-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OR/N7GHGgWLULLQ5N6U+IMQvKIbC8ZUKuplRNtnfQYwqFwiPJkfA1srLXvHmTK2C yLEsgpwLfUIMSsRodWjnhw== 0000891804-10-004010.txt : 20100806 0000891804-10-004010.hdr.sgml : 20100806 20100806151332 ACCESSION NUMBER: 0000891804-10-004010 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100531 FILED AS OF DATE: 20100806 DATE AS OF CHANGE: 20100806 EFFECTIVENESS DATE: 20100806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND CENTRAL INDEX KEY: 0000899752 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07606 FILM NUMBER: 10998098 BUSINESS ADDRESS: STREET 1: 333 WEST WACKAER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-CSR 1 ntc.txt NTC 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: May 31, 2010 ------------------ 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. [LOGO] NUVEEN INVESTMENTS Closed-End Funds - -------------------------------------------------------------------------------- Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Annual Report May 31, 2010 - --------------------------------------------------------------------------------
- -------------------------- ------------------------ -------------------------- -------------------------- NUVEEN CONNECTICUT NUVEEN CONNECTICUT NUVEEN CONNECTICUT NUVEEN CONNECTICUT PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND 3 NTC NFC NGK NGO - -------------------------- ------------------------ -------------------------- -------------------------- NUVEEN MASSACHUSETTS NUVEEN MASSACHUSETTS NUVEEN INSURED NUVEEN MISSOURI PREMIUM INCOME DIVIDEND ADVANTAGE MASSACHUSETTS TAX-FREE PREMIUM INCOME MUNICIPAL FUND MUNICIPAL FUND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND NMT NMB NGX NOM
May 10 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 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 ROBERT P. BREMNER] DEAR SHAREHOLDER, The economic environment in which your Fund operates reflects continuing but uneven economic recovery. The U.S. and other major industrial countries are experiencing steady but comparatively low levels of economic growth, while emerging market countries are seeing a resumption of relatively strong economic expansion. The potential impact of steps being considered by many governments to counteract the extraordinary governmental spending and credit expansion to deal with the recent financial and economic crisis is injecting uncertainty into global financial markets. The implications for future tax rates, government spending, interest rates and the pace of economic recovery in the U.S. and other leading economies are extremely difficult to predict at the present time. The long term health of the global economy depends on restoring some measure of fiscal discipline around the world, but since all of the corrective steps require economic pain, it is not surprising that governments are reluctant to undertake them. In the near term, governments remain committed to furthering economic recovery and realizing a meaningful reduction in their national unemployment rates. Such an environment should produce continued economic growth and, consequently, attractive investment opportunities. Over the longer term, the larger uncertainty mentioned earlier carries the risk of unexpected potholes in the road to sustained recovery. For this reason, Nuveen's investment management teams are working hard to balance return and risk by building well-diversified portfolios, among other strategies. I encourage you to read the following commentary on the management of your Fund. As always, I also encourage you to contact your financial consultant if you have any questions about your Nuveen Fund investment. Please consult the Nuveen website for the most recent information on your Nuveen Fund at: www.nuveen.com. On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Robert P. Bremner Robert P. Bremner Chairman of the Board July 22, 2010 Nuveen Investments 1 Portfolio Managers' Comments 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) PORTFOLIO MANAGERS CATHRYN STEEVES AND SCOTT ROMANS REVIEW ECONOMIC AND MUNICIPAL MARKET CONDITIONS AT THE NATIONAL AND STATE LEVELS, KEY INVESTMENT STRATEGIES AND THE TWELVEMONTH 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 FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING THE TWELVE-MONTH REPORTING PERIOD ENDED MAY 31, 2010? During this reporting period, municipal bond prices generally rose as strong cash flows into municipal bond funds combined with tighter supply of new tax-exempt issuance to provide favorable supply and demand conditions. As the period began, there continued to be considerable downward pressure on the economy and both the Federal Reserve (Fed) and the federal government continued their efforts to improve the overall economic environment. For its part, the Fed continued to hold the benchmark fed funds rate in a target range of zero to 0.25% after cutting it to this record low level in December 2008. At its June 2010 meeting (following the end of this reporting period), the central bank renewed its pledge to keep the fed funds rate "exceptionally low" for an "extended period." As part of its efforts, the federal government put into place the American Recovery and Reinvestment Act of 2009, a $787 billion economic stimulus package intended to provide job creation, tax relief, fiscal assistance to state and local governments and expansion of unemployment benefits and other federal social welfare programs. In recent months, these and other measures taken by the Fed and the government to ease the economic recession have produced some incipient signs of improvement. In the first quarter of 2010, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.7%. This marked the first time since 2007 that the economy managed to string together three consecutive positive quarters. Housing also provided something of a bright spot, as the average home price gained 3.8% for the twelve months ended April 2010, the largest year-over-year increase since September 2006. At the same time, inflation continued to be relatively tame, as the CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN. 2 Nuveen Investments Consumer Price Index (CPI) rose 2.0% year-over-year as of May 2010, driven mainly by increased prices for gasoline and fuel oil. The core CPI (which excludes food and energy) rose 0.9% over the year, the slowest pace since 1966 and within the Fed's official objective of 2.0% or lower for this measure. While labor markets remained weak, recent months saw some improvement. As of May 2010, the national unemployment rate was 9.7%, up from 9.4% in May 2009 but below the 26-year high of 10.1% in October 2009. Municipal market conditions began to show general signs of improvement throughout most of the period. This trend was bolstered by the reduced issuance of tax-exempt municipal debt, due in part to the introduction of the Build America Bond program in 2009. Build America Bonds are a new class of taxable municipal debt, created as part of the February 2009 economic stimulus package. These bonds currently offer municipal issuers a federal subsidy equal to 35% of the security's interest payments and therefore provide issuers with an attractive alternative to traditional tax-exempt debt. During the twelve months ended May 31, 2010, taxable Build America Bonds issuance totaled $95.9 billion, accounting for over 22% of new bonds issued in the municipal market. Over the twelve months ended May 31, 2010, municipal bond issuance nationwide--both tax-exempt and taxable--totaled $428.1 billion, an increase of 17% compared with the twelve-month period ended May 31, 2009. Although total municipal issuance rose during this twelve months, supply actually would have fallen approximately 9% without the Build America Bonds issuance. Demand for tax-exempt bonds remained strong during this period, supported in part by the prospect of higher tax rates in the future. Combined with the lower supply of tax-exempt bonds, this provided support for municipal bond prices. HOW WERE THE ECONOMIC AND MARKET CONDITIONS IN CONNECTICUT, MASSACHUSETTS, AND MISSOURI DURING THIS PERIOD? Over the past twelve months, Connecticut's economy was led by the education and health services, government, professional and business services, and retail trade sectors. As home to 45 colleges and universities, the state serves as a center for research and development facilities and high-tech industries, including bioscience, aerospace, medical technology and defense. Despite the economic recession, the education and health services sector continued to add jobs, as did the leisure and hospitality sectors in the state. However, Connecticut remained heavily reliant on manufacturing, where job losses continued to mount. As of May 2010, the unemployment rate in Connecticut was 8.9%, up from 8.2% in May 2009 but below its recent high of 9.2% in March 2010. On a more positive note, home prices in the state, while considerably below their 2007 peak, have posted modest gains in recent months, and residential construction has firmed. As of May 2010, Moody's, Standard & Poor's (S&P) and Fitch rated Connecticut general obligation debt at Aa2/AA/AA, respectively. Moody's assigned a negative outlook to the state, while S&P and Fitch maintained stable outlooks. Issuance of municipal debt in Connecticut during the twelve months ended May 31, 2010, totaled $7.0 billion, an increase of 15.5% over the previous twelve months. The Massachusetts economy remained relatively diverse, with growth led by education and health services, professional and business services, government and retail trade. Nuveen Investments 3 Half of Massachusetts's ten largest employers were medical centers or universities, and the education and health services sectors accounted for almost 20% of the commonwealth's economy, compared with 14% nationally. The education and health services sectors continued to add jobs even as other sectors turned negative, adding stability in the area of employment. As of May 2010, the jobless rate in Massachusetts had risen to 9.2% from 8.2% in May 2009, but remained below the recent high of 9.5% in early 2010. While certain sectors of the commonwealth's economy, notably construction and manufacturing, have been under pressure from the recession, Massachusetts has fared better economically than many other states. The $27 billion fiscal 2011 budget cut aid to local governments by 4%, reduced funding for higher education, but included no new taxes. As of May 2010, Moody's, S&P and Fitch rated Massachusetts general obligation debt at Aa1/AA/AA+, respectively, with stable outlooks. For the twelve months ended May 31, 2010, new municipal supply in Massachusetts totaled $12.6 billion, an increase of 2% from the previous twelve months, making the commonwealth the sixth largest state issuer in the nation. Although characterized by a high level of industrial diversity, Missouri's economy has remained largely centered on manufacturing. With the recession-related decline in consumer spending and a significant drop in demand for durable goods, both domestically and abroad, employment in the state's manufacturing sector, especially the auto industry, suffered major losses and prospects for new jobs have remained limited. In May 2010, the jobless rate in Missouri was 9.3%, down slightly from 9.4% in May 2009 and below the recent high of 9.7% seen during the third quarter of 2009. In response to the employment situation, Missouri has focused recent efforts on transitioning part of its economy away from traditional manufacturing jobs into the development of the biotechnology and alternative energy industries. For fiscal 2011, the $23.8 billion state budget focuses on job creation, education, and health care. Missouri's tax structure currently provides companies with some of the most favorable tax conditions in the country, an important advantage in attracting businesses to the state. As of May 2010, Moody's, S&P, and Fitch maintained their ratings on Missouri general obligation debt at Aaa/AAA/AAA, respectively, with stable outlooks, reflecting the state's conservative fiscal management and low debt burden. During the twelve months ended May 31, 2010, municipal issuance in Missouri was up 65% from the previous twelve-month period, to $7.7 billion. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING PERIOD? As previously mentioned, the availability of tax-exempt bonds declined nationally during this period, due in part to the introduction of taxable Build America Bonds in April 2009. Build America Bond issuance over this period, represented approximately 15% of municipal supply in Connecticut, 20% in Massachusetts and 22% in Missouri. Since interest payments from Build America Bonds represent taxable income, we do not view these bonds as good investment opportunities for these Funds. 