N-CSRS 1 file001.txt NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-7606 --------------------- Nuveen Connecticut Premium Income Municipal Fund ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: May 31 ------------------ Date of reporting period: November 30, 2007 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. Semi-Annual Report November 30, 2007 Nuveen Investments Municipal Closed-End Funds Photo of: Small child NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NTC NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND NFC NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NGK NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NGO NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND NMT NUVEEN MASSACHUSETTS DIVIDEND ADVANTAGE MUNICIPAL FUND NMB NUVEEN INSURED MASSACHUSETTS TAX-FREE ADVANTAGE MUNICIPAL FUND NGX NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND NOM IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Man working on computer Life is complex. Nuveen makes things e-simple. -------------------------------------------------------------------------------- It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready--no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! www.investordelivery.com If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR www.nuveen.com/accountaccess If you receive your Nuveen Fund dividends and statements directly from Nuveen. Logo: NUVEEN Investments Chairman's LETTER TO SHAREHOLDERS Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Once again, I am pleased to report that over the six-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Managers' Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. I also wanted to update you on some important news about Nuveen Investments. The firm recently was acquired by a group led by Madison Dearborn Partners, LLC. While this affected the corporate structure of Nuveen Investments, it has no impact on the investment objectives, portfolio management strategies or dividend policy of your Fund. With the recent volatility in the stock market, many have begun to wonder which way the market is headed, and whether they need to adjust their holdings of investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that investments like your Nuveen Investments Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. We also are pleased to be able to offer you a choice concerning how you receive your shareholder reports and other Fund information. As an alternative to mailed copies, you can sign up to receive future Fund reports and other Fund information by e-mail and the internet. The inside front cover of this report contains information on how you can sign up. We are grateful that you have chosen us as a partner as you pursue your financial goals and we look forward to continuing to earn your trust in the months and years ahead. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 15, 2008 Portfolio Managers' COMMENTS Nuveen Investments Municipal Closed-End Funds NTC, NFC, NGK, NGO NMT, NMB, NGX, NOM Portfolio managers Cathryn Steeves and Scott Romans discuss key investment strategies and the six-month performance of these eight Nuveen Funds. Cathryn, who joined Nuveen in 1996, has managed the Connecticut and Massachusetts Funds since 2006. Scott, who has been with Nuveen since 2000, assumed portfolio management responsibility for NOM in 2003. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2007? Over the course of this period, we saw the municipal yield curve steepen, as interest rates at the short end of the yield curve declined and longer-term rates generally rose. In this environment, our investment strategies continued to focus on finding relative value. We looked for undervalued sectors and credits with the potential to perform well over the long term. The majority of our purchases were attractively-priced bonds with longer maturities, typically in the 30-year part of the yield curve. These purchases helped to offset the shortening of the Funds' portfolio durations due to bond calls and the natural tendency of bond durations to shorten as time passes. Our focus in the Connecticut and Massachusetts Funds was on buying bonds that provided liquidity and facilitated trading. In Missouri, market conditions resulted in a number of lower-rated, uninsured health care offerings coming to market at the same time. To ensure buyer interest, these deals were offered at very attractive prices. We took advantage of opportunities to purchase some of these bonds, which we considered attractive based not only on their price, but also on their performance potential and the support they could provide for NOM's income stream. When the liquidity crisis in August led the market to discount lower-quality and higher-yielding bonds, we found several opportunities to add lower-rated hospital and continuing care retirement community bonds, to NMT, NMB, and NOM. In addition, the Connecticut Funds purchased single-family housing bonds at discounts as a way to add both performance potential and favorable income-generation capabilities. The four Connecticut Funds also added higher education bonds and a public utility issue. We also bought some short-term insured bonds in the Massachusetts Funds. These bonds, many of which had underlying credits with which we were familiar through our research efforts, offered attractive yields and pricing in the aftermath of the liquidity crisis. Discussions of specific investments are for illustrative purposes only and are not intended as recommendations of individual investments. The views expressed in this commentary represent those of the portfolio managers as of the date of this report and are subject to change at any time, based on market conditions and other factors. The Funds disclaim any obligation to advise shareholders of such changes. 4 In NOM, which had a large exposure to the shorter end of the yield curve relative to our strategic target, we continued to work to restructure the Fund, watching for opportunities that would help extend the Fund's duration. We also focused on augmenting NOM's income stream by buying credits backed by some of the nontraditional insurers, bonds with structures that were out of favor with the market but which we believed were undervalued, and long credit positions that offered attractive income potential. To help generate cash for purchases and move the Funds' durations closer to our strategic range, we selectively sold holdings with shorter durations. Selling shorter duration bonds and reinvesting further out on the yield curve also helped to improve the Funds' overall call protection profile. We continued to emphasize a disciplined approach to duration1 management. As part of our duration management strategies, we used inverse floating rate securities,2 a type of derivative financial instrument, in NOM. The inverse floaters had the dual benefit of bringing the duration of this Fund closer to our strategic target and enhancing its income-generation capabilities. In addition, the four Connecticut Funds and the three Massachusetts Funds used forward interest rate swaps, another type of derivative instrument. The goal of this strategy was to help us manage net asset value (NAV) volatility without having a negative impact on the Funds' income streams or common share dividends over the short term. 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 2 An inverse floating rate security is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during the reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in This Report sections of this report. 5 HOW DID THE FUNDS PERFORM? Individual results for these Nuveen Funds, as well as relevant index and peer group information, are presented in the accompanying table. Total Returns on Net Asset Value* For periods ended 11/30/07 6-Month 1-Year 5-Year 10-Year Connecticut Funds NTC 2.63% 1.86% 5.44% 6.04% NFC 2.78% 2.20% 5.96% NA NGK 3.23% 2.64% 5.99% NA NGO 2.06% 1.49% 5.76% NA Massachusetts Funds NMT 2.02% 1.32% 5.41% 5.74% NMB 1.92% 1.21% 6.29% NA Missouri Fund NOM 0.92% 0.00% 5.18% 5.68% Lehman Brothers Municipal Bond Index3 2.40% 2.71% 4.68% 5.30% Insured Massachusetts Fund NGX 2.96% 2.03% 5.71% NA Lehman Brothers Insured Municipal Bond Index3 2.50% 2.60% 4.86% 5.48% Lipper Other States Municipal Debt Funds Average4 1.10% 0.46% 5.91% 5.75% For the six months ended November 30, 2007, the cumulative returns on NAV for NTC, NFC and NGK exceeded the return on the national Lehman Brothers Municipal Bond Index, while the returns of NGO, NMT, NMB, and NOM trailed the index. For the same period, NGX outperformed the return on the Lehman Brothers Insured Municipal Bond Index. NTC, NFC, NGK, NGO, NMT, NMB and NGX all outperformed the average return for the Lipper Other States Municipal Debt Funds Average, while NOM underperformed this average. Shareholders should note that the performance of the Lipper Other States Municipal Debt Funds Average represents the overall average of returns for funds from 10 different states with a wide variety of municipal market conditions, making direct comparisons less meaningful. One of the factors contributing to the six-month performance of these Funds, especially relative to the returns of the unleveraged Lehman Brothers Municipal Bond Index and Lehman Brothers Insured Municipal Bond Index, was the use of financial leverage. The returns of NTC, NFC, NGK, NGO and NGX were positively impacted by their use of leverage, while NMT, NMB and NOM were negatively impacted. Although leveraging *Six-month returns are cumulative. One-year, five-year and ten-year returns are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds, while the Lehman Brothers Insured Municipal Bond Index is an unleveraged, unmanaged national index containing a broad range of insured municipal bonds. Results for the Lehman indexes do not reflect any expenses. 4 The Lipper Other States Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 46 funds; 1 year, 46 funds; 5 years, 46 funds; and 10 years, 18 funds. The performance of the Lipper Other States Municipal Debt Funds Average represents the overall average of returns for funds from 10 different states with a wide variety of municipal market conditions. Fund and Lipper returns assume reinvestment of dividends. 6 provides opportunities for additional income and total returns for common shareholders, it can also expose shareholders to additional risk. With the fluctuations in yields on longer municipal bonds and other market variations, the impact of valuation changes in the Funds' holdings--both positive and negative--was magnified by the use of leverage. Other major factors that influenced the Funds' returns included yield curve and duration positioning, the use of derivatives, sector allocations and credit exposure. During this six-month period, bonds in the Lehman Brothers Municipal Bond Index with maturities between two and twelve years, especially those maturing in approximately six to eight years, benefited the most from changes in the interest rate environment. As a result, these bonds generally outperformed credits with longer maturities, with bonds having the longest maturities (22 years and longer) posting the worst returns. While our strategies during this period included adding longer bonds to our portfolios, the Funds continued to be relatively underweighted in the underperforming longer part of the yield curve, and their overall portfolio durations remained short of our strategic target. Consequently, duration and yield curve positioning were net positives for the Funds' performances. The forward interest rate swaps in place in the four Connecticut Funds and three Massachusetts Funds also had a positive impact on the return performance of these Funds. These derivative instruments provided exposure to taxable markets during a period when, in contrast to historical trends, the Treasury market and the municipal market moved in opposite directions. As municipal market performance lagged the significant gains made by Treasuries, the forward interest rate swaps performed well. At the same time, the inverse floaters in NOM had a negative impact on the performance of this Fund, because they effectively increased NOM's exposure to longer maturity bonds during a period when shorter maturities were in favor in the market. However, these inverse floaters also benefited NOM by helping to support its income stream. Sectors of the market that generally made positive contributions to the Funds' performances included water and sewer, transportation, and education. General obligation credits and pre-refunded bonds, especially those that were advance refunded before longer municipal interest rates began to rise in mid-2007, also performed very well. In addition, the short-term insured bonds that we added to the Massachusetts Funds later in the period posted strong returns. On the other hand, bonds that carried any credit risk, regardless of sector, generally tended to perform poorly. Revenue bonds as a whole, and specifically the industrial development and health care sectors that had ranked among the top performers in the Lehman Brothers Municipal Bond Index over the past few years underperformed the general municipal market. As interest rates on longer municipal bonds rose and credit spreads widened, lower credit quality bonds also generally underperformed the municipal market as a whole for the first time in several years. As of November 30, 2007, the Connecticut Funds 7 had weightings of bonds rated BBB or lower and non-rated bonds ranging from approximately 8% in NTC and NGK to 11% in NFC and 13% in NGO, while the Massachusetts Funds' allocations totaled approximately 12% in NMT and 14% in NMB. NGX, which can invest up to 20% of its assets in uninsured investment-grade quality securities, held 2% of its assets in bonds rated BBB as of November 30, 2007, and the Fund's overall higher credit quality benefited its return. At 22%, NOM had the heaviest weighting of bonds rated BBB or lower and non-rated bonds across all eight of these Funds, which marred its performance. Another factor that had a negative impact on the performance of the Connecticut and Massachusetts Funds was their small position in bonds backed by certain municipal insurers, specifically Radian Asset Assurance (Radian). NOM also had a very small position (less than 1%) in bonds insured by ACA Financial Guaranty Corporation (ACA). As concern increased about these two companies, prices on bonds insured by Radian and ACA declined to levels close to what one would expect for uninsured bonds from the underlying municipal issuers, detracting from the performances of these Funds. It is important to note that these Nuveen Municipal Closed-End Funds had no exposure to the collateralized debt products that were at the center of the recent liquidity crisis. RECENT MARKET EVENTS Many of the municipal bonds in the portfolios are covered by policies of insurance, issued by one of several municipal bond insurers, under which the insurer guarantees the timely payment of interest and principal on the bonds. [NGX has a policy of investing at least 80% of its net assets in such insured bonds.] Certain of those insurers, including AMBAC, MBIA and FGIC, historically rated AAA (the highest grade), also insure investment vehicles representing interests in subprime mortgages, which suffered severe credit deterioration during the semi-annual period covered by this report. The defaults and/or credit deterioration of the subprime mortgage investments they insured have caused losses to the insurers, which has reduced the insurers' capital and called into question the insurers' continued ability to pay interest and principal on insured bonds for the life of those bonds. One rating agency has already reduced the rating for AMBAC-insured bonds to AA, and other rating agencies may follow, and this rating may fall even further. While the major rating agencies continue to give the other affected insurers their highest rating, as of the date this report was written one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions in the future. The value of the insurance associated with bonds held by the Funds in this report (a component of the value of the bond/insurance combination) generally declined during and after the reporting period, and further credit deterioration or rating downgrades of the insurers could cause further declines in the value of the insurance component of an insured bond, although it has not and should not affect the creditworthiness of the municipal issuer of, and the uninsured value of, the underlying bond. 8 Dividend and Share Price INFORMATION As previously noted, these eight Funds use leverage to potentially enhance opportunities for additional income for common shareholders. The Funds' use of this strategy continued to provide incremental income, although the extent of this benefit was reduced to a degree in some of the Funds by short-term interest rates that remained relatively high during most of this period. This, in turn, kept the Funds' borrowing costs high. The Funds' income streams were also somewhat impacted as the proceeds from older, higher-yielding bonds that matured or were called were reinvested into bonds currently available in the market, which generally offered lower yields during much of this period. The combination of these factors resulted in one monthly dividend reduction in NGK and NGO over the six-month period ended November 30, 2007. In NGX, we were able to increase the dividend effective August 2007, while the dividends of NTC, NFC, NMT, NMB and NOM remained stable throughout this reporting period. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of November 30, 2007, all of the Funds in this report had negative UNII balances for financial statement purposes and positive UNII balances, based upon our best estimate, for tax purposes. As of November 30, 2007, the Funds' share prices were trading at premiums and/or discounts to their NAVs as shown in the accompanying chart: 11/30/07 Six-Month Average Premium/Discount Premium/Discount NTC -7.40% -0.22% NFC -4.86% +3.84% NGK -5.21% +4.42% NGO -6.09% -0.81% NMT -9.83% -5.07% NMB -4.60% -0.43% NGX -4.25% -2.15% NOM +0.92% +4.23% 9 NTC Performance OVERVIEW Nuveen Connecticut Premium Income Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 76% AA 16% BBB 8% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share3 Dec 0.0545 Jan 0.0545 Feb 0.0545 Mar 0.052 Apr 0.052 May 0.052 Jun 0.052 Jul 0.052 Aug 0.052 Sep 0.052 Oct 0.052 Nov 0.052 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 14.29 14.27 14.23 14.23 14.17 14.34 14.49 14.5 14.26 14.35 14.36 14.15 14.2 14.19 14.04 14.13 14.04 14 14.08 14.07 14.07 14.08 14.13 14.2 14.26 14.31 14.48 14.37 14.37 14.22 14.33 14.41 14.35 14.4 14.43 14.44 14.39 14.37 14.33 14.37 14.35 14.5 14.57 14.57 14.5 14.52 14.52 14.56 14.52 14.45 14.45 14.501 14.44 14.65 14.53 14.66 14.52 14.51 14.55 14.59 14.68 14.64 14.64 14.56 14.51 14.59 14.6066 14.66 14.66 14.58 14.64 14.56 14.53 14.49 14.65 14.51 14.52 14.63 14.56 14.52 14.52 14.49 14.49 14.6 14.51 14.55 14.53 14.63 14.56 14.61 14.564 14.46 14.51 14.5285 14.55 14.48 14.59 14.6 14.59 14.5475 14.58 14.62 14.62 14.64 14.56 14.47 14.6 14.65 14.91 14.94 15 14.82 15 15.01 15.01 15.02 14.99 14.9 14.85 14.91 14.95 14.91 14.9 14.77 14.91 15.18 14.83 15.11 15.33 15.29 15.29 15.02 14.85 14.75 14.8 15.11 15.4 15.26 15.4399 15.14 14.5 14.71 14.84 15.19 15.2 15.2 15.2 15.01 15.01 14.87 14.76 14.86 14.84 15 14.82 14.76 14.74 14.79 14.7 14.8 14.85 14.62 14.58 14.61 14.41 14.4 14.37 14.41 14.31 14.16 14.52 14.52 14.54 14.38 14.39 14.34 14.39 14.35 14.05 14 13.9 14 13.924 13.94 13.94 13.7 13.89 14.0154 13.95 13.93 14.04 14.05 14.09 14.1 14.18 14.18 14.54 14.6 14.26 14.14 14.33 14.18 14.04 14.05 14.09 14.0301 14.15 14.03 13.97 14.2 14.2 14.204 14.25 14.15 14.13 13.97 13.91 13.85 13.79 13.75 13.67 13.67 13.66 13.65 13.66 13.64 13.79 13.84 13.78 13.72 13.71 13.68 13.61 13.58 13.64 13.65 13.56 13.55 13.55 13.41 13.51 13.31 13.12 13.21 13.08 13.01 12.95 13.03 13.0999 13.1 13.32 13.49 13.45 13.36 11/30/07 13.38 FUND SNAPSHOT ------------------------------------ Common Share Price $13.38 ------------------------------------ Common Share Net Asset Value $14.45 ------------------------------------ Premium/(Discount) to NAV -7.40% ------------------------------------ Market Yield 4.66% ------------------------------------ Taxable-Equivalent Yield2 6.81% ------------------------------------ Net Assets Applicable to Common Shares ($000) $77,494 ------------------------------------ Average Effective Maturity on Securities (Years) 16.81 ------------------------------------ Leverage-Adjusted Duration 9.40 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -8.24% 2.63% ------------------------------------ 1-Year -2.33% 1.86% ------------------------------------ 5-Year 1.79% 5.44% ------------------------------------ 10-Year 4.14% 6.04% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Education and Civic Organizations 21.9% ------------------------------------ Tax Obligation/General 19.6% ------------------------------------ Tax Obligation/Limited 14.2% ------------------------------------ Health Care 10.9% ------------------------------------ Water and Sewer 8.1% ------------------------------------ U.S. Guaranteed 7.7% ------------------------------------ Utilities 4.6% ------------------------------------ Other 13.0% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 3 The Fund paid shareholders capital gains and net ordinary income distributions in December 2006 of $0.0695 per share. 