's economy continues to diversify away from heavy reliance on the manufacturing sector, with substantial growth in the services, high-tech, construction, and retail trade sectors. This has helped to compensate the state for the loss of manufacturing jobs, where Boeing provides the primary example. Thirty years ago, Boeing, the Seattle-based leader in aerospace technology, accounted for 10% of the jobs in Washington state; today, that number has fallen to 4%, still a significant amount of the workforce. Washington's export industry, which declined slightly in the aftermath of the Asian financial crisis of 1998, has recovered somewhat in recent months, as the crisis failed to have the far-reaching impact originally expected. As of May 1999, the state's unemployment level was 4.7%, slightly above the national average of 4.2%. The state's economy remains strong, as evidenced by ratings of Aa1/AA+/AA+ from the three major rating agencies. For the 12 months ended May 1999, municipal issuance in the state declined 8% from the levels of the previous year, in line with the national trend toward lower issuance. Demand for Washington state municipal issues remains strong, as the tax situation in the state (i.e., the lack of a state income tax) means that these bonds are attractively priced for use in other specialty state municipal bond portfolios, especially those with high state income tax rates. HOW DID THE NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND (NPW) PERFORM IN THIS ENVIRONMENT? For the 12 months ended May 31, 1999, NPW produced a total return on net asset value (NAV) of 3.97%, providing a taxable-equivalent total return(1) of 6.34% for shareholders in the 31% federal income tax bracket. The Fund's total return trailed both the 4.33% average total return for the Fund's Lipper peer group(2) and the annual total return of 4.67% for NPW's benchmark, the Lehman Brothers Municipal Bond Index(3). Over the past year, NPW's share price declined, and the fund's NAV was lower than it was a year ago. This is due to the prevailing economic environment of relatively higher interest rates compared to May 1998. As a result of these factors, NPW saw its discount (share price under NAV) widen slightly over the past 12 months. As of May 31, 1999, NPW was trading at a discount of 9.69%, and the Fund's total return on share price was 4.10%, providing a taxable-equivalent total return of 6.72% for investors in the 31% federal income tax bracket. HOW WAS THE FUND'S DIVIDEND AFFECTED? Good call protection helped support the dividend of NPW and shield the income of this fund from erosion. In addition, excellent dividend manage-ment strategies over this period, including the prudent use of leverage, enabled us to increase the dividend in August 1998, enhancing the competitiveness of the Fund's market yield. As a leveraged fund, NPW issues preferred shares that pay short-term rates to investors seeking short-term liquidity. The proceeds from the preferred shares are used to buy additional long-term bonds for the Fund's portfolio. When short-term interest rates remain below long-term interest rates, common shareholders have the potential to earn extra income from the difference between the rate earned on the Fund's long-term portfolio and the short-term rate paid to preferred shareholders. As of the end of May 1999, NPW had provided shareholders with steady or increasing income for 52 consecutive months. The market yield for the Fund was a competitive 5.80%, equivalent to a taxable yield(4) of 8.41% for investors in the 31% federal income tax bracket. WHAT KEY STRATEGIES WERE USED TO MANAGE NPW DURING THE PAST 12 MONTHS? Over the past year, our management strategies focused on maintaining and enhancing the income level of the Fund. As part of these strategies, we made the decision to hold bonds purchased during prior periods of higher interest rates. If we had sold these bonds in an effort to capture slightly higher total returns, we would have faced replacing the sold bonds with lower-yielding issues currently available in the marketplace. This, in turn, would have negatively affected the monthly dividend. Providing stable tax-free income is NPW's main goal. In a market where municipal supply is down, like our current period, finding municipal issues that can add value can be challenging. However, by working in tandem with Nuveen's research department, we were able to add a bond to NPW's portfolio that we feel has the potential to provide incremental yield to the Fund. This issue was very research-intensive in terms of structure and credit quality and serves as an example of the high-quality, lower-rated credits that we purchase as part of our focus on income. The Spokane Downtown Foundation planned to issue parking revenue bonds to finance the renovation and expansion of a parking garage in River Park Square. However, the plan sparked controversy, and eventually a legal challenge, over the city council's authority to pledge parking meter revenues for this project. The challenge was ultimately resolved in the issuer's favor but impacted the pricing of the issue. The significant time we spent researching this offering resulted in good value for our share-holders, as we were able to purchase these BBB- bonds in September 1998 for attractive prices while capturing incremental yield for the Fund. Overall, the Fund continues to offer excellent credit quality. At the end of May 1999, NPW had 94% of its portfolio invested in bonds rated AAA and AA, with a 3% allocation of BBB and non-rated bonds, which generally provide higher levels of yield. In the area of bond calls, the Fund currently offers good levels of call protection, with only 4% of its portfolio subject to calls prior to 2002. This should provide some protection for the Fund's dividend over this period. To minimize the impact of any future calls, we are already at work on strategies for managing through this period. WHAT IS NUVEEN'S OUTLOOK FOR NPW? Pending approval of the shareholder vote scheduled for July 28, 1999, which Mr. Schwertfeger discussed in his letter to shareholders on page 1 of this report, our focus will remain on supporting NPW's income stream as the major component of its total return. If the vote to have NPW merge into the Nuveen Premium Income Municipal Fund 4, Inc. (NPT) is successful, the reorganization of those two funds is scheduled to take place August 12, 1999. The combined fund will continue to pursue the same investment objective as NPW currently does, which is to provide shareholders with dependable levels of tax-free income and attractive after-tax total returns. Whether or not the vote is successful, we will remain conservative in our approach to duration, maturity, and interest rate risk. As an experienced investment manager knowledgeable about the unique aspects of the municipal market, we are in the marketplace every day, monitoring market dynamics, looking for opportunities, and capitalizing on them to the benefit of shareholders. 1 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. 2 The Lipper Peer Group return represents the average annualized total return of the 18 funds in the Lipper Other States Municipal Debt category. The return assumes reinvestment of dividends and does not reflect any applicable sales charges. 3 NPW is compared with the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. The return for the Lehman index does not reflect any initial or ongoing expenses. 4 Taxable-equivalent yield repre-sents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The rate is based on the federal income tax rate of 31%. Nuveen Washington Premium Income Municipal Fund Performance Overview As of May 31, 1999 NPW Portfolio Statistics - -------------------------------------------------- Inception Date 3/93 Share Price $13 7/16 Net Asset Value $14.88 Market Yield 5.80% Taxable-Equivalent Yield (Federal Tax Rate)(1) 8.41% Fund Net Assets ($000) $51,524 Effective Maturity (Years) 17.27 Leverage-Adjusted Duration 9.79 - -------------------------------------------------- Annualized Total Return On Share Price On NAV - -------------------------------------------------- 1-Year 4.10% 3.97% 5-Year 7.87% 8.49% Since Inception 3.99% 6.37% - -------------------------------------------------- Taxable-Equivalent Total Return(2) On Share Price On NAV - -------------------------------------------------- 1-Year 6.72% 6.34% 5-Year 10.71% 11.01% Since Inception 6.64% 8.80% - -------------------------------------------------- Top Five Sectors (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 22% Utilities 14% Healthcare 12% Water and Sewer 12% U.S. Guaranteed 10% - -------------------------------------------------- 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The rate is based on the current market yield and a federal income tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Bar Chart: 1998-1999 Monthly Tax-Free Dividends Per Share 6/98 0.063 7/98 0.063 8/98 0.065 9/98 0.065 10/98 0.065 11/98 0.065 12/98 0.065 1/99 0.065 2/99 0.065 3/99 0.065 4/99 0.065 5/99 0.065 Line Chart: Share Price Performance 6/5/98 13.625 15.563 13.563 13.688 13.875 13.813 13.938 13.75 13.625 14.125 14.063 14 14.25 14.188 14.125 14.25 14.25 14.5 14.375 14.25 14.44 14.44 14.31 14.75 14.88 14.75 14.75 14.88 14.81 14.63 14.31 14.25 14.31 14.75 14.5 14.38 14.38 14.38 14.63 14.63 14.5 14.625 14.31 14.38 14.5 14.25 14.19 13.31 5/31/99 13.44 Weekly Closing Price Past performance is not predictive of future results. Shareholder Meeting Report The Shareholder Meeting was held November 18, 1998 in Chicago at Nuveen's headquarters.