4 Nuveen Investments In NGX, the tighter supply situation was compounded by the severe decline in issuance of AAA-rated insured bonds. Over the past year, new insured paper accounted for approximately 6% of issuance nationwide, compared with more than 12% a year earlier and recent historical levels of approximately 50%. In response to this situation, the Funds' Board of Trustees approved changes to NGX's investment policies that increased its investment flexibility while retaining the insured nature of its portfolio. NGX can now invest at least 80% of its net assets in municipal securities that are covered by insurance from insurers with a claims-paying ability rated at least BBB- at the time of purchase. In addition, the Fund may also invest up to 20% of its net assets in uninsured investment-grade credits rated BBB- or higher. The investment policy changes are discussed in more detail on page eleven. Despite the constrained issuance on tax-exempt municipal bonds, we continued to find attractive value opportunities, taking a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. In the Connecticut Funds, we found value in several areas of the market, including health care, housing and dedicated tax bonds. In addition, NTC bought Connecticut general obligation (GO) bonds and NGO added higher education credits. The Massachusetts Funds also purchased health care and higher education bonds as well as credits issued for continuing care retirement centers (long-term care). We also added bonds issued for WGBH, Boston's public broadcasting service. In Missouri, we purchased higher quality school district GOs, lower-rated health care bonds, and both insured and uninsured airport revenue bonds. Some of our investment activity during this period was driven by opportunities created by the provisions of the Build America Bond program. For example, tax-exempt supply was more plentiful in the health care and higher education sectors because, as 501(c)(3) (nonprofit) organizations, hospitals and private universities generally do not qualify for the Build America Bond program and must continue to issue bonds in the tax-exempt municipal market. In addition, health care entities were active issuers during this period, as they sought to replace variable rate issuance with fixed rates. Refunding issues also are not covered by the Build America Bond program, and this resulted in attractive opportunities in various other sectors of the market. The impact of the Build America Bond program was also evident in the area of longer-term issuance, as municipal issuers sought to take full advantage of the attractive financing terms offered by these bonds. Approximately 70% of Build America Bonds were issued with maturities of at least 30 years or more. Even though this significantly reduced the availability of tax-exempt credits with longer maturities, we continued to find good opportunities to purchase attractive longer-term bonds for these Funds. During this period, the Connecticut and Massachusetts Funds generally focused on bonds in the 25-year to 30-year part of the yield curve offering 5% coupons or higher. These bonds helped us to maintain the Funds' durations within our target range and also rewarded investors as the yield curve remained relatively steep. Cash for new purchases during this period was generated primarily by the proceeds from called and maturing bonds, which we worked to redeploy to keep the Funds fully invested. In NMT, we also trimmed our position in bonds with shorter maturities. On the Nuveen Investments 5 whole, however, selling was relatively limited during this period, as the bonds in our portfolios generally offered higher yields than those available in the current marketplace. As of May 31, 2010, all eight Funds continued to use inverse floating rate securities.(1) We employ inverse floaters as a form of leverage for a variety of reasons, including duration management as well as income and total return enhancement. 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. AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED 5/31/10
1-YEAR 5-YEAR 10-YEAR - -------------------------------------------------------------------------------------------------------- CONNECTICUT FUNDS NTC 12.49% 4.36% 6.95% NFC 11.34% 4.72% N/A NGK 10.69% 4.69% N/A NGO 11.66% 4.24% N/A Standard & Poor's (S&P) Connecticut Municipal Bond Index(2) 6.35% 4.23% 5.59% Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85% Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78% MASSACHUSETTS FUNDS NMT 15.03% 4.38% 6.64% NMB 12.50% 3.90% N/A Standard & Poor's (S&P) Massachusetts Municipal Bond Index(2) 7.67% 4.70% 6.09% Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85% Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78% MISSOURI FUND NOM 14.69% 3.38% 6.41% Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85% Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78% INSURED MASSACHUSETTS FUND NGX 11.61% 4.53% N/A Standard & Poor's (S&P) Massachusetts Municipal Bond Index(2) 7.67% 4.70% 6.09% Standard & Poor's (S&P) National Insured Municipal Bond Index(3) 9.13% 4.23% 6.09% Lipper Single State Insured Municipal Debt Funds Average(5) 12.76% 4.00% 6.68% - --------------------------------------------------------------------------------------------------------
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. 1 An inverse floating rate security, also known as an inverse floater, 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 this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. 2 The Standard & Poor's (S&P) Municipal Bond Indexes for Connecticut and Massachusetts are unleveraged, market value-weighted indexes designed to measure the performance of the tax-exempt, investment-grade Connecticut and Massachusetts municipal bond markets, respectively. These indexes do not reflect any initial or ongoing expenses and are not available for direct investment. 3 The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market, while the S&P National Insured Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the insured segment of the U.S. municipal bond market. There is no S&P state municipal bond index for Missouri. These indexes do not reflect any initial or ongoing expenses and are not available for direct investment. 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: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. 5 The Lipper Single-State Insured Municipal Debt Funds Average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 1-year, 44 funds; 5-year, 44 funds; and 10-year, 24 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. 6 Nuveen Investments For the twelve months ended May 31, 2010, the total returns on common share net asset value (NAV) for all seven of the Connecticut and Massachusetts Funds exceeded the returns for their respective state's Standard & Poor's (S&P) Municipal Bond Index. The seven uninsured Funds outperformed the S&P National Municipal Bond Index, and NGX outperformed the S&P National Insured Municipal Bond Index. For the same period, NMT and NOM exceeded the average return for the Lipper Other States Municipal Debt Funds Average, while the four Connecticut Funds and NMB lagged this Lipper average, NGX trailed the average return for the Lipper Single State Insured Municipal Debt Funds Average. Shareholders should note that the performance of the Lipper Other States category represents the overall average of returns for funds from ten different states with a wide variety of municipal market conditions, which may make direct comparisons less meaningful. Key management factors that influenced the Funds' returns during this period included duration and yield curve positioning, credit exposure and sector allocation. In addition, the use of structural leverage was an important positive factor during this period. The impact of structural leverage is discussed in more detail on page eight. During this period, bonds with longer maturities generally outperformed those with shorter maturities, with bonds at the longest end of the yield curve posting the strongest returns. The outperformance of longer term bonds was due in part to the decline in interest rates, particularly at the longer end of the curve. The scarcity of tax-exempt bonds with longer maturities also drove up the prices of these bonds. Overall, NTC, NMT, NMB, and NOM were the best positioned in terms of yield curve positioning and duration. In NGX, which had the shortest duration among the Massachusetts Funds, yield curve positioning and duration was also a positive contributor to performance, but on a smaller scale than in NMT and NMB. The performances of NFC, NGK and NGO were restrained by their overweightings in the underperforming short end of the yield curve. Some of this overweight was due to the fact that much of the issuance in Connecticut came to market with shorter maturities. NTC, on the other hand, had a longer duration as the result of more bond calls and reinvestment at the longer end of the curve, which benefited its performance. Credit exposure also played an important role in the performance of these Funds. The demand for municipal bonds increased during this period, driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for additional risk. At the same time, the supply of new tax-exempt municipal paper declined, due largely to the Build America Bond program. As investors bid up municipal bond prices, bonds rated BBB or below and non-rated bonds generally outperformed those rated AAA. In this environment, the Funds' performance benefited from their allocations to lower quality credits. All of the Funds except NGX were overweighted in lower-rated bonds, and several Funds also were underweighted in bonds rated AAA, which further boosted their performance. As an insured Fund, NGX had the smallest exposure to lower-rated and non-rated credits and, together with NGK and NFC, the largest allocation of AAA bonds. This overall higher credit quality hampered NGX's relative performance for the period. Nuveen Investments 7 Overall, sector allocations were a positive factor for the Funds' performance during this period. Holdings that generally contributed to the Funds' returns included industrial development revenue (IDR) and health care bonds, both of which exceeded the overall municipal market return by substantial margins. Revenue bonds as a whole performed well, with transportation, housing and special tax among the other sectors that outperformed the general municipal market for this period. Zero coupon bonds also were among the strongest performers. All of these Funds benefited from their overweights in health care and the returns of the Connecticut and Massachusetts Funds were enhanced by their overexposures to housing. The Massachusetts Funds also had an overweighting to IDRs and bonds in the other revenue category, specifically dedicated tax credits. In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, performed relatively poorly during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. Among the revenue sectors, education, electric utilities, water and sewer and resource recovery trailed the overall municipal market by small margins, while many general obligation and other tax-supported bonds also failed to keep pace with the market for the twelve months. NFC, NGK, NGO, NGX and NOM all were overweighted in pre-refunded bonds relative to the market, with NGO and NGX having the highest allocations. The Connecticut and Massachusetts Funds also had heavy exposures to higher education credits, which underperformed due to their higher credit quality. On the other hand, all of these Funds were underweighted in tax-supported securities, which lessened the impact of the underperformance of these bonds. IMPACT OF THE FUNDS' LEVERAGE STRATEGIES ON PERFORMANCE One important factor impacting the returns of these Funds relative to the comparative indexes was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when bond prices generally are rising. Leverage made a positive contribution to the performance of these Funds over this reporting period. RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE Shortly after their inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create financial leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February 2008. 8 Nuveen Investments This means that these auctions have "failed to clear," and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the "maximum rate" applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short-term rates at multi-generational lows, those maximum rates also have been low. One continuing implication for common shareholders from the auction failures is that each Fund's cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund's common share earnings likely have been incrementally lower at times than they otherwise might have been. As noted in past shareholder reports, the Nuveen funds' Board of Directors/Trustees authorized several methods to refinance a portion of the Nuveen funds' outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund's portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares, but these issuances have been limited since it has been difficult to find liquidity providers on economically viable terms given the constrained credit environment. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of five years. While all these efforts have reduced the total amount of outstanding ARPS issued by the Nuveen funds, the funds cannot provide any assurance on when the remaining outstanding ARPS might be redeemed. At the time this report was prepared, thirty Nuveen leveraged closed-end funds received a demand letter from a law firm on behalf of some common shareholders of each fund alleging that Nuveen and the fund's officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the fund's ARPS. After an extensive independent review, on July 14, 2010, the Board of Directors/Trustees announced that each fund had rejected the demands contained in the letters. As a result, the Board of Directors/Trustees has resumed consideration of additional ARPS refinancing. Any future determinations by the Board of Directors/Trustees to refinance a specific fund's ARPS will continue to be based upon a review of the fund's specific circumstances, considering, among other factors, the availability and terms of potential alternative sources of leverage, the receipt of applicable ratings and other necessary approvals for such alternative sources of leverage, and overall market conditions. Nuveen Investments 9 As of May 31, 2010, the amount of ARPS redeemed by the Funds are as shown in the accompanying table. AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMED PREFERRED SHARES - -------------------------------------------------------------------------------- NTC $22,575,000 58.9% NFC $19,500,000 100.0% NGK $17,500,000 100.0% NGO $32,000,000 100.0% NMT $19,600,000 57.7% NMB $15,000,000 100.0% NGX $20,500,000 100.0% - -------------------------------------------------------------------------------- As of May 31, 2010, the Funds have issued and outstanding MTP Shares, at liquidation value, as shown in the accompanying table. (Refer to Notes to Financial Statements, Footnote 1 - General Information and Significant Accounting Policies and Footnote 4 - Fund Shares for further details on MTP Shares.) MTP SHARES FUND AT LIQUIDATION VALUE - -------------------------------------------------------------------------------- NTC $18,300,000 NFC $20,470,000 NGK $16,950,000 NGO $32,000,000 NMT $20,210,000 NMB $14,725,000 NGX $22,075,000 - -------------------------------------------------------------------------------- During this twelve-month reporting period, NOM filed with the Securities and Exchange Commission (SEC) a registration statement seeking to register MTP Shares. This registration statement, declared effective by the SEC, enables the Fund to issue to the public MTP shares to refinance all or a portion of its outstanding ARPS. The issuance of MTP Shares by the Fund is subject to market and other conditions. There is no assurance that these MTP Shares will be issued. As of May 31, 2010, 83 out of the 84 Nuveen closed-end municipal funds that had issued ARPS have redeemed at par all or a portion of these shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS redemptions to approximately $4.4 billion of the approximately $11.0 billion originally outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps. 10 Nuveen Investments RECENT CHANGES TO INVESTMENT POLICIES OF NUVEEN INSURED FUNDS As a result of the "credit crunch" that began in 2007 and that led to the financial crisis that peaked in late 2008, the financial strength ratings assigned to most municipal bond insurers have been downgraded by the primary ratings agencies. These ratings downgrades generally have reduced, and any additional ratings downgrades may further reduce, the effective rating of many of the bonds insured by those bond insurers, including bonds held by the funds. This in turn has sharply reduced, and in some cases may have eliminated, the value provided by such insurance. Nonetheless, the insured funds' holdings continue to be well diversified and on the whole, the underlying credit quality of its holdings, including NGX, are of medium to high quality. It is also important to note that municipal bonds historically have had a very low rate of default. On May 3, 2010, the funds' Board of Directors/Trustees approved changes to each insured Fund's investment policies. The Board of Directors/Trustees took this action in response to the continuing challenges faced by municipal bond insurers. The changes to each fund's investment policies are intended to increase the fund's investment flexibility in pursuing its investment objective, while retaining the insured nature of its portfolio. The changes, effective immediately, provide that under normal circumstances, the insured funds invest at least 80% of their managed assets (as defined in Footnote 7 - Management Fees and Other Transactions with Affiliates) in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. In addition, the municipal securities in which each fund invests will be rated investment grade at the time of purchase (based on the higher of the rating of the insurer, if any, or the underlying security) by at least one independent rating agency, or are unrated but judged to be of similar credit quality by the Adviser, or are backed by an escrow or trust account containing sufficient U.S. government or U.S. government agency securities or U.S. Treasury-issued State and Local Government Series securities to ensure timely payment of principal and interest. Inverse floating rate securities whose underlying bonds are covered by insurance are included for purposes of the 80%. Nuveen Investments 11 Common Share Dividend and Share Price Information During the twelve-month reporting period ended May 31, 2010, NGK, NMB and NOM each had three monthly dividend increases and NTC, NFC, NGO, NMT and NGX each had two monthly dividend increases. Due to normal portfolio activity, common shareholders of the following Funds received capital gains or net ordinary income distributions at the end of December 2009 as follows: SHORT-TERM CAPITAL GAINS LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME FUND (PER SHARE) (PER SHARE) - -------------------------------------------------------------------------------- NTC $0.0041 -- NMB -- $0.0283 - -------------------------------------------------------------------------------- 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 May 31, 2010, all eight Funds in this report had positive UNII balances for both tax and financial reporting purposes. COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding common shares. 12 Nuveen Investments As of May 31, 2010, the Funds' common share prices were trading at (+) premiums or (-) discounts to their common share NAVs as shown in the accompanying table. 5/31/10 TWELVE-MONTH AVERAGE FUND (+)PREMIUM/(-)DISCOUNT (+)PREMIUM/(-)DISCOUNT - -------------------------------------------------------------------------------- NTC -4.26% -2.77% NFC +2.55% +1.69% NGK +7.86% +3.44% NGO -2.63% -2.58% NMT +3.11% -0.82% NMB -1.95% +0.94% NGX +7.34% +3.26% NOM +21.77% +10.86% - -------------------------------------------------------------------------------- Nuveen Investments 13 NTC Performance OVERVIEW | Nuveen Connecticut Premium Income Municipal Fund | as of May 31, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 13.94 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.56 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -4.26% - -------------------------------------------------------------------------------- Market Yield 5.08% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.43% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $78,106 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.74 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.25 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 9.76% 12.49% - -------------------------------------------------------------------------------- 5-Year 2.84% 4.36% - -------------------------------------------------------------------------------- 10-Year 5.85% 6.95% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Education and Civic Organizations 25.5% - -------------------------------------------------------------------------------- Tax Obligation/Limited 16.2% - -------------------------------------------------------------------------------- Tax Obligation/General 13.7% - -------------------------------------------------------------------------------- Health Care 11.6% - -------------------------------------------------------------------------------- Water and Sewer 7.6% - -------------------------------------------------------------------------------- U.S. Guaranteed 7.4% - -------------------------------------------------------------------------------- Housing/Single Family 6.5% - -------------------------------------------------------------------------------- Utilities 5.6% - -------------------------------------------------------------------------------- Other 5.9% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 40% AA 22% A 19% BBB 12% BB or Lower 1% N/R 6% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3) [BAR CHART] Jun $ 0.0535 Jul $ 0.0535 Aug $ 0.0535 Sep $ 0.058 Oct $ 0.058 Nov $ 0.058 Dec $ 0.059 Jan $ 0.059 Feb $ 0.059 Mar $ 0.059 Apr $ 0.059 May $ 0.059 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/2009 $ 13.3 $ 12.65 $ 12.51 $ 12.53 $ 12.5 $ 12.61 $ 13.03 $ 12.806 $ 13.11 $ 13.42 $ 13.25 $ 13.4 $ 13.82 $ 13.98 $ 13.6759 $ 13.6901 $ 14.084 $ 14.2788 $ 14.66 $ 14.39 $ 13.96 $ 13.7299 $ 13.84 $ 13.86 $ 13.55 $ 13.76 $ 13.94 $ 13.81 $ 13.95 $ 13.96 $ 13.87 $ 13.67 $ 13.85 $ 14 $ 13.82 $ 13.95 $ 13.97 $ 14.11 $ 14.0499 $ 14.21 $ 14.03 $ 14 $ 13.88 $ 14.03 $ 14.01 $ 14 $ 13.93 $ 13.95 $ 13.96 $ 13.89 $ 13.95 $ 13.85 $ 13.94 5/31/2010 $ 13.94 1 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. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 3 The Fund paid shareholders capital gains distributions in December 2009 of $0.0041 per share. 14 Nuveen Investments NFC Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal Fund | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 45% AA 24% A 14% BBB 8% BB or Lower 2% N/R 7% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.057 Jul $ 0.057 Aug $ 0.057 Sep $ 0.06 Oct $ 0.06 Nov $ 0.06 Dec $ 0.064 Jan $ 0.064 Feb $ 0.064 Mar $ 0.064 Apr $ 0.064 May $ 0.064 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 13.75 $ 13.78 $ 13.574 $ 14.22 $ 14.45 $ 14.49 $ 13.96 $ 14.25 $ 14.6 $ 14.5 $ 14.45 $ 14.5235 $ 14.66 $ 14.76 $ 14.63 $ 15.25 $ 14.9 $ 15.15 $ 15.188 $ 15.33 $ 15.25 $ 15.13 $ 15.09 $ 14.45 $ 14.1 $ 14.42 $ 14.49 $ 14.47 $ 15.3307 $ 15.195 $ 14.69 $ 14.51 $ 14.46 $ 14.324 $ 14.65 $ 15.05 $ 14.86 $ 14.98 $ 15.01 $ 15.3099 $ 15.1 $ 15.175 $ 15.2474 $ 14.9 $ 15.22 $ 15.32 $ 15.35 $ 15.27 $ 15.57 $ 15.25 $ 15.41 $ 15.48 $ 15.2901 5/31/10 $ 15.2901 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.29 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.91 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 2.55% - -------------------------------------------------------------------------------- Market Yield 5.02% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.34% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $38,532 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.49 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.12 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 16.92% 11.34% - -------------------------------------------------------------------------------- 5-Year 4.72% 4.72% - -------------------------------------------------------------------------------- Since Inception 5.63% 6.06% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Education and Civic Organizations 26.2% - -------------------------------------------------------------------------------- U.S. Guaranteed 16.9% - -------------------------------------------------------------------------------- Tax Obligation/Limited 16.5% - -------------------------------------------------------------------------------- Health Care 9.3% - -------------------------------------------------------------------------------- Water and Sewer 7.8% - -------------------------------------------------------------------------------- Tax Obligation/General 7.0% - -------------------------------------------------------------------------------- Housing/Single Family 5.8% - -------------------------------------------------------------------------------- Other 10.5% - -------------------------------------------------------------------------------- 1 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. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Nuveen Investments 15 NGK Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal | Fund 2 | as of May 31, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 16.20 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 15.02 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 7.86% - -------------------------------------------------------------------------------- Market Yield 4.89% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.15% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $34,833 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.53 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.15 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 19.15% 10.69% - -------------------------------------------------------------------------------- 5-Year 5.78% 4.69% - -------------------------------------------------------------------------------- Since Inception 6.67% 6.34% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- U.S. Guaranteed 22.2% - -------------------------------------------------------------------------------- Education and Civic Organizations 22.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 12.1% - -------------------------------------------------------------------------------- Health Care 9.8% - -------------------------------------------------------------------------------- Tax Obligation/General 8.7% - -------------------------------------------------------------------------------- Water and Sewer 6.3% - -------------------------------------------------------------------------------- Housing/Single Family 5.3% - -------------------------------------------------------------------------------- Utilities 5.0% - -------------------------------------------------------------------------------- Other 8.5% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 51% AA 19% A 8% BBB 9% BB or Lower 2% N/R 11% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.059 Jul $ 0.059 Aug $ 0.059 Sep $ 0.062 Oct $ 0.062 Nov $ 0.062 Dec $ 0.065 Jan $ 0.065 Feb $ 0.065 Mar $ 0.066 Apr $ 0.066 May $ 0.066 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 14.2001 $ 14.783 $ 14.5001 $ 14.9 $ 14.07 $ 14.5 $ 14.7499 $ 14.41 $ 14.79 $ 14.9 $ 15.473 $ 15.5 $ 15.445 $ 15.4 $ 15.025 $ 15.06 $ 15.2432 $ 15.52 $ 15.87 $ 15.97 $ 15.56 $ 14.76 $ 15.05 $ 14.579 $ 15.06 $ 15.31 $ 14.93 $ 14.66 $ 15.54 $ 15 $ 14.95 $ 14.7 $ 15.3 $ 15.01 $ 14.65 $ 14.77 $ 15.058 $ 15 $ 15.15 $ 15.37 $ 15.491 $ 15.575 $ 15.65 $ 15.765 $ 16.24 $ 15.9 $ 16.0499 $ 15.76 $ 16.05 $ 15.75 $ 15.45 $ 15.656 $ 16.2 5/31/10 $ 16.2 1 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. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 16 Nuveen Investments NGO Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal | Fund 3 | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 35% AA 29% A 14% BBB 9% BB or Lower 2% N/R 11% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.051 May $ 0.051 Jul $ 0.051 Aug $ 0.056 Sep $ 0.056 Oct $ 0.056 Nov $ 0.06 Dec $ 0.06 Jan $ 0.06 Feb $ 0.06 Mar $ 0.06 Apr $ 0.06 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 13.01 $ 12.97 $ 13.02 $ 12.47 $ 12.63 $ 13.1 $ 13.05 $ 12.9 $ 13.05 $ 13.14 $ 13.3083 $ 13.41 $ 13.6 $ 13.7305 $ 13.69 $ 13.73 $ 13.94 $ 14.224 $ 14.13 $ 13.9474 $ 13.7 $ 13.71 $ 13.7 $ 13.93 $ 13.59 $ 13.466 $ 13.2499 $ 13.44 $ 13.75 $ 13.7 $ 13.76 $ 13.52 $ 13.59 $ 13.9 $ 13.75 $ 14.01 $ 14.05 $ 14.05 $ 14.09 $ 13.942 $ 13.82 $ 13.9368 $ 13.99 $ 14.12 $ 14 $ 14.1002 $ 14.128 $ 14.1001 $ 14.2599 $ 14.4099 $ 14.1281 $ 14.2 $ 14.06 5/31/10 $ 14.06 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 14.06 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.44 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.63% - -------------------------------------------------------------------------------- Market Yield 5.12% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.49% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $63,059 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.72 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.51 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/26/02) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 13.26% 11.66% - -------------------------------------------------------------------------------- 5-Year 4.17% 4.24% - -------------------------------------------------------------------------------- Since Inception 4.18% 5.04% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Education and Civic Organizations 18.9% - -------------------------------------------------------------------------------- Tax Obligation/Limited 14.7% - -------------------------------------------------------------------------------- U.S. Guaranteed 14.2% - -------------------------------------------------------------------------------- Tax Obligation/General 13.4% - -------------------------------------------------------------------------------- Water and Sewer 8.9% - -------------------------------------------------------------------------------- Health Care 8.6% - -------------------------------------------------------------------------------- Long-Term Care 7.5% - -------------------------------------------------------------------------------- Utilities 5.1% - -------------------------------------------------------------------------------- Housing/Single Family 5.1% - -------------------------------------------------------------------------------- Other 3.6% - -------------------------------------------------------------------------------- 1 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. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Nuveen Investments 17 NMT Performance OVERVIEW | Nuveen Massachusetts Premium Income Municipal Fund | as of May 31, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 14.93 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.48 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 3.11% - -------------------------------------------------------------------------------- Market Yield 5.22% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.65% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $69,031 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.36 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.42 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 18.77% 15.03% - -------------------------------------------------------------------------------- 5-Year 3.74% 4.38% - -------------------------------------------------------------------------------- 10-Year 6.21% 6.64% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Education and Civic Organizations 22.3% - -------------------------------------------------------------------------------- Health Care 17.7% - -------------------------------------------------------------------------------- Tax Obligation/General 11.3% - -------------------------------------------------------------------------------- Tax Obligation/Limited 9.3% - -------------------------------------------------------------------------------- U.S. Guaranteed 9.3% - -------------------------------------------------------------------------------- Water and Sewer 8.0% - -------------------------------------------------------------------------------- Transportation 6.9% - -------------------------------------------------------------------------------- Long-Term Care 4.7% - -------------------------------------------------------------------------------- Other 10.5% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 34% AA 27% A 23% BBB 9% BB or Lower 1% N/R 6% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.061 Jul $ 0.061 Aug $ 0.061 Sep $ 0.064 Oct $ 0.064 Nov $ 0.064 Dec $ 0.065 Jan $ 0.065 Feb $ 0.065 Mar $ 0.065 Apr $ 0.065 May $ 0.065 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 12.99 $ 12.8799 $ 12.65 $ 12.48 $ 12.5 $ 12.78 $ 12.7 $ 12.624 $ 12.81 $ 13.24 $ 13.26 $ 13.14 $ 13.25 $ 13.39 $ 13.6 $ 13.5085 $ 13.85 $ 13.96 $ 14.39 $ 14.38 $ 14.01 $ 13.89 $ 14.12 $ 13.98 $ 13.6 $ 13.55 $ 13.72 $ 13.88 $ 13.91 $ 13.8998 $ 13.94 $ 13.55 $ 13.98 $ 14.13 $ 14.2 $ 14.18 $ 14.2 $ 14.31 $ 14.5 $ 14.58 $ 14.77 $ 14.76 $ 14.41 $ 14.56 $ 14.61 $ 14.52 $ 14.91 $ 14.82 $ 14.98 $ 14.6 $ 14.9 $ 14.97 $ 14.9338 5/31/10 $ 14.9338 1 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. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 18 Nuveen Investments NMB Performance OVERVIEW | Nuveen Massachusetts Dividend Advantage Municipal | Fund | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 33% AA 21% A 22% BBB 11% BB or Lower 3% N/R 10% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3) [BAR CHART] Jun $ 0.06 Jul $ 0.06 Aug $ 0.06 Sep $ 0.063 Oct $ 0.063 Nov $ 0.063 Dec $ 0.064 Jan $ 0.064 Feb $ 0.064 Mar $ 0.069 Apr $ 0.069 May $ 0.069 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 14.15 $ 14 $ 13.64 $ 13.95 $ 14.06 $ 13.62 $ 13.7 $ 13.6 $ 13.36 $ 13.29 $ 13.4 $ 13.599 $ 13.48 $ 13.58 $ 15.5 $ 14.69 $ 14.915 $ 14.51 $ 14.89 $ 14.38 $ 13.8035 $ 13.62 $ 13.8 $ 13.9 $ 13.91 $ 13.91 $ 14 $ 14.3 $ 13.87 $ 13.565 $ 13.56 $ 13.8 $ 13.9 $ 14.03 $ 13.93 $ 14.5 $ 14.29 $ 14.0701 $ 14.48 $ 15 $ 15.07 $ 15.07 $ 15.19 $ 15.09 $ 15.18 $ 15.2994 $ 15.3499 $ 15.21 $ 14.95 $ 14.855 $ 14.5 $ 14.32 $ 14.1 5/31/10 $ 14.1 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 14.10 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.38 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -1.95% - -------------------------------------------------------------------------------- Market Yield 5.87% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.61% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $28,235 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 18.33 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.05 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/30/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 7.90% 12.50% - -------------------------------------------------------------------------------- 5-Year 1.19% 3.90% - -------------------------------------------------------------------------------- Since Inception 5.07% 6.02% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Education and Civic Organizations 32.0% - -------------------------------------------------------------------------------- Health Care 18.6% - -------------------------------------------------------------------------------- U.S. Guaranteed 9.4% - -------------------------------------------------------------------------------- Tax Obligation/Limited 7.8% - -------------------------------------------------------------------------------- Housing/Multifamily 7.5% - -------------------------------------------------------------------------------- Water and Sewer 5.8% - -------------------------------------------------------------------------------- Long-Term Care 5.6% - -------------------------------------------------------------------------------- Other 13.3% - -------------------------------------------------------------------------------- 1 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. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 3 The Fund paid shareholders net ordinary income distributions in December 2009 of $0.0283 per share. Nuveen Investments 19 NGX Performance OVERVIEW | Nuveen Insured Massachusetts Tax-Free Advantage | Municipal Fund | as of May 31, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.79 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.71 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 7.34% - -------------------------------------------------------------------------------- Market Yield 4.79% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(3) 7.02% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $40,095 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.39 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.09 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 26.19% 11.61% - -------------------------------------------------------------------------------- 5-Year 4.71% 4.53% - -------------------------------------------------------------------------------- Since Inception 5.79% 5.53% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- U.S. Guaranteed 22.6% - -------------------------------------------------------------------------------- Education and Civic Organizations 17.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 11.5% - -------------------------------------------------------------------------------- Water and Sewer 11.4% - -------------------------------------------------------------------------------- Tax Obligation/General 10.7% - -------------------------------------------------------------------------------- Health Care 10.7% - -------------------------------------------------------------------------------- Housing/Multifamily 6.5% - -------------------------------------------------------------------------------- Other 9.5% - -------------------------------------------------------------------------------- INSURERS (as a % of total Insured investments) - -------------------------------------------------------------------------------- NPFG(4) 35.4% - -------------------------------------------------------------------------------- AMBAC 21.2% - -------------------------------------------------------------------------------- AGM 19.7% - -------------------------------------------------------------------------------- FGIC 18.0% - -------------------------------------------------------------------------------- SYNCORA 5.7% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments)(1,2) [PIE CHART] AAA/U.S. Guaranteed 43% AA 25% A 26% BBB 1% BB or Lower --*% N/R 5% * Rounds to less than 1%. 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.0565 Jul $ 0.0565 Aug $ 0.0565 Sep $ 0.06 Oct $ 0.06 Nov $ 0.06 Dec $ 0.063 Jan $ 0.063 Feb $ 0.063 Mar $ 0.063 Apr $ 0.063 May $ 0.063 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 13.12 $ 13.38 $ 13.15 $ 13.0795 $ 13.46 $ 13.885 $ 14.2201 $ 14.013 $ 14.56 $ 14.42 $ 14.31 $ 14.33 $ 14.0899 $ 13.81 $ 14.4101 $ 14.11 $ 14.4799 $ 14.64 $ 14.4 $ 14.6536 $ 14.3689 $ 14.8896 $ 15.25 $ 15.15 $ 14.5606 $ 14.74 $ 14.4 $ 14.95 $ 14.591 $ 14.56 $ 14.38 $ 14.57 $ 14.75 $ 14.95 $ 15.2 $ 15.65 $ 15.6046 $ 15.61 $ 15.58 $ 15.77 $ 15.7 $ 15.75 $ 15.78 $ 16 $ 16.19 $ 15.9 $ 15.65 $ 15.97 $ 15.79 $ 15.39 $ 15.57 $ 15.56 $ 15.79 5/31/10 $ 15.79 1 The Fund intends to invest at least 80% of its net assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. As of May 31, 2010, the Fund includes 83% (as a % of total investments) of Insured securities. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 3 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. 4 MBIA's public finance subsidiary. 20 Nuveen Investments NOM Performance OVERVIEW | Nuveen Missouri Premium Income Municipal Fund | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 33% AA 26% A 15% BBB 5% N/R 21% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.0545 Jul $ 0.0545 Aug $ 0.0545 Sep $ 0.056 Oct $ 0.056 Nov $ 0.056 Dec $ 0.057 Jan $ 0.057 Feb $ 0.057 Mar $ 0.059 Apr $ 0.059 May $ 0.059 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 13.09 $ 12.75 $ 13 $ 13.58 $ 13.11 $ 12.83 $ 13.11 $ 13.18 $ 13.75 $ 13.78 $ 13.56 $ 13.24 $ 13.9 $ 13.5662 $ 13.59 $ 13.79 $ 13.85 $ 14.2 $ 13.95 $ 14.0999 $ 14.09 $ 13.78 $ 13.7201 $ 14.01 $ 13.95 $ 14.1 $ 13.9 $ 13.95 $ 15.76 $ 15.27 $ 15 $ 15.5 $ 15.1896 $ 14.9 $ 15 $ 14.75 $ 14.33 $ 14.55 $ 14.9 $ 14.9 $ 15.6 $ 15.97 $ 15.78 $ 15.3499 $ 15.26 $ 15.7 $ 15.38 $ 16.14 $ 15.9 $ 15.35 $ 16.74 $ 16.69 $ 16.5 5/31/10 $ 16.5 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 16.50 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.55 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 21.77% - -------------------------------------------------------------------------------- Market Yield 4.29% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 6.34% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $31,348 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 13.33 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.41 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 34.31% 14.69% - -------------------------------------------------------------------------------- 5-Year 3.60% 3.38% - -------------------------------------------------------------------------------- 10-Year 8.07% 6.41% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 19.6% - -------------------------------------------------------------------------------- Health Care 17.9% - -------------------------------------------------------------------------------- U.S. Guaranteed 15.6% - -------------------------------------------------------------------------------- Tax Obligation/Limited 13.8% - -------------------------------------------------------------------------------- Transportation 10.6% - -------------------------------------------------------------------------------- Water and Sewer 6.3% - -------------------------------------------------------------------------------- Long-Term Care 5.3% - -------------------------------------------------------------------------------- Other 10.9% - -------------------------------------------------------------------------------- 1 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. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Nuveen Investments 21 NTC | Shareholder Meeting Report NFC | NGK | The annual meeting of shareholders was held in the offices of Nuveen Investments on November 30, 2009; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting for all funds was subsequently adjourned to January 12, 2010; the meeting for NFC, NMT, NMB and NOM was additionally adjourned to March 23, 2010. The meeting for NOM was additionally adjourned to March 30, 2010.