10 NFC Performance OVERVIEW Nuveen Connecticut Dividend Advantage Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 67% AA 19% A 3% BBB 11% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share Dec 0.0605 Jan 0.0605 Feb 0.0605 Mar 0.058 Apr 0.058 May 0.058 Jun 0.0555 Jul 0.0555 Aug 0.0555 Sep 0.0555 Oct 0.0555 Nov 0.0555 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 15.41 15.32 15.45 15.26 15.33 15.16 15.31 15.49 15.44 15.4 15.42 15.59 15.59 15.4 15.4 15.35 15.74 15.9199 15.78 15.65 15.65 15.73 15.12 15.4 15.62 15.8701 15.5 15.46 15.38 15.42 15.33 15.25 15.1 15.07 15.09 15.08 15.04 14.96 14.85 15 14.96 14.93 14.97 15.02 15.09 15.25 15.2999 15.28 15.24 15.16 15.18 15.25 15.269 15.38 15.34 15.37 15.38 15.38 15.35 15.37 15.4 15.29 15.33 15.37 15.5 15.38 15.36 15.55 15.4 15.37 15.45 15.43 15.35 15.49 15.36 15.7 15.62 15.4 15.35 15.4605 15.46 15.59 15.59 15.53 15.59 15.81 15.7 15.68 15.91 15.81 15.98 15.85 15.91 15.93 16.0799 16.15 16.41 16.29 16.15 16.04 15.92 15.7 15.7 15.65 15.6501 15.6 15.7 15.74 16.02 16.0001 16.06 16.0001 15.95 16.1 16.16 16.05 16.05 16.14 16.2 16.25 16.25 16.25 16.33 16.43 16.37 16.3 16.3 16.38 16.2 15.65 16 16.19 15.99 16.33 16.33 16.21 16.51 16.6067 16.73 16.46 16.28 16.28 16.15 16.28 16.2 15.92 15.92 15.8899 15.71 15.8 15.78 15.93 15.97 15.8 15.8 15.8 15.75 14.88 15.02 15.07 15.12 15.14 15.3 15.35 15.3 15.3 15.3 15.58 15.48 15.06 15.34 15.4 15.38 15.38 15.37 16.5 16.3 15.51 15.32 15 15.3 15.05 14.61 15.04 15 14.64 14.94 14.95 15.08 15.1 15.2 15.2 15.25 15.25 15.25 15.22 15.26 15.61 15.42 15.42 15.48 15.47 15.47 15.14 15.14 15.216 15.62 15.143 15.06 15.07 15.07 15.08 15.06 15 14.9475 14.9176 14.81 14.79 14.65 14.65 14.55 14.51 14.53 14.53 14.4449 14.4 14.36 14.39 14.54 14.54 14.47 14.34 14.4 14.39 14.32 14.44 14.29 14.28 14.28 14.24 14.21 14.15 14.04 13.88 13.88 13.9 14.02 13.84 13.868 13.82 13.86 13.8 13.87 13.92 11/30/07 14.11 FUND SNAPSHOT ------------------------------------ Common Share Price $14.11 ------------------------------------ Common Share Net Asset Value $14.83 ------------------------------------ Premium/(Discount) to NAV -4.86% ------------------------------------ Market Yield 4.72% ------------------------------------ Taxable-Equivalent Yield2 6.90% ------------------------------------ Net Assets Applicable to Common Shares ($000) $38,232 ------------------------------------ Average Effective Maturity on Securities (Years) 16.65 ------------------------------------ Leverage-Adjusted Duration 9.30 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -11.82% 2.78% ------------------------------------ 1-Year -5.52% 2.20% ------------------------------------ 5-Year 4.06% 5.96% ------------------------------------ Since Inception 4.37% 6.16% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 19.9% ------------------------------------ Education and Civic Organizations 19.2% ------------------------------------ Tax Obligation/Limited 16.9% ------------------------------------ Water and Sewer 8.8% ------------------------------------ Tax Obligation/General 8.4% ------------------------------------ Health Care 7.7% ------------------------------------ Transportation 4.3% ------------------------------------ Other 14.8% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 11 NGK Performance OVERVIEW Nuveen Connecticut Dividend Advantage Municipal Fund 2 as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 72% AA 19% A 1% BBB 8% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share3 Dec 0.0605 Jan 0.0605 Feb 0.0605 Mar 0.058 Apr 0.058 May 0.058 Jun 0.058 Jul 0.058 Aug 0.058 Sep 0.058 Oct 0.055 Nov 0.055 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 15.47 15.41 15.53 15.58 15.46 15.53 15.57 15.61 15.55 15.4 15.41 15.4 15.4 15.5 15.4 15.26 15.26 15.32 15.34 15.32 15.32 15.48 15.49 15.65 15.6 15.6 15.3 15.96 15.9 15.6 15.8 15.8 15.55 15.8 15.8 15.45 15.65 15.66 15.57 15.35 15.5 15.6 15.78 15.78 15.9 15.6501 15.65 15.65 15.4 15.35 15.35 15.7 16 15.95 16.31 16.18 16.2 16.11 16.03 16.06 16.31 16.17 16.31 16.3 16.18 16.16 16.13 16.22 16.38 16.27 16.25 16.31 16.12 16.11 16.11 16.08 16.04 16.15 16 15.98 15.93 16.06 16.06 16.08 16.15 16.06 16.06 16.06 16.06 15.84 15.86 15.78 15.79 15.8 15.69 15.64 15.59 15.65 15.65 15.65 15.65 15.53 15.59 15.6 15.85 15.85 15.89 15.88 15.72 16.17 16.15 15.9 15.89 16.1 16.2 16.05 16.05 15.9 15.91 15.97 16.5 16.25 16.5 16.4 16.38 16.65 16.6701 16.47 16.4701 16.77 16.55 16.26 16.48 16.45 16.35 16.1401 16.14 16.21 16.61 16.42 16.33 16.29 16.1 15.95 15.95 15.8 15.8 15.6 15.57 15.8 15.79 15.79 15.79 15.79 15.79 15.79 15.75 15.75 15.65 16 15.7 15.62 15.7 15.7 15.31 15.55 15.6 15.67 15.96 15.85 15.8 15.8 15.8 15.6 15.48 15.5 15.84 15.7 15.94 15.67 15.35 15.65 15.2 15.2 15.25 15.695 15.45 15.22 15.22 15.47 15.3 15.5 15.5 15.5 15.9 16.05 16.05 16.3 16 16 16 16 16 16 16 15.5 15.5 15.5 15.4 15.39 15.39 15.28 15.25 15.1485 14.65 14.58 14.71 14.76 14.69 14.69 14.5 14.5 14.38 14.39 14.26 14.29 14.31 14.3 14.44 14.51 14.5399 14.36 14.36 14.3999 14.4 14.45 14.44 14.26 14.35 14.34 14.34 14.31 14.31 14.2 14.2 13.93 14.08 14.09 14.09 14.05 14.3 14.05 13.998 13.95 11/30/07 14.2 FUND SNAPSHOT ------------------------------------ Common Share Price $14.20 ------------------------------------ Common Share Net Asset Value $14.98 ------------------------------------ Premium/(Discount) to NAV -5.21% ------------------------------------ Market Yield 4.65% ------------------------------------ Taxable-Equivalent Yield2 6.80% ------------------------------------ Net Assets Applicable to Common Shares ($000) $34,682 ------------------------------------ Average Effective Maturity on Securities (Years) 15.65 ------------------------------------ Leverage-Adjusted Duration 10.11 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -11.27% 3.23% ------------------------------------ 1-Year -4.52% 2.64% ------------------------------------ 5-Year 4.47% 5.99% ------------------------------------ Since Inception 4.61% 6.61% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 24.0% ------------------------------------ Education and Civic Organizations 17.0% ------------------------------------ Tax Obligation/General 14.7% ------------------------------------ Tax Obligation/Limited 10.7% ------------------------------------ Health Care 8.6% ------------------------------------ Water and Sewer 6.9% ------------------------------------ Transportation 4.1% ------------------------------------ Other 14.0% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 3 The Fund paid shareholders capital gains and net ordinary income distributions in December 2006 of $0.0371 per share. 12 NGO Performance OVERVIEW Nuveen Connecticut Dividend Advantage Municipal Fund 3 as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 70% AA 16% A 1% BBB 13% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share Dec 0.054 Jan 0.054 Feb 0.054 Mar 0.052 Apr 0.052 May 0.052 Jun 0.052 Jul 0.052 Aug 0.052 Sep 0.052 Oct 0.0505 Nov 0.0505 Line Chart: Share Price Performance -- Weekly Closing Price 12/31/06 13.95 14.02 14.15 13.99 14.02 14.06 14.03 14.12 14.12 14.14 14.05 14.04 14.0099 13.81 13.9 13.93 13.86 13.95 14 14.07 14.07 14.09 13.99 13.9501 13.95 14.0699 14.07 14.1 14.02 14 13.98 13.9823 14.05 13.93 13.9501 14.12 14 13.82 13.93 14.05 14.08 14.01 14.24 14.1 14.09 14.1 13.99 14 14 14 13.91 13.95 14.15 14.12 14.12 14.06 13.95 14 14.13 14.17 14.25 14.09 14.22 14.2 14.2 14.3 14.26 14.42 14.4 14.46 14.46 14.46 14.31 14.27 14.36 14.46 14.35 14.35 14.28 14.28 14.26 14.32 14.32 14.2 14.26 14.34 14.3 14.41 14.35 14.41 14.28 14.1 14.22 14.172 14.0405 14.13 14.21 14.26 14.2624 14.28 14.19 14.23 14.28 14.34 14.3 14.5 14.4 14.3 14.33 14.58 14.6 14.6 14.6 14.65 14.6 14.6 14.61 14.51 14.6 14.74 14.62 14.8 14.7 14.75 14.7 14.8 14.5501 14.8 14.652 14.75 14.6014 14.5 14.52 14.91 14.61 14.99 14.75 14.5101 14.94 15.15 14.87 14.63 14.63 14.63 14.5 14.6 14.6 14.39 14.39 14.49 14.9 14.8799 14.85 14.7 14.7 14.4 14.38 14.4 14.35 14.4 14.4 14.43 14.4 14.4 14.32 14.38 14.38 14.48 14.45 14.09 14.29 14.15 14.13 14.05 13.94 13.91 13.85 13.95 13.8 13.74 13.83 13.93 13.93 13.85 14 14 14.05 14.05 13.863 14.2 14 13.97 14.17 14.27 14.13 14.5 14.55 14.5001 14.35 14.2501 14.2 13.9 13.85 14.29 14.1 14.0999 13.9 13.95 14.02 13.96 13.96 13.96 13.8 13.72 13.69 13.65 13.6 13.65 13.63 13.428 13.35 13.3601 13.3 13.46 13.5499 13.42 13.36 13.42 13.55 13.4401 13.5001 13.5 13.5 13.36 13.55 13.51 13.4001 13.2 13.25 13.15 13.15 13.0133 12.9 12.9 12.97 12.9601 12.76 12.8 12.76 12.75 13.02 13.08 13.43 13.4 11/30/07 13.41 FUND SNAPSHOT ------------------------------------ Common Share Price $13.41 ------------------------------------ Common Share Net Asset Value $14.28 ------------------------------------ Premium/(Discount) to NAV -6.09% ------------------------------------ Market Yield 4.52% ------------------------------------ Taxable-Equivalent Yield2 6.61% ------------------------------------ Net Assets Applicable to Common Shares ($000) $62,307 ------------------------------------ Average Effective Maturity on Securities (Years) 16.58 ------------------------------------ Leverage-Adjusted Duration 9.29 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/26/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -6.72% 2.06% ------------------------------------ 1-Year -0.20% 1.49% ------------------------------------ 5-Year 3.49% 5.76% ------------------------------------ Since Inception 2.86% 4.97% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/General 20.9% ------------------------------------ Tax Obligation/Limited 14.6% ------------------------------------ U.S. Guaranteed 14.2% ------------------------------------ Education and Civic Organizations 12.5% ------------------------------------ Water and Sewer 10.1% ------------------------------------ Long-Term Care 8.5% ------------------------------------ Health Care 6.3% ------------------------------------ Other 12.9% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 13 NMT Performance OVERVIEW Nuveen Massachusetts Premium Income Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 65% AA 19% A 4% BBB 9% BB or Lower 1% N/R 2% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share3 Dec 0.0535 Jan 0.0535 Feb 0.0535 Mar 0.0535 Apr 0.0535 May 0.0535 Jun 0.0515 Jul 0.0515 Aug 0.0515 Sep 0.0515 Oct 0.0515 Nov 0.0515 Line Chart: Share Price Performance -- Weekly Closing Price 12/31/06 14.79 14.68 14.75 14.67 14.69 14.65 14.63 14.67 14.5 14.44 14.39 14.33 14.53 14.33 14.26 14.26 14.25 14.21 14.18 14.39 14.39 14.44 14.39 14.43 14.49 14.4 14.38 14.35 14.37 14.33 14.3 14.29 14.26 14.28 14.28 14.24 14.2 14.23 14.17 14.19 14.18 14.32 14.22 14.21 14.21 14.17 14.11 14.1 14.15 14.2 14.16 14.24 14.29 14.38 14.27 14.27 14.29 14.18 14.28 14.21 14.3 14.34 14.36 14.23 14.42 14.42 14.35 14.4 14.44 14.54 14.37 14.37 14.33 14.31 14.37 14.47 14.37 14.36 14.42 14.42 14.37 14.37 14.37 14.51 14.562 14.6 14.67 14.63 14.74 14.56 14.54 14.47 14.42 14.42 14.45 14.479 14.479 14.56 14.43 14.39 14.44 14.51 14.62 14.58 14.6 14.63 14.82 14.54 14.6 14.6 14.66 14.62 14.6 14.54 14.65 14.87 14.6505 14.55 14.5 14.4 14.37 14.32 14.28 14.2894 14.33 14.3 14.28 14.26 14.5 14.25 14.37 14.28 14.25 14.2 14.19 14.19 14.08 14.1 14.05 14.11 14.1 13.98 14.1 14.35 14.22 14.23 14.23 14.13 14.12 13.86 13.9 13.96 13.91 13.93 13.802 13.8 13.75 13.76 13.67 13.67 13.86 13.77 14.04 14.04 13.96 14.19 14.1 14.24 13.85 13.51 13.64 13.65 13.578 13.45 13.35 13.16 13.2 13.25 13.25 13.26 13.53 13.42 13.48 13.48 13.33 13.25 13.25 13.24 13.38 13.29 13.4 13.39 13.4 13.47 13.67 13.94 14 13.93 13.82 13.84 13.59 13.85 14 13.758 13.8042 13.73 13.52 13.52 13.55 13.65 13.65 13.67 13.7 13.65 13.7801 13.66 13.66 13.43 13.54 13.46 13.5 13.525 13.39 13.27 13.31 13.3601 13.42 13.35 13.32 13.36 13.33 13.42 13.41 13.3901 13.42 13.42 13.46 13.41 13.27 13.18 13.14 13.05 13.09 13.29 13.08 13.04 13.07 12.89 12.9 13.03 12.9 12.89 12.97 12.91 11/30/07 13.11 FUND SNAPSHOT ------------------------------------ Common Share Price $13.11 ------------------------------------ Common Share Net Asset Value $14.54 ------------------------------------ Premium/(Discount) to NAV -9.83% ------------------------------------ Market Yield 4.71% ------------------------------------ Taxable-Equivalent Yield2 6.91% ------------------------------------ Net Assets Applicable to Common Shares ($000) $69,255 ------------------------------------ Average Effective Maturity on Securities (Years) 15.94 ------------------------------------ Leverage-Adjusted Duration 9.41 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -6.42% 2.02% ------------------------------------ 1-Year -6.04% 1.32% ------------------------------------ 5-Year 2.19% 5.41% ------------------------------------ 10-Year 3.62% 5.74% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 16.6% ------------------------------------ Education and Civic Organizations 15.9% ------------------------------------ Health Care 13.3% ------------------------------------ Tax Obligation/General 12.3% ------------------------------------ Transportation 9.1% ------------------------------------ Tax Obligation/Limited 8.2% ------------------------------------ Water and Sewer 7.6% ------------------------------------ Housing/Multifamily 5.5% ------------------------------------ Other 11.5% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.8%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 3 The Fund paid shareholders capital gains and net ordinary income distributions in December 2006 of $0.0076 per share. 14 NMB Performance OVERVIEW Nuveen Massachusetts Dividend Advantage Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 57% AA 22% A 7% BBB 11% BB or Lower 3% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share Dec 0.062 Jan 0.062 Feb 0.062 Mar 0.0595 Apr 0.0595 May 0.0595 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0565 Oct 0.0565 Nov 0.0565 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 15.74 15.7 15.65 15.74 15.74 15.73 15.75 15.75 15.66 15.48 15.4 15.11 15.21 15.29 15.29 15.15 15.21 15.25 15.15 15.18 15.18 15.19 15.17 15.24 15.16 15.22 15.15 15.23 15.07 15.19 15.19 15.06 15.0755 15.19 15.19 15.07 15.04 14.95 15.04 15.01 15.05 15.05 15.08 15.03 14.87 14.99 14.97 14.97 14.94 14.99 14.99 15.05 15.05 15.14 15.14 15.14 15.17 15.2 15.16 15.28 15.25 15.33 15.38 15.43 15.48 15.53 15.53 15.5 15.5 15.55 15.55 15.49 15.51 15.51 15.473 15.47 15.38 15.37 15.46 15.47 15.48 15.52 15.52 15.52 15.52 15.57 15.7 15.75 15.8 15.7 15.61 15.61 15.61 15.61 15.55 15.55 15.7 15.7 15.7 15.75 15.65 15.6 15.85 15.75 15.7 15.75 15.75 15.74 15.94 15.92 15.92 15.92 15.89 15.84 15.84 16.1 16.05 16.4 16.1 16.11 16.11 16.11 16.0001 16.0001 16.2799 16.15 16.24 16.24 16.24 16.17 16.44 16.44 16.17 15.85 15.67 15.42 15.41 15.59 15.4 15.4 15.35 15.06 14.9801 15.25 14.9 15.07 15.07 15.0101 15.01 14.93 15.01 15.11 15 14.862 14.862 14.8 14.61 14.61 14.644 14.644 14.88 14.9 14.9 15.15 14.99 15.35 15.15 14.54 14.66 14.48 14.7 14.75 14.65 14.75 14.85 14.44 14.44 14.43 14.4 14.11 14.21 14.4 14.4 14.4 14.37 14.4 14.4 14.15 14.22 14.26 14.26 14.217 14.5 14.65 14.57 14.65 14.58 14.53 14.35 14.53 14.3 14.16 14.29 14.29 14.3 14.3 14.3 14.35 14.35 14.35 14.35 14.23 14.33 14.27 14.18 14.08 14.13 13.99 14.15 14.02 14.1 14.15 14.07 14.25 14.05 14.03 14.11 14.11 14.15 14.09 14 14.15 14.1 14.14 14.1 14.13 14.15 14.05 13.93 13.86 13.84 13.86 13.99 14.01 14.03 13.93 13.75 13.7 13.7 13.67 13.63 13.59 13.49 13.5001 11/30/07 14.0999 FUND SNAPSHOT ------------------------------------ Common Share Price $14.10 ------------------------------------ Common Share Net Asset Value $14.78 ------------------------------------ Premium/(Discount) to NAV -4.60% ------------------------------------ Market Yield 4.81% ------------------------------------ Taxable-Equivalent Yield2 7.05% ------------------------------------ Net Assets Applicable to Common Shares ($000) $28,968 ------------------------------------ Average Effective Maturity on Securities (Years) 18.08 ------------------------------------ Leverage-Adjusted Duration 9.15 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/30/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -11.33% 1.92% ------------------------------------ 1-Year -6.06% 1.21% ------------------------------------ 5-Year 2.48% 6.29% ------------------------------------ Since Inception 4.86% 6.63% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Education and Civic Organizations 20.9% ------------------------------------ Health Care 14.3% ------------------------------------ U.S. Guaranteed 12.1% ------------------------------------ Tax Obligation/General 11.4% ------------------------------------ Water and Sewer 9.4% ------------------------------------ Housing/Multifamily 8.1% ------------------------------------ Tax Obligation/Limited 7.6% ------------------------------------ Long-Term Care 5.1% ------------------------------------ Other 11.1% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.8%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 15 NGX Performance OVERVIEW Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 Insured 56% U.S. Guaranteed 28% GNMA Guaranteed 3% AAA (Uninsured) 2% AA (Uninsured) 7% A (Uninsured) 2% BBB (Uninsured) 2% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share Dec 0.0525 Jan 0.0525 Feb 0.0525 Mar 0.0525 Apr 0.0525 May 0.0525 Jun 0.0525 Jul 0.0525 Aug 0.0545 Sep 0.0545 Oct 0.0545 Nov 0.0545 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 13.86 13.93 13.94 13.88 13.95 14 13.9 13.9 13.86 13.88 13.81 13.81 13.86 13.81 13.81 13.88 13.84 13.82 13.87 13.85 13.85 13.9 13.9 13.86 13.86 13.82 13.8 13.8 13.88 13.91 13.77 13.75 13.64 13.68 13.78 13.8 13.77 13.78 13.78 13.78 13.66 13.9 13.99 13.9896 13.76 13.81 13.9 14 13.94 13.95 13.99 14.35 14.35 14.24 14.21 14.2 14.1 14.07 14.2 14.2 14.2 14.216 14.24 14.25 14.22 14.2 14.2 14.15 14.17 14.16 14.16 14.16 14.16 14 13.96 13.96 13.97 14.06 14.1 14.2 14 14.04 14.04 14.09 14.23 14.19 14.48 14.39 14.16 14.15 14.15 14.15 14.1601 14.2299 14.4 14.2601 14.31 14.35 14.39 14.25 14.5 14.5 14.187 14.19 14.43 14.5 14.65 14.6299 14.63 14.6 14.64 14.48 14.6499 14.6499 14.53 14.58 14.58 14.65 14.6499 14.62 14.65 14.62 14.43 14.49 14.4501 14.54 14.43 14.7 14.4424 14.43 14.37 14.4099 14.2 14.15 14 14.1 14.12 14.21 14.22 14.13 14.03 14.11 14.21 14.41 14.2 14.25 14.25 14.05 14.25 14.15 14.05 14.02 14.22 14.03 13.95 14 13.95 13.95 13.9 13.93 14.25 14.15 14.45 14.35 14.18 14.13 13.96 13.71 13.9 13.97 13.98 13.96 13.92 14 14.2 14.0936 14.072 14.05 13.98 13.56 13.98 14.08 14.33 14.4 14.41 14.34 14.4499 14.06 13.88 13.85 13.83 13.88 13.8501 14.2 14.59 14.39 14.6 14.38 14.16 14.4 14.49 14.24 14.06 14.1 14.1 14.06 14.03 13.96 13.96 13.9101 13.9101 14.01 14.05 14.1 14.05 14 13.97 13.9 13.98 14.02 14.2 13.9999 13.9001 13.9001 13.95 13.95 13.94 14.05 13.95 13.97 13.9 14.05 14.14 14.0001 13.95 13.92 13.9714 13.9 13.85 13.866 13.85 13.85 13.71 13.82 13.55 13.54 13.55 13.4 13.6 13.51 13.36 13.5 13.73 13.8 11/30/07 13.98 FUND SNAPSHOT ------------------------------------ Common Share Price $13.98 ------------------------------------ Common Share Net Asset Value $14.60 ------------------------------------ Premium/(Discount) to NAV -4.25% ------------------------------------ Market Yield 4.68% ------------------------------------ Taxable-Equivalent Yield2 6.86% ------------------------------------ Net Assets Applicable to Common Shares ($000) $39,752 ------------------------------------ Average Effective Maturity on Securities (Years) 17.15 ------------------------------------ Leverage-Adjusted Duration 8.34 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -1.01% 2.96% ------------------------------------ 1-Year 6.14% 2.03% ------------------------------------ 5-Year 3.34% 5.71% ------------------------------------ Since Inception 3.60% 5.62% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 27.6% ------------------------------------ Tax Obligation/Limited 17.8% ------------------------------------ Tax Obligation/General 16.2% ------------------------------------ Education and Civic Organizations 10.8% ------------------------------------ Water and Sewer 9.0% ------------------------------------ Housing/Multifamily 6.9% ------------------------------------ Health Care 6.8% ------------------------------------ Other 4.9% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.8%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 16 NOM Performance OVERVIEW Nuveen Missouri Premium Income Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 64% AA 12% A 2% BBB 7% N/R 15% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share3 Dec 0.06 Jan 0.06 Feb 0.06 Mar 0.0575 Apr 0.0575 May 0.0575 Jun 0.0545 Jul 0.0545 Aug 0.0545 Sep 0.0545 Oct 0.0545 Nov 0.0545 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 16.9 16.9 16.81 16.99 16.9 16.9 16.99 16.87 16.9 16.85 16.85 16.85 16.85 16.8 16.8 16.9 17 17 17 17 17 17.01 17.01 16.99 16.99 16.9 16.9 16.99 17.01 16.85 16.4 16.4 16.31 16.29 16.18 16.18 16.2 16.37 16.17 16.1636 16.01 16.08 16.22 16.23 16.23 16.23 16 16 16.01 16.01 16.01 16 16.03 16.05 16.05 16.15 16.3 16.47 16.72 16.6 16.6 16.53 16.53 16.39 16.75 17 17.06 16.82 16.65 16.63 16.63 16.62 16.48 16.53 16.53 16.2 16.27 16.27 16.21 16.11 16.11 16.11 16.11 16.11 16.2 16.4 16.22 16.5 16.62 16.59 16.65 16.65 16.71 16.43 16.62 16.7 16.71 16.47 16.47 16.47 16.43 16.43 16.43 16.43 16.64 16.855 16.93 16.894 16.87 17.15 17.12 17.07 17.03 17 16.95 16.87 16.87 16.87 16.84 16.8 16.3704 16.58 16.59 16.59 16.56 16.56 16.66 16.66 16.47 16.4 16.4 16.4 15.7 15.42 15.47 15.5 15.52 15.47 15.47 15.37 15.43 15.33 15.3 15.3 15.3 15.35 15.35 15.27 15.25 15.0001 15.09 14.99 15.11 15.1 15.16 15.06 14.84 14.77 14.7882 14.627 14.55 14.45 14.52 14.5 14.25 14.3 14.76 14.76 14.51 14.43 14.42 14.42 14.42 14.42 14.41 14.17 14.14 14.1 14.1 14 13.848 13.98 13.9 14.31 14.27 14.04 14.19 14.27 14.1 14.15 14.1 14.1 14.16 14.1001 14.34 14.36 14.55 14.39 14.39 14.39 14.39 14.52 14.45 14.45 14.45 14.44 14.04 14.05 14.05 14.03 14.03 14.05 14.1185 14.03 14.1 14.04 14.1975 14.25 14.22 14.22 14.1 14 14.1 14.15 14.17 14.2 14.25 14.25 14.14 14.16 14.15 14.22 14.3 14.3 14.2 14.47 14.57 14.7 14.25 14.15 14.15 14.15 14.15 14.43 14.43 14.44 14.44 14.54 14.48 14.35 14.15 14.15 14.2 14.15 11/30/07 14.2 FUND SNAPSHOT ------------------------------------ Common Share Price $14.20 ------------------------------------ Common Share Net Asset Value $14.07 ------------------------------------ Premium/(Discount) to NAV 0.92% ------------------------------------ Market Yield 4.61% ------------------------------------ Taxable-Equivalent Yield2 6.81% ------------------------------------ Net Assets Applicable to Common Shares ($000) $32,397 ------------------------------------ Average Effective Maturity on Securities (Years) 15.33 ------------------------------------ Leverage-Adjusted Duration 9.61 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -12.25% 0.92% ------------------------------------ 1-Year -12.03% 0.00% ------------------------------------ 5-Year 2.97% 5.18% ------------------------------------ 10-Year 5.47% 5.68% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/General 19.0% ------------------------------------ U.S. Guaranteed 17.4% ------------------------------------ Tax Obligation/Limited 16.7% ------------------------------------ Health Care 13.0% ------------------------------------ Water and Sewer 9.8% ------------------------------------ Housing/Single Family 5.7% ------------------------------------ Long-Term Care 5.4% ------------------------------------ Other 13.0% ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 3 The Fund paid shareholders a capital gains distribution in December 2006 of $0.0048 per share. 17 NTC NFC NGK Shareholder MEETING REPORT The annual meeting of shareholders was held in the offices of Nuveen Investments on October 12, 2007.