NTC NMT - ------------------------------------------------------------------------------------------------------------------------------------ Approval of the Trustees was reached as follows: Preferred Preferred Common Shares Common Shares Shares Series-TH Shares Series-TH ==================================================================================================================================== Robert P. Bremner For 4,710,576 1,532 4,375,512 1,336 Withhold 31,294 -- 35,943 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,741,870 1,532 4,411,455 1,349 ==================================================================================================================================== Lawrence H. Brown For 4,710,576 1,532 4,395,512 1,336 Withhold 31,294 -- 15,943 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,741,870 1,532 4,411,455 1,349 ==================================================================================================================================== Anthony T. Dean* For 4,710,576 1,532 4,375,512 1,336 Withhold 31,294 -- 35,943 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,741,870 1,532 4,411,455 1,349 ==================================================================================================================================== Anne E. Impellizzeri For 4,711,126 1,532 4,392,213 1,336 Withhold 30,744 -- 19,242 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,741,870 1,532 4,411,455 1,349 ==================================================================================================================================== Peter R. Sawers For 4,710,576 1,532 4,395,512 1,336 Withhold 31,294 -- 15,943 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,741,870 1,532 4,411,455 1,349 ==================================================================================================================================== William J. Schneider For -- 1,532 -- 1,336 Withhold -- -- -- 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,532 -- 1,349 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,532 -- 1,336 Withhold -- -- -- 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,532 -- 1,349 ==================================================================================================================================== Judith M. Stockdale For 4,710,926 1,532 4,396,145 1,336 Withhold 30,944 -- 15,310 13 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,741,870 1,532 4,411,455 1,349 ==================================================================================================================================== Ratification of auditors was reached as follows: For 4,710,190 1,532 4,401,758 1,332 Against 6,321 -- 943 16 Abstain 25,359 -- 8,754 1 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,741,870 1,532 4,411,455 1,349 ==================================================================================================================================== *Mr. Dean retired from the Board, effective May 1, 1999. Shareholder Meeting Report NOM NPW - ------------------------------------------------------------------------------------------------------------------------------------ Approval of the Trustees was reached as follows: Preferred Preferred Common Shares Common Shares Shares Series-TH Shares Series-TH ==================================================================================================================================== Robert P. Bremner For 1,772,247 561 2,153,405 680 Withhold 162,743 -- 6,734 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,934,990 561 2,160,139 680 ==================================================================================================================================== Lawrence H. Brown For 1,772,447 561 2,153,405 680 Withhold 162,543 -- 6,734 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,934,990 561 2,160,139 680 ==================================================================================================================================== Anthony T. Dean* For 1,772,447 561 2,152,805 680 Withhold 162,543 -- 7,334 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,934,990 561 2,160,139 680 ==================================================================================================================================== Anne E. Impellizzeri For 1,772,147 561 2,152,805 680 Withhold 162,843 -- 7,334 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,934,990 561 2,160,139 680 ==================================================================================================================================== Peter R. Sawers For 1,772,147 561 2,153,405 680 Withhold 162,843 -- 6,734 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,934,990 561 2,160,139 680 ==================================================================================================================================== William J. Schneider For -- 561 -- 680 Withhold -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 561 -- 680 ==================================================================================================================================== Timothy R. Schwertfeger For -- 561 -- 680 Withhold -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 561 -- 680 ==================================================================================================================================== Judith M. Stockdale For 1,772,447 561 2,153,405 680 Withhold 162,543 -- 6,734 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,934,990 561 2,160,139 680 ==================================================================================================================================== Ratification of auditors was reached as follows: For 1,769,746 561 2,145,980 680 Against 158,681 -- -- -- Abstain 6,563 -- 14,159 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,934,990 561 2,160,139 680 ==================================================================================================================================== *Mr. Dean retired from the Board, effective May 1, 1999.
Report of Independent Auditors 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, 1999, 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 responsibility 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, 1999, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Nuveen Connecticut Premium Income Municipal Fund, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Missouri Premium Income Municipal Fund and Nuveen Washington Premium Income Municipal Fund, as of May 31, 1999, 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. /s/ Ernst & Young LLP Chicago, Illinois July 16, 1999 Portfolio of Investments Nuveen Connecticut Premium Income Municipal Fund (NTC) May 31, 1999
Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 15.0% Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), 1996 Series A: $ 1,520,000 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102 AAA $1,611,474 965,000 5.875%, 11/15/17 (Alternative Minimum Tax) 11/06 at 102 AAA 990,322 1,540,000 State of Connecticut, Health and Educational Facilities Authority, 7/03 at 102 BBB- 1,580,502 Revenue Bonds, Quinnipiac College Issue Series D, 6.000%, 7/01/23 2,000,000 State of Connecticut, Health and Educational Facilities Authority, 7/06 at 102 AAA 2,113,620 Revenue Bonds, Trinity College Issue, Series E, 5.875%, 7/01/26 2,040,000 State of Connecticut, Health and Educational Facilities Authority, 7/06 at 102 AAA 2,087,491 Revenue Bonds, The Loomis Chaffee School Issue, Series C, 5.500%, 7/01/16 2,250,000 State of Connecticut, Health and Educational Facilities 7/08 at 102 AAA 2,193,008 Authority, Revenue Bonds, Fairfield University Issue, Series H, 5.000%, 7/01/23 2,920,000 State of Connecticut, Health and Educational Facilities 7/07 at 102 AAA 3,021,587 Authority, Revenue Bonds, Connecticut College Issue, Series C-1, 5.500%, 7/01/20 3,810,000 The University of Connecticut, Student Fee Revenue Bonds, 11/08 at 101 AAA 3,538,042 1998 Series A, 4.750%, 11/15/27 - --------------------------------------------------------------------------------------------------------------------------------- Health Care - 23.5% 1,000,000 State of Connecticut Health and Educational Facilities Authority, 7/04 at 102 AAA 1,087,160 Revenue Bonds, Newington Children's Hospital, Series A, 6.050%, 7/01/10 1,500,000 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102 AAA 1,445,220 Revenue Bonds, Lawrence and Memorial Hospital Issue, Series D, 5.000%, 7/01/22 2,000,000 State of Connecticut Health and Educational Facilities Authority, No Opt. Call AAA 2,104,200 Revenue Bonds, Hospital of Saint Raphael Issue, Series H, 5.200%, 7/01/08 2,725,000 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 2,931,337 Revenue Bonds, Saint Francis Hospital and Medical Center Issue, Series B, 6.200%, 7/01/22 5,000,000 State of Connecticut Health and Educational Facilities Authority 7/09 at 101 Aaa 4,823,150 Revenue Bonds, Stamford Hospital Issue, Series G, 5.000%, 7/01/24 2,200,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 AAA 2,212,452 Revenue Bonds, Day Kimball Hospital Issue Series A, 5.375%, 7/01/26 4,160,000 State of Connecticut, Health and Educational Facilities Authority, 7/06 at 102 AAA 4,306,390 Revenue Bonds, Yale-New Haven Hospital Issue, Series H, 5.625%, 7/01/16 1,000,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102 