NTC NFC NGK - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 2,735,979 735 1,419,131 575 1,240,621 308 Against 186,604 10 114,075 13 56,698 21 Abstain 74,347 6 46,981 -- 26,698 -- Broker Non-Votes 1,046,019 -- 421,993 -- 449,871 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,042,949 751 2,002,180 588 1,773,888 329 ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 2,745,674 741 1,415,682 575 1,244,996 308 Against 179,297 10 114,553 13 54,598 21 Abstain 71,959 -- 50,031 -- 24,423 -- Broker Non-Votes 1,046,019 -- 421,914 -- 449,871 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,042,949 751 2,002,180 588 1,773,888 329 ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For 2,738,927 739 -- -- -- -- Against 178,713 12 -- -- -- -- Abstain 79,289 -- -- -- -- -- Broker Non-Votes 1,046,020 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,042,949 751 -- -- -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ====================================================================================================================================
22 Nuveen Investments
NTC NFC NGK - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For 2,698,216 739 -- -- -- -- Against 217,538 12 -- -- -- -- Abstain 81,176 -- -- -- -- -- Broker Non-Votes 1,046,019 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,042,949 751 -- -- -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 2,709,161 741 -- -- -- -- Against 191,563 10 -- -- -- -- Abstain 96,206 -- -- -- -- -- Broker Non-Votes 1,046,019 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 4,042,949 751 -- -- -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 2,706,621 739 -- -- -- -- Against 188,176 10 -- -- -- -- Abstain 102,133 2 -- -- -- -- Broker Non-Votes 1,046,019 -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,042,949 751 -- -- -- -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 3,928,853 -- 1,936,183 -- 1,749,819 -- Withhold 114,096 -- 50,099 -- 24,069 -- - ------------------------------------------------------------------------------------------------- ---------------------------------- Total 4,042,949 -- 1,986,282 -- 1,773,888 -- ==================================================================================================================================== Jack B. Evans For 3,924,308 -- 1,937,403 -- 1,749,819 -- Withhold 118,641 -- 48,879 -- 24,069 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,042,949 -- 1,986,282 -- 1,773,888 -- ==================================================================================================================================== William C. Hunter For -- 673 -- 305 -- 246 Withhold -- 78 -- 34 -- 83 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 751 -- 339 -- 329 ==================================================================================================================================== William J. Schneider For -- 673 -- 305 -- 246 Withhold -- 78 -- 34 -- 83 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 751 -- 339 -- 329 ====================================================================================================================================
Nuveen Investments 23 NGO | Shareholder Meeting Report (continued) NMT | NMB |
NGO NMT NMB - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 2,281,837 613 2,400,365 1,103 944,686 505 Against 132,388 26 240,489 48 62,921 -- Abstain 85,666 -- 67,186 -- 30,897 11 Broker Non-Votes 790,735 -- 774,978 -- 334,105 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,290,626 639 3,483,018 1,151 1,372,609 516 ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 2,267,867 613 2,471,170 1,105 957,232 516 Against 150,917 26 171,935 46 54,206 -- Abstain 81,107 -- 64,935 -- 27,066 -- Broker Non-Votes 790,735 -- 774,978 -- 334,105 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,290,626 639 3,483,018 1,151 1,372,609 516 ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- 2,387,702 1,105 -- -- Against -- -- 248,576 46 -- -- Abstain -- -- 71,762 -- -- -- Broker Non-Votes -- -- 774,978 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 3,483,018 1,151 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ====================================================================================================================================
24 Nuveen Investments
NGO NMT NMB - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- 2,377,557 1,103 -- -- Against -- -- 252,799 48 -- -- Abstain -- -- 77,684 -- -- -- Broker Non-Votes -- -- 774,978 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 3,483,018 1,151 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 2,400,588 1,105 Against 241,105 46 Abstain -- -- 66,347 -- -- -- Broker Non-Votes -- -- 774,978 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 3,483,018 1,151 -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 2,417,663 1,105 -- -- Against -- -- 221,280 46 -- -- Abstain -- -- 69,097 -- -- -- Broker Non-Votes -- -- 774,978 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 3,483,018 1,151 -- -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 3,151,200 -- 3,341,761 -- 1,310,726 -- Withhold 139,426 -- 140,098 -- 59,289 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,290,626 -- 3,481,859 -- 1,370,015 -- ==================================================================================================================================== Jack B. Evans For 3,152,400 -- 3,344,775 -- 1,310,726 -- Withhold 138,226 -- 137,084 -- 59,289 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,290,626 -- 3,481,859 -- 1,370,015 -- ==================================================================================================================================== William C. Hunter For -- 547 -- 354 -- 134 Withhold -- 92 -- 237 -- 102 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 639 -- 591 -- 236 ==================================================================================================================================== William J. Schneider For -- 547 -- 354 -- 134 Withhold -- 92 -- 237 -- 102 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 639 -- 591 -- 236 ====================================================================================================================================
Nuveen Investments 25 | Shareholder Meeting Report (continued) NGX | NOM |
NGX NOM - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For -- -- 1,198,331 140 Against -- -- 376,768 6 Abstain -- -- 46,047 -- Broker Non-Votes -- -- 219,991 146 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,841,137 292 ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For -- -- 1,481,471 140 Against -- -- 91,401 6 Abstain -- -- 48,274 -- Broker Non-Votes -- -- 219,991 146 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,841,137 292 ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- 1,183,013 137 Against -- -- 401,615 9 Abstain -- -- 36,518 -- Broker Non-Votes -- -- 219,991 146 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,841,137 292 ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES. For 1,285,990 489 -- -- Against 44,835 2 -- -- Abstain 55,767 -- -- -- Broker Non-Votes 458,571 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,845,163 491 -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES. For 1,288,921 489 -- -- Against 39,125 2 -- -- Abstain 58,546 -- -- -- Broker Non-Votes 458,571 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,845,163 491 -- -- ====================================================================================================================================
26 Nuveen Investments
NGX NOM - ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- 1,168,026 137 Against -- -- 390,130 9 Abstain -- -- 62,990 -- Broker Non-Votes -- -- 219,991 146 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,841,137 292 ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 1,169,598 140 Against -- -- 392,658 6 Abstain -- -- 58,890 -- Broker Non-Votes -- -- 219,991 146 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,841,137 292 ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 1,160,171 140 Against -- -- 402,285 6 Abstain -- -- 58,690 -- Broker Non-Votes -- -- 219,991 146 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 1,841,137 292 ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 1,790,926 -- 1,479,825 -- Withhold 54,237 -- 361,241 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,845,163 -- 1,841,066 -- ==================================================================================================================================== Jack B. Evans For 1,791,782 -- 1,481,815 -- Withhold 53,381 -- 359,251 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,845,163 -- 1,841,066 -- ==================================================================================================================================== William C. Hunter For -- 428 -- 183 Withhold -- 63 -- 38 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 491 -- 221 ==================================================================================================================================== William J. Schneider For -- 428 -- 183 Withhold -- 63 -- 38 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 491 -- 221 ====================================================================================================================================
Nuveen Investments 27 Report of Independent Registered Public Accounting Firm THE BOARD OF TRUSTEES AND SHAREHOLDERS NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND NUVEEN MASSACHUSETTS DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN INSURED MASSACHUSETTS TAX-FREE ADVANTAGE MUNICIPAL FUND NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund 2, Nuveen Connecticut Dividend Advantage Municipal Fund 3, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Massachusetts Dividend Advantage Municipal Fund, Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund, and Nuveen Missouri Premium Income Municipal Fund (the "Funds"), as of May 31, 2010, and the related statements of operations and cash flows (except Nuveen Missouri Premium Income Municipal Fund) for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund 2, Nuveen Connecticut Dividend Advantage Municipal Fund 3, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Massachusetts Dividend Advantage Municipal Fund, Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund, and Nuveen Missouri Premium Income Municipal Fund at May 31, 2010, the results of their operations and cash flows (except Nuveen Missouri Premium Income Municipal Fund) for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois July 27, 2010 28 Nuveen Investments NTC | Nuveen Connecticut Premium Income Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.6% (1.1% OF TOTAL INVESTMENTS) $ 1,305 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,281,001 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 38.6% (25.5% OF TOTAL INVESTMENTS) 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A- 1,016,220 Bonds, Quinnipiac University, Series 2006H, 5.000%, 7/01/36 - AMBAC Insured 1,595 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 1,673,490 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 - NPFG Insured 1,050 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 974,096 Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 925 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 A 934,185 Bonds, Brunswick School, Series 2003B, 5.000%, 7/01/33 - NPFG Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 472,160 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 305 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 301,535 Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 1,027,080 Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/40 750 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 759,075 Bonds, Horace Bushnell Memorial Hall, Series 1999A, 5.625%, 7/01/29 - NPFG Insured 800 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 910,192 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 N/R 261,425 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 A+ 1,500,098 Bonds, Trinity College, Series 2004H, 5.000%, 7/01/21 - NPFG Insured 2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 1,921,580 Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32 - RAAI Insured 800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 853,192 Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35 1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 1,540,305 Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB) 3,550 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,727,394 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB) 6,150 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 6,500,366 Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB) 245 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/10 at 101.00 AAA 250,199 Bonds, Family Education Loan Program, Series 1999A, 6.000%, 11/15/18 - AMBAC Insured (Alternative Minimum Tax) 610 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aa3 617,893 Bonds, Family Education Loan Program, Series 2001A, 5.250%, 11/15/18 - NPFG Insured (Alternative Minimum Tax) 1,000 University of Connecticut, General Obligation Bonds, Series 1/14 at 100.00 AA 1,095,150 2004A, 5.000%, 1/15/18 - NPFG Insured 1,220 University of Connecticut, General Obligation Bonds, Series 2/15 at 100.00 AAA 1,388,482 2005A, 5.000%, 2/15/17 - AGM Insured 685 University of Connecticut, General Obligation Bonds, Series 2/16 at 100.00 AA 747,130 2006A, 5.000%, 2/15/23 - FGIC Insured 535 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 591,063 2010A, 5.000%, 2/15/28 1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 Aa2 1,100,860 Series 2002A, 5.250%, 11/15/19 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 28,865 Total Education and Civic Organizations 30,163,170 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29 NTC | Nuveen Connecticut Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 17.6% (11.6% 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 N/R $ 477,980 700 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 N/R 653,373 645 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R 645,426 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 N/R 788,136 500 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 482,285 385 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 344,698 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 Aa3 2,656,942 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM Insured 2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 2,008,120 