NTC NFC NGK ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 2,742,129 -- 1,352,640 -- 1,226,482 -- Against 90,160 -- 44,156 -- 63,446 -- Abstain 84,429 -- 45,082 -- 25,929 -- Broker Non-Votes 1,035,545 -- 456,203 -- 465,577 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,952,263 -- 1,898,081 -- 1,781,434 -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: William J. Schneider For -- 1,026 -- 532 -- 479 Withhold -- 4 -- 16 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,030 -- 548 -- 479 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,026 -- 532 -- 479 Withhold -- 4 -- 16 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,030 -- 548 -- 479 ==================================================================================================================================== Judith M. Stockdale For 3,856,847 -- 1,815,721 -- 1,713,026 -- Withhold 95,416 -- 82,360 -- 68,408 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,952,263 -- 1,898,081 -- 1,781,434 -- ==================================================================================================================================== Carole E. Stone For 3,855,447 -- 1,815,721 -- 1,713,026 -- Withhold 96,816 -- 82,360 -- 68,408 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,952,263 -- 1,898,081 -- 1,781,434 -- ==================================================================================================================================== TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR: For 3,836,590 -- 1,854,407 -- 1,732,586 -- Against 49,981 -- 31,921 -- 40,574 -- Abstain 65,692 -- 11,753 -- 8,274 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,952,263 -- 1,898,081 -- 1,781,434 -- ====================================================================================================================================
18 NGO NMT NMB
NGO NMT NMB ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 2,239,869 -- 2,294,927 -- 1,044,182 -- Against 84,016 -- 92,820 -- 15,453 -- Abstain 54,694 -- 51,187 -- 50,996 -- Broker Non-Votes 908,206 -- 746,991 -- 361,824 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,286,785 -- 3,185,925 -- 1,472,455 -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: William J. Schneider For -- 948 -- 834 -- 374 Withhold -- -- -- 7 -- 10 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 948 -- 841 -- 384 ==================================================================================================================================== Timothy R. Schwertfeger For -- 948 -- 834 -- 374 Withhold -- -- -- 7 -- 10 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 948 -- 841 -- 384 ==================================================================================================================================== Judith M. Stockdale For 3,216,622 -- 3,119,206 -- 1,426,097 -- Withhold 70,163 -- 66,719 -- 46,358 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,286,785 -- 3,185,925 -- 1,472,455 -- ==================================================================================================================================== Carole E. Stone For 3,216,622 -- 3,119,206 -- 1,426,097 -- Withhold 70,163 -- 66,719 -- 46,358 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,286,785 -- 3,185,925 -- 1,472,455 -- ==================================================================================================================================== TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR: For 3,238,124 -- 3,114,694 -- 1,440,470 -- Against 27,636 -- 23,267 -- 9,459 -- Abstain 21,025 -- 47,964 -- 22,526 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 3,286,785 -- 3,185,925 -- 1,472,455 -- ====================================================================================================================================
19 NGX NOM Shareholder MEETING REPORT (continued)
NGX NOM ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT: Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 1,254,166 -- 1,239,500 -- Against 29,147 -- 338,969 -- Abstain 25,707 -- 36,275 -- Broker Non-Votes 462,836 -- 255,086 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,771,856 -- 1,869,830 -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: William J. Schneider For -- 610 -- 558 Withhold -- -- -- 31 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 610 -- 589 ==================================================================================================================================== Timothy R. Schwertfeger For -- 610 -- 558 Withhold -- -- -- 31 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 610 -- 589 ==================================================================================================================================== Judith M. Stockdale For 1,745,774 -- 1,513,746 -- Withhold 26,082 -- 356,084 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,771,856 -- 1,869,830 -- ==================================================================================================================================== Carole E. Stone For 1,745,774 -- 1,514,945 -- Withhold 26,082 -- 354,885 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,771,856 -- 1,869,830 -- ==================================================================================================================================== TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR: For 1,692,451 -- 1,530,079 -- Against 52,166 -- 314,339 -- Abstain 27,239 -- 25,412 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 1,771,856 -- 1,869,830 -- ====================================================================================================================================
20 NTC Nuveen Connecticut Premium Income Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.6% (1.7% OF TOTAL INVESTMENTS) $ 600 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 $ 573,102 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 1,485 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,450,741 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 2,085 Total Consumer Staples 2,023,843 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 33.3% (21.9% OF TOTAL INVESTMENTS) 1,595 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AAA 1,680,237 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 (WI/DD, Settling 12/20/07) - MBIA Insured 1,100 Connecticut Health and Education Facilities Authority, University 7/16 at 100.00 AA 1,110,549 of Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 925 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 957,976 Bonds, Brunswick School, Series 2003B, 5.000%, 7/01/33 - MBIA Insured 200 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AA 196,114 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 500 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call AAA 544,735 Bonds, Connecticut State University System, Series 2003F, 5.000%, 11/01/13 - FSA Insured 725 Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 102.00 AAA 744,024 Bonds, Fairfield University, Series 1998H, 5.000%, 7/01/23 - MBIA Insured 750 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Aaa 777,323 Bonds, Horace Bushnell Memorial Hall, Series 1999A, 5.625%, 7/01/29 - MBIA Insured 640 Connecticut Health and Educational Facilities Authority, Revenue 1/08 at 100.00 AAA 644,179 Bonds, Loomis Chaffee School, Series 1996C, 5.500%, 7/01/16 - MBIA Insured 800 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call Aaa 893,944 Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 - AMBAC Insured 270 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 276,078 Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC Insured 1,375 Connecticut Health and Educational Facilities Authority, Revenue 7/14 at 100.00 AAA 1,461,735 Bonds, Trinity College, Series 2004H, 5.000%, 7/01/21 - MBIA Insured 2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 AA 2,020,960 Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32 - RAAI Insured 1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,527,945 Bonds, Yale University, Series 2002W, 5.125%, 7/01/27 1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 1,546,710 Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 3,550 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,709,854 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 315 Connecticut Higher Education Supplemental Loan Authority, 11/09 at 102.00 AAA 317,907 Revenue Bonds, Family Education Loan Program, Series 1999A, 6.000%, 11/15/18 - AMBAC Insured (Alternative Minimum Tax) 690 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 Aaa 710,576 Revenue Bonds, Family Education Loan Program, Series 2001A, 5.250%, 11/15/18 - MBIA Insured (Alternative Minimum Tax) 21 NTC Nuveen Connecticut Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 305 Connecticut State Health and Educational Facilities Authority, 7/17 at 100.00 AA $ 306,833 Revenue Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured University of Connecticut, General Obligation Bonds, Series 2004A: 1,000 5.000%, 1/15/18 - MBIA Insured 1/14 at 100.00 AAA 1,067,800 2,000 5.000%, 1/15/19 - MBIA Insured 1/14 at 100.00 AAA 2,135,600 1,220 University of Connecticut, General Obligation Bonds, Series 2005A, 2/15 at 100.00 AAA 1,328,251 5.000%, 2/15/17 - FSA Insured 685 University of Connecticut, General Obligation Bonds, Series 2006A, 2/16 at 100.00 AAA 730,758 5.000%, 2/15/23 - FGIC Insured 1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AAA 1,078,380 Series 2002A, 5.250%, 11/15/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,645 Total Education and Civic Organizations 25,768,468 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 16.5% (10.9% OF TOTAL INVESTMENTS) Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital, Series 2002B: 500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 AA 520,560 700 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 AA 719,005 645 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 AA 673,851 Bonds, Eastern Connecticut Health Network, Series 2000A, 6.000%, 7/01/25 - RAAI Insured Connecticut Health and Educational Facilities Authority, Revenue Bonds, Griffin Hospital, Series 2005B: 800 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 Aa3 817,184 500 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 Aa3 505,640 385 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AA 382,875 Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 - RAAI Insured 2,620 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aaa 2,690,740 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA Insured 2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Aaa 2,048,540 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 - MBIA Insured 1,395 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,425,718 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured 3,000 Connecticut Health and Educational Facilities Authority, Revenue 1/08 at 101.00 Aaa 3,032,430 Refunding Bonds, Middlesex Health Services, Series 1997H, 5.125%, 7/01/27 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,545 Total Health Care 12,816,543 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.6% (1.7% OF TOTAL INVESTMENTS) 1,000 Connecticut Housing Finance Authority, Housing Mortgage 12/09 at 100.00 AAA 1,029,830 Finance Program Bonds, Series 1999D-2, 6.200%, 11/15/41 (Alternative Minimum Tax) 1,000 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 971,830 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Housing/Multifamily 2,001,660 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.2% (3.4% OF TOTAL INVESTMENTS) Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2001C: 1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 1,004,450 500 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 503,035 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2006-A1: 205 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 197,884 220 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 210,780 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 2,100 Connecticut Housing Finance Authority, Housing Mortgage 5/16 at 100.00 AAA $ 2,119,698 Finance Program Bonds, Series 2006D, 4.650%, 11/15/27 ------------------------------------------------------------------------------------------------------------------------------------ 4,025 Total Housing/Single Family 4,035,847 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.3% (1.5% OF TOTAL INVESTMENTS) 1,750 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 1,760,115 American Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 6.1% (4.1% OF TOTAL INVESTMENTS) 750 Connecticut Development Authority, First Mortgage Gross Revenue 4/08 at 101.00 BBB- 767,663 Refunding Healthcare Bonds, Church Homes Inc. - Congregational Avery Heights, Series 1997, 5.700%, 4/01/12 615 Connecticut Development Authority, First Mortgage Gross 9/09 at 102.00 AA 638,173 Revenue Refunding Healthcare Bonds, Connecticut Baptist Homes Inc., Series 1999, 5.500%, 9/01/15 - RAAI Insured Connecticut Development Authority, Revenue Refunding Bonds, Duncaster Inc., Series 1999A: 1,000 5.250%, 8/01/19 - RAAI Insured 2/10 at 102.00 AA 1,021,310 1,000 5.375%, 8/01/24 - RAAI Insured 2/10 at 102.00 AA 1,017,720 1,300 Connecticut Health and Educational Facilities Authority, 8/08 at 102.00 AAA 1,316,861 FHA-Insured Mortgage Revenue Bonds, Hebrew Home and Hospital, Series 1999B, 5.200%, 8/01/38 ------------------------------------------------------------------------------------------------------------------------------------ 4,665 Total Long-Term Care 4,761,727 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 29.7% (19.6% OF TOTAL INVESTMENTS) 750 Bridgeport, Connecticut, General Obligation Refunding Bonds, 8/12 at 100.00 Aaa 805,965 Series 2002A, 5.375%, 8/15/19 - FGIC Insured 1,140 Capitol Region Education Council, Connecticut, Revenue Bonds, 4/08 at 100.00 BBB 1,142,223 Series 1995, 6.700%, 10/15/10 3,015 Connecticut State, General Obligation Bonds, Series 2007B, No Opt. Call AA 3,325,605 5.000%, 5/01/16 1,110 Connecticut, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AAA 1,169,307 5.000%, 4/01/23 - FGIC Insured 2,000 Connecticut, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 2,082,780 4.750%, 12/15/24 1,300 Connecticut, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 1,389,544 5.000%, 6/01/23 - FSA Insured Hartford, Connecticut, General Obligation Bonds, Series 2005A: 775 5.000%, 8/01/20 - FSA Insured 8/15 at 100.00 AAA 827,770 525 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 525,992 500 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 AAA 550,500 5.000%, 11/01/17 - AMBAC Insured 500 North Haven, Connecticut, General Obligation Bonds, No Opt. Call Aa2 551,605 Series 2006, 5.000%, 7/15/24 1,860 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 2,099,308 Series 2001A, 5.500%, 7/01/20 - MBIA Insured Regional School District 16, Beacon Falls and Prospect, Connecticut, General Obligation Bonds, Series 2000: 350 5.500%, 3/15/18 - FSA Insured 3/10 at 101.00 Aaa 367,668 350 5.625%, 3/15/19 - FSA Insured 3/10 at 101.00 Aaa 368,701 350 5.700%, 3/15/20 - FSA Insured 3/10 at 101.00 Aaa 369,415 1,420 Regional School District 16, Connecticut, General Obligation 3/13 at 101.00 Aaa 1,532,464 Bonds, Series 2003, 5.000%, 3/15/16 - AMBAC Insured 2,105 Stratford, Connecticut, General Obligation Bonds, Series 2002, 2/12 at 100.00 AAA 2,152,384 4.000%, 2/15/15 - FSA Insured Suffield, Connecticut, General Obligation Bonds, Series 2005: 465 5.000%, 6/15/17 No Opt. Call AA 514,006 460 5.000%, 6/15/19 No Opt. Call AA 509,142 1,000 5.000%, 6/15/21 No Opt. Call AA 1,106,520 1,500 West Hartford, Connecticut, General Obligation Bonds, 10/15 at 100.00 AAA 1,620,510 Series 2005B, 5.000%, 10/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 21,475 Total Tax Obligation/General 23,011,409 ------------------------------------------------------------------------------------------------------------------------------------ 23 NTC Nuveen Connecticut Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.6% (14.2% OF TOTAL INVESTMENTS) Connecticut Health and Educational Facilities Authority, Child Care Facilities Program Revenue Bonds, Series 2006F: $ 1,300 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA $ 1,338,818 1,000 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 1,024,150 1,945 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 102.00 AAA 2,033,556 Bonds, Child Care Facilities Program, Series 1999C, 5.625%, 7/01/29 - AMBAC Insured Connecticut, Special Tax Obligation Transportation Infrastructure Purpose Bonds, Series 2002B: 2,000 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AAA 2,109,800 1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AAA 1,049,560 500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AAA 524,335 Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured 1,750 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AAA 1,853,793 Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A: 960 0.000%, 7/01/32 - FGIC Insured No Opt. Call AAA 278,986 2,615 0.000%, 7/01/33 - FGIC Insured No Opt. Call AAA 724,486 2,000 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,119,400 5.250%, 8/01/21 - FSA Insured 2,400 Puerto Rico Municipal Finance Agency, Series 2005C, 8/15 at 100.00 AAA 2,604,048 5.000%, 8/01/16 - FSA Insured 1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AAA 1,089,660 Loan Note, Series 2003, 5.250%, 10/01/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,470 Total Tax Obligation/Limited 16,750,592 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.0% (0.6% OF TOTAL INVESTMENTS) 750 Connecticut, General Airport Revenue Bonds, Bradley International 4/11 at 101.00 AAA 758,513 Airport, Series 2001A, 5.125%, 10/01/26 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 11.7% (7.7% OF TOTAL INVESTMENTS) (4) 50 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R (4) 53,810 Bonds, Eastern Connecticut Health Network, Series 2000A, 6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured 650 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 (4) 705,705 Revenue Bonds, Loomis Chaffee School, Series 2001D, 5.500%, 7/01/23 (Pre-refunded 7/01/11) 40 Connecticut, General Obligation Bonds, Series 1993E, No Opt. Call AA (4) 44,396 6.000%, 3/15/12 (ETM) 1,500 Connecticut, General Obligation Bonds, Series 2002B, 6/12 at 100.00 AA (4) 1,642,410 5.500%, 6/15/21 (Pre-refunded 6/15/12) 1,000 Hartford, Connecticut, Parking System Revenue Bonds, 7/10 at 100.00 Baa2 (4) 1,076,080 Series 2000A, 6.400%, 7/01/20 (Pre-refunded 7/01/10) 400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 AAA 426,584 Series 2000A, 6.000%, 6/01/20 (Pre-refunded 6/01/10) - ACA Insured 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,057,690 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 655 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 683,656 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 1,100 University of Connecticut, General Obligation Bonds, 2/13 at 100.00 AAA 1,195,458 Series 2003A, 5.125%, 2/15/21 (Pre-refunded 2/15/13) - MBIA Insured 1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 1,097,450 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) 1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 1,085,890 5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,395 Total U.S. Guaranteed 9,069,129 ------------------------------------------------------------------------------------------------------------------------------------ 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.1% (4.6% OF TOTAL INVESTMENTS) $ 1,575 Bristol Resource Recovery Facility Operating Committee, No Opt. Call AAA $ 1,678,037 Connecticut, Solid Waste Revenue Bonds, Covanta Bristol Inc., Series 2005, 5.000%, 7/01/12 - AMBAC Insured 1,070 Connceticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 1,084,327 Facilities Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax) 1,000 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 Baa1 1,027,980 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A: 395 5.500%, 1/01/14 (Alternative Minimum Tax) 1/08 at 100.00 BBB 394,332 1,290 5.500%, 1/01/20 (Alternative Minimum Tax) 1/08 at 100.00 BBB 1,285,317 ------------------------------------------------------------------------------------------------------------------------------------ 5,330 Total Utilities 5,469,993 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.2% (8.1% OF TOTAL INVESTMENTS) 500 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 AAA 499,200 Bonds, Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 - XLCA Insured (Alternative Minimum Tax) 1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 1,277,394 Series 2003A, 5.000%, 10/01/16 Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A: 1,520 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AAA 1,586,348 2,260 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AAA 2,349,406 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Eighteenth Series 2003A: 1,000 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 1,057,240 1,525 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 1,579,275 1,100 Stamford, Connecticut, Water Pollution Control System 11/13 at 100.00 AA+ 1,132,967 and Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32 9,090 Total Water and Sewer 9,481,830 ------------------------------------------------------------------------------------------------------------------------------------ $ 115,225 Total Investments (cost $115,399,569) - 151.9% 117,709,669 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (2.5)% (1,915,633) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.4)% (38,300,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 77,494,036 ====================================================================================================================
25 NTC Nuveen Connecticut Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $1,250,000 Pay 3-Month USD LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 86,391 Morgan Stanley 1,000,000 Pay 3-Month USD LIBOR 5.559 Semi-Annually 4/23/08 4/23/23 80,743 Royal Bank of Canada 2,900,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 248,788 ------------------------------------------------------------------------------------------------------------------------------------ $415,922 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 26 NFC Nuveen Connecticut Dividend Advantage Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.5% (2.9% OF TOTAL INVESTMENTS) Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: $ 25 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 24,620 500 5.400%, 5/15/31 5/11 at 100.00 Baa3 476,800 1,270 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 1,213,066 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 ------------------------------------------------------------------------------------------------------------------------------------ 1,795 Total Consumer Staples 1,714,486 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 29.4% (19.2% OF TOTAL INVESTMENTS) 795 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AAA 837,485 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 (WI/DD, Settling 12/20/07) - MBIA Insured 500 Connecticut Health and Education Facilities Authority, University 7/16 at 100.00 AA 504,795 of Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 100 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AA 98,057 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 500 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call AAA 544,735 Bonds, Connecticut State University System, Series 2003F, 5.000%, 11/01/13 - FSA Insured 440 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call Aaa 490,494 Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/18 - AMBAC Insured 130 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 132,926 Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC Insured 50 Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 101.00 AA 50,034 Bonds, Sacred Heart University, Series 1998E, 5.000%, 7/01/28 - RAAI Insured 350 Connecticut Health and Educational Facilities Authority, Revenue 7/14 at 100.00 AAA 379,239 Bonds, Trinity College, Series 2004H, 5.000%, 7/01/17 - MBIA Insured 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 AA 1,010,480 Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32 - RAAI Insured 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,018,630 Bonds, Yale University, Series 2002W, 5.125%, 7/01/27 500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 515,570 Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 1,800 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,881,054 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 535 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 Aaa 550,954 Revenue Bonds, Family Education Loan Program, Series 2001A, 5.250%, 11/15/18 - MBIA Insured (Alternative Minimum Tax) 150 Connecticut State Health and Educational Facilities Authority, 7/17 at 100.00 AA 150,902 Revenue Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999: 125 5.375%, 2/01/19 2/09 at 101.00 BBB- 126,733 270 5.375%, 2/01/29 2/09 at 101.00 BBB- 270,057 27 NFC Nuveen Connecticut Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) University of Connecticut, General Obligation Bonds, Series 2001A: $ 1,000 4.750%, 4/01/20 4/11 at 101.00 AA $ 1,034,160 1,000 4.750%, 4/01/21 - MBIA Insured 4/11 at 101.00 AA 1,030,540 585 University of Connecticut, General Obligation Bonds, 2/16 at 100.00 AAA 624,078 Series 2006A, 5.000%, 2/15/23 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,830 Total Education and Civic Organizations 11,250,923 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 11.7% (7.7% OF TOTAL INVESTMENTS) 1,400 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,438,010 Revenue Bonds, Bristol Hospital, Series 2002B, 5.500%, 7/01/32 - RAAI Insured Connecticut Health and Educational Facilities Authority, Revenue Bonds, Griffin Hospital, Series 2005B: 500 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 Aa3 510,740 250 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 Aa3 252,820 185 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AA 183,979 Revenue Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 - RAAI Insured 60 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aaa 61,620 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA Insured 125 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Aaa 128,034 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 - MBIA Insured 1,870 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,911,177 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,390 Total Health Care 4,486,380 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.2% (2.1% OF TOTAL INVESTMENTS) 500 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 485,915 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) 750 Stamford Housing Authority, Connecticut, Multifamily Housing No Opt. Call A- 755,160 Revenue Bonds, Fairfield Apartments, Series 1998, 4.750%, 12/01/28 (Mandatory put 12/01/08) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,250 Total Housing/Multifamily 1,241,075 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.1% (3.4% OF TOTAL INVESTMENTS) Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2001C: 1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 1,004,450 250 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 251,518 700 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 706,566 Program Bonds, Series 2006D, 4.650%, 11/15/27 ------------------------------------------------------------------------------------------------------------------------------------ 1,950 Total Housing/Single Family 1,962,534 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.7% (1.7% OF TOTAL INVESTMENTS) 1,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 1,005,780 American Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.8% (1.1% OF TOTAL INVESTMENTS) 300 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 310,365 Revenue Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003, 5.750%, 12/01/23 110 Connecticut Development Authority, First Mortgage Gross 4/08 at 101.00 BBB- 112,842 Revenue Refunding Healthcare Bonds, Church Homes Inc. - Congregational Avery Heights, Series 1997, 5.800%, 4/01/21 250 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 233,453 Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series 2007, 5.500%, 8/15/27 ------------------------------------------------------------------------------------------------------------------------------------ 660 Total Long-Term Care 656,660 ------------------------------------------------------------------------------------------------------------------------------------ 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 12.9% (8.4% OF TOTAL INVESTMENTS) $ 450 Connecticut State, General Obligation Bonds, Series 2007B, No Opt. Call AA $ 496,359 5.000%, 5/01/16 560 Connecticut, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AAA 589,921 5.000%, 4/01/23 - FGIC Insured 700 Connecticut, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 728,973 4.750%, 12/15/24 400 Connecticut, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 427,552 5.000%, 6/01/23 - FSA Insured Hartford, Connecticut, General Obligation Bonds, Series 2005A: 360 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 382,846 240 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 240,454 400 North Haven, Connecticut, General Obligation Bonds, No Opt. Call Aa2 441,284 Series 2006, 5.000%, 7/15/24 Suffield, Connecticut, General Obligation Bonds, Series 2005: 335 5.000%, 6/15/17 No Opt. Call AA 370,306 335 5.000%, 6/15/19 No Opt. Call AA 370,788 810 West Hartford, Connecticut, General Obligation Bonds, 10/15 at 100.00 AAA 875,075 Series 2005B, 5.000%, 10/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 4,590 Total Tax Obligation/General 4,923,558 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 25.8% (16.9% OF TOTAL INVESTMENTS) Connecticut Health and Educational Facilities Authority, Child Care Facilities Program Revenue Bonds, Series 2006F: 650 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 669,409 500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 512,075 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 105.00 A 1,059,950 Bonds, New Opportunities for Waterbury Inc., Series 1998A, 6.750%, 7/01/28 Connecticut, Certificates of Participation, Juvenile Training School, Series 2001: 600 5.000%, 12/15/20 12/11 at 101.00 AA- 624,774 1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 1,026,160 1,475 Connecticut, Special Tax Obligation Transportation Infrastructure No Opt. Call AAA 1,622,471 Purpose Bonds, Series 1998B, 5.500%, 11/01/12 - FSA Insured 900 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AAA 953,379 Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured 600 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 648,060 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 470 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 136,587 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 1,200 Puerto Rico Municipal Finance Agency, Series 2005C, 8/15 at 100.00 AAA 1,302,024 5.000%, 8/01/16 - FSA Insured 750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 808,680 Loan Note, Series 1999A, 6.375%, 10/01/19 500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 509,565 Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.500%, 10/01/18 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,645 Total Tax Obligation/Limited 9,873,134 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.6% (4.3% OF TOTAL INVESTMENTS) 2,500 Connecticut, General Airport Revenue Bonds, Bradley 4/11 at 101.00 AAA 2,528,373 International Airport, Series 2001A, 5.125%, 10/01/26 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 30.4% (19.9% OF TOTAL INVESTMENTS) (4) 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 A2 (4) 1,085,700 Bonds, Loomis Chaffee School, Series 2001D, 5.500%, 7/01/23 (Pre-refunded 7/01/11) 2,000 Connecticut, Clean Water Fund Revenue Bonds, Series 2001, 10/11 at 100.00 AAA 2,165,100 5.500%, 10/01/20 (Pre-refunded 10/01/11) 500 Connecticut, General Obligation Bonds, Series 2002B, 6/12 at 100.00 AA (4) 547,470 5.500%, 6/15/21 (Pre-refunded 6/15/12) 29 NFC Nuveen Connecticut Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 500 East Lyme, Connecticut, General Obligation Bonds, Series 2001, 7/11 at 102.00 Aaa $ 541,320 5.125%, 7/15/20 (Pre-refunded 7/15/11) - FGIC Insured 220 New Haven, Connecticut, General Obligation Bonds, Series 2001A, 11/11 at 100.00 AAA 232,731 5.000%, 11/01/20 (Pre-refunded 11/01/11) - FGIC Insured 250 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 AAA 266,615 Series 2000A, 6.000%, 6/01/20 (Pre-refunded 6/01/10) - ACA Insured 1,975 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 2,093,619 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,425 5.500%, 10/01/32 (ETM) 10/10 at 101.00 AAA 1,509,189 1,300 5.500%, 10/01/40 (ETM) 10/10 at 101.00 AAA 1,374,997 320 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 334,000 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 1,085,890 5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured 370 Windsor, Connecticut, General Obligation Bonds, Series 2001, 7/09 at 100.00 Aa2 (4) 379,949 5.000%, 7/15/20 (Pre-refunded 7/15/09) ------------------------------------------------------------------------------------------------------------------------------------ 10,860 Total U.S. Guaranteed 11,616,580 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.4% (3.6% OF TOTAL INVESTMENTS) 560 Connceticut Development Authority, Solid Waste Disposal Facilities 11/12 at 100.00 Baa1 567,498 Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax) 500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 Baa1 513,990 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 1,000 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/08 at 100.00 BBB 998,310 Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A, 5.500%, 1/01/14 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,060 Total Utilities 2,079,798 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.4% (8.8% OF TOTAL INVESTMENTS) 255 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 AAA 254,592 Bonds, Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 - XLCA Insured (Alternative Minimum Tax) 1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 1,277,394 Series 2003A, 5.000%, 10/01/16 Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A: 720 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AAA 751,428 1,110 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AAA 1,153,912 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 140 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 $ 147,253 System Revenue Bonds, Series 2005, 6.000%, 7/01/25 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Eighteenth Series 2003A: 750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 792,930 720 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 745,625 ------------------------------------------------------------------------------------------------------------------------------------ 4,880 Total Water and Sewer 5,123,134 ------------------------------------------------------------------------------------------------------------------------------------ $ 56,410 Total Investments (cost $57,244,262) - 152.9% 58,462,415 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (1.9)% (730,069) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.0)% (19,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 