AAA 1,046,310 Revenue Bonds, The William W. Backus Hospital Issue, Series D, 5.750%, 7/01/27 3,000,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 101 Aaa 2,925,720 Revenue Bonds, Middlesex Health Services Issue, Series I, 5.125%, 7/01/27 2,000,000 Connecticut Development Authority, Solid Waste Disposal 7/05 at 102 AAA 2,295,960 Facilities Revenue Bonds, Pfizer Inc. Project, 1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax) 1,500,000 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101 1/2 AAA 1,629,765 Environmental Control Facilities Financing Authority, Hospital Revenue Refunding Bonds 1995, Series A, FHA Insured Mortgage (Pila Hospital Project), 6.125%, 8/01/25 - --------------------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 5.8% 3,000,000 Housing Authority of the City of Waterbury, Connecticut, Mortgage 1/02 at 100 AAA 3,014,910 Refunding Revenue Bonds, Series 1998C (FHA Insured Mortgage Loan Waterbury NSA-II Section 8 Assisted Project), 5.450%, 7/01/23 1,310,000 Waterbury Nonprofit Housing Corporation, Connecticut, Taxable 7/02 at 101 AAA 1,388,390 Mortgage Revenue Refunding Bonds, FHA Insured Mortgage Loan - Fairmont Height Section 8 Assisted Project, Series 1993A, 6.500%, 7/01/07 Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Housing/Multifamily (continued) $ 1,930,000 Housing Authority of the City of Willimantic, Multifamily Housing 10/05 at 105 AAA $2,205,160 Revenue Bonds, Series 1995A, GNMA Collateralized Mortgage Loan (Village Heights Apartments Project), 8.000%, 10/20/30 - --------------------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 5.2% 3,175,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/03 at 102 AA 3,359,087 Program, Series B, 6.200%, 5/15/12 2,345,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/06 at 102 AA 2,488,209 Program Bonds, 1996 Subseries E-2, 6.150%, 11/15/27 (Alternative Minimum Tax) - --------------------------------------------------------------------------------------------------------------------------------- Long-Term Care - 5.2% 1,300,000 State of Connecticut Health and Educational Facilities Authority, 8/08 at 102 AAA 1,254,643 Revenue Bonds, Hebrew Home and Hospital Issue, Series B (FHA Insured Mortgage), 5.200%, 8/01/38 2,000,000 State of Connecticut Health and Educational Facilities Authority, 11/03 at 102 AAA 2,156,660 Revenue Bonds, Nursing Home Program Issue, Series 1993, Mansfield Center for Nursing and Rehabilitation Project, 5.875%, 11/01/12 Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, Series 1994A: 1,300,000 6.875%, 8/15/04 No Opt. Call N/R 1,369,589 1,000,000 7.000%, 8/15/09 8/04 at 102 N/R 1,068,890 - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 9.3% 1,750,000 State of Connecticut, General Obligation Bonds, 1993 Series D, 8/03 at 101 1/2 AA 1,785,613 5.100%, 8/01/11 2,000,000 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA 2,238,540 6.000%, 3/15/12 1,650,000 State of Connecticut, General Fund Obligation Bonds, 10/04 at 102 AA- 1,828,530 1994 Series A, Issued by Connecticut Development Authority, 6.375%, 10/15/14 3,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds 7/08 at 101 AAA 3,360,840 of 1998 (General Obligation Bonds), 4.875%, 7/01/23 1,250,000 City of Waterbury Connecticut, General Obligation Tax Revenue 4/03 at 102 AAA 1,299,025 Intercept Refunding Bonds, 1993 Issue, 5.375%, 4/15/08 - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 3.7% 1,900,000 Capitol Region Education Council, Connecticut, Bonds, 10/05 at 102 BBB 2,072,197 6.700%, 10/15/10 1,800,000 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 2,087,010 Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10 - --------------------------------------------------------------------------------------------------------------------------------- Transportation - 4.5% 3,000,000 State of Connecticut, Airport Revenue Refunding Bonds, Bradley 10/04 at 100 AAA 3,461,700 International Airport, Series 1992, 7.650%, 10/01/12 1,500,000 City of New Haven, Connecticut, Air Rights Parking Facility 12/01 at 102 AAA 1,616,895 Revenue Bonds, Series 1991, 6.500%, 12/01/15 - --------------------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed - 11.4% State of Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart University Issue, Series B: 2,600,000 5.700%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 BBB-*** 2,802,748 1,000,000 5.800%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 BBB-*** 1,081,720 2,020,000 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102 AAA 2,184,670 Revenue Bonds, Trinity College Issue, Series C, 6.000%, 7/01/22 (Pre-refunded to 7/01/02) 2,910,000 State of Connecticut, Health and Educational Facilities Authority, 7/03 at 102 BBB-*** 3,169,543 Revenue Bonds, Quinnipiac College Issue Series D, 6.000%, 7/01/23 (Pre-refunded to 7/01/03) 2,000,000 State of Connecticut Health and Educational Facilities Authority, 11/04 at 102 AA-*** 2,318,840 Revenue Bonds, Nursing Home Program Issue, Series 1994, AHF/Hartford, Inc. Project, 7.125%, 11/01/24 (Pre-refunded to 11/01/04) 1,250,000 State of Connecticut, Health and Educational Facilities Authority, 7/04 at 101 AAA 1,428,575 Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%, 7/01/25 (Pre-refunded to 7/01/04) Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Utilities - 7.7% $ 3,250,000 Connecticut Municipal Electric Energy Cooperative, Power Supply 1/04 at 102 AAA $3,178,663 System Revenue Bonds, 1993 Series A, 5.000%, 1/01/18 2,200,000 Connecticut Resources Recovery Authority, Bridgeport Resco 7/99 at 102 A 2,280,740 Company, L.P. Project Bonds, Series A, 7.625%, 1/01/09 3,100,000 Connecticut Resources Recovery Authority, Resource Recovery 11/99 at 103 AA 3,226,604 Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut Project 1989 Series A, 7.700%, 11/15/11 - --------------------------------------------------------------------------------------------------------------------------------- Water and Sewer - 6.6% 2,795,000 Connecticut Development Authority, Water Facilities Revenue 6/03 at 102 AAA 2,851,319 Bonds, Bridgeport Hydraulic Company Project, Series 1993A, 5.600%, 6/01/28 (Alternative Minimum Tax) 1,400,000 Connecticut Development Authority, Water Facilities Refunding 6/03 at 102 AAA 1,429,750 Revenue Bonds, Bridgeport Hydraulic Company Project, 1993B Series, 5.500%, 6/01/28 1,000,000 State of Connecticut, Clean Water Fund, Subordinate Revenue 1/05 at 101 AAA 1,037,690 Refunding Bonds, 1996 Series, 5.250%, 7/01/10 2,000,000 South Central Connecticut Regional Water Authority, Water 8/03 at 102 AAA 2,137,159 System Revenue Bonds, Eleventh Series, 5.750%, 8/01/12 - --------------------------------------------------------------------------------------------------------------------------------- $ 106,365,000 Total Investments - (cost $105,702,958) - 97.9% 111,127,619 ============= Other Assets Less Liabilities - 2.1% 2,337,160 ----------------------------------------------------------------------------------------------------------------- Net Assets - 100% $113,464,779 ================================================================================================================= * 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. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Portfolio of Investments Nuveen Massachusetts Premium Income Municipal Fund (NMT) May 31, 1999
Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 19.5% $ 795,000 Massachusetts Educational Financing Authority, Education Loan 7/04 at 102 AAA $ 831,029 Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10 (Alternative Minimum Tax) 1,970,000 Massachusetts Health and Educational Facilities Authority, 6/03 at 102 AAA 1,970,493 Revenue Bonds, Boston College Issue, Series K, 5.250%, 6/01/23 1,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds 3/06 at 102 AAA 1,543,425 (College of the Holy Cross - 1996 Issue), 5.500%, 3/01/20 2,645,000 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102 Aa1 2,536,529 (Whitehead Institute for Biomedical Research - 1993 Issue), 5.125%, 7/01/26 3,500,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 102 AA+ 3,558,870 Phillips Academy Issue, Series 1993, 5.375%, 9/01/23 3,300,000 Massachusetts Industrial Finance Agency, Education 9/08 at 101 A 3,187,338 Revenue Bonds (Belmont Hill School Issue - Series 1998), 5.250%, 9/01/28 1,765,000 The New England Education Loan Marketing Corporation, No Opt. Call A3 1,881,190 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 Loan No Opt. Call A3 4,483,520 Revenue Bonds, 1992 Subordinated Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax) - --------------------------------------------------------------------------------------------------------------------------------- Health Care - 17.3% 4,000,000 Massachusetts Health and Educational Facilities Authority, 7/04 at 102 AAA 4,002,120 Revenue Bonds, New England Medical Center Hospitals Issue, Series G-1, 5.375%, 7/01/24 2,000,000 Massachusetts Health and Educational Facilities Authority, 7/04 at 102 AA+ 2,135,820 Revenue Bonds (Daughters of Charity National Health System - The Carney Hospital), Series D, 6.100%, 7/01/14 1,000,000 Massachusetts Health and Educational Facilities Authority, 7/00 at 100 AAA 1,040,720 Revenue Bonds, Massachusetts General Hospital Issue, Series G, 5.375%, 7/01/11 3,000,000 Massachusetts Health and Educational Facilities