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 - NPFG Insured 1,395 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,415,409 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured 3,000 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.00 A2 2,898,780 Refunding Bonds, Middlesex Health Services, Series 1997H, 5.125%, 7/01/27 - NPFG Insured 1,000 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 1,032,720 Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40 350 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 351,141 Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ 13,895 Total Health Care 13,755,010 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.5% (1.7% OF TOTAL INVESTMENTS) 1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 6/10 at 100.00 AAA 1,000,830 Program Bonds, Series 1999D-2, 6.200%, 11/15/41 (Alternative Minimum Tax) 960 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 960,442 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,960 Total Housing/Multifamily 1,961,272 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.9% (6.5% 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 1,001,320 500 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 500,795 1,675 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,703,056 Program Bonds, Series 2004-A5, 5.050%, 11/15/34 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 204,067 220 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 215,948 2,045 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 2,065,961 Program Bonds, Series 2006D, 4.650%, 11/15/27 2,000 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 2,010,700 Mortgage Finance Program Bonds, Series 2010-A2, 4.500%, 11/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ 7,645 Total Housing/Single Family 7,701,847 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.8% (2.5% OF TOTAL INVESTMENTS) 320 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 320,496 Refunding Healthcare Bonds, Church Homes Inc. - Congregational Avery Heights, Series 1997, 5.700%, 4/01/12 615 Connecticut Development Authority, First Mortgage Gross Revenue 9/10 at 101.00 BBB- 622,146 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 8/10 at 101.00 BBB 1,010,820 1,000 5.375%, 8/01/24 - RAAI Insured 8/10 at 101.00 BBB 1,006,880 - ------------------------------------------------------------------------------------------------------------------------------------ 2,935 Total Long-Term Care 2,960,342 - ------------------------------------------------------------------------------------------------------------------------------------
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 20.8% (13.7% OF TOTAL INVESTMENTS) $ 750 Bridgeport, Connecticut, General Obligation Refunding Bonds, 8/12 at 100.00 A1 $ 781,830 Series 2002A, 5.375%, 8/15/19 - FGIC Insured 1,110 Connecticut State, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AA 1,192,906 5.000%, 4/01/23 - FGIC Insured 2,000 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 2,162,860 4.750%, 12/15/24 1,300 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 1,422,304 5.000%, 6/01/23 - AGM Insured 500 Connecticut State, General Obligation Bonds, Series 2006E, 12/16 at 10.00 AA 564,010 5.000%, 12/15/20 Hartford, Connecticut, General Obligation Bonds, Series 2005A: 775 5.000%, 8/01/20 - AGM Insured 8/15 at 100.00 AAA 851,245 525 4.375%, 8/01/24 - AGM Insured 8/15 at 100.00 AAA 540,729 500 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A1 555,040 5.000%, 11/01/17 - AMBAC Insured 500 North Haven, Connecticut, General Obligation Bonds, Series 2006, No Opt. Call Aa1 593,490 5.000%, 7/15/24 1,860 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 2,018,881 Series 2001A, 5.500%, 7/01/20 - NPFG Insured 1,420 Regional School District 16, Connecticut, General Obligation 3/13 at 101.00 A1 1,550,015 Bonds, Series 2003, 5.000%, 3/15/16 - AMBAC Insured Suffield, Connecticut, General Obligation Bonds, Series 2005: 465 5.000%, 6/15/17 No Opt. Call AA 546,608 460 5.000%, 6/15/19 No Opt. Call AA 545,187 1,000 5.000%, 6/15/21 No Opt. Call AA 1,192,680 1,500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 1,734,270 2005B, 5.000%, 10/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 14,665 Total Tax Obligation/General 16,252,055 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 24.4% (16.2% OF TOTAL INVESTMENTS) 380 Capitol Region Education Council, Connecticut, Revenue Bonds, No Opt. Call BBB 381,482 Series 1995, 6.700%, 10/15/10 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 1,346,852 1,000 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 1,027,410 1,945 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R 1,953,150 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 AA 2,148,660 1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 1,057,240 500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 536,775 Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured 1,750 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 1,889,265 Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured 1,100 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 1,166,913 Special Obligation Revenue Bonds, Harbor Point Project, Series 2010A, 7.875%, 4/01/39 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A: 960 0.000%, 7/01/32 - FGIC Insured No Opt. Call A3 226,080 2,615 0.000%, 7/01/33 - FGIC Insured No Opt. Call A3 570,148 2,000 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 2,108,380 8/01/21 - AGM Insured 2,400 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 2,612,784 8/01/16 - AGM Insured 975 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 1,012,557 Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39 1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AAA 1,065,720 Loan Note, Series 2003, 5.250%, 10/01/19 - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 20,925 Total Tax Obligation/Limited 19,103,416 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31 NTC | Nuveen Connecticut Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.0% (0.6% OF TOTAL INVESTMENTS) $ 750 Connecticut, General Airport Revenue Bonds, Bradley International 4/11 at 101.00 A $ 751,185 Airport, Series 2001A, 5.125%, 10/01/26 - FGIC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 11.2% (7.4% OF TOTAL INVESTMENTS) (4) 50 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R (4) 50,761 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, Revenue 7/11 at 101.00 N/R (4) 692,803 Bonds, Loomis Chaffee School, Series 2001D, 5.500%, 7/01/23 (Pre-refunded 7/01/11) 40 Connecticut, General Obligation Bonds, Series 1993E, 6.000%, No Opt. Call AA (4) 43,907 3/15/12 (ETM) 1,500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/12 at 100.00 AA (4) 1,649,880 6/15/21 (Pre-refunded 6/15/12) 600 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 N/R (4) 628,548 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 (Pre-refunded 5/15/11) 1,000 Hartford, Connecticut, Parking System Revenue Bonds, Series 7/10 at 100.00 Baa2 (4) 1,005,450 2000A, 6.400%, 7/01/20 (Pre-refunded 7/01/10) 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,027,710 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (Pre-refunded 10/01/10) 300 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 301,479 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 1,100 University of Connecticut, General Obligation Bonds, Series 2/13 at 100.00 AA (4) 1,222,892 2003A, 5.125%, 2/15/21 (Pre-refunded 2/15/13) - NPFG Insured 1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 1,030,270 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 1,085,480 5.375%, 4/01/17 (Pre-refunded 4/01/12) - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 8,240 Total U.S. Guaranteed 8,739,180 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.5% (5.6% OF TOTAL INVESTMENTS) 1,150 Bristol Resource Recovery Facility Operating Committee, No Opt. Call A+ 1,245,600 Connecticut, Solid Waste Revenue Bonds, Covanta Bristol Inc., Series 2005, 5.000%, 7/01/12 - AMBAC Insured 1,000 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 1,009,760 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 1,070 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 1,072,579 Facilities Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax) 1,750 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 1,743,123 Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A: 260 5.500%, 1/01/14 (Alternative Minimum Tax) 7/10 at 100.00 BBB 260,419 1,290 5.500%, 1/01/20 (Alternative Minimum Tax) 7/10 at 100.00 BBB 1,289,987 - ------------------------------------------------------------------------------------------------------------------------------------ 6,520 Total Utilities 6,621,468 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.5% (7.6% OF TOTAL INVESTMENTS) 500 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 453,575 Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37 - SYNCORA GTY Insured (Alternative Minimum Tax) 1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,324,475 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 - NPFG Insured 11/15 at 100.00 A1 1,566,816 2,260 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 2,301,019 South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Eighteenth Series 2003A: 1,000 5.000%, 8/01/20 - NPFG Insured 8/13 at 100.00 Aa3 1,048,680 1,075 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 1,097,048
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,100 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ $ 1,157,548 Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32 - ------------------------------------------------------------------------------------------------------------------------------------ 8,640 Total Water and Sewer 8,949,161 - ------------------------------------------------------------------------------------------------------------------------------------ $ 116,345 Total Investments (cost $115,609,318) - 151.4% 118,239,107 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (10.2)% (7,965,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (23.4)% (5) (18,300,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 1,856,822 --------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (20.1)% (5) (15,725,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 78,105,929 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (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) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 15.5% and 13.3%, respectively. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 33 NFC | Nuveen Connecticut Dividend Advantage Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 42.0% (26.2% OF TOTAL INVESTMENTS) $ 795 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A $ 834,122 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 - NPFG Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 463,855 Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 250 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 236,080 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 150 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 148,296 Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 513,540 Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/40 440 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 500,984 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 N/R 125,871 Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC Insured 50 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.00 Baa2 49,238 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 A+ 392,658 Bonds, Trinity College, Series 2004H, 5.000%, 7/01/17 - NPFG Insured 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 960,790 Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32 - RAAI Insured 1,600 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 1,706,384 Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35 500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 513,435 Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB) 1,800 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,889,946 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB) 3,050 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 3,223,759 Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB) 475 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 Aa3 481,147 Revenue Bonds, Family Education Loan Program, Series 2001A, 5.250%, 11/15/18 - NPFG Insured (Alternative Minimum Tax) 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 8/10 at 100.50 BBB- 125,093 270 5.375%, 2/01/29 8/10 at 100.50 BBB- 256,403 University of Connecticut, General Obligation Bonds, Series 2001A: 1,000 4.750%, 4/01/20 4/11 at 101.00 AA 1,024,950 1,000 4.750%, 4/01/21 4/11 at 101.00 AA 1,023,560 485 University of Connecticut, General Obligation Bonds, Series 2/16 at 100.00 AA 528,990 2006A, 5.000%, 2/15/23 - FGIC Insured 1,070 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 1,182,125 2010A, 5.000%, 2/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ 15,540 Total Education and Civic Organizations 16,181,226 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 15.0% (9.3% OF TOTAL INVESTMENTS) 1,400 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 N/R 1,306,746 Bonds, Bristol Hospital, Series 2002B, 5.500%, 7/01/32 - RAAI Insured 25 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 N/R 25,197 Bonds, Danbury Hospital, Series 1999G, 5.700%, 7/01/22 - AMBAC Insured 840 Connecticut Health and Educational Facilities Authority, Revenue 7/15 at 100.00 N/R 762,754 Bonds, Eastern Connecticut Health Network, Series 2005, 5.000%, 7/01/25 - RAAI Insured