38,232,346 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $1,000,000 Pay 3-Month USD LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 69,113 Morgan Stanley 650,000 Pay 3-Month USD LIBOR 5.559 Semi-Annually 4/23/08 4/23/23 52,483 Royal Bank of Canada 1,900,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 162,999 ------------------------------------------------------------------------------------------------------------------------------------ $284,595 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 31 NGK Nuveen Connecticut Dividend Advantage Municipal Fund 2 Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.7% (1.9% OF TOTAL INVESTMENTS) $ 250 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 $ 238,793 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 750 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 732,698 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 1,000 Total Consumer Staples 971,491 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 26.5% (17.0% OF TOTAL INVESTMENTS) 715 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AAA 753,210 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 (WI/DD, Settling 12/20/07) - MBIA Insured 500 Connecticut Health and Education Facilities Authority, University 7/16 at 100.00 AA 504,795 of Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 100 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AA 98,057 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 95 Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 102.00 AAA 97,493 Bonds, Fairfield University, Series 1998H, 5.000%, 7/01/23 - MBIA Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 101.00 AAA 508,540 Bonds, Hopkins School, Series 1998A, 5.000%, 7/01/20 - AMBAC Insured 215 Connecticut Health and Educational Facilities Authority, Revenue 1/15 at 100.00 Aaa 234,023 Bonds, Kent School, Series 2004D, 5.000%, 7/01/15 - MBIA Insured 310 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call Aaa 346,403 Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 - AMBAC Insured 120 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 122,701 Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC Insured Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford, Series 2002E: 590 5.500%, 7/01/22 - RAAI Insured 7/12 at 101.00 AA 613,765 1,000 5.250%, 7/01/32 - RAAI Insured 7/12 at 101.00 AA 1,010,480 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,018,630 Bonds, Yale University, Series 2002W, 5.125%, 7/01/27 500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 515,570 Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 1,600 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,672,048 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 135 Connecticut State Health and Educational Facilities Authority, 7/17 at 100.00 AA 135,811 Revenue Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured University of Connecticut, General Obligation Bonds, Series 2006A: 450 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AAA 487,913 490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AAA 522,732 500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AAA 535,475 Series 2002A, 5.250%, 11/15/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,820 Total Education and Civic Organizations 9,177,646 ------------------------------------------------------------------------------------------------------------------------------------ 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.4% (8.6% OF TOTAL INVESTMENTS) $ 300 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 AA $ 308,145 Bonds, Bristol Hospital, Series 2002B, 5.500%, 7/01/32 - RAAI Insured Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut Health Network, Series 2000A: 20 6.125%, 7/01/20 - RAAI Insured 7/10 at 101.00 AA 20,955 65 6.000%, 7/01/25 - RAAI Insured 7/10 at 101.00 AA 67,907 Connecticut Health and Educational Facilities Authority, Revenue Bonds, Griffin Hospital, Series 2005B: 300 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 Aa3 306,444 300 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 Aa3 303,384 170 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AA 169,062 Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 - RAAI Insured 1,190 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aaa 1,222,130 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA Insured 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 AA 1,011,120 Bonds, St. Francis Hospital and Medical Center, Series 2002D, 5.000%, 7/01/22 - RAAI Insured 25 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Aaa 25,683 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 - MBIA Insured 1,170 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,195,763 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,540 Total Health Care 4,630,593 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.8% (1.8% OF TOTAL INVESTMENTS) 500 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 485,915 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) 500 Stamford Housing Authority, Connecticut, Multifamily Housing No Opt. Call A- 503,440 Revenue Bonds, Fairfield Apartments, Series 1998, 4.750%, 12/01/28 (Mandatory put 12/01/08) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,000 Total Housing/Multifamily 989,355 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.2% (2.7% OF TOTAL INVESTMENTS) 250 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA 251,518 Finance Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative Minimum Tax) Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2006-A1: 305 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 294,413 330 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 316,170 600 Connecticut Housing Finance Authority, Housing Mortgage 5/16 at 100.00 AAA 605,628 Finance Program Bonds, Series 2006D, 4.650%, 11/15/27 ------------------------------------------------------------------------------------------------------------------------------------ 1,485 Total Housing/Single Family 1,467,729 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.9% (1.9% OF TOTAL INVESTMENTS) 1,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 1,005,780 American Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-II, 5.500%, 11/15/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.0% (2.5% OF TOTAL INVESTMENTS) 320 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 331,056 Revenue Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003, 5.750%, 12/01/23 325 Connecticut Development Authority, First Mortgage Gross 4/08 at 101.00 BBB- 332,654 Revenue Refunding Healthcare Bonds, Church Homes Inc. - Congregational Avery Heights, Series 1997, 5.700%, 4/01/12 450 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 AAA 474,417 Bonds, Village for Families and Children Inc., Series 2002A, 5.000%, 7/01/19 - AMBAC Insured 33 NGK Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 250 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R $ 233,453 Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series 2007, 5.500%, 8/15/27 ------------------------------------------------------------------------------------------------------------------------------------ 1,345 Total Long-Term Care 1,371,580 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.9% (14.7% OF TOTAL INVESTMENTS) 500 Connecticut State, General Obligation Bonds, Series 2007B, No Opt. Call AA 551,510 5.000%, 5/01/16 600 Connecticut, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 624,834 4.750%, 12/15/24 400 Connecticut, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 427,552 5.000%, 6/01/23 - FSA Insured Farmington, Connecticut, General Obligation Bonds, Series 2002: 1,000 5.000%, 9/15/20 9/12 at 101.00 Aa1 1,064,710 1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,544,163 1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,383,457 Obligation Bonds, Series 2002, 5.000%, 4/01/22 Hartford, Connecticut, General Obligation Bonds, Series 2005A: 360 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 382,846 240 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 240,454 650 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 AAA 715,650 5.000%, 11/01/17 - AMBAC Insured 400 Suffield, Connecticut, General Obligation Bonds, Series 2005, No Opt. Call AA 442,608 5.000%, 6/15/21 500 West Hartford, Connecticut, General Obligation Bonds, 10/15 at 100.00 AAA 547,510 Series 2005B, 5.000%, 10/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 7,405 Total Tax Obligation/General 7,925,294 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.6% (10.7% OF TOTAL INVESTMENTS) Connecticut Health and Educational Facilities Authority, Child Care Facilities Program Revenue Bonds, Series 2006F: 575 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 592,170 500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 512,075 500 Connecticut, Special Tax Obligation Transportation Infrastructure 10/11 at 100.00 AAA 535,770 Purpose Bonds, Series 2001B, 5.375%, 10/01/13 - FSA Insured 1,625 Connecticut, Special Tax Obligation Transportation Infrastructure 7/12 at 100.00 AAA 1,743,398 Purpose Bonds, Series 2002A, 5.375%, 7/01/20 - FSA Insured 850 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AAA 900,414 Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured 500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 540,050 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 430 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 124,962 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 750 Puerto Rico Municipal Finance Agency, Series 2005C, 8/15 at 100.00 AAA 813,765 5.000%, 8/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,730 Total Tax Obligation/Limited 5,762,604 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.3% (4.1% OF TOTAL INVESTMENTS) 1,950 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call AAA 2,191,274 Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 37.4% (24.0% OF TOTAL INVESTMENTS) (4) $ 2,250 Connecticut Health and Educational Facilities Authority, Revenue 11/11 at 100.00 AAA $ 2,396,741 Bonds, Connecticut State University System, Series 2002D-2, 5.000%, 11/01/21 (Pre-refunded 11/01/11) - FSA Insured Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut Health Network, Series 2000A: 100 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 AA (4) 108,006 30 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 N/R (4) 32,378 5 6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 N/R (4) 5,381 400 Connecticut Health and Educational Facilities Authority, Revenue 3/11 at 101.00 AAA 425,472 Bonds, Greenwich Academy, Series 2001B, 5.000%, 3/01/32 (Pre-refunded 3/01/11) - FSA Insured 2,105 Fairfield, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 2,254,097 5.000%, 4/01/16 (Pre-refunded 4/01/12) 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,060,060 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,000 5.500%, 10/01/32 (ETM) 10/10 at 101.00 AAA 1,059,080 2,000 5.500%, 10/01/40 (ETM) 10/10 at 101.00 AAA 2,115,380 1,535 Regional School District 8, Andover, Hebron and Marlborough, 5/11 at 101.00 Aaa 1,636,786 Connecticut, General Obligation Bonds, Series 2002, 5.000%, 5/01/22 (Pre-refunded 5/01/11) - FSA Insured 1,230 University of Connecticut, General Obligation Bonds, 4/12 at 100.00 AA (4) 1,335,645 Series 2002A, 5.375%, 4/01/19 (Pre-refunded 4/01/12) 500 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 542,945 5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,155 Total U.S. Guaranteed 12,971,971 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.0% (3.2% OF TOTAL INVESTMENTS) 470 Connceticut Development Authority, Solid Waste Disposal Facilities 11/12 at 100.00 Baa1 476,293 Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax) 500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 Baa1 513,990 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A: 250 5.500%, 1/01/15 (Alternative Minimum Tax) 2/08 at 100.00 BBB 249,595 510 5.500%, 1/01/20 (Alternative Minimum Tax) 1/08 at 100.00 BBB 508,149 ------------------------------------------------------------------------------------------------------------------------------------ 1,730 Total Utilities 1,748,027 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 10.8% (6.9% OF TOTAL INVESTMENTS) 220 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 AAA 219,648 Bonds, Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 - XLCA Insured (Alternative Minimum Tax) 785 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 846,206 Series 2003A, 5.000%, 10/01/16 Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A: 690 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AAA 720,119 320 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AAA 332,659 35 NGK Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 130 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 $ 136,735 System Revenue Bonds, Series 2005, 6.000%, 7/01/25 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Eighteenth Series 2003A: 750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 792,930 660 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 683,489 ------------------------------------------------------------------------------------------------------------------------------------ 3,555 Total Water and Sewer 3,731,786 ------------------------------------------------------------------------------------------------------------------------------------ $ 51,715 Total Investments (cost $52,366,588) - 155.5% 53,945,130 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (5.0)% (1,763,392) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.5)% (17,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 34,681,738 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $ 750,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 51,835 Morgan Stanley 500,000 Pay 3-Month USD-LIBOR 5.559 Semi-Annually 4/23/08 4/23/23 40,371 Royal Bank of Canada 1,700,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 145,841 ------------------------------------------------------------------------------------------------------------------------------------ $238,047 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 36 NGO Nuveen Connecticut Dividend Advantage Municipal Fund 3 Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.7% (2.5% OF TOTAL INVESTMENTS) $ 2,385 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,329,978 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 19.0% (12.5% OF TOTAL INVESTMENTS) 1,000 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AAA 991,070 Bonds, Connecticut College, Series 2007G, 4.500%, 7/01/37 - MBIA Insured 1,300 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AAA 1,369,472 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 (WI/DD, Settling 12/20/07) - MBIA Insured 650 Connecticut Health and Education Facilities Authority, University 7/16 at 100.00 AA 656,234 of Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 150 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AA 147,086 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 285 Connecticut Health and Educational Facilities Authority, Revenue 1/15 at 100.00 Aaa 310,217 Bonds, Kent School, Series 2004D, 5.000%, 7/01/15 - MBIA Insured 400 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call Aaa 446,972 Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 - AMBAC Insured 215 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 219,840 Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC Insured 750 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 AA 780,210 Bonds, University of Hartford, Series 2002E, 5.500%, 7/01/22 - RAAI Insured 1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,527,945 Bonds, Yale University, Series 2002W, 5.125%, 7/01/27 3,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,135,089 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 250 Connecticut State Health and Educational Facilities Authority, 7/17 at 100.00 AA 251,503 Revenue Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured University of Connecticut, General Obligation Bonds, Series 2006A: 850 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AAA 921,613 490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AAA 522,732 500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AAA 535,475 Series 2002A, 5.250%, 11/15/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,340 Total Education and Civic Organizations 11,815,458 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 9.6% (6.3% OF TOTAL INVESTMENTS) Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital, Series 2002B: 500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 AA 520,560 600 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 AA 616,290 800 Connecticut Health and Educational Facilities Authority, Revenue 7/15 at 100.00 Aa3 817,184 Bonds, Griffin Hospital, Series 2005B, 5.000%, 7/01/20 - RAAI Insured 310 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AA 308,289 Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 - RAAI Insured 37 NGO Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 2,130 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aaa $ 2,187,510 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA Insured 200 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Aaa 205,460 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 - MBIA Insured 1,325 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,354,177 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,865 Total Health Care 6,009,470 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.8% (1.8% OF TOTAL INVESTMENTS) 1,000 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 971,830 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) 750 Stamford Housing Authority, Connecticut, Multifamily Housing No Opt. Call A- 755,160 Revenue Bonds, Fairfield Apartments, Series 1998, 4.750%, 12/01/28 (Mandatory put 12/01/08) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,750 Total Housing/Multifamily 1,726,990 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.4% (2.9% OF TOTAL INVESTMENTS) 750 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA 754,553 Finance Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative Minimum Tax) Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2006-A1: 435 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 419,901 465 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 445,512 1,100 Connecticut Housing Finance Authority, Housing Mortgage 5/16 at 100.00 AAA 1,110,318 Finance Program Bonds, Series 2006D, 4.650%, 11/15/27 ------------------------------------------------------------------------------------------------------------------------------------ 2,750 Total Housing/Single Family 2,730,284 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 3.2% (2.1% OF TOTAL INVESTMENTS) 2,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 2,011,560 American Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 12.9% (8.5% OF TOTAL INVESTMENTS) 500 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 517,275 Revenue Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003, 5.750%, 12/01/23 600 Connecticut Development Authority, First Mortgage Gross 4/08 at 101.00 BBB- 614,130 Revenue Refunding Healthcare Bonds, Church Homes Inc. - Congregational Avery Heights, Series 1997, 5.700%, 4/01/12 Connecticut Development Authority, Revenue Bonds, Duncaster Inc., Series 2002: 650 5.125%, 8/01/22 - RAAI Insured 8/12 at 101.00 AA 663,007 1,025 4.750%, 8/01/32 - RAAI Insured 8/12 at 101.00 AA 970,767 Connecticut Health and Educational Facilities Authority, Revenue Bonds, Village for Families and Children Inc., Series 2002A: 430 5.000%, 7/01/18 - AMBAC Insured 7/12 at 101.00 AAA 453,332 475 5.000%, 7/01/20 - AMBAC Insured 7/12 at 101.00 AAA 500,774 260 5.000%, 7/01/23 - AMBAC Insured 7/12 at 101.00 AAA 270,265 1,000 5.000%, 7/01/32 - AMBAC Insured 7/12 at 101.00 AAA 1,022,430 Connecticut Housing Finance Authority, Special Needs Housing Mortgage Finance Program Special Obligation Bonds, Series 2002SNH-1: 1,000 5.000%, 6/15/22 - AMBAC Insured 6/12 at 101.00 AAA 1,044,280 1,500 5.000%, 6/15/32 - AMBAC Insured 6/12 at 101.00 AAA 1,542,060 500 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 466,905 Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series 2007, 5.500%, 8/15/27 ------------------------------------------------------------------------------------------------------------------------------------ 7,940 Total Long-Term Care 8,065,225 ------------------------------------------------------------------------------------------------------------------------------------ 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 31.7% (20.9% OF TOTAL INVESTMENTS) Bethel, Connecticut, General Obligation Bonds, Series 2002: $ 525 5.000%, 11/01/18 - FGIC Insured 11/12 at 100.00 Aaa $ 553,371 525 5.000%, 11/01/19 - FGIC Insured 11/12 at 100.00 Aaa 553,371 525 5.000%, 11/01/20 - FGIC Insured 11/12 at 100.00 Aaa 553,371 525 5.000%, 11/01/21 - FGIC Insured 11/12 at 100.00 Aaa 553,371 525 5.000%, 11/01/22 - FGIC Insured 11/12 at 100.00 Aaa 549,171 2,470 Connecticut State, General Obligation Bonds, Series 2007B, No Opt. Call AA 2,724,459 5.000%, 5/01/16 1,200 Connecticut, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 1,249,668 4.750%, 12/15/24 700 Connecticut, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 748,216 5.000%, 6/01/23 - FSA Insured 450 Farmington, Connecticut, General Obligation Bonds, Series 2002, 9/12 at 101.00 Aa1 479,120 5.000%, 9/15/20 Hartford, Connecticut, General Obligation Bonds, Series 2005A: 600 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 638,076 400 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 400,756 New Canaan, Connecticut, General Obligation Bonds, Series 2002A: 950 4.500%, 5/01/19 5/11 at 100.00 Aaa 970,036 900 4.600%, 5/01/20 5/11 at 100.00 Aaa 921,033 500 4.700%, 5/01/21 5/11 at 100.00 Aaa 511,950 1,000 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 AAA 1,101,000 5.000%, 11/01/17 - AMBAC Insured Southbury, Connecticut, General Obligation Bonds, Series 2002: 500 4.250%, 12/15/14 12/11 at 101.00 Aa3 519,180 500 4.375%, 12/15/15 12/11 at 101.00 Aa3 520,640 500 4.375%, 12/15/16 12/11 at 101.00 Aa3 518,530 500 4.500%, 12/15/17 12/11 at 101.00 Aa3 518,610 500 4.625%, 12/15/18 12/11 at 101.00 Aa3 520,270 500 4.625%, 12/15/19 12/11 at 101.00 Aa3 518,640 500 4.875%, 12/15/20 12/11 at 101.00 Aa3 522,925 500 4.875%, 12/15/21 12/11 at 101.00 Aa3 520,830 500 5.000%, 12/15/22 12/11 at 101.00 Aa3 524,860 Stratford, Connecticut, General Obligation Bonds, Series 2002: 1,375 4.000%, 2/15/19 - FSA Insured 2/12 at 100.00 AAA 1,382,618 630 4.125%, 2/15/20 - FSA Insured 2/12 at 100.00 AAA 634,082 500 West Hartford, Connecticut, General Obligation Bonds, 10/15 at 100.00 AAA 540,170 Series 2005B, 5.000%, 10/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 18,800 Total Tax Obligation/General 19,748,324 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.2% (14.6% OF TOTAL INVESTMENTS) 930 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AAA 952,460 Child Care Facilities Program Revenue Bonds, Series 2006F, 5.000%, 7/01/36 - AGC Insured 60 Connecticut, Special Tax Obligation Transportation Infrastructure No Opt. Call AA 65,413 Purpose Bonds, Series 1992B, 6.125%, 9/01/12 Connecticut, Special Tax Obligation Transportation Infrastructure Purpose Bonds, Series 2002B: 2,810 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AAA 2,964,268 1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AAA 1,049,560 1,000 5.000%, 12/01/22 - AMBAC Insured 12/12 at 100.00 AAA 1,046,780 500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AAA 524,335 Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured 1,500 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AAA 1,588,965 Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,080,100 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A: 780 0.000%, 7/01/32 - FGIC Insured No Opt. Call AAA 226,676 2,120 0.000%, 7/01/33 - FGIC Insured No Opt. Call AAA 587,346 39 NGO Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series 2002G: $ 890 5.250%, 7/01/17 7/12 at 100.00 BBB- $ 920,696 1,000 5.250%, 7/01/20 7/12 at 100.00 BBB- 1,025,520 1,045 5.250%, 7/01/21 7/12 at 100.00 BBB- 1,069,066 750 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 BBB 754,140 Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.500%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 15,385 Total Tax Obligation/Limited 13,855,325 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.8% (0.5% OF TOTAL INVESTMENTS) 415 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call AAA 466,348 Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.6% (14.2% OF TOTAL INVESTMENTS) (4) 500 Bridgeport, Connecticut, General Obligation Bonds, Series 2003A, 9/13 at 100.00 AAA 550,745 5.250%, 9/15/23 (Pre-refunded 9/15/13) - FSA Insured 3,100 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 3,311,387 Revenue Bonds, Trinity College, Series 2001G, 5.000%, 7/01/21 (Pre-refunded 7/01/11) - AMBAC Insured 40 New Haven, Connecticut, General Obligation Bonds, Series 2002A, 11/11 at 101.00 AAA 43,150 5.250%, 11/01/17 - AMBAC Insured (ETM) 3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,233,182 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 3,173,069 Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 1,010 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,120,666 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured (ETM) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 570 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2/12 at 100.00 Aaa 617,407 195 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2/12 at 100.00 BBB- (4) 211,692 1,100 University of Connecticut, General Obligation Bonds, 2/13 at 100.00 AAA 1,195,458 Series 2003A, 5.125%, 2/15/21 (Pre-refunded 2/15/13) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,565 Total U.S. Guaranteed 13,456,756 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.7% (3.1% OF TOTAL INVESTMENTS) 860 Connceticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 871,515 Facilities Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax) 720 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 Baa1 740,146 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A: 1,000 5.500%, 1/01/14 (Alternative Minimum Tax) 1/08 at 100.00 BBB 998,310 305 5.500%, 1/01/20 (Alternative Minimum Tax) 1/08 at 100.00 BBB 303,893 ------------------------------------------------------------------------------------------------------------------------------------ 2,885 Total Utilities 2,913,864 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 15.3% (10.1% OF TOTAL INVESTMENTS) 400 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 AAA 399,360 Bonds, Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 - XLCA Insured (Alternative Minimum Tax) 1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 1,277,394 Series 2003A, 5.000%, 10/01/16 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A: $ 1,230 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AAA $ 1,283,690 640 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AAA 665,318 230 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 241,916 System Revenue Bonds, Series 2005, 6.000%, 7/01/25 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Eighteenth Series 2003A: 2,050 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 2,167,342 1,140 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 1,180,573 1,840 South Central Connecticut Regional Water Authority, Water 8/16 at 100.00 AAA 1,937,042 System Revenue Bonds, Twentieth Series, 2007A, 5.000%, 8/01/30 - MBIA Insured 350 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ 360,490 Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32 ------------------------------------------------------------------------------------------------------------------------------------ 9,065 Total Water and Sewer 9,513,125 ------------------------------------------------------------------------------------------------------------------------------------ $ 93,145 Total Investments (cost $93,286,146) - 151.9% 94,642,707 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (0.5)% (335,427) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.4)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 62,307,280 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley $ 200,000 Pay 3-Month USD-LIBOR 5.559% Semi-Annually 4/23/08 4/23/23 $ 16,148 Royal Bank of Canada 1,400,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 120,105 ------------------------------------------------------------------------------------------------------------------------------------ $136,253 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 41 NMT Nuveen Massachusetts Premium Income Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 2.1% (1.5% OF TOTAL INVESTMENTS) $ 1,465 Boston Industrial Development Financing Authority, Massachusetts, 9/12 at 102.00 Ba3 $ 1,471,153 Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 0.9% (0.4% OF TOTAL INVESTMENTS) 550 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 525,344 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 22.4% (15.4% OF TOTAL INVESTMENTS) 750 Massachusetts Development Finance Agency, Revenue Bonds, 9/15 at 100.00 AAA 776,003 Western New England College, Series 2005A, 5.000%, 9/01/33 - AGC Insured 1,045 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 AAA 1,090,426 Worcester Polytecnic Institute, Series 2007, 5.000%, 9/01/37 - MBIA Insured 890 Massachusetts Development Finance Authority, Revenue Bonds, 3/09 at 101.00 A 910,328 Curry College, Series 2000A, 6.000%, 3/01/20 - ACA Insured 1,745 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,810,141 Massachusetts College of Pharmacy and Allied Health Sciences, Series 2005D, 5.000%, 7/01/27 - AGC Insured 750 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 AA- 804,405 Milton Academy, Series 2003A, 5.000%, 9/01/19 1,090 Massachusetts Development Finance Authority, Revenue No Opt. Call A3 1,260,313 Refunding Bonds, Boston University, Series 1999P, 6.000%, 5/15/29 40 Massachusetts Education Loan Authority, Student Loan Revenue 1/08 at 100.00 Aaa 40,062 Bonds, Issue E, Series 1995, 6.150%, 7/01/10 - AMBAC Insured (Alternative Minimum Tax) 1,550 Massachusetts Educational Finance Authority, Educational Loan 1/12 at 100.00 AAA 1,586,410 Revenue Bonds, Series 2002E, 5.000%, 1/01/13 - AMBAC Insured (Alternative Minimum Tax) 2,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 2,144,320 Revenue Bonds, Boston College, Series 2003N, 5.250%, 6/01/18 500 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AA+ 519,565 Revenue Bonds, Wellesley College, Series 2003H, 5.000%, 7/01/26 555 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AA+ 585,786 Revenue Bonds, Williams College, Series 2003H, 5.000%, 7/01/21 1,380 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AA+ 1,453,250 Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31 500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 AAA 513,390 Revenue Bonds, Worcester State College, Series 2002, 5.000%, 11/01/32 - AMBAC Insured 1,645 Massachusetts Industrial Finance Agency, Revenue Bonds, 1/08 at 100.00 Aa1 1,646,497 Whitehead Institute for Biomedical Research, Series 1993, 5.125%, 7/01/26 375 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 380,198 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 14,815 Total Education and Civic Organizations 15,521,094 ------------------------------------------------------------------------------------------------------------------------------------ 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 19.4% (13.3% OF TOTAL INVESTMENTS) $ 1,250 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ $ 1,306,825 Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31 1,000 Massachusetts Health and Educational Facilities Authority, 11/11 at 101.00 AA 993,230 Revenue Bonds, Cape Cod Health Care Inc., Series 2001C, 5.250%, 11/15/31 - RAAI Insured 1,000 Massachusetts Health and Educational Facilities Authority, 7/12 at 101.00 BBB 1,053,340 Revenue Bonds, Caritas Christi Obligated Group, Series 2002B, 6.250%, 7/01/22 935 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AA 878,937 Revenue Bonds, Emerson Hospital, Series 2005E, 5.000%, 8/15/35 - RAAI Insured 1,000 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AAA 1,044,450 Revenue Bonds, Lahey Clinic Medical Center, Series 2005C, 5.000%, 8/15/21 - FGIC Insured 2,000 Massachusetts Health and Educational Facilities Authority, 8/17 at 100.00 A 2,047,200 Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%, 8/15/28 585 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 540,207 Revenue Bonds, Milford Regional Medical Center, Series 2007E, 5.000%, 7/15/32 1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB- 955,400 Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 750 Massachusetts Health and Educational Facilities Authority, 1/08 at 100.00 AAA 750,840 Revenue Bonds, New England Medical Center Hospitals, Series 1993G-1, 5.375%, 7/01/24 - MBIA Insured 75 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 79,643 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%, 7/01/32 375 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 391,883 Revenue Bonds, UMass Memorial Health Care, Series 2001C, 6.625%, 7/01/32 1,445 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 1,366,233 Revenue Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33 2,000 Massachusetts State, Health and Educational Facilities Authority, 7/17 at 100.00 AA 2,015,820 Partners HealthCare System Inc., Series 2007G, 5.000%, 7/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 13,415 Total Health Care 13,424,008 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 8.0% (5.5% OF TOTAL INVESTMENTS) 1,335 Massachusetts Development Finance Authority, Multifamily 7/17 at 100.00 AAA 1,321,957 Housing Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 1,860 Massachusetts Development Financing Authority, Assisted 12/09 at 102.00 N/R 1,901,162 Living Revenue Bonds, Prospect House Apartments, Series 1999, 7.000%, 12/01/31 335 Massachusetts Housing Finance Agency, Housing Bonds, 6/15 at 100.00 AA- 332,203 Series 2006A, 5.100%, 12/01/37 (Alternative Minimum Tax) 500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 6/13 at 100.00 AA- 503,220 Series 2003S, 5.050%, 12/01/23 (Alternative Minimum Tax) 380 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 101.00 AAA 395,006 Mortgage Revenue Bonds, Series 1999D, 5.500%, 7/01/13 - AMBAC Insured (Alternative Minimum Tax) 1,000 Somerville Housing Authority, Massachusetts, GNMA 5/12 at 103.00 AAA 1,043,540 Collateralized Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002, 5.200%, 11/20/22 ------------------------------------------------------------------------------------------------------------------------------------ 5,410 Total Housing/Multifamily 5,497,088 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS) 990 Massachusetts Housing Finance Agency, Single Family Housing 6/15 at 100.00 AA 943,549 Revenue Bonds, Series 2006-122, 4.875%, 12/01/37 (Alternative Minimum Tax) 1,500 Massachusetts Housing Finance Agency, Single Family Housing 6/16 at 100.00 AA 1,403,955 Revenue Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,490 Total Housing/Single Family 2,347,504 ------------------------------------------------------------------------------------------------------------------------------------ 43 NMT Nuveen Massachusetts Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.1% (0.7% OF