Authority, 7/03 at 102 AAA 3,079,050 Revenue Bonds, Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15 400,000 Massachusetts Health and Educational, Facilities Authority, 7/99 at 102 1/2 N/R 407,776 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: 2,340,000 6.125%, 2/15/15 2/04 at 102 Aa 2,431,705 1,000,000 6.000%, 2/15/25 2/04 at 102 Aa 1,026,580 2,805,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 102 AAA 2,655,185 Revenue Bonds, Caregroup Issue, Series A, 5.000%, 7/01/25 1,000,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 101 AAA 916,600 Revenue Bonds, Harvard Pilgrim Health Care Issue, Series A, 4.750%, 7/01/22 - --------------------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 12.3% 3,800,000 Massachusetts Housing Finance Agency, Housing Project Revenue 4/03 at 102 A+ 4,045,670 Bonds, 6.300%, 10/01/13 3,000,000 Massachusetts Housing Finance Agency, Housing Development 6/08 at 101 AAA 3,073,920 Bonds, 1998 Series A, 5.375%, 6/01/16 (Alternative Minimum Tax) 3,315,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/07 at 101 AAA 3,387,797 Revenue Bonds, 1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax) 1,925,000 Massachusetts Housing Finance Agency, Rental Housing 1/05 at 102 AAA 2,106,143 Mortgage Revenue Bonds, 1995 Series A (FHA Insured Mortgage Loans), 7.350%, 1/01/35 (Alternative Minimum Tax) Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Long-Term Care - 4.0% $ 1,270,000 City of Boston, Massachusetts, Revenue Bonds (Deutsches 10/08 at 105 AAA $1,348,575 Altenheim, Incorporated Project - FHA Insured Mortgage), Series 1998A, 6.125%, 10/01/31 1,000,000 Massachusetts Health and Educational Facilities Authority 2/07 at 102 Aa2 1,065,440 Revenue Refunding Bonds, Youville Hospital Issue (FHA Insured Project), Series A, 6.250%, 2/15/41 1,125,000 Massachusetts Industrial Financial Agency, Revenue Bonds, 2/06 at 102 AAA 1,176,716 Heights Crossing Limited Partnership Issue (FHA Insured Project), Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) 500,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 8/07 at 105 AAA 538,890 Briscoe House Assisted Living Issue (FHA Insured Project), 6.050%, 2/01/17 (Alternative Minimum Tax) - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 7.7% Town of Barnstable, Massachusetts, General Obligation Bonds: 1,020,000 5.750%, 9/15/10 9/04 at 102 AA 1,102,069 1,020,000 5.750%, 9/15/11 9/04 at 102 AA 1,104,599 965,000 5.750%, 9/15/12 9/04 at 102 AA 1,027,744 4,375,000 City of Lowell, Massachusetts, General Obligation State 11/03 at 102 AAA 4,631,856 Qualified Bonds, 5.600%, 11/01/12 - --------------------------------------------------------------------------------------------------------------------------------- Transportation - 6.6% 4,000,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102 AAA 4,193,240 (US Air Project), Series 1996-A, 5.750%, 9/01/16 (Alternative Minimum Tax) 2,500,000 Massachusetts Industrial Finance Agency, Parking Facility 4/03 at 102 AAA 2,519,725 Revenue Bonds (Avon Associates LLC Project), Series 1998A, 5.375%, 4/01/20 - --------------------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed - 20.3% 2,500,000 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 2,501,250 Revenue Bonds, Malden Hospital Issue (FHA Insured Project), Series A, 5.000%, 8/01/16 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Deaconess Hospital Issue, Series D: 3,310,000 6.625%, 4/01/12 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 3,612,799 1,000,000 6.875%, 4/01/22 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 1,098,140 1,000,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, No Opt. Call AAA 1,644,540 13.000%, 7/01/13 2,500,000 Massachusetts Industrial Finance Agency, Revenue Refunding 11/02 at 102 AA-*** 2,743,275 Bonds, College of the Holy Cross - 1992 Issue II, 6.375%, 11/01/15 (Pre-refunded to 11/01/02) 1,300,000 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/02 at 102 AAA 1,446,627 Merrimack College Issue, Series 1992, 7.125%, 7/01/12 (Pre-refunded to 7/01/02) 1,175,000 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102 A3*** 1,278,999 (Brooks School Issue), Series 1993, 5.950%, 7/01/23 (Pre-refunded to 7/01/03) 3,000,000 Massachusetts Water Resources Authority, General Revenue 12/01 at 100 Aaa 3,148,590 Bonds, 1991 Series A, 5.750%, 12/01/21 (Pre-refunded to 12/01/01) 3,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/01 at 102 Aaa 3,259,620 Series P, 7.000%, 7/01/21 (Pre-refunded to 7/01/01) - --------------------------------------------------------------------------------------------------------------------------------- Utilities - 7.5% 2,000,000 Massachusetts Municipal Wholesale Electric Company, 7/02 at 100 AAA 2,100,600 Power Supply System Revenue Bonds, 1992 Series A, 6.000%, 7/01/18 3,275,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,607,740 Revenue Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 2,000,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 1,974,800 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Water and Sewer - 2.8% $ 3,000,000 Massachusetts Water Resources Authority, General Revenue 3/03 at 100 A+ $2,860,620 Refunding Bonds, 1993 Series B, 5.000%, 3/01/22 - --------------------------------------------------------------------------------------------------------------------------------- $ 95,895,000 Total Investments - (cost $94,709,231) - 98.0% 100,287,934 ============= Other Assets Less Liabilities - 2.0% 2,000,141 ----------------------------------------------------------------------------------------------------------------- Net Assets - 100% $102,288,075 ================================================================================================================= * 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. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Portfolio of Investments Nuveen Missouri Premium Income Municipal Fund (NOM) May 31, 1999
Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Consumer Staples - 2.1% $ 1,000,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA $ 981,350 Revenue Bonds (Procter and Gamble Paper Products Company Project), Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) - --------------------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 5.5% 500,000 The Industrial Development Authority of the City of Kansas City, 4/07 at 100 AAA 519,645 Missouri (Ewing Marion Kauffman Foundation Project), Fixed Rate Revenue Bonds, Series 1997B, 5.700%, 4/01/27 2,165,000 Health and Educational Facilities Authority of the State of 11/08 at 101 AA+ 2,043,587 Missouri, Educational Facilities Revenue Bonds (The Washington University), Series 1998A, 5.000%, 11/15/37 - --------------------------------------------------------------------------------------------------------------------------------- Health Care - 9.6% 1,000,000 Health and Educational Facilities Authority of the State of Missouri, 6/02 at 102 AAA 1,080,040 Health Facilities Refunding Revenue Bonds (SSM Health Care), Series 1992A, 6.250%, 6/01/07 1,000,000 Health and Educational Facilities Authority, of the State of Missouri, No Opt. Call AA 1,181,780 Health Facilities Revenue Bonds (BJC Health System), Series 1994A, 6.750%, 5/15/12 325,000 Health and Educational Facilities Authority of the State of Missouri, 2/06 at 102 BBB+ 344,689 Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital Inc.), Series 1996, 6.500%, 2/15/21 400,000 Health and Educational Facilities Authority of the State of Missouri, 5/08 at 101 AA 376,972 Health Facilities Revenue Bonds (BJC Health System), Series 1998, 5.000%, 5/15/28 1,000,000 Ray County, Missouri Hospital Revenue Bonds (Ray County 5/05 at 101 1/2 N/R 999,420 Memorial Hospital), Series 1997, 5.750%, 11/15/12 500,000 The Industrial Development Authority of the City of West Plains, 11/07 at 101 BBB- 493,760 Missouri Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1997, 5.600%, 11/15/17 - --------------------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 14.2% 650,000 The Industrial Development Authority of the City of Kansas City, 2/08 at 102 AAA 659,887 Missouri, Multifamily Housing Revenue Refunding Bonds (President Gardens Apartment Project), Series 1997A, 5.550%, 8/01/25 1,550,000 Missouri Housing Development Commission, Multifamily Housing 12/06 at 102 AAA 1,632,212 Revenue Bonds (Brookstone Village Apartments Project), 1996 Series A, 6.100%, 12/01/21 (Alternative Minimum Tax) 1,250,000 The Industrial Development Authority of St. Charles County, 4/08 at 102 AAA 1,276,388 Missouri Multifamily Housing Revenue Bonds (Ashwood Apartments Project), Series 1998A, 5.600%, 4/01/30 (Alternative Minimum Tax) 1,045,000 The Industrial Development Authority of the County of St. Louis, 4/07 at 102 AAA 1,110,783 Missouri, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - South Summit Apartments Project), Series 1997A, 5.950%, 4/20/17 600,000 Multifamily Housing Revenue Refunding Bonds (GNMA 4/07 at 102 AAA 632,454 Collateralized - South Summit Apartments Project), Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax) 1,250,000 The Industrial Development Authority of The City of University 12/05 at 102 AAA 1,299,288 City, Missouri, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized - Canterbury Gardens Project), Series 1995A, 5.900%, 12/20/20 - --------------------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 