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) 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 N/R $ 492,585 250 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 241,143 185 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 165,634 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 Aa3 60,846 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM Insured 125 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 125,508 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 - NPFG Insured 1,870 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,897,358 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 516,360 Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40 175 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 175,571 Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ 5,930 Total Health Care 5,769,702 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS) 480 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 480,221 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.3% (5.8% 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 1,001,320 250 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 250,398 800 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 813,400 Program Bonds, Series 2004-A5, 5.050%, 11/15/34 685 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 692,021 Program Bonds, Series 2006D, 4.650%, 11/15/27 800 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 810,952 Mortgage Finance Program Bonds, Series 2010-A2, 4.750%, 11/15/35 - ------------------------------------------------------------------------------------------------------------------------------------ 3,535 Total Housing/Single Family 3,568,091 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.9% (1.2% OF TOTAL INVESTMENTS) 300 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 300,357 Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003, 5.750%, 12/01/23 110 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 108,341 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 214,800 Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series 2007, 5.500%, 8/15/27 105 Hamden, Connecticut, Facility Revenue Bonds, Whitney Center 1/20 at 100.00 N/R 107,963 Project, Series 2009A, 7.625%, 1/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ 765 Total Long-Term Care 731,461 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 11.2% (7.0% OF TOTAL INVESTMENTS) 560 Connecticut State, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AA 601,826 5.000%, 4/01/23 - FGIC Insured 700 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 757,001 4.750%, 12/15/24 100 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 109,408 5.000%, 6/01/23 - AGM Insured Hartford, Connecticut, General Obligation Bonds, Series 2005A: 360 5.000%, 8/01/21 - AGM Insured 8/15 at 100.00 AAA 391,684 240 4.375%, 8/01/24 - AGM Insured 8/15 at 100.00 AAA 247,190 400 North Haven, Connecticut, General Obligation Bonds, Series 2006, No Opt. Call Aa1 474,792 5.000%, 7/15/24
Nuveen Investments 35 NFC | Nuveen Connecticut Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Suffield, Connecticut, General Obligation Bonds, Series 2005: $ 335 5.000%, 6/15/17 No Opt. Call AA $ 393,793 335 5.000%, 6/15/19 No Opt. Call AA 397,039 810 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 936,506 2005B, 5.000%, 10/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 3,840 Total Tax Obligation/General 4,309,239 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 26.4% (16.5% 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 673,426 500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 513,705 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 103.00 A 1,052,420 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- 636,702 1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 1,020,810 1,475 Connecticut, Special Tax Obligation Transportation No Opt. Call AAA 1,644,035 Infrastructure Purpose Bonds, Series 1998B, 5.500%, 11/01/12 - AGM Insured 900 Connecticut, Special Tax Obligation Transportation 8/17 at 100.00 AA 971,622 Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured 500 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 530,415 Special Obligation Revenue Bonds, Harbor Point Project, Series 2010A, 7.875%, 4/01/39 600 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 620,178 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 470 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 110,685 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 1,200 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 1,306,392 8/01/16 - AGM Insured 325 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 337,519 Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39 750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 762,983 Loan Note, Series 1999A, 6.375%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ 9,970 Total Tax Obligation/Limited 10,180,892 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.5% (4.1% OF TOTAL INVESTMENTS) 2,500 Connecticut, General Airport Revenue Bonds, Bradley 4/11 at 101.00 A 2,503,950 International Airport, Series 2001A, 5.125%, 10/01/26 - FGIC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 27.0% (16.9% OF TOTAL INVESTMENTS) (4) 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 N/R (4) 1,065,850 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 2,135,080 5.500%, 10/01/20 (Pre-refunded 10/01/11) 500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/12 at 100.00 AA (4) 549,960 6/15/21 (Pre-refunded 6/15/12) 500 East Lyme, Connecticut, General Obligation Bonds, Series 2001, 7/11 at 102.00 Aa2 (4) 536,860 5.125%, 7/15/20 (Pre-refunded 7/15/11) - FGIC Insured Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: 25 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 26,070 500 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 521,575 1,270 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 N/R (4) 1,330,427 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 (Pre-refunded 5/15/11) 220 New Haven, Connecticut, General Obligation Bonds, Series 2001A, 11/11 at 100.00 A1 (4) 226,402 5.000%, 11/01/20 (Pre-refunded 11/01/11) - FGIC Insured Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,425 5.500%, 10/01/32 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,464,487 1,300 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,336,023 145 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 145,715 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10)
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA $ 1,085,480 5.375%, 4/01/17 (Pre-refunded 4/01/12) - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 9,885 Total U.S. Guaranteed 10,423,929 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.1% (4.4% OF TOTAL INVESTMENTS) 500 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 504,880 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 560 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 561,350 Facilities Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax) 1,000 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 996,070 Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) 665 Eastern Connecticut Resource Recovery Authority, Solid Waste 7/10 at 100.00 BBB 666,071 Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A, 5.500%, 1/01/14 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,725 Total Utilities 2,728,371 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.6% (7.8% OF TOTAL INVESTMENTS) 255 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 231,323 Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37 - SYNCORA GTY Insured (Alternative Minimum Tax) 1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,324,475 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 - NPFG Insured 11/15 at 100.00 A1 742,176 1,110 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 1,130,147 140 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 143,625 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 - NPFG Insured 8/13 at 100.00 Aa3 786,506 470 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 479,636 - ------------------------------------------------------------------------------------------------------------------------------------ 4,630 Total Water and Sewer 4,837,888 - ------------------------------------------------------------------------------------------------------------------------------------ $ 59,800 Total Investments (cost $60,267,853) - 160.2% 61,714,970 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (9.9)% (3,820,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (53.1)% (5) (20,470,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.8% 1,107,385 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 38,532,355 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (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) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.2%. N/R Not rated. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 37 NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2 | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.9% (1.2% OF TOTAL INVESTMENTS) $ 660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 647,863 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 34.8% (22.1% OF TOTAL INVESTMENTS) 715 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 750,185 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 - NPFG Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 463,855 Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 200 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 188,864 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 135 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 133,466 Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 513,540 Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/40 310 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 352,699 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 N/R 116,189 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 BBB- 602,142 1,000 5.250%, 7/01/32 - RAAI Insured 7/12 at 101.00 BBB- 960,790 800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 853,192 Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35 500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 513,435 Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB) 1,600 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,679,952 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB) 2,750 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 2,906,668 Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB) University of Connecticut, General Obligation Bonds, Series 2006A: 450 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 503,559 490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 534,443 460 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 508,203 2010A, 5.000%, 2/15/28 500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 Aa2 533,865 Series 2002A, 5.250%, 11/15/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 11,620 Total Education and Civic Organizations 12,115,047 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 15.4% (9.8% OF TOTAL INVESTMENTS) 300 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 N/R 280,017 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 N/R 20,123 315 6.000%, 7/01/25 - RAAI Insured 7/10 at 101.00 N/R 315,208 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 N/R 295,551 300 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 289,371 170 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 152,204 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 Aa3 1,206,779 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM Insured
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 N/R $ 917,240 Bonds, St. Francis Hospital and Medical Center, Series 2002D, 5.000%, 7/01/22 - RAAI Insured 25 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 25,269 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 - NPFG Insured 1,170 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,187,117 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured 500 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 516,360 Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40 175 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 175,571 Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ 5,465 Total Health Care 5,380,810 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS) 480 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 480,221 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.4% (5.3% OF TOTAL INVESTMENTS) 250 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 250,398 Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative Minimum Tax) 700 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 711,725 Program Bonds, Series 2004-A5, 5.050%, 11/15/34 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 303,612 330 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 323,921 585 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 590,996 Program Bonds, Series 2006D, 4.650%, 11/15/27 700 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 709,583 Mortgage Finance Program Bonds, Series 2010-A2, 4.750%, 11/15/35 - ------------------------------------------------------------------------------------------------------------------------------------ 2,870 Total Housing/Single Family 2,890,235 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.5% (2.3% OF TOTAL INVESTMENTS) 320 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 320,381 Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003, 5.750%, 12/01/23 140 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 140,217 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 N/R 450,680 Bonds, Village for Families and Children Inc., Series 2002A, 5.000%, 7/01/19 - AMBAC Insured 250 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 214,800 Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series 2007, 5.500%, 8/15/27 105 Hamden, Connecticut, Facility Revenue Bonds, Whitney Center 1/20 at 100.00 N/R 107,963 Project, Series 2009A, 7.625%, 1/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ 1,265 Total Long-Term Care 1,234,041 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 13.7% (8.7% OF TOTAL INVESTMENTS) 600 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 648,858 4.750%, 12/15/24 400 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 437,632 5.000%, 6/01/23 - AGM Insured 1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,389,838 Obligation Bonds, Series 2002, 5.000%, 4/01/22 Hartford, Connecticut, General Obligation Bonds, Series 2005A: 360 5.000%, 8/01/21 - AGM Insured 8/15 at 100.00 AAA 391,684 140 4.375%, 8/01/24 - AGM Insured 8/15 at 100.00 AAA 144,194 650 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A1 721,552 5.000%, 11/01/17 - AMBAC Insured 400 Suffield, Connecticut, General Obligation Bonds, Series 2005, No Opt. Call AA 477,072 5.000%, 6/15/21 500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 578,090 2005B, 5.000%, 10/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ 4,355 Total Tax Obligation/General 4,788,920 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39 NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 19.0% (12.1% 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 $ 595,723 500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 513,705 500 Connecticut, Special Tax Obligation Transportation 10/11 at 100.00 AAA 530,840 Infrastructure Purpose Bonds, Series 2001B, 5.375%, 10/01/13 - AGM Insured 1,625 Connecticut, Special Tax Obligation Transportation 