TOTAL INVESTMENTS) $ 380 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R $ 374,729 Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax) 400 Massachusetts Development Finance Agency, Solid Waste No Opt. Call BBB 415,168 Disposal Revenue Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14 ------------------------------------------------------------------------------------------------------------------------------------ 780 Total Industrials 789,897 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 6.5% (4.5% OF TOTAL INVESTMENTS) 1,270 Boston, Massachusetts, FHA-Insured Mortgage Revenue Bonds, 10/08 at 105.00 AAA 1,346,746 Deutsches Altenheim Inc., Series 1998A, 6.125%, 10/01/31 985 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 BBB- 917,990 Orchard Cove, Series 2007, 5.250%, 10/01/26 1,500 Massachusetts Development Finance Authority, GNMA 3/12 at 105.00 AAA 1,613,835 Collateralized Assisted Living Facility Revenue Bonds, Arbors at Chicopee, Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax) 250 Massachusetts Industrial Finance Agency, FHA-Insured Project 2/08 at 100.00 AAA 250,635 Revenue Bonds, Heights Crossing LP, Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax) 400 Massachusetts Industrial Finance Agency, First Mortgage 1/11 at 101.00 BBB- 392,888 Revenue Bonds, Berkshire Retirement Community, Series 1994B, 4.750%, 7/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 4,405 Total Long-Term Care 4,522,094 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 17.8% (12.3% OF TOTAL INVESTMENTS) 500 Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5/15 at 100.00 Aaa 542,805 5.250%, 5/15/23 - AMBAC Insured 1,250 Boston, Massachusetts, General Obligation Bonds, Series 2005A, 1/15 at 100.00 AA+ 1,360,188 5.000%, 1/01/17 1,000 Fall River, Massachusetts, General Obligation Bonds, Series 2003, 2/13 at 101.00 AAA 1,062,810 5.000%, 2/01/21 - FSA Insured 2,500 Massachusetts Bay Transportation Authority, General Obligation No Opt. Call AAA 3,073,900 Transportation System Bonds, Series 1991A, 7.000%, 3/01/21 1,275 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 1,452,671 Series 2001D, 6.000%, 11/01/13 - MBIA Insured 980 Monson, Massachusetts, General Obligation Bonds, Series 2002, 5/12 at 101.00 Aaa 1,043,298 5.250%, 5/15/22 - AMBAC Insured 1,260 Norwell, Massachusetts, General Obligation Bonds, Series 2003, No Opt. Call AAA 1,391,128 5.000%, 11/15/20 - FGIC Insured 1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 1,120,100 Series 2001A, 5.500%, 7/01/29 - FGIC Insured 1,220 Worcester, Massachusetts, General Obligation Bonds, 7/15 at 100.00 AAA 1,303,472 Series 2005A, 5.000%, 7/01/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,985 Total Tax Obligation/General 12,350,372 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 12.0% (8.2% OF TOTAL INVESTMENTS) 210 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 AAA 220,263 Series 2004, 5.000%, 5/01/26 - AMBAC Insured 385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 435,701 Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21 975 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/18 at 100.00 AAA 1,032,944 Revenue Bonds, Series 2006, 5.000%, 7/01/26 550 Massachusetts College Building Authority, Project Revenue 5/14 at 100.00 AAA 586,625 Bonds, Series 2004A, 5.000%, 5/01/19 - MBIA Insured 325 Massachusetts College Building Authority, Project Revenue 5/16 at 100.00 AAA 338,933 Bonds, Series 2006A, 5.000%, 5/01/31 - AMBAC Insured 1,000 Massachusetts College Building Authority, Project Revenue No Opt. Call AAA 1,129,300 Refunding Bonds, Series 2003B, 5.375%, 5/01/23 - XLCA Insured 1,300 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 1,382,238 Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - FSA Insured 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 540 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call AAA $ 588,897 Series 2005, 5.000%, 1/01/20 - FGIC Insured 1,000 Massachusetts, Special Obligation Refunding Notes, Federal No Opt. Call Aaa 1,084,770 Highway Grant Anticipation Note Program, Series 2003A, 5.000%, 12/15/13 - FSA Insured 240 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 39,365 Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured 1,300 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,464,554 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,825 Total Tax Obligation/Limited 8,303,590 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 13.2% (9.1% OF TOTAL INVESTMENTS) 2,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,057,480 5.000%, 7/01/33 - MBIA Insured 1,700 Massachusetts Port Authority, Revenue Bonds, Series 2005A, 7/15 at 100.00 AAA 1,788,077 5.000%, 7/01/23 - AMBAC Insured 1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 AAA 1,008,300 BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) 225 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 AAA 226,112 Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 - AMBAC Insured (Alternative Minimum Tax) 4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 3/08 at 101.00 AAA 4,046,116 US Airways Group Inc., Series 1996A, 5.750%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 8,925 Total Transportation 9,126,085 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.1% (16.6% OF TOTAL INVESTMENTS) (4) 25 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/18 at 100.00 Aa2 (4) 27,813 Revenue Bonds, Series 2006, 5.000%, 7/01/26 (Pre-refunded 7/01/18) 2,500 Massachusetts Development Finance Authority, GNMA 10/11 at 105.00 AAA 2,937,825 Collateralized Revenue Bonds, VOA Concord Assisted Living Inc., Series 2000A, 6.900%, 10/20/41 (Pre-refunded 10/20/11) 500 Massachusetts Development Finance Authority, Revenue Bonds, 9/11 at 101.00 A (4) 541,195 Belmont Hills School, Series 2001, 5.375%, 9/01/23 (Pre-refunded 9/01/11) 1,000 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (4) 1,128,260 Massachusetts College of Pharmacy and Allied Health Sciences, Series 2003C, 5.750%, 7/01/33 (Pre-refunded 7/01/13) 410 Massachusetts Health and Educational Facilities Authority, 7/21 at 100.00 AAA 453,321 Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25 (Pre-refunded 7/01/21) - MBIA Insured 600 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 651,342 Revenue Bonds, New England Medical Center Hospitals, Series 2002H, 5.375%, 5/15/19 (Pre-refunded 5/15/12) - FGIC Insured 1,925 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA (4) 2,102,042 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%, 7/01/32 (Pre-refunded 7/01/11) 1,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 100.00 AAA 1,070,610 Revenue Bonds, University of Massachusetts - Worcester Campus, Series 2001B, 5.250%, 10/01/31 (Pre-refunded 10/01/11) - FGIC Insured 2,300 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 101.00 A (4) 2,354,257 Belmont Hill School, Series 1998, 5.250%, 9/01/28 (Pre-refunded 9/01/08) 705 Massachusetts Port Authority, Revenue Bonds, Series 1982, 1/08 at 100.00 AAA 910,578 13.000%, 7/01/13 (ETM) 1,500 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 AAA 1,644,885 Series 2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC Insured 1,615 Springfield, Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 1,758,654 Series 2003, 5.250%, 1/15/23 (Pre-refunded 1/15/13) - MBIA Insured 1,000 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 AAA 1,111,560 Project Revenue Bonds, Series 2004-1, 5.250%, 11/01/24 (Pre-refunded 11/01/14) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,080 Total U.S. Guaranteed 16,692,342 ------------------------------------------------------------------------------------------------------------------------------------ 45 NMT Nuveen Massachusetts Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.0% (2.1% OF TOTAL INVESTMENTS) $ 1,000 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 AAA $ 1,084,920 Revenue Bonds, SEMass System, Series 2001A, 5.625%, 1/01/16 - MBIA Insured 1,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 1,015,510 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Utilities 2,100,430 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.0% (7.6% OF TOTAL INVESTMENTS) 2,000 Boston Water and Sewerage Commission, Massachusetts, 11/14 at 100.00 AA 2,100,660 General Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25 285 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/14 at 100.00 AAA 296,226 Program Bonds, Series 10, 5.000%, 8/01/26 750 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 748,410 Program Bonds, Series 11, 4.500%, 8/01/29 1,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 971,350 Program Bonds, Series 12, 4.375%, 8/01/31 60 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/13 at 100.00 AAA 62,983 Program Bonds, Series 9, 5.000%, 8/01/22 1,250 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 1,332,050 MWRA Loan Program, Series 2002A, 5.250%, 8/01/20 1,500 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 1,581,660 Bonds, Series 2005A, 5.000%, 8/01/28 - MBIA Insured 625 Massachusetts Water Resources Authority, General Revenue 8/16 at 100.00 AA 545,825 Bonds, Series 2006A, 4.000%, 8/01/46 ------------------------------------------------------------------------------------------------------------------------------------ 7,470 Total Water and Sewer 7,639,164 ------------------------------------------------------------------------------------------------------------------------------------ $ 95,615 Total Long-Term Investments (cost $97,518,897) - 144.9% 100,310,165 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 0.7% (0.5% OF TOTAL INVESTMENTS) $ 500 Massachusetts Health and Educational Facilities Authority, AA 500,000 Revenue Bonds, Hebrew College, Variable Rate Demand Obligations, Series 1999A, 5.700%, 7/01/31 (5) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $500,000) 500,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $98,018,897) - 145.6% 100,810,165 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.5% 2,444,841 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.1)% (34,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 69,255,006 ====================================================================================================================
46 FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $1,250,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 86,391 Royal Bank of Canada 1,450,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 124,394 ------------------------------------------------------------------------------------------------------------------------------------ $210,785 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 47 NMB Nuveen Massachusetts Dividend Advantage Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 1.7% (1.1% OF TOTAL INVESTMENTS) $ 490 Boston Industrial Development Financing Authority, Massachusetts, 9/12 at 102.00 Ba3 $ 492,058 Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 27.6% (18.6% OF TOTAL INVESTMENTS) 450 Massachusetts Development Finance Agency, Revenue Bonds, 9/15 at 100.00 AAA 465,602 Western New England College, Series 2005A, 5.000%, 9/01/33 - AGC Insured 450 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 AAA 469,562 Worcester Polytecnic Institute, Series 2007, 5.000%, 9/01/37 - MBIA Insured 495 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 513,478 Massachusetts College of Pharmacy and Allied Health Sciences, Series 2005D, 5.000%, 7/01/27 - AGC Insured 500 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 AA- 536,270 Milton Academy, Series 2003A, 5.000%, 9/01/19 1,000 Massachusetts Development Finance Authority, Revenue 5/29 at 105.00 A3 1,091,410 Refunding Bonds, Boston University, Series 1999P, 6.000%, 5/15/59 1,085 Massachusetts Educational Finance Authority, Educational Loan 7/10 at 100.00 AAA 1,118,375 Revenue Bonds, Series 2001E, 5.300%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,072,160 Revenue Bonds, Boston College, Series 2003N, 5.250%, 6/01/18 2,000 Massachusetts Health and Educational Facilities Authority, 2/11 at 100.00 AA- 2,093,039 Revenue Bonds, Tufts University, Series 2001I, 5.500%, 2/15/36 590 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AA+ 621,317 Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 7,570 Total Education and Civic Organizations 7,981,213 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 21.2% (14.3% OF TOTAL INVESTMENTS) 500 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 522,730 Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31 250 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 BBB 253,585 Revenue Bonds, Caritas Christi Obligated Group, Series 1999A, 5.625%, 7/01/20 295 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A 309,069 Revenue Bonds, Covenant Health Systems Obligated Group, Series 2002, 6.000%, 7/01/31 315 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AA 296,113 Revenue Bonds, Emerson Hospital, Series 2005E, 5.000%, 8/15/35 - RAAI Insured 600 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AAA 626,670 Revenue Bonds, Lahey Clinic Medical Center, Series 2005C, 5.000%, 8/15/21 - FGIC Insured 1,000 Massachusetts Health and Educational Facilities Authority, 8/17 at 100.00 A 1,023,600 Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%, 8/15/28 290 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 267,795 Revenue Bonds, Milford Regional Medical Center, Series 2007E, 5.000%, 7/15/32 500 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB- 477,700 Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 500 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB- $ 516,350 Revenue Bonds, Northern Berkshire Community Services Inc., Series 2004B, 6.375%, 7/01/34 1,000 Massachusetts Health and Educational Facilities Authority, 7/09 at 101.00 AA 1,023,610 Revenue Bonds, Partners HealthCare System Inc., Series 1999B, 5.125%, 7/01/19 35 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 37,167 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%, 7/01/32 500 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 522,510 Revenue Bonds, UMass Memorial Health Care, Series 2001C, 6.625%, 7/01/32 285 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 269,465 Revenue Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33 ------------------------------------------------------------------------------------------------------------------------------------ 6,070 Total Health Care 6,146,364 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 12.0% (8.1% OF TOTAL INVESTMENTS) 570 Massachusetts Development Finance Authority, Multifamily 7/17 at 100.00 AAA 564,431 Housing Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 135 Massachusetts Housing Finance Agency, Housing Bonds, 6/15 at 100.00 AA- 133,873 Series 2006A, 5.100%, 12/01/37 (Alternative Minimum Tax) 500 Massachusetts Housing Finance Agency, Housing Revenue 6/13 at 100.00 AA- 503,220 Bonds, Series 2003S, 5.050%, 12/01/23 (Alternative Minimum Tax) 1,215 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 1,241,522 Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35 - AMBAC Insured (Alternative Minimum Tax) 1,000 Somerville Housing Authority, Massachusetts, GNMA 5/12 at 103.00 AAA 1,043,540 Collateralized Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002, 5.200%, 11/20/22 ------------------------------------------------------------------------------------------------------------------------------------ 3,420 Total Housing/Multifamily 3,486,586 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS) 395 Massachusetts Housing Finance Agency, Single Family Housing 6/15 at 100.00 AA 376,467 Revenue Bonds, Series 2006-122, 4.875%, 12/01/37 (Alternative Minimum Tax) 650 Massachusetts Housing Finance Agency, Single Family Housing 6/16 at 100.00 AA 608,381 Revenue Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,045 Total Housing/Single Family 984,848 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS) 180 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 177,503 Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax) 200 Massachusetts Development Finance Agency, Solid Waste No Opt. Call BBB 207,584 Disposal Revenue Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14 ------------------------------------------------------------------------------------------------------------------------------------ 380 Total Industrials 385,087 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 7.5% (5.1% OF TOTAL INVESTMENTS) 425 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 BBB- 396,087 Orchard Cove, Series 2007, 5.250%, 10/01/26 655 Massachusetts Development Finance Authority, First Mortgage 7/11 at 102.00 BBB- 699,684 Revenue Bonds, Berkshire Retirement Community - Edgecombe Project, Series 2001A, 6.750%, 7/01/21 1,000 Massachusetts Development Finance Authority, GNMA 3/12 at 105.00 AAA 1,075,890 Collateralized Assisted Living Facility Revenue Bonds, Arbors at Chicopee, Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,080 Total Long-Term Care 2,171,661 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 16.8% (11.4% OF TOTAL INVESTMENTS) 310 Ashland, Massachusetts, General Obligation Bonds, 5/15 at 100.00 Aaa 336,539 Series 2004, 5.250%, 5/15/23 - AMBAC Insured 2,000 Brookline, Massachusetts, General Obligation Bonds, 4/10 at 101.00 Aaa 2,108,679 Series 2000, 5.375%, 4/01/17 49 NMB Nuveen Massachusetts Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 440 Fall River, Massachusetts, General Obligation Bonds, Series 2003, 2/13 at 101.00 AAA $ 467,636 5.000%, 2/01/21 - FSA Insured 750 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AA 854,415 Series 2002D, 5.500%, 8/01/19 500 Norwell, Massachusetts, General Obligation Bonds, Series 2003, No Opt. Call AAA 552,035 5.000%, 11/15/20 - FGIC Insured 500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 560,050 Series 2001A, 5.500%, 7/01/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,500 Total Tax Obligation/General 4,879,354 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 11.3% (7.6% OF TOTAL INVESTMENTS) 395 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 AAA 414,304 Series 2004, 5.000%, 5/01/26 - AMBAC Insured 85 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 87,773 Series 2000A, 5.250%, 7/01/30 385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 435,701 Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21 230 Massachusetts College Building Authority, Project Revenue 5/14 at 100.00 AAA 245,316 Bonds, Series 2004A, 5.000%, 5/01/19 - MBIA Insured 250 Massachusetts College Building Authority, Project Revenue 5/16 at 100.00 AAA 260,718 Bonds, Series 2006A, 5.000%, 5/01/31 - AMBAC Insured 500 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 531,630 Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - FSA Insured 500 Massachusetts School Building Authority, Dedicated Sales Tax 8/17 at 100.00 AAA 508,335 Revenue Bonds, Series 2007A, 4.750%, 8/15/32 - AMBAC Insured 230 Massachusetts, Special Obligation Dedicated Tax Revenue No Opt. Call AAA 250,827 Bonds, Series 2005, 5.000%, 1/01/20 - FGIC Insured 500 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 539,120 Loan Note, Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 3,075 Total Tax Obligation/Limited 3,273,724 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.3% (2.9% OF TOTAL INVESTMENTS) 800 Massachusetts Port Authority, Revenue Bonds, Series 2005A, 7/15 at 100.00 AAA 841,448 5.000%, 7/01/23 - AMBAC Insured 400 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 AAA 403,320 BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,200 Total Transportation 1,244,768 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 17.9% (12.1% OF TOTAL INVESTMENTS) (4) 1,000 Boston, Massachusetts, General Obligation Bonds, 2/11 at 100.00 AA+ (4) 1,052,100 Series 2001A, 5.000%, 2/01/20 (Pre-refunded 2/01/11) 1,675 Lawrence, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aaa 1,762,267 Series 2001, 5.000%, 2/01/21 (Pre-refunded 2/01/11) - AMBAC Insured 125 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 Aa1 (4) 131,165 Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10) 80 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 N/R (4) 88,810 Revenue Bonds, Covenant Health Systems Obligated Group, Series 2002, 6.000%, 7/01/31 (Pre-refunded 1/01/12) 965 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA (4) 1,053,751 Revenue Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%, 7/01/32 (Pre-refunded 7/01/11) 750 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 822,443 Bonds, Series 2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC Insured 250 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 AAA 277,890 Project Revenue Bonds, Series 2004-1, 5.250%, 11/01/24 (Pre-refunded 11/01/14) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,845 Total U.S. Guaranteed 5,188,426 ------------------------------------------------------------------------------------------------------------------------------------ 50 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.8% (3.9% OF TOTAL INVESTMENTS) $ 1,070 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 AAA $ 1,160,436 Revenue Bonds, SEMass System, Series 2001A, 5.625%, 1/01/14 - MBIA Insured 500 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 507,755 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,570 Total Utilities 1,668,191 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 14.0% (9.4% OF TOTAL INVESTMENTS) 530 Boston Water and Sewerage Commission, Massachusetts, 11/14 at 100.00 AA 556,675 General Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25 125 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 131,476 System Revenue Bonds, Series 2005, 6.000%, 7/01/25 500 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 498,940 Program Bonds, Series 11, 4.500%, 8/01/29 400 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 388,540 Program Bonds, Series 12, 4.375%, 8/01/31 500 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 532,820 MWRA Loan Program, Series 2002A, 5.250%, 8/01/20 1,405 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/09 at 101.00 AAA 1,460,862 MWRA Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29 250 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 263,610 Bonds, Series 2005A, 5.000%, 8/01/28 - MBIA Insured 250 Massachusetts Water Resources Authority, General Revenue 8/16 at 100.00 AA 218,330 Bonds, Series 2006A, 4.000%, 8/01/46 ------------------------------------------------------------------------------------------------------------------------------------ 3,960 Total Water and Sewer 4,051,253 ------------------------------------------------------------------------------------------------------------------------------------ $ 40,205 Total Long-Term Investments (cost $40,891,327) - 144.8% 41,953,533 ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM-INVESTMENTS -- 3.5% (2.3% OF TOTAL INVESTMENTS) $ 1,000 Massachusetts Health and Educational Facilities Authority, AA 1,000,000 Revenue Bonds, Hebrew College, Variable Rate Demand Obligations, Series 1999A, 5.700%, 7/01/31 (5) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $1,000,000) 1,000,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $41,891,327) - 148.3% 42,953,533 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.5% 1,014,325 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.8)% (15,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 28,967,858 ====================================================================================================================
51 NMB Nuveen Massachusetts Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $500,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 34,557 Royal Bank of Canada 900,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 77,210 ------------------------------------------------------------------------------------------------------------------------------------ $111,767 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. See accompanying notes to financial statements. 52 NGX Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 16.1% (10.8% OF TOTAL INVESTMENTS) $ 1,135 Massachusetts Development Finance Agency, Revenue Bonds, 10/15 at 100.00 AAA $ 1,173,193 Boston University, Series 2005T-1, 5.000%, 10/01/39 - AMBAC Insured 600 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 AAA 626,082 Worcester Polytecnic Institute, Series 2007, 5.000%, 9/01/37 - MBIA Insured 1,250 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,265,163 Middlesex School, Series 2003, 5.000%, 9/01/33 1,750 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,808,555 Revenue Bonds, Boston College, Series 2003N, 5.125%, 6/01/37 1,500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 AAA 1,540,170 Revenue Bonds, Worcester State College, Series 2002, 5.000%, 11/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,235 Total Education and Civic Organizations 6,413,163 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 10.2% (6.8% OF TOTAL INVESTMENTS) 500 Massachusetts Health and Educational Facilities Authority, 7/08 at 102.00 AAA 512,520 Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25 - MBIA Insured 585 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 540,207 Revenue Bonds, Milford Regional Medical Center, Series 2007E, 5.000%, 7/15/32 200 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB- 191,080 Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 2,500 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,584,600 Revenue Bonds, New England Medical Center Hospitals, Series 2002H, 5.000%, 5/15/25 - FGIC Insured 250 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 236,373 Revenue Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33 ------------------------------------------------------------------------------------------------------------------------------------ 4,035 Total Health Care 4,064,780 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 10.3% (6.9% OF TOTAL INVESTMENTS) 775 Massachusetts Development Finance Authority, Multifamily 7/17 at 100.00 AAA 767,428 Housing Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 2,000 Massachusetts Housing Finance Agency, Housing Bonds, 12/12 at 100.00 AA- 2,024,620 Series 2003H, 5.125%, 6/01/43 1,265 Massachusetts Housing Finance Agency, Rental Housing 7/12 at 100.00 AAA 1,283,735 Mortgage Revenue Bonds, Series 2002H, 5.200%, 7/01/42 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,040 Total Housing/Multifamily 4,075,783 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.8% (3.2% OF TOTAL INVESTMENTS) 1,750 Massachusetts Development Finance Authority, GNMA 12/12 at 105.00 AAA 1,904,245 Collateralized Revenue Bonds, Neville Communities, Series 2002A, 6.000%, 6/20/44 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 24.3% (16.2% OF TOTAL INVESTMENTS) 1,280 Littleton, Massachusetts, General Obligation Bonds, Series 2003, 1/13 at 101.00 AAA 1,359,885 5.000%, 1/15/21 - FGIC Insured 3,000 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 3,383,307 Series 2004B, 5.250%, 8/01/21 - FSA Insured 53 NGX Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,025 Maynard, Massachusetts, General Obligation Bonds, Series 2003, 2/13 at 101.00 Aaa $ 1,117,742 5.500%, 2/01/19 - MBIA Insured 1,705 North Attleborough, Massachusetts, General Obligation Bonds, 7/14 at 101.00 Aaa 1,872,261 Series 2004, 5.000%, 7/15/15 - FGIC Insured 1,500 Pittsfield, Massachusetts, General Obligation Bonds, Series 2002, 4/12 at 101.00 AAA 1,584,270 5.000%, 4/15/18 - MBIA Insured 300 Woburn, Massachusetts, General Obligation Bonds, Series 2005, 11/15 at 100.00 Aaa 322,812 5.000%, 11/15/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,810 Total Tax Obligation/General 9,640,277 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 26.6% (17.8% OF TOTAL INVESTMENTS) 3,000 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/13 at 100.00 AAA 3,079,740 Series 2002, 5.000%, 5/01/32 - AMBAC Insured 2,790 Massachusetts College Building Authority, Project Revenue 5/13 at 100.00 AAA 2,935,415 Refunding Bonds, Series 2003A, 5.250%, 5/01/22 - XLCA Insured Massachusetts Development Finance Authority, Revenue Bonds, 100 Cambridge Street Redevelopment, M/SRBC Project, Series 2002A: 1,475 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA 1,535,755 1,500 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 1,561,845 1,100 Massachusetts School Building Authority, Dedicated Sales Tax 8/17 at 100.00 AAA 1,118,337 Revenue Bonds, Series 2007A, 4.750%, 8/15/32 - AMBAC Insured 300 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call AAA 327,165 Series 2005, 5.000%, 1/01/20 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,165 Total Tax Obligation/Limited 10,558,257 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.5% (1.7% OF TOTAL INVESTMENTS) 1,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 1,028,740 5.000%, 7/01/33 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 41.3% (27.6% OF TOTAL INVESTMENTS) (4) 2,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 2,145,760 Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27 (Pre-refunded 7/01/12) - FGIC Insured 500 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (4) 579,915 Massachusetts College of Pharmacy and Allied Health Sciences, Series 2003C, 6.375%, 7/01/23 (Pre-refunded 7/01/13) 705 Massachusetts Port Authority, Revenue Bonds, Series 1982, 1/08 at 100.00 AAA 910,578 13.000%, 7/01/13 (ETM) 2,000 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/11 at 100.00 AAA 2,123,620 Series 2001D, 5.000%, 11/01/20 (Pre-refunded 11/01/11) - MBIA Insured 2,145 Massachusetts, General Obligation Bonds, Consolidated Loan, 1/13 at 100.00 AAA 2,321,040 Series 2003A, 5.250%, 1/01/18 (Pre-refunded 1/01/13) - AMBAC Insured 1,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 1,096,590 Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,590,090 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured 3,000 Springfield, Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 3,266,850 Series 2003, 5.250%, 1/15/22 (Pre-refunded 1/15/13) - MBIA Insured 2,140 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 AAA 2,395,088 Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/21 (Pre-refunded 11/01/14) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,990 Total U.S. Guaranteed 16,429,531 ------------------------------------------------------------------------------------------------------------------------------------ 54 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.5% (9.0% OF TOTAL INVESTMENTS) $ 1,900 Lynn Water and Sewer Commission, Massachusetts, General 12/13 at 100.00 AAA $ 1,957,038 Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA Insured 600 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 582,810 Program Bonds, Series 12, 4.375%, 8/01/31 1,000 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 1,122,050 Bonds, Series 2002J, 5.250%, 8/01/19 - FSA Insured 1,000 Massachusetts Water Resources Authority, General Revenue 8/13 at 100.00 AAA 1,044,810 Bonds, Series 2004D, 5.000%, 8/01/24 - MBIA Insured 125 Massachusetts Water Resources Authority, General Revenue 8/16 at 100.00 AA 109,165 Bonds, Series 2006A, 4.000%, 8/01/46 495 Springfield Water and Sewerage Commission, Massachusetts, 7/14 at 100.00 AAA 533,041 General Revenue Bonds, Series 2003A, 5.000%, 7/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,120 Total Water and Sewer 5,348,914 ------------------------------------------------------------------------------------------------------------------------------------ $ 56,145 Total Investments (cost $57,500,587) - 149.6% 59,463,690 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 788,403 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.6)% (20,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 39,752,093 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Royal Bank of Canada $500,000 Pay SIFM 4.335% Quarterly 8/06/08 8/06/37 $42,894 ==================================================================================================================================== SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