8.0% 1,610,000 Missouri Housing Development Commission, Single Family 3/06 at 105 AAA 1,804,874 Mortgage Revenue Bonds (Homeownership Loan Program), 1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax) 1,835,000 Missouri Housing Development Commission, Single Family 2/01 at 102 AAA 1,917,832 Mortgage Revenue Bonds (GNMA Mortgage-Back Securities Program), 1991 Series A, 7.375%, 8/01/23 (Alternative Minimum Tax) Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 16.9% $ 2,020,000 Ritenour School District of St. Louis County, Missouri, General No Opt. Call AAA $2,485,267 Obligation School Bonds, Series 1995, 7.375%, 2/01/12 1,500,000 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 1,819,605 General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08 1,000,000 School District of the City of St. Charles, Missouri, General 3/06 at 100 AA 1,050,470 Obligation Bonds (Missouri Direct Deposit Program), Series 1996A, 5.625%, 3/01/14 1,395,000 The Board of Education of the City of St. Louis, Missouri, No Opt. Call AAA 1,760,141 General Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07 625,000 Reorganized School District No. R-IV of Stone County, Reeds No Opt. Call AAA 785,200 Spring, Missouri, General Obligation School Building Refunding and Improvement Bonds, Series 1995, 7.600%, 3/01/10 - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 14.3% 1,000,000 Fort Zumwalt School District Improvement Corporation, Leasehold 3/07 at 100 Aaa 1,034,400 Revenue Bonds, Fort Zumwalt S.D., St. Charles County, Series 1997, 5.600%, 3/01/17 1,000,000 Land Clearance for Redevelopment Authority, of Kansas City, Missouri, 12/05 at 102 AAA 1,063,690 Lease Revenue Bonds (Municipal Auditorium and Muehlebach Hotel Redevelopment Project), Series 1995A, 5.900%, 12/01/18 1,000,000 Kansas City Municipal Assistance Corporation, Leasehold Revenue 1/06 at 101 AAA 1,056,610 Capital Improvement Bonds, Kansas City, Missouri, Lessee, Series 1996B, 5.700%, 1/15/13 1,500,000 St. Louis Municipal Finance Corporation, Leasehold Revenue 7/03 at 102 A1 1,563,300 Refunding Bonds, 5.850%, 7/15/09 1,800,000 St. Louis Municipal Finance Corporation City of St. Louis, 2/06 at 102 AAA 1,926,414 Missouri, City Justice Center, Leasehold Revenue Improvement Bonds, Series 1996A, 5.750%, 2/15/11 - --------------------------------------------------------------------------------------------------------------------------------- Transportation - 6.0% 1,500,000 City of Kansas City, Missouri, General Improvement Airport 9/04 at 101 AAA 1,676,400 Revenue Bonds, Series 1994A, 6.900%, 9/01/11 (Alternative Minimum Tax) 1,000,000 The City of St. Louis, Missouri, Airport Revenue Bonds No Opt. Call AAA 1,099,730 Series 1997B (1997 Capital Improvement Program), Lambert- St. Louis International Airport, 6.000%, 7/01/12 (Alternative Minimum Tax) - --------------------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed - 11.0% 675,000 Health and Educational Facilities Authority of the State of 2/06 at 102 BBB+*** 765,173 Missouri, Health Facilities Revenue Bonds (Lake of the Ozarks General Hospital Inc.), Series 1996, 6.500%, 2/15/21 (Pre-refunded to 2/15/06) 1,290,000 Health and Educational Facilities Authority of the State of 6/00 at 102 AAA 1,363,272 Missouri, Health Facilities Revenue Bonds (SSM Health Care Obligated Group Projects), Series 1990B, 7.000%, 6/01/15 1,500,000 Certificates of Receipt, Series 1993, St. Louis County, No Opt. Call AAA 1,582,800 Missouri, GNMA Collateralized Mortgage Revenue Bonds, Series 1989A (Escrowed with United States Governmental Obligations), 5.650%, 7/01/20 (Alternative Minimum Tax) 1,275,000 St. Louis Municipal Finance Corporation, City of St. Louis, 2/05 at 100 AAA 1,406,797 Missouri, Leasehold Revenue Improvement and Refunding Bonds, Series 1992, 6.250%, 2/15/12 (Pre-refunded to 2/15/05) - --------------------------------------------------------------------------------------------------------------------------------- Water and Sewer - 10.6% 1,225,000 State Environmental Improvement and Energy Resources 1/05 at 102 Aa1 1,442,928 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 1,070,360 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 Aa1 1,057,229 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 413,370 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 Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Water and Sewer (continued) $ 1,000,000 Public Water Supply District No. 2 of St. Charles County, 12/09 at 100 Aaa $ 976,559 Missouri, Insured Certificates of Participation, Series 1999B, 5.100%, 12/01/25 - --------------------------------------------------------------------------------------------------------------------------------- $ 42,335,000 Total Investments - (cost $43,387,586) - 98.2% 45,754,676 ============= Other Assets Less Liabilities - 1.8% 847,929 ----------------------------------------------------------------------------------------------------------------- Net Assets - 100% $46,602,605 ================================================================================================================= * 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. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements.
Portfolio of Investments Nuveen Washington Premium Income Municipal Fund (NPW) May 31, 1999
Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Education and Civic Organizations - 5.0% $ 1,000,000 University of Washington, Housing and Dining System Revenue 12/06 at 102 AAA $ 998,890 Refunding Bonds, Junior Lien Series 1996, 5.125%, 12/01/15 1,400,000 Washington State University, Housing and Dining System Revenue 10/04 at 101 AAA 1,535,044 and Refunding Bonds, Series 1994, 6.375%, 10/01/18 65,000 Western Washington University, Housing and Dining System 10/02 at 101 AAA 69,874 Revenue Bonds, Series 1992, 6.375%, 10/01/22 - --------------------------------------------------------------------------------------------------------------------------------- Health Care - 11.7% 1,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/04 at 102 AA- 1,026,250 Series 1993A (The Heart Institute of Spokane), 5.800%, 8/15/18 2,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/02 at 102 AAA 2,174,180 Series 1992 (The Children's Hospital and Medical Center, Seattle), 6.125%, 10/01/13 2,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/08 at 102 AA 1,876,140 Series 1998 (Highline Community Hospital), 5.000%, 8/15/21 1,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 940,760 Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28 - --------------------------------------------------------------------------------------------------------------------------------- Housing/Multifamily - 6.0% 2,000,000 Housing Authority of the County of King Washington, Housing 5/05 at 100 AA+ 2,086,920 Revenue Bonds, Series 1995 (Woodridge Park Project), 6.350%, 5/01/25 (Alternative Minimum Tax) 960,000 Washington State Housing Finance Commission, Multifamily 1/00 at 102 AAA 990,538 Mortgage Revenue Bonds (GNMA Mortgage Backed Securities Program), Series 1989A, 7.700%, 7/01/32 (Alternative Minimum Tax) - --------------------------------------------------------------------------------------------------------------------------------- Housing/Single Family - 4.3% 1,565,000 Washington State Housing Finance Commission, Single-Family No Opt. Call AAA 1,709,403 Mortgage Revenue Bonds (Mortgage Backed Securities Program), Series 1992D-1, 6.150%, 1/01/26 (Alternative Minimum Tax) 470,000 Washington State Housing Finance Commission, Single Family 6/07 at 102 Aaa 493,383 Program Bonds, 1997 Series 2A, 6.050%, 12/01/16 - --------------------------------------------------------------------------------------------------------------------------------- Long-Term Care - 3.5% 1,640,000 Housing Authority of Skagit County, Low-Income Housing 11/04 at 104 AAA 1,788,748 Assistance Revenue Bonds, Series 1993 (GNMA Collateralized Mortgage Loan - Sea Mar Project), 7.000%, 6/20/35 - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/General - 21.6% 1,655,000 City of Everett, Washington, Limited Tax General Obligation 9/07 at 100 Aaa 1,641,313 Bonds, Series 1997, 5.125%, 9/01/17 1,000,000 Federal Way School District No. 210, King County, Washington, No Opt. Call AAA 1,092,070 Unlimited Tax General Obligation and Refunding Bonds, Series 1993, 5.750%, 12/01/12 1,360,000 Tacoma School District No. 409, King County, Washington, No Opt. Call Aaa 1,516,414 Unlimited Tax General Obligation Improvement and Refunding Bonds, Series 1997, 6.000%, 12/01/10 1,000,000 Peninsula School District No. 401, Pierce County, Washington, No Opt. Call AAA 1,070,670 Unlimited Tax General Obligation Refunding Bonds, Series 1993, 5.500%, 12/01/08 1,000,000 The City of Renton, Washington, Limited Tax General Obligation 6/07 at 100 AAA 1,049,330 Bonds, General Purpose/Public Improvement Bonds, Series 1997B, 5.750%, 12/01/17 1,500,000 Mukilteo School District No. 6, Snohomish County, Washington, No Opt. Call AAA 1,635,390 Unlimited Tax General Obligation and Refunding Bonds, Series 1993, 5.700%, 12/01/12 Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 500,000 Edmonds School District No. 15, Snohomish County, Washington, No Opt. Call AA- $ 572,710 Unlimited Tax General Obligation Bonds, Series 1994, 6.500%, 12/01/08 980,000 Central Valley School District No.356, Spokane County, Washington, No Opt. Call AAA 419,254 Unlimited Tax Deferred Interest General Obligation Bonds, Series 1998B, 0.000%, 12/01/15 2,000,000 State of Washington, General Obligation Bonds, Series 1994B, 5/04 at 100 AA+ 2,119,800 6.000%, 5/01/19 - --------------------------------------------------------------------------------------------------------------------------------- Tax Obligation/Limited - 3.6% Seattle Indian Services Commission, Special Obligation Bonds, Series 1994: 1,000,000 6.000%, 11/01/16 11/04 at 100 AA+ 1,067,740 750,000 6.150%, 11/01/24 11/04 at 100 AA+ 808,688 - --------------------------------------------------------------------------------------------------------------------------------- Transportation - 7.9% 1,300,000 Port of Seattle, Washington, Revenue Bonds, Series 1996A, 9/06 at 101 AAA 1,324,492 5.500%, 9/01/21 1,000,000 Port of Vancouver, Clark County, Washington, Limited Tax General No Opt. Call AAA 1,090,520 Obligation Bonds, 1994 Series B, 6.000%, 12/01/04 (Alternative Minimum Tax) 1,675,000 Spokane Downtown Foundation, Parking Revenue Bonds, 8/08 at 102 BBB- 1,646,056 Series 1998 (River Park Square Project), 5.600%, 8/01/19 - --------------------------------------------------------------------------------------------------------------------------------- U.S. Guaranteed - 9.5% 1,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1990A, 12/00 at 100 AA-*** 1,037,100 6.000%, 12/01/14 (Pre-refunded to 12/01/00) 900,000 City of Richland, Washington, Water and Sewer Improvement 4/03 at 101 AAA 960,444 Revenue Bonds, Series 1993, 5.625%, 4/01/12 (Pre-refunded to 4/01/03) 1,250,000 Washington Health Care Facilities Authority, Revenue Refunding 7/02 at 102 AAA 1,371,013 Bonds, Series 1992 (Franciscan Health System/Saint Clare Hospital, Tacoma), 6.625%, 7/01/20 (Pre-refunded to 7/01/02) 1,400,000 Washington Health Care Facilities Authority, Revenue Bonds, 11/02 at 102 AAA 1,533,070 Series 1992 (Swedish Hospital Medical Center, Seattle), 6.300%, 11/15/22 (Pre-refunded to 11/15/02) - --------------------------------------------------------------------------------------------------------------------------------- Utilities - 14.3% 1,100,000 Public Utility District No. 1 of Klickitat County, Washington, 10/05 at 101 AAA 1,144,847 Electric Revenue Bonds, Series 1995, 5.650%, 10/01/15 1,000,000 Lewis County Public Utility District, Cowlitz Falls Hydroelectric 10/03 at 102 Aa1 1,016,220 Project, Revenue Refunding Bonds, Series 1993, 5.500%, 10/01/22 1,000,000 City of Seattle, Washington, Municipal Light and Power Revenue 10/06 at 102 AAA 1,032,180 Bonds, 5.625%, 10/01/21 500,000 The City of Seattle, Washington, Municipal Light and Power 8/02 at 102 AA 529,160 Revenue Bonds, Series 1992A, 5.750%, 8/01/12 1,385,000 Public Utility District No. 1 of Snohomish County, Washington, 1/04 at 102 A+ 1,451,757 Generation System Revenue Bonds, Series 1993B, 5.750%, 1/01/09 (Alternative Minimum Tax) 1,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/03 at 102 AAA 1,030,870 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 1,000,000 Washington Public Power Supply System, Nuclear Project No. 3, No Opt. Call Aa1 1,170,350 Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09 - --------------------------------------------------------------------------------------------------------------------------------- Water and Sewer - 11.4% 1,050,000 City of Bellevue, King County, Washington, Water and Sewer 7/04 at 100 Aa2 1,122,377 Revenue Refunding Bonds, 1994, 5.875%, 7/01/09 1,035,000 Covington Water District, King County, Washington, Water 3/05 at 100 AAA 1,104,852 Improvement and Refunding Revenue Bonds, 1995, 6.050%, 3/01/20 800,000 Kitsap County, Washington, Sewer Revenue Bonds, Series 1996, 7/06 at 100 AAA 846,912 5.750%, 7/01/16 Principal Optional Call Market Amount Description Provisions* Ratings** Value - --------------------------------------------------------------------------------------------------------------------------------- Water and Sewer (continued) $ 1,200,000 Sammamish Plateau Water and Sewer District, King County, 12/06 at 100 AAA $1,223,255 Washington, Water and Sewer Revenue Refunding Bonds, 1996, 5.500%, 12/01/16 500,000 The City of Seattle, Washington, Water System and Refunding 6/03 at 101 AA 492,879 Revenue Bonds, Series 1993, 5.250%, 12/01/23 1,000,000 Yakima-Tieton Irrigation District, Yakima County, Washington, 6/03 at 102 AAA 1,085,519 Refunding Revenue Bonds, Series 1992, 6.125%, 6/01/13 - --------------------------------------------------------------------------------------------------------------------------------- $ 48,940,000 Total Investments - (cost $48,065,509) - 98.8% 50,897,382 ============= Other Assets Less Liabilities - 1.2% 626,923 ----------------------------------------------------------------------------------------------------------------- Net Assets - 100% $51,524,305 ================================================================================================================= * 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. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. See accompanying notes to financial statements.
Statement of Net Assets May 31, 1999
Connecticut Massachusetts Missouri Washington - ------------------------------------------------------------------------------------------------------------------------------------ Assets Investments in municipal securities, at market value (note 1) $111,127,619 $100,287,934 $45,754,676 $50,897,382 Cash 853,586 631,067 277,558 -- Receivables: Interest 1,893,636 1,804,246 776,635 912,759 Investments sold 70,359 10,000 10,181 5,000 Other assets 14,539 12,848 2,846 1,282 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 113,959,739 102,746,095 46,821,896 51,816,423 - ------------------------------------------------------------------------------------------------------------------------------------ Liabilities Cash overdraft -- -- -- 40,535 Accrued expenses: Management fees (note 6) 62,893 56,675 25,833 28,568 Other 69,755 66,837 49,260 66,064 Preferred share dividends payable 8,395 7,453 5,258 6,148 Common share dividends payable 353,917 327,055 138,940 150,803 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 494,960 458,020 219,291 292,118 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets (note 7) $113,464,779 $102,288,075 $46,602,605 $51,524,305 ==================================================================================================================================== Preferred shares, at liquidation value $ 38,300,000 $ 34,000,000 $16,000,000 $17,000,000 ==================================================================================================================================== Preferred shares outstanding 1,532 1,360 640 680 ==================================================================================================================================== Common shares outstanding 5,205,565 4,639,787 2,154,389 2,320,051 ==================================================================================================================================== Net asset value per Common share outstanding (net assets less Preferred shares at liquidation value, divided by Common shares outstanding) $ 14.44 $ 14.72 $ 14.20 $ 14.88 ==================================================================================================================================== See accompanying notes to financial statements.
Statement of Operations Year Ended May 31, 1999
Connecticut Massachusetts Missouri Washington Investment Income (note 1) $6,204,897 $5,682,192 $2,545,658 $2,831,835 - ----------------------------------------------------------------------------------------------------------------------------------- Expenses Management fees (note 6) 744,188 672,793 306,951 339,676 Preferred shares - auction fees 95,750 85,001 40,000 42,501 Preferred shares - dividend disbursing agent fees 10,001 10,001 10,001 10,001 Shareholders' servicing agent fees and expenses 15,999 8,218 7,125 2,955 Custodian's fees and expenses 51,174 41,803 33,998 33,877 Trustees' fees and expenses (note 6) 1,069 971 445 489 Professional fees 17,272 17,247 17,093 17,108 Shareholders' reports - printing and mailing expenses 34,932 38,078 21,390 20,824 Stock exchange listing fees 16,250 16,217 1,997 2,168 Investor relations expense 10,129 8,661 4,387 4,190 Other expenses 9,346 8,986 6,614 6,719 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 1,006,110 907,976 450,001 480,508 Custodian fee credit (note 1) (12,521) (4,299) (2,225) (1,279) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 993,589 903,677 447,776 479,229 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 5,211,308 4,778,515 2,097,882 2,352,606 - ----------------------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain from investment transactions (notes 1 and 4) 179,160 62,570 144,162 147,567 Net change in unrealized appreciation or depreciation of investments (546,826) (862,463) (635,348) (556,144) - ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments (367,666) (799,893) (491,186) (408,577) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $4,843,642 $3,978,622 $1,606,696 $1,944,029 =================================================================================================================================== See accompanying notes to financial statements.