At least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 55 NOM Nuveen Missouri Premium Income Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.3% (2.2% OF TOTAL INVESTMENTS) $ 1,000 Missouri Development Finance Board, Solid Waste Disposal No Opt. Call AA- $ 1,084,400 Revenue Bonds, Procter and Gamble Inc., Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 3.6% (2.3% OF TOTAL INVESTMENTS) 250 Lincoln University, Missouri, Auxillary System Revenue Bonds, 6/17 at 100.00 AAA 262,113 Series 2007, 5.125%, 6/01/37 - AGC Insured 500 Missouri Health and Educational Facilities Authority, Revenue 2/08 at 101.00 A3 505,625 Bonds, St. Louis Priory School, Series 2000, 5.650%, 2/01/25 365 Missouri Health and Educational Facilities Authority, Revenue 4/11 at 100.00 Aaa 386,305 Bonds, Webster University, Series 2001, 5.500%, 4/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,115 Total Education and Civic Organizations 1,154,043 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 20.1% (13.0% OF TOTAL INVESTMENTS) 710 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 688,913 Missouri, Health Facilities Revenue Bonds, Southeast Missouri Hospital Association, Series 2007, 5.000%, 6/01/27 480 Cass County, Missouri, Cass Medical Center Revenue Bonds, 11/16 at 100.00 N/R 480,542 Series 2007, 5.625%, 5/01/38 480 Clinton County Industrial Development Authority, Missouri, 12/17 at 100.00 N/R 417,158 Revenue Bonds, Cameron Regional Medical Center, Series 2007, 5.000%, 12/01/37 750 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 763,763 Facilities Revenue Bonds, Freeman Health System, Series 2004, 5.500%, 2/15/29 500 Missouri Health & Educational Facilities Authority, Saint Lukes 6/11 at 101.00 AAA 514,620 Episcopal- Presbyterian Hospitals Revenue Bonds, Series 2001, 5.250%, 12/01/26 - FSA Insured Missouri Health and Educational Facilities Authority, Revenue Bonds, BJC Health System, Series 2003: 1,500 5.125%, 5/15/25 5/13 at 100.00 AA 1,531,425 1,155 5.250%, 5/15/32 5/13 at 100.00 AA 1,174,958 425 Missouri Health and Educational Facilities Authority, Revenue 2/08 at 100.00 BBB+ 426,335 Bonds, Lake Regional Health System, Series 1996, 6.500%, 2/15/21 500 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ 510,075 Bonds, Lake Regional Health System, Series 2003, 5.700%, 2/15/34 ------------------------------------------------------------------------------------------------------------------------------------ 6,500 Total Health Care 6,507,789 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.3% (4.1% OF TOTAL INVESTMENTS) 385 Missouri Housing Development Commission, Multifamily Housing 12/11 at 100.00 AA 402,306 Revenue Bonds, Series 2001II, 5.250%, 12/01/16 500 St. Charles County Industrial Development Authority, Missouri, 4/08 at 102.00 AAA 503,270 FHA-Insured Multifamily Housing Revenue Bonds, Ashwood Apartments, Series 1998A, 5.600%, 4/01/30 - FSA Insured (Alternative Minimum Tax) 515 St. Louis County Industrial Development Authority, Missouri, 4/08 at 101.00 AAA 526,783 GNMA Collateralized Multifamily Housing Revenue Refunding Bonds, South Summit Apartments, Series 1997A, 5.950%, 4/20/17 600 St. Louis County Industrial Development Authority, Missouri, 4/08 at 101.00 AAA 613,752 GNMA Collateralized Multifamily Housing Revenue Refunding Bonds, South Summit Apartments, Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Housing/Multifamily 2,046,111 ------------------------------------------------------------------------------------------------------------------------------------ 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.8% (5.7% OF TOTAL INVESTMENTS) $ 35 Missouri Housing Development Commission, Single Family 3/08 at 103.00 AAA $ 35,539 Mortgage Revenue Bonds, Homeownership Loan Program, Series 1995C, 7.250%, 9/01/26 (Alternative Minimum Tax) 100 Missouri Housing Development Commission, Single Family 3/10 at 100.00 AAA 102,197 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2000B-1, 6.250%, 3/01/31 (Alternative Minimum Tax) 745 Missouri Housing Development Commission, Single Family 3/16 at 104.50 AAA 812,788 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2006E-1, 5.600%, 3/01/37 (Alternative Minimum Tax) 1,000 Missouri Housing Development Commission, Single Family 9/16 at 100.00 AAA 959,520 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2007A-1, 4.700%, 9/01/27 (Alternative Minimum Tax) 1,000 Missouri Housing Development Commission, Single Family 3/17 at 100.00 AAA 941,350 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2007C-1, 4.800%, 9/01/38 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,880 Total Housing/Single Family 2,851,394 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 8.4% (5.4% OF TOTAL INVESTMENTS) 1,750 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,763,948 Revenue Bonds, Lutheran Senior Services - Heisinger Project, Series 2004, 5.500%, 2/01/35 475 Lees Summit Industrial Development Authority, Missouri, 8/17 at 100.00 N/R 456,318 Revenue Bonds, John Knox Village Obligated Group, Series 2007A, 5.125%, 8/15/32 500 St. Louis County Industrial Development Authority, Missouri, 9/17 at 100.00 N/R 499,645 Revenue Bonds, Friendship Village of West County, Series 2007A, 5.500%, 9/01/28 ------------------------------------------------------------------------------------------------------------------------------------ 2,725 Total Long-Term Care 2,719,911 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 2.3% (1.4% OF TOTAL INVESTMENTS) 750 Sugar Creek, Missouri, Industrial Development Revenue Bonds, 6/13 at 101.00 BBB 737,625 Lafarge North America Inc., Series 2003A, 5.650%, 6/01/37 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 29.5% (19.0% OF TOTAL INVESTMENTS) 1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,610,790 Missouri, General Obligation Bonds, Series 2005, 5.250%, 3/01/24 - FSA Insured 500 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 535,185 General Obligation Refunding and Improvement Bonds, Series 2002, 5.250%, 3/01/18 - FSA Insured 500 Missouri School Boards Association, Lease Participation 3/17 at 100.00 AAA 538,485 Certificates, Clay County School District 53 Liberty, Series 2007, 5.250%, 3/01/27 - FSA Insured 1,630 North Kansas City School District, Missouri, General 3/13 at 100.00 AA+ 1,704,165 Obligation Bonds, Series 2003A, 5.000%, 3/01/23 1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 1,128,660 Series 2001A, 5.500%, 7/01/20 - MBIA Insured 2,020 Ritenour Consolidated School District, St. Louis County, Missouri, No Opt. Call AAA 2,277,873 General Obligation Bonds, Series 1995, 7.375%, 2/01/12 - FGIC Insured 1,405 St. Louis Board of Education, Missouri, General Obligation 4/13 at 100.00 AAA 1,480,463 Refunding Bonds, Series 2003A, 5.000%, 4/01/19 - FSA Insured 270 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 291,435 General Obligation Bonds, Series 2004, 5.250%, 3/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,825 Total Tax Obligation/General 9,567,056 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 25.9% (16.7% OF TOTAL INVESTMENTS) 600 Chesterfield, Missouri, Certificates of Participation, Series 2005, 12/15 at 100.00 Aaa 627,564 5.000%, 12/01/24 - FGIC Insured 80 Cottleville, Missouri, Certificates of Participation, Series 2006, 8/14 at 100.00 N/R 80,733 5.250%, 8/01/31 490 Fenton, Missouri, Tax Increment Revenue Bonds, Gravois Bluffs 4/14 at 100.00 N/R 492,470 Redevelopment Project, Series 2006, 4.500%, 4/01/21 57 NOM Nuveen Missouri Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 315 Fulton, Missouri, Tax Increment Revenue Bonds, Fulton 6/16 at 100.00 N/R $ 283,437 Commons Redevelopment Project, Series 2006, 5.000%, 6/01/28 475 Kansas City Tax Increment Financing District, Missouri, Tax 6/14 at 102.00 N/R 468,117 Increment Revenue Bonds, Briarcliff West Project, Series 2006A, 5.400%, 6/01/24 415 Missouri Development Finance Board, Independence, 3/16 at 100.00 A+ 415,469 Infrastructure Facilities Revenue Bonds, Crackerneck Creek Project, Series 2006C, 5.000%, 3/01/28 360 Missouri Development Finance Board, Infrastructure Facilities 6/15 at 100.00 BBB+ 337,781 Revenue Bonds, Branson Landing Project, Series 2005A, 5.000%, 6/01/35 450 Monarch-Chesterfield Levee District, St. Louis County, Missouri, 3/10 at 101.00 AAA 475,133 Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19 - MBIA Insured 500 Osage Beach, Missouri, Tax Increment Revenue Bonds, Prewitts 5/12 at 102.00 N/R 473,965 Point Transportation Development District, Series 2006, 5.000%, 5/01/23 200 Riverside Industrial Development Authority, Missouri, Industrial 5/17 at 100.00 A 183,720 Development Revenue Bonds, Riverside Horizon, Series 2007A, 5.000%, 5/01/27 - ACA Insured 600 Riverside, Missouri, L-385 Levee Redevelopment Plan Tax 5/15 at 100.00 BBB 605,292 Increment Revenue Bonds, Series 2004, 5.250%, 5/01/20 1,380 Springfield Center City Development Corporation, Missouri, 11/11 at 100.00 Aaa 1,431,074 Lease Revenue Bonds, Jordan Valley Park Parking Garage, Series 2002D, 5.000%, 11/01/22 - AMBAC Insured 2,000 Springfield Public Building Corporation, Missouri, Lease Revenue 6/10 at 100.00 AAA 2,121,060 Bonds, Jordan Valley Park Projects, Series 2000A, 6.125%, 6/01/21 - AMBAC Insured 400 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 390,760 Increment Bonds, Shoppes at North Village Project, Series 2005A, 5.500%, 11/01/27 ------------------------------------------------------------------------------------------------------------------------------------ 8,265 Total Tax Obligation/Limited 8,386,575 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.7% (3.0% OF TOTAL INVESTMENTS) 500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 AAA 507,685 Kansas City International Airport, Series 2001, 5.000%, 4/01/23 - AMBAC Insured (Alternative Minimum Tax) 1,000 St. Louis Land Clearance Redevelopment Authority, Missouri, 9/09 at 102.00 N/R 1,028,140 Revenue Refunding and Improvement Bonds, LCRA Parking Facilities, Series 1999C, 7.000%, 9/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Transportation 1,535,825 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 27.0% (17.4% OF TOTAL INVESTMENTS) (4) 685 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R (4) 770,974 Revenue Bonds, Gravois Bluffs Redevelopment Project, Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12) 2,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 2,683,597 Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 1,000 Missouri Health and Educational Facilities Authority, Revenue 12/10 at 101.00 A (4) 1,092,290 Bonds, St. Anthony's Medical Center, Series 2000, 6.250%, 12/01/30 (Pre-refunded 12/01/10) 1,135 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,406,719 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC Insured (ETM) 80 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 88,103 General Obligation Bonds, Series 2004, 5.250%, 3/01/20 (Pre-refunded 3/01/14) - FSA Insured 500 St. Louis County, Missouri, GNMA Collateralized Mortgage No Opt. Call N/R (4) 557,070 Revenue Bonds, Series 1993D, 5.650%, 7/01/20 (Alternative Minimum Tax) (ETM) 1,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold 2/12 at 100.00 Aaa 1,095,680 Revenue Bonds, Carnahan Courthouse, Series 2002A, 5.750%, 2/15/16 (Pre-refunded 2/15/12) - FGIC Insured 950 Texas County, Missouri, Hospital Revenue Bonds, Texas County 6/10 at 100.00 N/R (4) 1,037,714 Memorial Hospital, Series 2000, 7.250%, 6/15/25 (Pre-refunded 6/15/10) ------------------------------------------------------------------------------------------------------------------------------------ 7,850 Total U.S. Guaranteed 8,732,147 ------------------------------------------------------------------------------------------------------------------------------------ 58 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 15.1% (9.8% OF TOTAL INVESTMENTS) $ 640 Metropolitan St. Louis Sewerage District, Missouri, Revenue 5/14 at 100.00 AAA $ 682,842 Bonds, Wastewater System, Series 2004A, 5.000%, 5/01/20 - MBIA Insured 2,965 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AAA 2,771,979 Authority, Water Facility Revenue Bonds, Missouri-American Water Company, Series 2006, 4.600%, 12/01/36 - AMBAC Insured (Alternative Minimum Tax) (UB) 1,000 Missouri Environmental Improvement and Energy Resources 1/13 at 100.00 Aaa 1,059,540 Authority, Water Pollution Control and Drinking Water Revenue Bonds, Series 2003B, 5.125%, 1/01/21 350 Missouri Environmental Improvement and Energy Resources No Opt. Call Aaa 394,580 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Kansas City Project, Series 1997C, 6.750%, 1/01/12 ------------------------------------------------------------------------------------------------------------------------------------ 4,955 Total Water and Sewer 4,908,941 ------------------------------------------------------------------------------------------------------------------------------------ $ 48,365 Total Investments (cost $49,108,419) - 155.0% 50,231,817 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (6.9)% (2,225,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 390,470 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.4)% (16,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 32,397,287 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Managers' Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 59 Statement of ASSETS & LIABILITIES November 30, 2007 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $115,399,569, $57,244,262, $52,366,588 and $93,286,146, respectively) $117,709,669 $58,462,415 $53,945,130 $94,642,707 Cash -- -- -- -- Unrealized appreciation on forward swaps 415,922 284,595 238,047 136,253 Receivables: Interest 1,660,430 766,225 681,294 1,333,487 Investments sold -- -- -- -- Other assets 9,409 3,072 4,742 693 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 119,795,430 59,516,307 54,869,213 96,113,140 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 1,997,836 785,510 1,789,108 174,051 Floating rate obligations -- -- -- -- Payable for investments purchased 1,680,237 837,485 753,210 1,369,472 Accrued expenses: Management fees 59,790 20,409 16,315 30,313 Other 16,701 6,882 6,017 14,596 Common share dividends payable 243,691 130,148 119,949 198,794 Preferred share dividends payable 3,139 3,527 2,876 18,634 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 4,001,394 1,783,961 2,687,475 1,805,860 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 38,300,000 19,500,000 17,500,000 32,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 77,494,036 $38,232,346 $34,681,738 $62,307,280 ==================================================================================================================================== Common shares outstanding 5,363,976 2,578,264 2,315,777 4,364,617 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.45 $ 14.83 $ 14.98 $ 14.28 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 53,640 $ 25,783 $ 23,158 $ 43,646 Paid-in surplus 74,526,991 36,572,769 32,793,473 61,594,597 Undistributed (Over-distribution of) net investment income (54,817) (42,419) (38,775) (176,317) Accumulated net realized gain (loss) from investments and derivative transactions 242,200 173,465 87,293 (647,460) Net unrealized appreciation (depreciation) of investments and derivative transactions 2,726,022 1,502,748 1,816,589 1,492,814 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 77,494,036 $38,232,346 $34,681,738 $62,307,280 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 60
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $98,018,897, $41,891,327, $57,500,587 and $49,108,419, respectively) $100,810,165 $42,953,533 $59,463,690 $50,231,817 Cash 878,001 334,476 12,362 -- Unrealized appreciation on forward swaps 210,785 111,767 42,894 -- Receivables: Interest 1,623,163 694,544 900,231 775,541 Investments sold 15,000 -- -- -- Other assets 7,401 2,994 1,457 8,126 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 103,544,515 44,097,314 60,420,634 51,015,484 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- -- -- 247,109 Floating rate obligations -- -- -- 2,225,000 Payable for investments purchased -- -- -- -- Accrued expenses: Management fees 53,363 15,562 15,409 25,049 Other 15,373 5,219 6,979 7,780 Common share dividends payable 216,580 104,237 142,728 111,987 Preferred share dividends payable 4,193 4,438 3,425 1,272 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 289,509 129,456 168,541 2,618,197 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 34,000,000 15,000,000 20,500,000 16,000,000 ==================================================================================================================================== Net assets applicable to Common shares $ 69,255,006 $28,967,858 $39,752,093 $32,397,287 ==================================================================================================================================== Common shares outstanding 4,763,486 1,959,689 2,722,332 2,302,544 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.54 $ 14.78 $ 14.60 $ 14.07 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 47,635 $ 19,597 $ 27,223 $ 23,025 Paid-in surplus 66,145,494 27,748,740 38,362,003 30,872,014 Undistributed (Over-distribution of) net investment income (40,277) (33,417) (45,197) (8,595) Accumulated net realized gain (loss) from investments and derivative transactions 100,101 58,965 (597,933) 387,445 Net unrealized appreciation (depreciation) of investments and derivative transactions 3,002,053 1,173,973 2,005,997 1,123,398 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 69,255,006 $28,967,858 $39,752,093 $32,397,287 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 61 Statement of OPERATIONS Six Months Ended November 30, 2007 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $2,695,923 $1,355,967 $1,208,961 $2,138,374 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 363,212 180,996 163,301 296,438 Preferred shares -- auction fees 48,006 24,441 21,934 40,110 Preferred shares -- dividend disbursing agent fees 5,014 5,014 5,014 5,014 Shareholders' servicing agent fees and expenses 5,325 733 618 635 Interest expense on floating rate obligations -- -- -- -- Custodian's fees and expenses 19,470 11,580 7,953 15,703 Trustees' fees and expenses 1,460 639 717 1,132 Professional fees 5,777 4,329 4,141 5,332 Shareholders' reports -- printing and mailing expenses 13,598 6,509 6,848 8,773 Stock exchange listing fees 4,840 110 99 186 Investor relations expense 5,264 2,164 2,602 4,680 Other expenses 6,497 6,575 6,397 6,912 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 478,463 243,090 219,624 384,915 Custodian fee credit (4,827) (3,329) (3,696) (7,562) Expense reimbursement -- (57,116) (64,415) (137,133) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 473,636 182,645 151,513 240,220 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 2,222,287 1,173,322 1,057,448 1,898,154 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments 257,137 333,759 187,998 12,968 Forward swaps 38,176 33,502 16,876 31,127 Change in net unrealized appreciation (depreciation) of: Investments (431,124) (516,950) (165,711) (282,699) Forward swaps 463,808 322,272 266,305 140,202 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 327,997 172,583 305,468 (98,402) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (590,124) (313,034) (271,267) (542,966) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (590,124) (313,034) (271,267) (542,966) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $1,960,160 $1,032,871 $1,091,649 $1,256,786 ====================================================================================================================================
See accompanying notes to financial statements. 62
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $2,512,443 $1,059,363 $1,388,370 $1,268,011 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 324,476 138,332 188,796 152,778 Preferred shares -- auction fees 42,617 18,801 25,695 20,055 Preferred shares -- dividend disbursing agent fees 5,014 5,014 5,014 5,014 Shareholders' servicing agent fees and expenses 3,202 308 202 2,032 Interest expense on floating rate obligations -- -- -- 37,926 Custodian's fees and expenses 19,917 6,744 8,254 9,052 Trustees' fees and expenses 1,211 471 743 643 Professional fees 5,540 3,942 4,548 4,143 Shareholders' reports -- printing and mailing expenses 11,859 5,740 7,239 7,052 Stock exchange listing fees 4,844 83 116 98 Investor relations expense 5,236 2,453 3,288 2,527 Other expenses 7,317 6,226 6,119 5,330 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 431,233 188,114 250,014 246,650 Custodian fee credit (5,371) (4,404) (2,026) (2,519) Expense reimbursement -- (43,653) (95,324) -- ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 425,862 140,057 152,664 244,131 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 2,086,581 919,306 1,235,706 1,023,880 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments 109,586 8,922 66,830 43,563 Forward swaps 4,305 -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (463,512) (255,178) 176,868 (529,827) Forward swaps 249,982 127,446 42,894 -- ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (99,639) (118,810) 286,592 (486,264) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (599,261) (255,032) (352,484) (249,911) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (599,261) (255,032) (352,484) (249,911) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $1,387,681 $ 545,464 $1,169,814 $ 287,705 ====================================================================================================================================
See accompanying notes to financial statements. 63 Statement of CHANGES in NET ASSETS (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK) ---------------------------- --------------------------- ---------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,222,287 $ 4,447,923 $ 1,173,322 $ 2,365,016 $ 1,057,448 $ 2,107,925 Net realized gain (loss) from: Investments 257,137 72,769 333,759 124,379 187,998 144,586 Forward swaps 38,176 -- 33,502 -- 16,876 -- Futures -- 28,706 -- (18,408) -- (2,992) Change in net unrealized appreciation (depreciation) of: Investments (431,124) 346,705 (516,950) 38,540 (165,711) 36,334 Forward swaps 463,808 (47,886) 322,272 (37,677) 266,305 (28,258) Distributions to Preferred Shareholders: From net investment income (590,124) (1,082,148) (313,034) (569,903) (271,267) (499,055) From accumulated net realized gains -- (74,762) -- -- -- (18,854) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 1,960,160 3,691,307 1,032,871 1,901,947 1,091,649 1,739,686 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,673,356) (3,464,778) (858,312) (1,872,256) (791,870) (1,683,074) From accumulated net realized gains -- (372,181) -- -- -- (85,757) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,673,356) (3,836,959) (858,312) (1,872,256) (791,870) (1,768,831) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 56,010 18,479 33,542 89,571 16,016 43,271 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 56,010 18,479 33,542 89,571 16,016 43,271 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 342,814 (127,173) 208,101 119,262 315,795 14,126 Net assets applicable to Common shares at the beginning of period 77,151,222 77,278,395 38,024,245 37,904,983 34,365,943 34,351,817 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $77,494,036 $77,151,222 $38,232,346 $38,024,245 $34,681,738 $34,365,943 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (54,817) $ (13,624) $ (42,419) $ (44,395) $ (38,775) $ (33,086) ====================================================================================================================================
See accompanying notes to financial statements. 64
CONNECTICUT MASSACHUSETTS PREMIUM MASSACHUSETTS DIVIDEND ADVANTAGE 3 (NGO) INCOME (NMT) DIVIDEND ADVANTAGE (NMB) ---------------------------- --------------------------- ---------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 1,898,154 $ 3,733,076 $ 2,086,581 $ 4,182,224 $ 919,306 $ 1,827,149 Net realized gain (loss) from: Investments 12,968 (42,201) 109,586 (13,789) 8,922 55,772 Forward swaps 31,127 -- 4,305 -- -- -- Futures -- (14,700) -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (282,699) 617,398 (463,512) 713,731 (255,178) 86,124 Forward swaps 140,202 (3,949) 249,982 (39,197) 127,446 (15,679) Distributions to Preferred Shareholders: From net investment income (542,966) (992,233) (599,261) (1,116,532) (255,032) (479,691) From accumulated net realized gains -- -- -- (5,552) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 1,256,786 3,297,391 1,387,681 3,720,885 545,464 1,473,675 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,348,272) (2,798,715) (1,471,862) (3,183,927) (664,251) (1,459,044) From accumulated net realized gains -- -- -- (23,558) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,348,272) (2,798,715) (1,471,862) (3,207,485) (664,251) (1,459,044) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 74,101 -- 15,691 33,601 14,860 52,919 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 74,101 -- 15,691 33,601 14,860 52,919 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (17,385) 498,676 (68,490) 547,001 (103,927) 67,550 Net assets applicable to Common shares at the beginning of period 62,324,665 61,825,989 69,323,496 68,776,495 29,071,785 29,004,235 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $62,307,280 $62,324,665 $69,255,006 $69,323,496 $28,967,858 $29,071,785 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (176,317) $ (183,233) $ (40,277) $ (55,735) $ (33,417) $ (33,440) ====================================================================================================================================
See accompanying notes to financial statements. 65 Statement of CHANGES in NET ASSETS (continued) (Unaudited)
INSURED MASSACHUSETTS MISSOURI PREMIUM TAX-FREE ADVANTAGE (NGX) INCOME (NOM) --------------------------- ---------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED 11/30/07 5/31/07 11/30/07 5/31/07 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 1,235,706 $ 2,460,127 $ 1,023,880 $ 2,057,588 Net realized gain (loss) from: Investments 66,830 27,964 43,563 352,272 Forward swaps -- 27,938 -- -- Futures -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 176,868 246,559 (529,827) (540,979) Forward swaps 42,894 (117,661) -- -- Distributions to Preferred Shareholders: From net investment income (352,484) (671,046) (249,911) (524,016) From accumulated net realized gains -- -- -- (2,414) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 1,169,814 1,973,881 287,705 1,342,451 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (879,301) (1,694,504) (752,605) (1,656,219) From accumulated net realized gains -- -- -- (11,028) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (879,301) (1,694,504) (752,605) (1,667,247) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 3,397 -- 35,972 216,543 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 3,397 -- 35,972 216,545 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 293,910 279,377 (428,928) (108,253) Net assets applicable to Common shares at the beginning of period 39,458,183 39,178,806 32,826,215 32,934,468 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $39,752,093 $39,458,183 $32,397,287 $32,826,215 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (45,197) $ (49,118) $ (8,595) $ (29,959) ====================================================================================================================================
See accompanying notes to financial statements. 66 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Connecticut Premium Income Municipal Fund (NTC), Nuveen Connecticut Dividend Advantage Municipal Fund (NFC), Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK), Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO), Nuveen Massachusetts Premium Income Municipal Fund (NMT), Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB), Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX) and Nuveen Missouri Premium Income Municipal Fund (NOM). Common shares of Connecticut Premium Income (NTC) and Massachusetts Premium Income (NMT) are traded on the New York Stock Exchange while Common shares of Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK), Connecticut Dividend Advantage 3 (NGO), Massachusetts Dividend Advantage (NMB), Insured Massachusetts Tax-Free Advantage (NGX) and Missouri Premium Income (NOM) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes, and in the case of Insured Massachusetts Tax-Free Advantage (NGX) the alternative minimum tax applicable to individuals, by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment 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 market price quotes are not readily available (which is usually the case for municipal securities), the pricing service may establish fair 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, evaluations of anticipated cash flows or collateral and general market conditions. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Trustees. Futures contracts are valued using the closing settlement price, or, in the absence of such a price, at the mean of the bid and asked prices. If the pricing service is unable to supply a price for a municipal bond, forward swap or futures contract, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment or derivative instrument is unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At November 30, 2007, Connecticut Premium Income (NTC), Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK) and Connecticut Dividend Advantage 3 (NGO) had outstanding when-issued/delayed delivery purchase commitments of $1,680,237, $837,485, $753,210 and $1,369,472, respectively. There were no such outstanding purchase commitments in any of the other Funds. 67 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. 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, and in the case of Insured Massachusetts Tax-Free Advantage (NGX) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. 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 Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, 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 U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. The number of Preferred shares outstanding for each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------ Number of shares: Series T -- 780 -- -- Series W -- -- 700 -- Series TH 1,532 -- -- -- Series F -- -- -- 1,280 ==================================================================================================================
68
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------ Number of shares: Series T -- 600 -- -- Series W -- -- 820 -- Series TH 1,360 -- -- 640 Series F -- -- -- -- ==================================================================================================================
Insurance Insured Massachusetts Tax-Free Advantage (NGX) invests at least 80% of its net assets (including net assets attributable to Preferred shares) in municipal securities that are covered by insurance. The Fund may also invest up to 20% of its net assets (including net assets attributable to Preferred shares) in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) rated, at the time of investment, within the four highest grades Baa or BBB or better by Moody's, Standard &Poor's or unrated but judged to be of comparable quality by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance does not guarantee the market value of the municipal securities or the value of the Fund's Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Fund ultimately disposes of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Fund. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the Common share net asset value of the Fund includes value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Fund the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale. Inverse Floating Rate Securities Each Fund may invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. 69 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). A Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates, as well as any shortfalls in interest cash flows. The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "Inverse floating rate investment". An investment in a self-deposited inverse floater, recourse trust or credit recovery swap is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as an "Underlying bond of an inverse floating rate trust", with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and accounts for the related interest paid to the holders of the short-term floating rate certificates as "Interest expense on floating rate obligations" in the Statement of Operations. During the six months ended November 30, 2007, Missouri Premium Income (NOM) invested in externally deposited inverse floaters and/or self-deposited inverse floaters. None of the other Funds invested in such instruments during the six months ended November 30, 2007. The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the six months ended November 30, 2007, were as follows: MISSOURI PREMIUM INCOME (NOM) -------------------------------------------------------------------------------- Average floating rate obligations $1,988,661 Average annual interest rate and fees 3.80% ================================================================================ Forward Swap Transactions The Funds are authorized to invest in forward interest rate swap transactions. Each Funds' use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To reduce such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of 70 each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the predetermined threshold amount. Missouri Premium Income (NOM) was the only Fund not to invest in forward interest rate swap transactions during the six months ended November 30, 2007. Futures Contracts The Funds are authorized to invest in futures contracts. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the "initial margin." Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized in the Statement of Assets and Liabilities. Additionally, the Statement of Assets and Liabilities reflects a receivable or payable for the variation margin when applicable. None of the Funds invested in futures contracts during the six months ended November 30, 2007. Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which the Fund overdraws its account at the custodian bank. Indemnifications Under the Funds' organizational documents, their Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. 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 applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common shares were as follows:
CONNECTICUT CONNECTICUT DIVIDEND CONNECTICUT DIVIDEND PREMIUM INCOME (NTC) ADVANTAGE (NFC) ADVANTAGE 2 (NGK) ----------------------- ----------------------- ----------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 ----------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 3,915 1,268 2,251 5,695 1,063 2,746 ================================================================================================================= CONNECTICUT DIVIDEND MASSACHUSETTS MASSACHUSETTS DIVIDEND ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) ADVANTAGE (NMB) ----------------------- ----------------------- ------------------------ SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 ------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 5,247 -- 1,090 2,282 1,004 3,459 ==================================================================================================================
71 Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
INSURED MASSACHUSETTS TAX-FREE MISSOURI ADVANTAGE (NGX) PREMIUM INCOME (NOM) ----------------------- ------------------------ SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 11/30/07 5/31/07 11/30/07 5/31/07 ------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 237 -- 2,494 13,593 ==================================================================================================================
3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended November 30, 2007, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------ Purchases $19,287,374 $8,377,418 $9,024,606 $16,295,396 Sales and maturities 15,206,158 6,623,711 6,248,854 14,327,909 ================================================================================================================== INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------ Purchases $8,383,208 $2,840,474 $1,789,100 $2,008,196 Sales and maturities 7,713,800 3,499,932 2,371,768 1,503,723 ==================================================================================================================
4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At November 30, 2007, the cost of investments was as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------ Cost of investments $115,373,234 $57,271,093 $52,491,920 $93,368,405 ==================================================================================================================
72
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------ Cost of investments $97,948,343 $41,869,795 $57,652,640 $46,868,809 ==================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2007, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $2,796,241 $1,537,046 $1,847,706 $1,977,076 Depreciation (459,806) (345,724) (394,496) (702,774) ------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $2,336,435 $1,191,322 $1,453,210 $1,274,302 ================================================================================================================== INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $3,462,503 $1,311,334 $2,119,540 $1,710,218 Depreciation (600,681) (227,596) (308,490) (571,885) ------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $2,861,822 $1,083,738 $1,811,050 $1,138,333 ==================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2007, the Funds' last tax year end, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------ Undistributed net tax-exempt income* $264,190 $67,363 $76,195 $23,467 Undistributed net ordinary income ** 564 136 -- 102 Undistributed net long-term capital gains -- -- 37,281 -- ================================================================================================================== INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------ Undistributed net tax-exempt income* $139,845 $60,434 $95,820 $99,945 Undistributed net ordinary income ** -- -- -- -- Undistributed net long-term capital gains -- 56,036 -- 343,882 ==================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 1, 2007, paid on June 1, 2007. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the Funds' last tax year ended May 31, 2007, was designated for purposes of the dividends paid deduction as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $4,570,640 $2,466,418 $2,210,985 $3,816,478 Distributions from net ordinary income ** 41,683 -- 82 -- Distributions from net long-term capital gains 405,561 -- 104,613 -- ==================================================================================================================
73 Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $4,336,292 $1,953,268 $2,384,976 $2,195,931 Distributions from net ordinary income ** 15,666 -- -- 7 Distributions from net long-term capital gains 28,705 -- -- 13,435 ==================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At May 31, 2007, the Funds' last tax year end, the following 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:
INSURED CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS DIVIDEND DIVIDEND PREMIUM TAX-FREE ADVANTAGE ADVANTAGE 3 INCOME ADVANTAGE (NFC) (NGO) (NMT) (NGX) ------------------------------------------------------------------------------------------------------------------ Expiration year: 2011 $ -- $ 69,710 $ -- $ -- 2012 76,491 106,107 -- -- 2013 44,122 79,696 -- 85,485 2014 -- 111,331 -- 427,135 2015 -- 211,213 13,790 -- ------------------------------------------------------------------------------------------------------------------ Total $120,613 $578,057 $13,790 $512,620 ==================================================================================================================
The following Funds have elected to defer net realized losses from investments incurred from November 1, 2006 through May 31, 2007, the Funds' last tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the current taxable year. CONNECTICUT CONNECTICUT PREMIUM DIVIDEND INCOME ADVANTAGE (NTC) (NFC) -------------------------------------------------------------------------------- $53,762 $8,607 ================================================================================ 5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. 74 The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: CONNECTICUT PREMIUM INCOME (NTC) AVERAGE DAILY NET ASSETS MASSACHUSETTS PREMIUM INCOME (NMT) (INCLUDING NET ASSETS MISSOURI PREMIUM INCOME (NOM) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ CONNECTICUT DIVIDEND ADVANTAGE (NFC) CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) AVERAGE DAILY NET ASSETS MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) (INCLUDING NET ASSETS INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the tables below. As of November 30, 2007, the complex-level fee rate was .1837%. Effective August 20, 2007, the complex-level fee schedule is as follows: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ 75 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) Prior to August 20, 2007, the complex-level fee schedule was as follows: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1698 $125 billion .1617 $200 billion .1536 $250 billion .1509 $300 billion .1490 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to preferred stock issued by or borrowings by the Nuveen funds) of Nuveen-sponsored funds in the U.S. The management 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 its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first ten years of Connecticut Dividend Advantage's (NFC) and Massachusetts Dividend Advantage's (NMB) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING JANUARY 31, JANUARY 31, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Connecticut Dividend Advantage (NFC) and Massachusetts Dividend Advantage (NMB) for any portion of their fees and expenses beyond January 31, 2011. 76 For the first ten years of Connecticut Dividend Advantage 2's (NGK) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Connecticut Dividend Advantage 2 (NGK) for any portion of its fees and expenses beyond March 31, 2012. For the first eight years of Connecticut Dividend Advantage 3's (NGO) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Connecticut Dividend Advantage 3 (NGO) for any portion of its fees and expenses beyond September 30, 2010. For the first eight years of Insured Massachusetts Tax-Free Advantage's (NGX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured Massachusetts Tax-Free Advantage (NGX) for any portion of its fees and expenses beyond November 30, 2010. Agreement and Plan of Merger On June 20, 2007, Nuveen Investments announced that it had entered into a definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City Investments, Inc. ("Windy City"), a corporation formed by investors led by Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy City would acquire Nuveen Investments. Madison Dearborn is a private equity investment firm based in Chicago, Illinois. The merger was consummated on November 13, 2007. The consummation of the merger was deemed to be an "assignment" (as that term is defined in the Investment Company Act of 1940) of the investment management agreement between each Fund and the Adviser, and resulted in the automatic termination of each Fund's agreement. The Board of Trustees of each Fund considered and approved a new investment management agreement with the Adviser at the same fee rate. The new ongoing agreement was approved by the shareholders of each Fund and took effect on November 13, 2007. 77 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As a result, Merrill Lynch is an indirect "affiliated person" (as that term is defined in the Investment Company Act of 1940) of each Fund. Certain conflicts of interest may arise as a result of such indirect affiliation. For example, the Funds are generally prohibited from entering into principal transactions with Merrill Lynch and its affiliates. The Adviser does not believe that any such prohibitions or limitations as a result of Merrill Lynch's affiliation will significantly impact the ability of the Funds to pursue their investment objectives and policies. 6. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Interpretation No. 48 Effective November 30, 2007, the Funds adopted Financial Accounting Standards Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance regarding how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Funds has concluded that there are no significant uncertain tax positions that require recognition in the Funds' financial statements. Consequently, the adoption of FIN 48 had no impact on the net assets or results of operations of the Funds. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of November 30, 2007, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. 7. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 31, 2007, to shareholders of record on December 15, 2007, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) ------------------------------------------------------------------------------------------------------------------ Dividend per share $.0520 $.0555 $.0550 $.0505 ================================================================================================================== INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) ------------------------------------------------------------------------------------------------------------------ Dividend per share $.0515 $.0565 $.0545 $.0545 ==================================================================================================================
78 At the same time, the following Funds declared capital gains and/or ordinary income distributions as follows:
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME (NTC) (NFC) (NGK) (NMT) (NMB) (NOM) --------------------------------------------------------------------------------------------------------------------- Capital gains distribution per share $.0288 $.0648 $.0738 $.0166 $ .0248 $ .1265 Ordinary income distribution per share* -- .0016 -- -- -- -- =====================================================================================================================
* Ordinary income consist of taxable market discount income and net short-term capital gains, if any. 79 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ================================================================================================================================= CONNECTICUT PREMIUM INCOME (NTC) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $14.39 $ .41 $ .07 $(.11) $ -- $ .37 $(.31) $ -- $(.31) 2007 14.42 .83 .07 (.20) (.01) .69 (.65) (.07) (.72) 2006 15.26 .84 (.54) (.14) (.03) .13 (.75) (.22) (.97) 2005 14.60 .88 .75 (.09) -- 1.54 (.87) (.01) (.88) 2004 15.56 .93 (.96) (.05) -- (.08) (.88) -- (.88) 2003 14.46 .98 1.07 (.07) -- 1.98 (.88) -- (.88) CONNECTICUT DIVIDEND ADVANTAGE (NFC) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 14.76 .46 .06 (.12) -- .40 (.33) -- (.33) 2007 14.75 .92 .04 (.22) -- .74 (.73) -- (.73) 2006 15.39 .93 (.55) (.17) -- .21 (.85) -- (.85) 2005 14.56 .95 .86 (.09) -- 1.72 (.89) -- (.89) 2004 15.53 .97 (1.00) (.05) -- (.08) (.89) -- (.89) 2003 14.24 1.00 1.19 (.07) -- 2.12 (.84) -- (.84) ================================================================================================================================= Total Returns --------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================== CONNECTICUT PREMIUM INCOME (NTC) ---------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.45 $13.38 (8.24)% 2.63% 2007 -- 14.39 14.91 12.33 4.79 2006 -- 14.42 13.95 (6.00) .88 2005 -- 15.26 15.81 15.61 10.82 2004 -- 14.60 14.47 (10.80) (.51) 2003 -- 15.56 17.14 12.63 14.08 CONNECTICUT DIVIDEND ADVANTAGE (NFC) ---------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) -- 14.83 14.11 (11.82) 2.78 2007 -- 14.76 16.37 5.46 5.05 2006 -- 14.75 16.26 8.79 1.38 2005 -- 15.39 15.73 17.89 12.06 2004 -- 14.56 14.12 (8.64) (.56) 2003 .01 15.53 16.35 9.19 15.38 ================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** ------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== CONNECTICUT PREMIUM INCOME (NTC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) $77,494 1.25%*** 1.25%*** 5.79%*** 1.24%*** 1.24%*** 5.81%*** 13% 2007 77,151 1.24 1.24 5.67 1.21 1.21 5.69 8 2006 77,278 1.25 1.25 5.66 1.23 1.23 5.68 16 2005 81,529 1.24 1.24 5.81 1.24 1.24 5.82 12 2004 77,725 1.23 1.23 6.16 1.23 1.23 6.16 15 2003 82,492 1.27 1.27 6.57 1.26 1.26 6.58 23 CONNECTICUT DIVIDEND ADVANTAGE (NFC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 38,232 1.29*** 1.29*** 5.90*** .97*** .97*** 6.22*** 12 2007 38,024 1.29 1.29 5.78 .92 .92 6.16 9 2006 37,905 1.29 1.29 5.70 .84 .84 6.14 14 2005 39,464 1.29 1.29 5.81 .83 .83 6.27 9 2004 37,238 1.26 1.26 5.97 .80 .80 6.44 4 2003 39,625 1.27 1.27 6.29 .81 .81 6.76 7 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 =============================================================================== CONNECTICUT PREMIUM INCOME (NTC) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $38,300 $25,000 $75,584 $ -- $ -- 2007 38,300 25,000 75,360 -- -- 2006 38,300 25,000 75,443 -- -- 2005 38,300 25,000 78,217 -- -- 2004 38,300 25,000 75,734 -- -- 2003 38,300 25,000 78,846 -- -- CONNECTICUT DIVIDEND ADVANTAGE (NFC) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 19,500 25,000 74,016 -- -- 2007 19,500 25,000 73,749 -- -- 2006 19,500 25,000 73,596 -- -- 2005 19,500 25,000 75,595 -- -- 2004 19,500 25,000 72,740 -- -- 2003 19,500 25,000 75,801 -- -- =============================================================================== * Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + 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. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the six months ended November 30, 2007. See accompanying notes to financial statements. 80-81 spread Financial HIGHLIGHTS (continued) (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ================================================================================================================================= CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $14.85 $.46 $ .13 $(.12) $ -- $ .47 $(.34) $ -- $(.34) 2007 14.86 .91 .08 (.22) (.01) .76 (.73) (.04) (.77) 2006 15.64 .91 (.60) (.17) (.01) .13 (.83) (.08) (.91) 2005 15.01 .92 .74 (.09) -- 1.57 (.87) (.07) (.94) 2004 16.23 .96 (1.13) (.04) (.01) (.22) (.87) (.12) (.99) 2003 14.48 .98 1.74 (.07) (.01) 2.64 (.83) (.06) (.89) CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 14.30 .44 (.03) (.12) -- .29 (.31) -- (.31) 2007 14.18 .86 .13 (.23) -- .76 (.64) -- (.64) 2006 14.78 .84 (.54) (.18) -- .12 (.72) -- (.72) 2005 13.97 .86 .83 (.10) -- 1.59 (.78) -- (.78) 2004 15.06 .88 (1.14) (.05) -- (.31) (.78) -- (.78) 2003(c) 14.33 .51 .93 (.04) -- 1.40 (.46) -- (.46) ================================================================================================================================= Total Returns --------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================ CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.98 $14.20 (11.27)% 3.23% 2007 -- 14.85 16.38 3.58 5.13 2006 -- 14.86 16.60 9.78 .84 2005 -- 15.64 15.98 19.92 10.70 2004 (.01) 15.01 14.14 (4.65) (1.48) 2003 -- 16.23 15.80 11.16 18.77 CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) -- 14.28 13.41 (6.72) 2.06 2007 -- 14.30 14.70 9.15 5.42 2006 -- 14.18 14.09 1.84 .83 2005 -- 14.78 14.54 18.17 11.60 2004 -- 13.97 13.00 (8.92) (2.08) 2003(c) (.21) 15.06 15.09 3.71 8.46 ================================================================================ Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** ------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) $34,682 1.29%*** 1.29%*** 5.80%*** .89%*** .89%*** 6.20%*** 12% 2007 34,366 1.31 1.31 5.60 .85 .85 6.06 12 2006 34,352 1.29 1.29 5.51 .83 .83 5.97 11 2005 36,105 1.28 1.28 5.52 .82 .82 5.98 12 2004 34,646 1.25 1.25 5.73 .80 .80 6.18 10 2003 37,441 1.31 1.31 5.94 .82 .82 6.43 13 CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 62,307 1.25*** 1.25*** 5.68*** .78*** .78*** 6.15*** 15 2007 62,325 1.26 1.26 5.44 .76 .76 5.94 15 2006 61,826 1.24 1.24 5.30 .74 .74 5.80 9 2005 64,324 1.24 1.24 5.40 .76 .76 5.89 9 2004 60,774 1.24 1.24 5.58 .74 .74 6.08 14 2003(c) 65,324 1.19*** 1.19*** 4.72*** .71*** .71*** 5.20*** 18 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 =============================================================================== CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $17,500 $25,000 $74,545 $ -- $ -- 2007 17,500 25,000 74,094 -- -- 2006 17,500 25,000 74,074 -- -- 2005 17,500 25,000 76,579 -- -- 2004 17,500 25,000 74,495 -- -- 2003 17,500 25,000 78,487 -- -- CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 32,000 25,000 73,678 -- -- 2007 32,000 25,000 73,691 -- -- 2006 32,000 25,000 73,302 -- -- 2005 32,000 25,000 75,253 -- -- 2004 32,000 25,000 72,480 -- -- 2003(c) 32,000 25,000 76,034 -- -- =============================================================================== * Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + 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. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the six months ended November 30, 2007. (c) For the period September 26, 2002 (commencement of operations) through May 31, 2003. See accompanying notes to financial statements. 82-83 spread Financial HIGHLIGHTS (continued) (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ================================================================================================================================= MASSACHUSETTS PREMIUM INCOME (NMT) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $14.56 $ .44 $ (.02) $(.13) $ -- $ .29 $(.31) $ -- $ (.31) 2007 14.45 .88 .13 (.23) --* .78 (.67) --* (.67) 2006 15.10 .88 (.50) (.18) -- .20 (.81) (.04) (.85) 2005 14.34 .91 .81 (.08) -- 1.64 (.88) -- (.88) 2004 15.30 .94 (.97) (.05) -- (.08) (.88) -- (.88) 2003 14.48 .98 .78 (.07) -- 1.69 (.87) -- (.87) MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 14.84 .47 (.06) (.13) -- .28 (.34) -- (.34) 2007 14.83 .93 .08 (.25) -- .76 (.75) -- (.75) 2006 15.65 .95 (.54) (.17) (.02) .22 (.85) (.19) (1.04) 2005 14.84 .97 .95 (.08) -- 1.84 (.92) (.11) (1.03) 2004 16.00 1.00 (1.11) (.04) (.01) (.16) (.92) (.08) (1.00) 2003 14.16 1.04 1.74 (.07) -- 2.71 (.88) -- (.88) ================================================================================================================================= Total Returns --------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Asset Market Market Asset Discounts Value Value Value* Value* =================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) ----------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.54 $13.11 (6.42)% 2.02% 2007 -- 14.56 14.33 4.60 5.47 2006 -- 14.45 14.35 (6.14) 1.41 2005 -- 15.10 16.14 18.97 11.74 2004 -- 14.34 14.35 (9.51) (.51) 2003 -- 15.30 16.80 12.98 12.02 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) ----------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) -- 14.78 14.10 (11.33) 1.92 2007 -- 14.84 16.28 10.04 5.14 2006 -- 14.83 15.53 (5.23) 1.49 2005 -- 15.65 17.45 24.96 12.76 2004 -- 14.84 14.88 (3.74) (1.03) 2003 .01 16.00 16.45 8.76 19.74 =================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** ------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) $69,255 1.26%**** 1.26%**** 6.07%**** 1.24%**** 1.24%**** 6.08%**** 8% 2007 69,323 1.24 1.24 5.97 1.23 1.23 5.98 9 2006 68,776 1.25 1.25 5.98 1.24 1.24 6.00 13 2005 71,648 1.24 1.24 6.15 1.24 1.24 6.16 18 2004 67,806 1.24 1.24 6.37 1.23 1.23 6.38 22 2003 72,003 1.28 1.28 6.61 1.27 1.27 6.63 18 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 28,968 1.31**** 1.31**** 6.06**** .97**** .97**** 6.40**** 7 2007 29,072 1.33 1.33 5.84 .95 .95 6.21 9 2006 29,004 1.29 1.29 5.79 .83 .83 6.24 13 2005 30,539 1.31 1.31 5.83 .86 .86 6.28 12 2004 28,904 1.27 1.27 6.05 .81 .81 6.51 26 2003 31,134 1.29 1.29 6.49 .83 .83 6.95 8 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 =============================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $34,000 $25,000 $75,923 $ -- $ -- 2007 34,000 25,000 75,973 -- -- 2006 34,000 25,000 75,571 -- -- 2005 34,000 25,000 77,682 -- -- 2004 34,000 25,000 74,857 -- -- 2003 34,000 25,000 77,943 -- -- MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 15,000 25,000 73,280 -- -- 2007 15,000 25,000 73,453 -- -- 2006 15,000 25,000 73,340 -- -- 2005 15,000 25,000 75,899 -- -- 2004 15,000 25,000 73,173 -- -- 2003 15,000 25,000 76,891 -- -- =============================================================================== * Per share Distributions from Capital Gains to Preferred Shareholders and Distributions from Capital Gains to Common Shareholders round to less than $.01 per share. ** Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. **** Annualized. + 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. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the six months ended November 30, 2007. See accompanying notes to financial statements. 84-85 spread Financial HIGHLIGHTS (continued) (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) $14.50 $.45 $ .10 $(.13) $ -- $ .42 $(.32) $ -- $(.32) 2007 14.39 .90 .08 (.25) -- .73 (.62) -- (.62) 2006 14.93 .90 (.53) (.20) -- .17 (.71) -- (.71) 2005 14.04 .92 .90 (.09) -- 1.73 (.84) -- (.84) 2004 15.25 .94 (1.22) (.06) -- (.34) (.86) (.01) (.87) 2003(c) 14.33 .35 1.21 (.03) -- 1.53 (.37) -- (.37) MISSOURI PREMIUM INCOME (NOM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 14.27 .44 (.20) (.11) -- .13 (.33) -- (.33) 2007 14.40 .90 (.08) (.23) --* .59 (.72) --* (.72) 2006 15.11 .92 (.51) (.17) (.01) .23 (.84) (.10) (.94) 2005 14.37 .94 .77 (.09) -- 1.62 (.88) -- (.88) 2004 15.40 .96 (1.05) (.06) -- (.15) (.88) -- (.88) 2003 14.35 .97 1.02 (.07) -- 1.92 (.87) -- (.87) ==================================================================================================================================== Total Returns --------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================ INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.60 $13.98 (1.01)% 2.96% 2007 -- 14.50 14.45 12.49 5.12 2006 -- 14.39 13.43 (11.62) 1.20 2005 -- 14.93 15.94 20.95 12.62 2004 -- 14.04 13.90 (6.83) (2.18) 2003(c) (.24) 15.25 15.78 7.69 9.07 MISSOURI PREMIUM INCOME (NOM) -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) -- 14.07 14.20 (12.25) .92 2007 -- 14.27 16.56 5.98 4.17 2006 -- 14.40 16.35 (3.53) 1.57 2005 -- 15.11 17.90 24.38 11.54 2004 -- 14.37 15.15 (5.35) (1.00) 2003 -- 15.40 16.87 15.39 13.75 ================================================================================ Ratios/Supplemental Data ----------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** ------------------------------------------ ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) $39,752 1.28%**** 1.28%**** 5.81%**** .78%**** .78%**** 6.31%**** 3% 2007 39,458 1.28 1.28 5.67 .77 .77 6.17 6 2006 39,179 1.29 1.29 5.66 .79 .79 6.16 5 2005 40,611 1.27 1.27 5.83 .79 .79 6.31 2 2004 38,121 1.28 1.28 5.94 .75 .75 6.46 97 2003(c) 41,297 1.14**** 1.14**** 4.17**** .68**** .68**** 4.64**** 19 MISSOURI PREMIUM INCOME (NOM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 32,397 1.53**** 1.29**** 6.32**** 1.51**** 1.28**** 6.34**** 3 2007 32,826 1.39 1.30 6.15 1.37 1.27 6.18 16 2006 32,934 1.29 1.29 6.20 1.27 1.27 6.22 9 2005 34,219 1.29 1.29 6.29 1.28 1.28 6.30 17 2004 32,231 1.27 1.27 6.44 1.26 1.26 6.45 24 2003 34,228 1.34 1.34 6.56 1.32 1.32 6.58 15 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 =============================================================================== INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 20,500 25,000 73,478 $ -- $ -- 2007 20,500 25,000 73,120 -- -- 2006 20,500 25,000 72,779 -- -- 2005 20,500 25,000 74,526 -- -- 2004 20,500 25,000 71,489 -- -- 2003(c) 20,500 25,000 75,362 -- -- MISSOURI PREMIUM INCOME (NOM) ------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 16,000 25,000 75,621 2,225 22,752 2007 16,000 25,000 76,291 1,975 25,722 2006 16,000 25,000 76,460 -- -- 2005 16,000 25,000 78,468 -- -- 2004 16,000 25,000 75,360 -- -- 2003 16,000 25,000 78,481 -- -- =============================================================================== * Per share Distributions from Capital Gains to Preferred Shareholders and Distributions from Capital Gains to Common Shareholders round to less than $.01 per share. ** Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. **** Annualized. + 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. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the six months ended November 30, 2007. (c) For the period November 21, 2002 (commencement of operations) through May 31, 2003. See accompanying notes to financial statements. 86-87 spread Annual Investment Management Agreement Approval PROCESS The Board Members are responsible for overseeing the performance of the investment adviser to the Funds and determining whether to continue the advisory arrangements. At the annual review meeting held on May 21, 2007 (the "May Meeting"), the Board Members of the Funds, including the Independent Board Members, unanimously approved the continuance of the Investment Management Agreement between each Fund (each, a "Fund") and Nuveen Asset Management ("NAM"). The foregoing Investment Management Agreements with NAM are hereafter referred to as the "Original Investment Management Agreements." Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent company of NAM, entered into a merger agreement providing for the acquisition of Nuveen by Windy City Investments, Inc., a corporation formed by investors led by Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the "Transaction"). Each Original Investment Management Agreement, as required by Section 15 of the Investment Company Act of 1940 (the "1940 Act"), provides for its automatic termination in the event of its "assignment" (as defined in the 1940 Act). Any change in control of the adviser is deemed to be an assignment. The consummation of the Transaction will result in a change of control of NAM as well as its affiliated sub-advisers and therefore cause the automatic termination of each Original Investment Management Agreement, as required by the 1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on July 31, 2007 (the "July Meeting"), the Board Members, including the Independent Board Members, unanimously approved new Investment Management Agreements (the "New Investment Management Agreements") with NAM on behalf of each Fund to take effect immediately after the Transaction or shareholder approval of the new advisory contracts, whichever is later. The 1940 Act also requires that each New Investment Management Agreement be approved by the respective Fund's shareholders in order for it to become effective. Accordingly, to ensure continuity of advisory services, the Board Members, including the Independent Board Members, unanimously approved Interim Investment Management Agreements to take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements. Because the information provided and considerations made at the annual review continue to be relevant with respect to the evaluation of the New Investment Management Agreements, the Board considered the foregoing as part of its deliberations of the New Investment Management Agreements. Accordingly, as indicated, the discussions immediately below outline the materials and information presented to the Board in connection with the Board's prior annual review and the analysis undertaken and the conclusions reached by Board Members when determining to continue the Original Investment Management Agreements. I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS During the course of the year, the Board received a wide variety of materials relating to the services provided by NAM and the performance of the Funds. At each of its quarterly meetings, the Board reviewed investment performance and various matters relating to the operations of the Funds and other Nuveen funds, including the compliance program, shareholder services, valuation, custody, distribution and other information relating to the nature, extent and quality of services provided by NAM. Between the regularly scheduled quarterly meetings, the Board Members received information on particular matters as the need arose. In preparation for their considerations at the May Meeting, the Independent Board Members received extensive materials, well in advance of the meeting, which outlined or are related to, among other things: [] the nature, extent and quality of services provided by NAM; [] the organization and business operations of NAM, including the responsibilities of various departments and key personnel; 88 [] each Fund's past performance as well as the Fund's performance compared to funds with similar investment objectives based on data and information provided by an independent third party and to customized benchmarks; [] the profitability of Nuveen and certain industry profitability analyses for unaffiliated advisers; [] the expenses of Nuveen in providing the various services; [] the advisory fees and total expense ratios of each Fund, including comparisons of such fees and expenses with those of comparable, unaffiliated funds based on information and data provided by an independent third party (the "Peer Universe") as well as compared to a subset of funds within the Peer Universe (the "Peer Group") of the respective Fund (as applicable); [] the advisory fees NAM assesses to other types of investment products or clients; [] the soft dollar practices of NAM, if any; and [] from independent legal counsel, a legal memorandum describing among other things, applicable laws, regulations and duties in reviewing and approving advisory contracts. At the May Meeting, NAM made a presentation to, and responded to questions from, the Board. Prior to and after the presentations and reviewing the written materials, the Independent Board Members met privately with their legal counsel to review the Board's duties in reviewing advisory contracts and considering the renewal of the advisory contracts. The Independent Board Members, in consultation with independent counsel, reviewed the factors set out in judicial decisions and Securities and Exchange Commission ("SEC") directives relating to the renewal of advisory contracts. As outlined in more detail below, the Board Members considered all factors they believed relevant with respect to each Fund, including, but not limited to, the following: (a) the nature, extent and quality of the services to be provided by NAM; (b) the investment performance of the Fund and NAM; (c) the costs of the services to be provided and profits to be realized by Nuveen and its affiliates; (d) the extent to which economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of the Fund's investors. In addition, as noted, the Board Members met regularly throughout the year to oversee the Funds. In evaluating the Original Investment Management Agreements, the Board Members also relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year. It is with this background that the Board Members considered each Original Investment Management Agreement. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering the renewal of the Original Investment Management Agreements, the Board Members considered the nature, extent and quality of NAM's services. The Board Members reviewed materials outlining, among other things, Nuveen's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and, any initiatives Nuveen had taken for the municipal fund product line. As noted, at the annual review, the Board Members were already familiar with the organization, operations and personnel of NAM due to the Board Members' experience in governing the respective Funds and working with NAM on matters relating to the Funds. With respect to personnel, the Board Members recognized NAM's investment in additional qualified personnel throughout the various groups in the organization and recommended to NAM that it continue to review staffing needs as necessary. In addition, the Board Members reviewed materials describing the current status and, in particular, the developments in 2006 with respect to NAM's investment process, investment strategies (including additional tools used in executing such strategies), personnel (including portfolio management and research teams), trading process, hedging activities, risk management operations (e.g., reviewing credit quality, duration limits, and derivatives use, as applicable), and investment operations (such as enhancements to trading procedures, pricing procedures, and client services). The Board Members recognized NAM's investment of resources and efforts to continue to enhance and refine its investment process. In addition to advisory services, the Independent Board Members considered the quality of administrative and non-advisory services provided by NAM and noted that NAM and its affiliates provide the Funds with a wide variety of services and officers and other personnel as are necessary for the operations of the Funds, including: 89 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) [] product management; [] fund administration; [] oversight by shareholder services and other fund service providers; [] administration of Board relations; [] regulatory and portfolio compliance; and [] legal support. As the Funds operate in a highly regulated industry and given the importance of compliance, the Board Members considered, in particular, Nuveen's compliance activities for the Funds and enhancements thereto. In this regard, the Board Members recognized the quality of Nuveen's compliance team. The Board Members further noted Nuveen's negotiations with other service providers and the corresponding reduction in certain service providers' fees at the May Meeting. In addition to the foregoing services, the Board Members also noted the additional services that NAM or its affiliates provide to Nuveen's closed-end funds, including, in particular, its secondary market support activities. The Board Members recognized Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include: [] maintaining shareholder communications; [] providing advertising for the Nuveen closed-end funds; [] maintaining its closed-end fund website; [] maintaining continual contact with financial advisers; [] providing educational symposia; [] conducting research with investors and financial analysis regarding closed-end funds; and [] evaluating secondary market performance. With respect to the Nuveen closed-end funds that utilize leverage through the issuance of preferred shares ("Preferred Shares"), the Board Members noted Nuveen's continued support for the holders of Preferred Shares by, among other things: [] maintaining an in-house trading desk; [] maintaining a product manager for the Preferred Shares; [] developing distribution for Preferred Shares with new market participants; [] maintaining an orderly auction process; [] managing leverage and risk management of leverage; and [] maintaining systems necessary to test compliance with rating agency criteria. Based on their review, the Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Original Investment Management Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM At the May Meeting, the Board considered the investment performance for each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent third party (as described below). The Board Members also reviewed the respective Fund's portfolio level performance (which does not reflect fund level fees and expenses, and leverage) against customized benchmarks, described in further detail below. In evaluating the performance information during the annual review at the May Meeting, in certain instances, the Board Members noted that the closest Performance Peer Group for a fund may not adequately reflect 90 such fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such fund's performance with that of the Performance Peer Group. With respect to state-specific municipal funds, the Board Members also recognized that certain funds do not have a corresponding state-specific Performance Peer Group in which case their performance is measured against a more general municipal category for various states. With respect to municipal closed-end funds, funds that do not have corresponding state-specific Performance Peer Groups are from states other than New York, California, Florida, New Jersey, Michigan and Pennsylvania. However, with respect to funds based in Florida, New Jersey, Michigan and Pennsylvania, the peer group may be so small or the Nuveen funds may dominate the category to such an extent that performance information for such funds was also compared to the more general category for all states (other than New York and California). The Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group for the one-, three- and five-year periods (as applicable) ending December 31, 2006. The Board Members also reviewed the Fund's portfolio level performance (which does not reflect fund level fees and expenses, and leverage) compared to customized portfolio level benchmarks for the one- and three-year periods ending December 31, 2006 (as applicable). The analysis was used to assess the efficacy of investment decisions against appropriate measures of risk and total return, within specific market segments. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. Based on their review, the Board Members determined that each Fund's investment performance over time had been satisfactory, subject to the following. With respect to various municipal closed-end funds, the Board Members noted relative total return underperformance in recent years compared to peers. The Board Members reviewed materials and discussed with NAM the factors contributing to the shift in performance including, among other things, the degree of risk undertaken by peers compared to the municipal closed-end funds (such as through the increased use of leverage or taking concentrated positions in high risk credits). In addition, the Board Members also considered a fund's dividend performance and the extent of any secondary market discounts. The Board Members noted NAM's efforts to evaluate the factors affecting performance and determine whether modification to a fund's investment strategy is necessary or appropriate, and concluded that they were satisfied with the steps being taken. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES During the annual review, in evaluating the management fees and expenses of a Fund, the Board reviewed, among other things, the Fund's advisory fees (net and gross management fees) and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as comparisons to the gross management fees (before waivers), net management fees (after waivers) and total expense ratios (before and after waivers) of comparable funds in the Peer Universe and the Peer Group. In reviewing the fee schedule for a Fund, the Board Members considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain funds launched since 1999). The Board Members further reviewed data regarding the construction of Peer Groups as well as the methods of measurement for the fee and expense analysis and the performance analysis. In certain cases, due to the small number of peers in the Peer Universe, the Peer Universe and Peer Group had significant overlap or even consisted entirely of the same unaffiliated funds. In reviewing the comparisons of fee and expense information, the Board Members recognized that in certain cases, the fund size relative to peers, the small size and odd composition of the Peer Group (including differences in objectives and strategies), expense anomalies, timing of information used or other factors impacting the comparisons thereby limited some of the usefulness of the comparative data. The Board Members also considered the differences in the use of leverage. Based on their review of the fee and expense information provided, the Board Members determined that each Fund's net total expense ratio was within an acceptable range compared to peers. 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS At the annual review, the Board Members further reviewed data comparing the advisory fees of NAM with fees NAM charges to other clients. With respect to municipal funds, such clients include NAM's municipal separately managed accounts. In general, the advisory fees charged for separate accounts are 91 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) somewhat lower than the advisory fees assessed to the Funds. The Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. As described in further detail above, such additional services include, but are not limited to: product management, fund administration, oversight of third party service providers, administration of Board relations, and legal support. The Board Members noted that the Funds operate in a highly regulated industry requiring extensive compliance functions compared to other investment products. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Board Members believe such facts justify the different levels of fees. 3. PROFITABILITY OF NUVEEN In conjunction with its review of fees, the Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers) and its financial condition. At the annual review, the Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last three years, the allocation methodology used in preparing the profitability data as well as the 2006 Annual Report for Nuveen. The Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Board Members noted the enhanced dialogue and information regarding profitability with NAM during the year, including more frequent meetings and updates from Nuveen's corporate finance group. The Board Members also reviewed data comparing Nuveen's profitability with other fund sponsors prepared by three independent third party service providers as well as comparisons of the revenues, expenses and profit margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen. In reviewing profitability, the Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors, including the allocation of expenses. Further, the Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. Last year, the Board Members also designated an Independent Board Member as a point person for the Board to review the methodology determinations during the year and any refinements thereto, which relevant information produced from such process was reported to the full Board. In reviewing profitability, the Board Members recognized Nuveen's increased investment in its fund business. Based on its review, the Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Board Members determined that the advisory fees and expenses of the Funds were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Board Members recognized the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure the shareholders share in these benefits, the Board Members reviewed and considered the breakpoints in the advisory fee schedules that reduce advisory fees. In addition to advisory fee breakpoints, the Board also approved a complex-wide fee 92 arrangement in 2004. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. In evaluating the complex-wide fee arrangement, the Board Members noted that the last complex-wide asset level breakpoint for the complex-wide fee schedule was at $91 billion and that the Board Members anticipated further review and/or negotiations prior to the assets of the Nuveen complex reaching such threshold. Based on their review, the Board Members concluded that the breakpoint schedule and complex-wide fee arrangement were acceptable and desirable in providing benefits from economies of scale to shareholders, subject to further evaluation of the complex-wide fee schedule as assets in the complex increase. See Section II, Paragraph D - "Approval of the New Investment Management Agreements - Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for information regarding subsequent modifications to the complex-wide fee. E. INDIRECT BENEFITS In evaluating fees, the Board Members also considered any indirect benefits or profits NAM or its affiliates may receive as a result of its relationship with each Fund. With respect to closed-end funds, the Board Members considered the revenues received by affiliates of NAM for serving as agent at Nuveen's preferred trading desk and for serving as a co-manager in the initial public offering of new closed-end exchange traded funds. In addition to the above, the Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. With respect to NAM, the Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Board Members did not identify any single factor discussed previously as all-important or controlling in their considerations to continue an advisory contract. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Original Investment Management Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the renewal of the Original Investment Management Agreements be approved. II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS Following the May Meeting, the Board Members were advised of the potential Transaction. As noted above, the completion of the Transaction would terminate each of the Original Investment Management Agreements. Accordingly, at the July Meeting, the Board of each Fund, including the Independent Board Members, unanimously approved the New Investment Management Agreements on behalf of the respective Funds. Leading up to the July Meeting, the Board Members had several meetings and deliberations with and without Nuveen management present, and with the advice of legal counsel, regarding the proposed Transaction as outlined below. On June 8, 2007, the Board Members held a special telephonic meeting to discuss the proposed Transaction. At that meeting, the Board Members established a special ad hoc committee comprised solely of Independent Board Members to focus on the Transaction and to keep the Independent Board Members updated with developments regarding the Transaction. On June 15, 2007, the ad hoc committee discussed with representatives of NAM the Transaction and modifications to the complex-wide fee schedule that would generate additional fee savings at specified levels of complex-wide asset growth. Following the foregoing meetings and several subsequent telephonic conferences among Independent Board Members and independent counsel, and between Independent Board Members and representatives of Nuveen, the Board met on June 18, 2007 to further discuss the proposed Transaction. Immediately prior to and then again during the June 18, 2007 meeting, the Independent Board Members met privately with their independent legal counsel. At that meeting, the Board met with representatives of MDP, of Goldman Sachs, 93 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) Nuveen's financial adviser in the Transaction, and of the Nuveen Board to discuss, among other things, the history and structure of MDP, the terms of the proposed Transaction (including the financing terms), and MDP's general plans and intentions with respect to Nuveen (including with respect to management, employees, and future growth prospects). On July 9, 2007, the Board also met to be updated on the Transaction as part of a special telephonic Board meeting. The Board Members were further updated at a special in-person Board meeting held on July 19, 2007 (one Independent Board Member participated telephonically). Subsequently, on July 27, 2007, the ad hoc committee held a telephonic conference with representatives of Nuveen and MDP to further discuss, among other things, the Transaction, the financing of the Transaction, retention and incentive plans for key employees, the effect of regulatory restrictions on transactions with affiliates after the Transaction, and current volatile market conditions and their impact on the Transaction. In connection with their review of the New Investment Management Agreements, the Independent Board Members, through their independent legal counsel, also requested in writing and received additional information regarding the proposed Transaction and its impact on the provision of services by NAM and its affiliates. The Independent Board Members received, well in advance of the July Meeting, materials which outlined, among other things: [] the structure and terms of the Transaction, including MDP's co-investor entities and their expected ownership interests, and the financing arrangements that will exist for Nuveen following the closing of the Transaction; [] the strategic plan for Nuveen following the Transaction; [] the governance structure for Nuveen following the Transaction; [] any anticipated changes in the operations of the Nuveen funds following the Transaction, including changes to NAM's and Nuveen's day-to-day management, infrastructure and ability to provide advisory, distribution or other applicable services to the Funds; [] any changes to senior management or key personnel who work on Fund related matters (including portfolio management, investment oversight, and legal/compliance) and any retention or incentive arrangements for such persons; [] any anticipated effect on each Fund's expense ratio (including advisory fees) following the Transaction; [] any benefits or undue burdens imposed on the Funds as a result of the Transaction; [] any legal issues for the Funds as a result of the Transaction; [] the nature, quality and extent of services expected to be provided to the Funds following the Transaction, changes to any existing services and policies affecting the Funds, and cost-cutting efforts, if any, that may impact such services or policies; [] any conflicts of interest that may arise for Nuveen or MDP with respect to the Funds; [] the costs associated with obtaining necessary shareholder approvals and who would bear those costs; and [] from legal counsel, a memorandum describing the applicable laws, regulations and duties in approving advisory contracts, including, in particular, with respect to a change of control. Immediately preceding the July Meeting, representatives of MDP met with the Board to further respond to questions regarding the Transaction. After the meeting with MDP, the Independent Board Members met with independent legal counsel in executive session. At the July Meeting, Nuveen also made a presentation and responded to questions. Following the presentations and discussions of the materials presented to the Board, the Independent Board Members met again in executive session with their counsel. As outlined in more detail below, the Independent Board Members considered all factors they believed relevant with respect to each Fund, including the impact that the Transaction could be expected to have on the following: (a) the nature, extent and quality of services to be provided; (b) the investment performance of the Funds; (c) the costs of the services and profits to be realized by Nuveen and its affiliates; (d) the extent to which 94 economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of investors. As noted above, the Board Members had completed their annual review of the respective Original Investment Management Agreements at the May Meeting and many of the factors considered at the annual review were applicable to their evaluation of the New Investment Management Agreements. Accordingly, in evaluating the New Investment Management Agreements, the Board Members relied upon their knowledge and experience with NAM and considered the information received and their evaluations and conclusions drawn at the annual review. While the Board reviewed many Nuveen funds at the July Meeting, the Independent Board Members evaluated all information available to them on a fund-by-fund basis, and their determinations were made separately in respect of each Fund. A. NATURE, EXTENT AND QUALITY OF SERVICES In evaluating the nature, quality and extent of the services expected to be provided by NAM under the New Investment Management Agreements, the Independent Board Members considered, among other things, the expected impact, if any, of the Transaction on the operations, facilities, organization and personnel of NAM; the potential implications of regulatory restrictions on the Funds following the Transaction; the ability of NAM and its affiliates to perform their duties after the Transaction; and any anticipated changes to the current investment and other practices of the Funds. The Board noted that the terms of each New Investment Management Agreement, including the fees payable thereunder, are substantially identical to those of the Original Investment Management Agreement relating to the same Fund (with both reflecting reductions to fee levels in the complex-wide fee schedule for complex-wide assets in excess of $80 billion that have an effective date of August 20, 2007). The Board considered that the services to be provided and the standard of care under the New Investment Management Agreements are the same as the Original Investment Management Agreements. The Board Members further noted that key personnel who have responsibility for the Funds in each area, including portfolio management, investment oversight, fund management, fund operations, product management, legal/compliance and board support functions, are expected to be the same following the Transaction. The Board Members considered and are familiar with the qualifications, skills and experience of such personnel. The Board also considered certain information regarding anticipated retention or incentive plans designed to retain key personnel. Further, the Board Members noted that no changes to Nuveen's infrastructure or operations as a result of the Transaction were anticipated other than potential enhancements as a result of an expected increase in the level of investment in such infrastructure and personnel. The Board noted MDP's representations that it does not plan to have a direct role in the management of Nuveen, appointing new management personnel, or directly impacting individual staffing decisions. The Board Members also noted that there were not any planned "cost cutting" measures that could be expected to reduce the nature, extent or quality of services. After consideration of the foregoing, the Board Members concluded that no diminution in the nature, quality and extent of services provided to the Funds and their shareholders is expected. In addition to the above, the Board Members considered potential changes in the operations of each Fund. In this regard, the Board Members considered the potential effect of regulatory restrictions on the Funds' transactions with future affiliated persons. During their deliberations, it was noted that, after the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership interest in Nuveen at a level that will make Merrill Lynch an affiliated person of Nuveen. The Board Members recognized that applicable law would generally prohibit the Funds from engaging in securities transactions with Merrill Lynch as principal, and would also impose restrictions on using Merrill Lynch for agency transactions. They recognized that having MDP and Merrill Lynch as affiliates may restrict the Nuveen funds' ability to invest in securities of issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if not bought directly from MDP or Merrill Lynch as principal. They also recognized that various regulations may require the Nuveen funds to apply investment limitations on a combined basis with affiliates of Merrill Lynch. The Board Members considered information provided by NAM regarding the potential impact on the Nuveen funds' operations as a result of these regulatory restrictions. The Board Members considered, in particular, the Nuveen funds that may be impacted most by the restricted access to Merrill Lynch, including: municipal funds (particularly certain state-specific funds), senior loan funds, taxable fixed income funds, preferred security funds and funds that heavily use derivatives. The Board Members considered such funds' historic use of Merrill Lynch as principal in their transactions and information provided by NAM regarding the expected impact resulting from Merrill Lynch's affiliation with Nuveen and available measures that could be taken to minimize such 95 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) impact. NAM informed the Board Members that, although difficult to determine with certainty, its management did not believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would have a material adverse effect on any Nuveen fund's ability to pursue its investment objectives and policies. In addition to the regulatory restrictions considered by the Board, the Board Members also considered potential conflicts of interest that could arise between the Nuveen funds and various parties to the Transaction and discussed possible ways of addressing such conflicts. Based on its review along with its considerations regarding services at the annual review, the Board concluded that the Transaction was not expected to adversely affect the nature, quality or extent of services provided by NAM and that the expected nature, quality and extent of such services supported approval of the New Investment Management Agreements. B. PERFORMANCE OF THE FUNDS With respect to the performance of the Funds, the Board considered that the portfolio management personnel responsible for the management of the Funds' portfolios were expected to continue to manage the portfolios following the completion of the Transaction. In addition, the Board Members recently reviewed Fund performance at the May Meeting, as described above, and determined that Fund performance was satisfactory or better, subject to the following. With respect to certain municipal closed-end funds with relative short-term underperformance, the Board Members concluded NAM was taking steps to evaluate the factors affecting performance and those steps would continue following the Transaction. Further, the investment policies and strategies were not expected to change as a result of the Transaction. In light of the foregoing factors, along with the prior findings regarding performance at the annual review, the Board concluded that its findings with respect to performance supported approval of the New Investment Management Agreements. C. FEES, EXPENSES AND PROFITABILITY As described in more detail above, during the annual review, the Board Members considered, among other things, the management fees and expenses of the Funds, the breakpoint schedules, and comparisons of such fees and expenses with peers. At the annual review, the Board Members determined that the respective Fund's advisory fees and expenses were reasonable. In evaluating the costs of services to be provided by NAM under the New Investment Management Agreements and the profitability of Nuveen for its advisory activities, the Board Members considered their prior conclusions at the annual review and whether the management fees or other expenses would change as a result of the Transaction. As described above, the investment management fee is composed of two components--a fund-level component and complex-wide level component. The fee schedule under the New Investment Management Agreements to be paid to NAM is identical to that under the Original Investment Management Agreements, including the modified complex-wide fee schedule. As noted above, the Board recently approved a modified complex-wide fee schedule that would generate additional fee savings on complex-wide assets above $80 billion. The modifications have an effective date of August 20, 2007 and are part of the Original Investment Management Agreements. Accordingly, the terms of the complex-wide component under the New Investment Management Agreements are the same as under the Original Investment Management Agreements. The Board Members also noted that Nuveen has committed for a period of two years from the date of closing of the Transaction that it will not increase gross management fees for any Nuveen fund and will not reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels. Based on the information provided, the Board Members did not expect that overall Fund expenses would increase as a result of the Transaction. In addition, the Board Members considered that additional fund launches were anticipated after the Transaction which would result in an increase in total assets under management in the complex and a corresponding decrease in overall management fees under the complex-wide fee schedule. Taking into consideration the Board's prior evaluation of fees and expenses at the annual renewal, and the modification 96 to the complex-wide fee schedule, the Board determined that the management fees and expenses were reasonable. While it is difficult to predict with any degree of certainty the impact of the Transaction on Nuveen's profitability, at the recent annual review, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities was reasonable. During the year, the Board Members had noted the enhanced dialogue regarding profitability and the appointment of an Independent Board Member as a point person to review methodology determinations and refinements in calculating profitability. Given their considerations at the annual review and the modifications to the complex-wide fee schedule, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities continues to be reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE The Board Members have been cognizant of economies of scale and the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure that shareholders share in the benefits derived from economies of scale, the Board adopted the complex-wide fee arrangement in 2004. At the May Meeting, the Board Members reviewed the complex-wide fee arrangements and noted that additional negotiations may be necessary or appropriate as the assets in the complex approached the $91 billion threshold. In light of this assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting, the ad hoc committee met with representatives of Nuveen to further discuss modifications to the complex-wide fee schedule that would generate additional savings for shareholders as the assets of the complex grow. The proposed terms for the complex-wide fee schedule are expressed in terms of targeted cumulative savings at specified levels of complex-wide assets, rather than in terms of targeted marginal complex-wide fee rates. Under the modified schedule, the schedule would generate additional fee savings beginning at complex-wide assets of $80 billion in order to achieve targeted cumulative annual savings at $91 billion of $28 million on a complex-wide level (approximately $0.6 million higher than those generated under the then current schedule) and generate additional fee savings for asset growth above complex-wide assets of $91 billion in order to achieve targeted annual savings at $125 billion of assets of approximately $50 million on a complex-wide level (approximately $2.2 million higher annually than that generated under the then current schedule). At the July Meeting, the Board approved the modified complex-wide fee schedule for the Original Investment Management Agreements and these same terms will apply to the New Investment Management Agreements. Accordingly, the Board Members believe that the breakpoint schedules and revised complex-wide fee schedule are appropriate and desirable in ensuring that shareholders participate in the benefits derived from economies of scale. E. INDIRECT BENEFITS During their recent annual review, the Board Members considered any indirect benefits that NAM may receive as a result of its relationship with the Funds, as described above. As the policies and operations of Nuveen are not anticipated to change significantly after the Transaction, such indirect benefits should remain after the Transaction. The Board Members further considered any additional indirect benefits to be received by NAM or its affiliates after the Transaction. The Board Members noted that other than benefits from its ownership interest in Nuveen and indirect benefits from fee revenues paid by the Funds under the management agreements and other Board-approved relationships, it was currently not expected that MDP or its affiliates would derive any benefit from the Funds as a result of the Transaction or transact any business with or on behalf of the Funds (other than perhaps potential Fund acquisitions, in secondary market transactions, of securities issued by MDP portfolio companies); or that Merrill Lynch or its affiliates would derive any benefits from the Funds as a result of the Transaction (noting that, indeed, Merrill Lynch would stand to experience the discontinuation of principal transaction activity with the Nuveen funds and likely would experience a noticeable reduction in the volume of agency transactions with the Nuveen funds). 97 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) F. OTHER CONSIDERATIONS In addition to the factors above, the Board Members also considered the following with respect to the Funds: [] Nuveen would rely on the provisions of Section 15(f) of the 1940 Act. Section 15(f) provides, in substance, that when a sale of a controlling interest in an investment adviser occurs, the investment adviser or any of its affiliated persons may receive any amount or benefit in connection with the sale so long as (i) during the three-year period following the consummation of a transaction, at least 75% of the investment company's board of directors must not be "interested persons" (as defined in the 1940 Act) of the investment adviser or predecessor adviser and (ii) an "unfair burden" (as defined in the 1940 Act, including any interpretations or no-action letters of the SEC) must not be imposed on the investment company as a result of the transaction relating to the sale of such interest, or any express or implied terms, conditions or understanding applicable thereto. In this regard, to help ensure that an unfair burden is not imposed on the Nuveen funds, Nuveen has committed for a period of two years from the date of the closing of the Transaction (i) not to increase gross management fees for any Nuveen fund; (ii) not to reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels during that period; (iii) that no Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use Merrill Lynch as a broker with respect to portfolio transactions done on an agency basis, except as may be approved in the future by the Compliance Committee of the Board; and (iv) that NAM shall not cause the Funds and other municipal funds that NAM manages, as a whole, to enter into portfolio transactions with or through the other minority owners of Nuveen, on either a principal or an agency basis, to a significantly greater extent than both what one would expect an investment team to use such firm in the normal course of business, and what NAM has historically done, without prior Board or Compliance Committee approval (excluding the impact of proportionally increasing the use of such other "minority owners" to fill the void necessitated by not being able to use Merrill Lynch). [] The Funds would not incur any costs in seeking the necessary shareholder approvals for the New Investment Management Agreements (except for any costs attributed to seeking shareholder approvals of Fund specific matters unrelated to the Transaction, such as approval of Board Members, in which case a portion of such costs will be borne by the applicable Funds). [] The reputation, financial strength and resources of MDP. [] The long-term investment philosophy of MDP and anticipated plans to grow Nuveen's business to the benefit of the Nuveen funds. [] The benefits to the Nuveen funds as a result of the Transaction including: (i) as a private company, Nuveen may have more flexibility in making additional investments in its business; (ii) as a private company, Nuveen may be better able to structure compensation packages to attract and retain talented personnel; (iii) as certain of Nuveen's distribution partners are expected to be equity or debt investors in Nuveen, Nuveen may be able to take advantage of new or enhanced distribution arrangements with such partners; and (iv) MDP's experience, capabilities and resources that may help Nuveen identify and acquire investment teams or firms and finance such acquisitions. [] The historic premium and discount levels at which the shares of the Nuveen funds have traded at specified dates with particular focus on the premiums and discounts after the announcement of the Transaction, taking into consideration recent volatile market conditions and steps or initiatives considered or undertaken by NAM to address discount levels. 98 G. CONCLUSION The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the New Investment Management Agreements are fair and reasonable, that the fees therein are reasonable in light of the services to be provided to each Fund and that the New Investment Management Agreements should be approved and recommended to shareholders. III. APPROVAL OF INTERIM CONTRACTS As noted above, at the July Meeting, the Board Members, including the Independent Board Members, unanimously approved the Interim Investment Management Agreements. If necessary to assure continuity of advisory services, the Interim Investment Management Agreements will take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements. The terms of each Interim Investment Management Agreement are substantially identical to those of the corresponding Original Investment Management Agreement and New Investment Management Agreement, respectively, except for certain term and escrow provisions. In light of the foregoing, the Board Members, including the Independent Board Members, unanimously determined that the scope and quality of services to be provided to the Funds under the respective Interim Investment Management Agreement are at least equivalent to the scope and quality of services provided under the applicable Original Investment Management Agreement. 99 Reinvest Automatically EASILY and CONVENIENTLY NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. 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. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. 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. 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 greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. 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 the 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. 100 FLEXIBLE You may 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 reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. 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. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 101 Glossary of TERMS USED in this REPORT [] AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. [] AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. [] INVERSE FLOATERS: Inverse floating rate securities are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. [] LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. [] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. [] NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. [] TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. [] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. 102 Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2007, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. CEO Certification Disclosure Each Fund's Chief Executive Officer has submitted to the Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. Investment Policy Changes In May 2007, the Funds' Board of Trustees voted to permit the Funds' to make loans from Fund assets to certain bond issuers. The amounts of these loans are subject to strict limits. This policy is designed to enhance the Funds' ability to meet their Funds'investment objectives by providing for increased portfolio management flexibility, greater diversification potential, and opportunities for increased capital appreciation over time. Board of Trustees Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Carole E. Stone Fund Manager Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 Custodian State Street Bank & Trust Company Boston, MA Transfer Agent and Shareholder Services State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 Legal Counsel Chapman and Cutler LLP Chicago, IL Independent Registered Public Accounting Firm Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semi-annual report. 103 Nuveen Investments: ------------------- SERVING INVESTORS FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing $170 billion in assets, as of September 30, 2007, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading institutional manager of market-neutral alternative investment portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader in global equities. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: www.nuveen.com/etf Share prices Fund details Daily financial news Investor education Interactive planning tools ESA-B-1107D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Connecticut Premium Income Municipal Fund ----------------------------------------------------------- By (Signature and Title)* /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy (Vice President and Secretary) Date: February 8, 2008 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: February 8, 2008 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: February 8, 2008 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.