Statement of Changes in Net Assets Connecticut Massachusetts - ----------------------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended 5/31/99 5/31/98 5/31/99 5/31/98 - ----------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 5,211,308 $ 5,159,370 $ 4,778,515 $ 4,891,388 Net realized gain from investment transactions (notes 1 and 4) 179,160 422,013 62,570 671,439 Net change in unrealized appreciation or depreciation of investments (546,826) 4,143,106 (862,463) 3,102,632 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 4,843,642 9,724,489 3,978,622 8,665,459 - ----------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (4,152,776) (4,108,452) (3,943,214) (3,905,877) Preferred shareholders (1,019,710) (1,169,485) (935,926) (1,096,311) - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (5,172,486) (5,277,937) (4,879,140) (5,002,188) - ----------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 409,551 413,844 252,623 266,611 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 80,707 4,860,396 (647,895) 3,929,882 Net assets at the beginning of year 113,384,072 108,523,676 102,935,970 99,006,088 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of year $113,464,779 $113,384,072 $102,288,075 $102,935,970 =================================================================================================================================== Balance of undistributed net investment income at the end of year $ 322,925 $ 284,103 $ 113,603 $ 214,228 ===================================================================================================================================
Missouri Washington - ----------------------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended 5/31/99 5/31/98 5/31/99 5/31/98 - ----------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 2,097,882 $ 2,134,126 $ 2,352,606 $ 2,368,345 Net realized gain from investment transactions (notes 1 and 4) 144,162 380,799 147,567 94,941 Net change in unrealized appreciation or depreciation of investments (635,348) 1,267,040 (556,144) 2,195,317 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 1,606,696 3,781,965 1,944,029 4,658,603 - ----------------------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders (note 1) From undistributed net investment income: Common shareholders (1,643,003) (1,629,870) (1,800,360) (1,753,958) Preferred shareholders (477,251) (526,508) (567,459) (596,423) - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (2,120,254) (2,156,378) (2,367,819) (2,350,381) - ----------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions (note 2) Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 180,843 85,411 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets (332,715) 1,710,998 (423,790) 2,308,222 Net assets at the beginning of year 46,935,320 45,224,322 51,948,095 49,639,873 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of year $46,602,605 $46,935,320 $51,524,305 $51,948,095 - ----------------------------------------------------------------------------------------------------------------------------------- Balance of undistributed net investment income at the end of year $ 134,510 $ 156,882 $ 90,415 $ 105,628 - ----------------------------------------------------------------------------------------------------------------------------------- See accompanying notes to financial statements.
Notes to Financial Statements 1. General Information and Significant Accounting Policies 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). Connecticut and Massachusetts are traded on the New York Stock Exchange while Missouri and Washington are traded on the American Stock Exchange. Each Fund invests primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state. The Funds are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with generally accepted accounting principles. Securities Valuation 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. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At May 31, 1999, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its 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 shareholders of the Funds. All monthly tax-exempt income dividends paid during the fiscal year ended May 31, 1999, 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 monthly as a dividend 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 carryforwards. 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 investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one Series. The dividend rate on each Series may change every seven days, as set by the auction agent. The number of shares outstanding for each Fund is as follows: Connecticut Massachusetts Missouri Washington - -------------------------------------------------------------------------------- Number of Shares: Series Th 1,532 1,360 640 680 ================================================================================ Derivative Financial Instruments The Funds may invest in transactions in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended May 31, 1999. 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. Actual results may differ from those estimates. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby the custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. 2. Fund Shares Transactions in Common shares were as follows: Connecticut Massachusetts - -------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended 5/31/99 5/31/98 5/31/99 5/31/98 ================================================================================ Shares issued to shareholders due to reinvestment of distributions 25,373 27,446 15,263 17,254 - -------------------------------------------------------------------------------- Missouri Washington - -------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended 5/31/99 5/31/98 5/31/99 5/31/98 - -------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions 11,929 5,923 -- -- ================================================================================ 3. Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on July 1, 1999, to shareholders of record on June 15, 1999, as follows: Connecticut Massachusetts Missouri Washington - -------------------------------------------------------------------------------- Dividend per share $.0680 $.0705 $.0645 $.0650 ================================================================================ 4. Securities Transactions Purchases and sales (including maturities) of investments in long-term municipal securities and short-term municipal securities for the fiscal year ended May 31, 1999, were as follows:
Connecticut Massachusetts Missouri Washington - ------------------------------------------------------------------------------------------ Purchases: Long-term municipal securities $ 8,421,473 $11,751,705 $ 4,975,969 $ 3,051,276 Short-term municipal securities 6,500,000 14,350,000 3,300,000 300,000 Sales and Maturities: Long-term municipal securities 8,747,905 11,250,590 4,544,519 2,759,045 Short-term municipal securities 6,500,000 14,650,000 3,600,000 500,000 ==========================================================================================
At May 31, 1999, 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, 1999, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: Connecticut Massachusetts Missouri Washington - -------------------------------------------------------------------------------- Expiration year: 2003 $ 715,734 $ 552,941 $ 804,913 $322,363 2004 1,105,901 945,779 708,417 70,082 2005 847,914 195,761 -- -- - -------------------------------------------------------------------------------- Total $2,669,549 $1,694,481 $1,513,330 $392,445 ================================================================================ 5. Unrealized Appreciation (Depreciation) Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 1999, were as follows: Connecticut Massachusetts Missouri Washington - -------------------------------------------------------------------------------- Gross unrealized: appreciation $5,674,457 $5,740,011 $2,471,155 $2,929,111 depreciation (249,796) (161,308) (104,065) (97,238) - -------------------------------------------------------------------------------- Net unrealized appreciation $5,424,661 $5,578,703 $2,367,090 $2,831,873 ================================================================================ 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 assets of each Fund as follows: Average Daily Net Assets 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 of its Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 7. Composition of Net Assets At May 31, 1999, net assets consisted of:
Connecticut Massachusetts Missouri Washington - ----------------------------------------------------------------------------------------------------------------------------------- Preferred shares, $25,000 stated value per share, at liquidation value $ 38,300,000 $ 34,000,000 $ 16,000,000 $ 17,000,000 Common shares, $.01 par value per share 52,056 46,398 21,544 23,201 Paid-in surplus 72,034,686 64,243,852 29,592,791 31,971,261 Balance of undistributed net investment income 322,925 113,603 134,510 90,415 Accumulated net realized gain (loss) from investment transactions (2,669,549) (1,694,481) (1,513,330) (392,445) Net unrealized appreciation of investments 5,424,661 5,578,703 2,367,090 2,831,873 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets $113,464,779 $102,288,075 $ 46,602,605 $ 51,524,305 =================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ===================================================================================================================================
Financial Highlights Selected data for a Common share outstanding throughout each year is as follows:
Investment Operations ------------------------------------------------ Net Realized/ Beginning Net Unrealized Net Asset Investment Investment Value Income Gain (Loss) Total Connecticut Year Ended 5/31: 1999 $14.49 $1.00 $ (.05) $ .95 1998 13.63 1.00 .89 1.89 1997 12.99 1.00 .60 1.60 1996 13.20 .98 (.21) .77 1995 12.45 .98 .74 1.72 Massachusetts Year Ended 5/31: 1999 14.91 1.02 (.16) .86 1998 14.11 1.06 .83 1.89 1997 13.58 1.06 .53 1.59 1996 13.76 1.05 (.19) .86 1995 12.90 1.04 .84 1.88 Missouri Year Ended 5/31: 1999 14.44 .97 (.22) .75 1998 13.68 .99 .78 1.77 1997 13.11 1.00 .55 1.55 1996 13.37 .96 (.30) .66 1995 12.35 .95 1.02 1.97 Washington Year Ended 5/31: 1999 15.06 1.01 (.17) .84 1998 14.07 1.02 .99 2.01 1997 13.48 1.02 .58 1.60 1996 13.71 1.02 (.23) .79 1995 12.97 1.01 .77 1.78 Less Distributions ---------------------------------------------------------------------------------------- Net Net Investment Investment Capital Capital Income Income Gains Gains To Common To Preferred To Common To Preferred Shareholders Shareholders+ Shareholders Shareholders+ Total Connecticut Year Ended 5/31: 1999 $(.80) $(.20) $-- $-- $(1.00) 1998 (.80) (.23) -- -- (1.03) 1997 (.76) (.20) -- -- (.96) 1996 (.73) (.25) -- -- (.98) 1995 (.74) (.23) -- -- (.97) Massachusetts Year Ended 5/31: 1999 (.85) (.20) -- -- (1.05) 1998 (.85) (.24) -- -- (1.09) 1997 (.84) (.22) -- -- (1.06) 1996 (.80) (.24) -- -- (1.04) 1995 (.78) (.24) -- -- (1.02) Missouri Year Ended 5/31: 1999 (.77) (.22) -- -- (.99) 1998 (.76) (.25) -- -- (1.01) 1997 (.73) (.25) -- -- (.98) 1996 (.67) (.25) -- -- (.92) 1995 (.69) (.26) -- -- (.95) Washington Year Ended 5/31: 1999 (.78) (.24) -- -- (1.02) 1998 (.76) (.26) -- -- (1.02) 1997 (.75) (.26) -- -- (1.01) 1996 (.74) (.28) -- -- (1.02) 1995 (.77) (.27) -- -- (1.04) Total Returns -------------------------- Based Ending Based on Net Ending on Net Asset Market Market Asset Value Value Value* Value* Connecticut Year Ended 5/31: 1999 $14.44 $16.7500 13.50% 5.22% 1998 14.49 15.5000 15.61 12.39 1997 13.63 14.1250 9.58 11.01 1996 12.99 13.6250 14.06 3.97 1995 13.20 12.6250 2.22 12.74 Massachusetts Year Ended 5/31: 1999 14.72 16.0625 2.48 4.47 1998 14.91 16.5000 18.08 11.91 1997 14.11 14.7500 13.76 10.28 1996 13.58 13.7500 8.99 4.55 1995 13.76 13.3750 14.12 13.58 Missouri Year Ended 5/31: 1999 14.20 14.1875 5.24 3.64 1998 14.44 14.1875 14.53 11.31 1997 13.68 13.0625 10.53 10.09 1996 13.11 12.5000 10.07 3.09 1995 13.37 12.0000 6.13 14.74 Washington Year Ended 5/31: 1999 14.88 13.4375 4.10 3.97 1998 15.06 13.6250 15.26 12.64 1997 14.07 12.5000 12.94 10.16 1996 13.48 11.7500 7.44 3.75 1995 13.71 11.6250 .41 12.36 Ratios/Supplemental Data -------------------------------------------------------------------------------------------- Before Credit --------------------------------------------------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Ending Net Assets Net Assets Total Total Net Applicable Applicable Net Assets Net Assets Assets to Common to Common Including Including (000) Shares++ Shares++ Preferred++ Preferred++ Connecticut Year Ended 5/31: 1999 $113,465 1.32% 6.82% .88% 4.54% 1998 113,384 1.33 7.02 .88 4.61 1997 108,524 1.38 7.46 .89 4.79 1996 104,928 1.40 7.37 .89 4.71 1995 105,851 1.49 8.09 .92 4.99 Massachusetts Year Ended 5/31: 1999 102,288 1.31 6.87 .88 4.61 1998 102,936 1.31 7.22 .88 4.81 1997 99,006 1.34 7.63 .88 4.99 1996 96,303 1.35 7.61 .88 4.95 1995 97,071 1.49 8.28 .94 5.20 Missouri Year Ended 5/31: 1999 46,603 1.44 6.71 .95 4.44 1998 46,935 1.47 7.03 .97 4.60 1997 45,224 1.54 7.38 .99 4.74 1996 44,014 1.57 7.13 1.01 4.57 1995 44,566 1.75 7.88 1.08 4.86 Washington Year Ended 5/31: 1999 51,524 1.36 6.67 .92 4.50 1998 51,948 1.36 6.92 .91 4.62 1997 49,640 1.43 7.38 .94 4.83 1996 48,266 1.44 7.37 .94 4.81 1995 48,812 1.64 7.97 1.04 5.04 Ratios/Supplemental Data ----------------------------------------------------------------------------------------- After Credit** ------------------------------------------------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Expenses Income to Expenses Income to to Average Average to Average Average Net Assets Net Assets Total Total Applicable Applicable Net Assets Net Assets Portfolio to Common to Common Including Including Turnover Shares++ Shares++ Preferred++ Preferred++ Rate Connecticut Year Ended 5/31: 1999 1.30% 6.84% .87% 4.55% 7% 1998 1.33 7.02 .88 4.61 13 1997 1.38 7.46 .89 4.79 18 1996 1.40 7.37 .89 4.71 15 1995 1.49 8.09 .92 4.99 18 Massachusetts Year Ended 5/31: 1999 1.30 6.88 .87 4.62 11 1998 1.31 7.22 .88 4.81 17 1997 1.34 7.63 .88 4.99 22 1996 1.35 7.61 .88 4.95 18 1995 1.49 8.28 .94 5.20 29 Missouri Year Ended 5/31: 1999 1.43 6.72 .95 4.44 10 1998 1.47 7.03 .97 4.60 25 1997 1.54 7.38 .99 4.74 36 1996 1.57 7.13 1.01 4.57 34 1995 1.75 7.88 1.08 4.86 34 Washington Year Ended 5/31: 1999 1.36 6.67 .92 4.50 5 1998 1.36 6.92 .91 4.62 10 1997 1.43 7.38 .94 4.83 11 1996 1.44 7.37 .94 4.81 20 1995 1.64 7.97 1.04 5.04 16 * Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gain 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 gain distributions, if any, and changes in net asset value per share. Total returns are not annualized. ** After custodian fee credit, where applicable (note 1). + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares.
Build Your Wealth Automatically Sidebar text: Nuveen offers a number of convenient ways to add to your portfolio and earn the tax-free income you need to achieve your financial goals. Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account. 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 invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. You'll also benefit from dollar-cost averaging, a technique of investing at regular intervals, which allows you to build a high-quality, tax-free portfolio conveniently and cost effectively over time. Easy and convenient To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. Income or capital gains taxes may be payable on dividends or distributions that are reinvested. How shares are purchased The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. Flexibility You may, 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 at (800) 257-8787. Fund Information Board of Trustees Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Fund Manager Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 Custodian, Transfer Agent and Shareholder Services The Chase Manhattan Bank 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 Legal Counsel Morgan, Lewis & Bockius LLP Washington, D.C. Independent Auditors Ernst & Young LLP Chicago, IL Year 2000 The concern that computer systems may have problems processing date-related information in the year 2000 and beyond has challenged businesses and organizations to thoroughly review all aspects of their operations. We have undertaken just such an approach at Nuveen in preparation for the millennium. Over the last 10 years, we have updated or replaced our trading, fund management, and pricing systems at Nuveen - systems that directly affect our investors and their financial advisers - to address Year 2000 concerns. We continue to work closely with our transfer agent, custodian, firms through whom we buy and sell portfolio securities, and other service partners to monitor the Year 2000 readiness of their systems, while addressing other remaining systems issues. In addition, the Funds hold securities of issuers whose business operations leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's Year 2000 readiness as part of our initial and ongoing research of these issuers. This is only one of the many factors considered in determining whether to buy, sell, or continue holding a particular security. We anticipate that all significant components of our Year 2000 review, repair, and testing program will be complete by mid-1999. This includes appropriate industry-wide testing of critical systems and receipt of satisfactory assurances from critical service providers, vendors, and issuers regarding their Year 2000 readiness. We are also making Year 2000 contingency plans to guide recovery efforts in the event that, despite our remediation attempts, Year 2000 issues adversely affect the Funds. Although we cannot give complete assurance at this time that the steps we take will be sufficient to prevent any problems that would impact the Nuveen Exchange-Traded Funds, we can assure you that we will take all reasonable steps to prevent disruption of the services provided by your Fund. The Board of Trustees of your Fund recently modified certain investment policies of the Fund. The Fund was formerly not permitted to invest more than 5% of its total assets in Municipal Leases that contain "non-appropriation" clauses. In addition, your Fund was not permitted to invest more than 10% of its total assets in Municipal Leases and securities that are unmarketable, illiquid or not readily marketable. The Municipal Lease market has matured since the Fund's inception, and non-appropriation leases have become more liquid and widely accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions noted above, replacing them with requirements that the Funds limit investments in non-appropriation Municipal Leases to those that meet one or more of six criteria that indicate that the issuer will be motivated to continue to appropriate monies to make the payments under the Municipal Lease. The Board also eliminated the Fund's policy not to invest more than 5% of its total assets in unsecured obligations of issuers which, together with their predecessors, have been in operation for less than three years. Each fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 12-month period ended May 31, 1999. Any future repurchases will be reported to shareholders in the next annual or semiannual report. Serving Investors for Generations Photo 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 quality investments designed for individuals seeking to build and sustain wealth. In fact, more than 1.3 million investors have trusted Nuveen to help them pursue their financial goals. The cornerstone of Nuveen's investment philosophy is a commitment to disciplined long-term investment strategies focused on providing consistent, attractive performance over time - with moderated risk. We emphasize quality securities carefully chosen through in-depth research, and we follow those securities closely over time to ensure that they continue to meet our exacting standards. Whether your focus is long-term growth, dependable current income or sustaining accumulated wealth, Nuveen offers a wide variety of investments and services to help meet your unique circumstances and financial planning needs. Our equity, balanced, and tax-free income funds, along with our defined portfolios and private asset management, can help you build a better, well-diversified portfolio. Talk with your financial adviser to learn more about how Nuveen investment products and services can help you. Or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before investing. LOGO: NUVEEN helping investors sustain the wealth of a lifetime(tm). John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, IL 60606-1286 www.nuveen.com FAN-3-5-99 -----END PRIVACY-ENHANCED MESSAGE-----