7/12 at 100.00 AAA 1,754,870 Infrastructure Purpose Bonds, Series 2002A, 5.375%, 7/01/20 - AGM Insured 850 Connecticut, Special Tax Obligation Transportation 8/17 at 100.00 AA 917,643 Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured 500 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 530,415 Special Obligation Revenue Bonds, Harbor Point Project, Series 2010A, 7.875%, 4/01/39 500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 516,815 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 430 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 101,265 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 750 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 816,495 8/01/16 - AGM Insured 325 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 337,519 Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ 6,555 Total Tax Obligation/Limited 6,615,290 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.4% (4.1% OF TOTAL INVESTMENTS) 1,950 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call N/R 2,226,569 Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 35.0% (22.2% OF TOTAL INVESTMENTS) (4) 2,250 Connecticut Health and Educational Facilities Authority, Revenue 11/11 at 100.00 AAA 2,393,955 Bonds, Connecticut State University System, Series 2002D-2, 5.000%, 11/01/21 (Pre-refunded 11/01/11) - AGM 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 N/R (4) 101,532 30 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 N/R (4) 30,460 5 6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 N/R (4) 5,076 400 Connecticut Health and Educational Facilities Authority, Revenue 3/11 at 101.00 AAA 418,192 Bonds, Greenwich Academy, Series 2001B, 5.000%, 3/01/32 (Pre-refunded 3/01/11) - AGM Insured Farmington, Connecticut, General Obligation Bonds, Series 2002: 1,000 5.000%, 9/15/20 (Pre-refunded 9/15/12) 9/12 at 101.00 Aaa 1,106,090 1,450 5.000%, 9/15/21 (Pre-refunded 9/15/12) 9/12 at 101.00 Aaa 1,603,831 250 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 N/R (4) 261,895 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 (Pre-refunded 5/15/11) 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,014,550 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - AGM Insured Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,000 5.500%, 10/01/32 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,027,710 2,000 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 2,055,420 1,535 Regional School District 8, Andover, Hebron and Marlborough, 5/11 at 101.00 Aa3 (4) 1,616,969 Connecticut, General Obligation Bonds, Series 2002, 5.000%, 5/01/22 (Pre-refunded 5/01/11) - AGM Insured 500 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 542,740 5.375%, 4/01/17 (Pre-refunded 4/01/12) - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 11,520 Total U.S. Guaranteed 12,178,420 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.8% (5.0% OF TOTAL INVESTMENTS) 500 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 504,880 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 470 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 471,133 Facilities Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 1,000 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 $ 996,070 Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-II, 5.500%, 11/15/15 (Alternative Minimum Tax) Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A: 250 5.500%, 1/01/15 (Alternative Minimum Tax) 1/11 at 100.00 BBB 250,350 510 5.500%, 1/01/20 (Alternative Minimum Tax) 7/10 at 100.00 BBB 509,995 - ------------------------------------------------------------------------------------------------------------------------------------ 2,730 Total Utilities 2,732,428 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.9% (6.3% OF TOTAL INVESTMENTS) 220 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 199,573 Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37 - SYNCORA GTY Insured (Alternative Minimum Tax) 785 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 877,395 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 - NPFG Insured 11/15 at 100.00 A1 711,252 320 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 325,808 130 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 133,366 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 - NPFG Insured 8/13 at 100.00 Aa3 786,510 410 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 418,407 - ------------------------------------------------------------------------------------------------------------------------------------ 3,305 Total Water and Sewer 3,452,311 - ------------------------------------------------------------------------------------------------------------------------------------ $ 52,775 Total Investments (cost $53,119,452) - 157.2% 54,742,155 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (9.9)% (3,460,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (48.7)% (5) (16,950,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 500,897 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 34,833,052 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (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) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.0%. N/R Not rated. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 41 NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS) $ 2,100 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,061,381 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 29.7% (18.9% OF TOTAL INVESTMENTS) 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 987,620 Bonds, Connecticut College, Series 2007G, 4.500%, 7/01/37 - NPFG Insured 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A- 1,016,220 Bonds, Quinnipiac University, Series 2006H, 5.000%, 7/01/36 - AMBAC Insured 1,300 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 1,363,973 Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 - NPFG Insured 650 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 603,012 Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36 - RAAI Insured 350 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 330,512 Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI Insured 250 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 247,160 Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 - RAAI Insured 800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 822,312 Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/35 400 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 455,096 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 N/R 208,172 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 BBB- 765,435 Bonds, University of Hartford, Series 2002E, 5.500%, 7/01/22 - RAAI Insured 800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 853,192 Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35 3,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,149,910 Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB) 5,050 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 5,337,699 Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB) University of Connecticut, General Obligation Bonds, Series 2006A: 850 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 951,167 490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 534,443 535 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 591,063 2010A, 5.000%, 2/15/28 500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 Aa2 533,865 Series 2002A, 5.250%, 11/15/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 17,940 Total Education and Civic Organizations 18,750,851 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.6% (8.6% 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 N/R 477,980 600 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 N/R 560,034 750 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R 750,495 Bonds, Eastern Connecticut Health Network, Series 2000A, 6.000%, 7/01/25 - RAAI Insured 800 Connecticut Health and Educational Facilities Authority, Revenue 7/15 at 100.00 N/R 788,136 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 BBB- 277,549 Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 - RAAI Insured 2,130 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 2,160,033 Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM Insured
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 200 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 $ 202,150 Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 - NPFG Insured 1,325 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,344,385 Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 - AMBAC Insured 1,500 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 1,549,080 Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40 300 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 300,978 Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29 200 Connecticut Health and Educational Facilities Authority, Revenue 1/16 at 100.00 N/R 157,306 Bonds, Danbury Hospital, Series 2006H, 4.500%, 7/01/33 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 8,615 Total Health Care 8,568,126 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS) 960 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 960,442 Mortgage Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.0% (5.1% OF TOTAL INVESTMENTS) 750 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 751,193 Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative Minimum Tax) 1,300 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,321,775 Program Bonds, Series 2004-A5, 5.050%, 11/15/34 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 433,021 465 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 456,435 585 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 590,996 Program Bonds, Series 2006D, 4.650%, 11/15/27 1,500 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 1,508,025 Mortgage Finance Program Bonds, Series 2010-A2, 4.500%, 11/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ 5,035 Total Housing/Single Family 5,061,445 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 11.8% (7.5% OF TOTAL INVESTMENTS) 500 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 500,595 Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003, 5.750%, 12/01/23 260 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 260,403 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 BBB 616,363 1,025 4.750%, 8/01/32 - RAAI Insured 8/12 at 101.00 BBB 843,883 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 N/R 432,546 475 5.000%, 7/01/20 - AMBAC Insured 7/12 at 101.00 N/R 471,267 260 5.000%, 7/01/23 - AMBAC Insured 7/12 at 101.00 N/R 253,409 1,000 5.000%, 7/01/32 - AMBAC Insured 7/12 at 101.00 N/R 894,160 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 N/R 1,023,860 1,500 5.000%, 6/15/32 - AMBAC Insured 6/12 at 101.00 N/R 1,516,380 500 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 429,600 Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series 2007, 5.500%, 8/15/27 210 Hamden, Connecticut, Facility Revenue Bonds, Whitney Center 1/20 at 100.00 N/R 215,926 Project, Series 2009A, 7.625%, 1/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ 7,810 Total Long-Term Care 7,458,392 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43 NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 21.1% (13.4% OF TOTAL INVESTMENTS) Bethel, Connecticut, General Obligation Bonds, Series 2002: $ 525 5.000%, 11/01/18 - FGIC Insured 11/12 at 100.00 Aa2 $ 575,636 525 5.000%, 11/01/19 - FGIC Insured 11/12 at 100.00 Aa2 575,636 525 5.000%, 11/01/20 - FGIC Insured 11/12 at 100.00 Aa2 575,636 525 5.000%, 11/01/21 - FGIC Insured 11/12 at 100.00 Aa2 575,636 525 5.000%, 11/01/22 - FGIC Insured 11/12 at 100.00 Aa2 575,636 1,200 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 1,297,716 4.750%, 12/15/24 1,500 Connecticut State, General Obligation Bonds, Series 2006E, 12/16 at 100.00 AA 1,692,030 5.000%, 12/15/20 600 Hartford, Connecticut, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 652,806 5.000%, 8/01/21 - AGM Insured New Canaan, Connecticut, General Obligation Bonds, Series 2002A: 900 4.600%, 5/01/20 5/11 at 100.00 Aaa 934,650 500 4.700%, 5/01/21 5/11 at 100.00 Aaa 519,710 1,000 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A1 1,110,080 5.000%, 11/01/17 - AMBAC Insured Southbury, Connecticut, General Obligation Bonds, Series 2002: 500 4.875%, 12/15/20 12/11 at 101.00 Aa2 520,050 500 4.875%, 12/15/21 12/11 at 101.00 Aa2 519,195 500 5.000%, 12/15/22 12/11 at 101.00 Aa2 531,350 Stratford, Connecticut, General Obligation Bonds, Series 2002: 1,375 4.000%, 2/15/19 - AGM Insured 2/12 at 100.00 AAA 1,407,368 630 4.125%, 2/15/20 - AGM Insured 2/12 at 100.00 AAA 644,490 500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 578,090 2005B, 5.000%, 10/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 12,330 Total Tax Obligation/General 13,285,715 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 23.1% (14.7% OF TOTAL INVESTMENTS) 930 Connecticut Health and Educational Facilities Authority, Child 7/16 at 100.00 AAA 955,491 Care Facilities Program Revenue Bonds, Series 2006F, 5.000%, 7/01/36 - AGC Insured 60 Connecticut, Special Tax Obligation Transportation No Opt. Call AA 63,609 Infrastructure 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 AA 3,018,867 1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 1,057,240 1,000 5.000%, 12/01/22 - AMBAC Insured 12/12 at 100.00 AA 1,048,170 500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 536,775 Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured 1,500 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 1,619,370 Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC Insured 900 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 954,747 Special Obligation Revenue Bonds, Harbor Point Project, Series 2010A, 7.875%, 4/01/39 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 1,033,630 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 A3 183,690 2,120 0.000%, 7/01/33 - FGIC Insured No Opt. Call A3 462,224 Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series 2002G: 890 5.250%, 7/01/17 7/12 at 100.00 A3 912,704 1,000 5.250%, 7/01/20 7/12 at 100.00 A3 1,016,870 1,045 5.250%, 7/01/21 7/12 at 100.00 A3 1,060,017 650 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 675,038 Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ 16,185 Total Tax Obligation/Limited 14,598,442 - ------------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 415 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call N/R $ 473,859 Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.4% (14.2% OF TOTAL INVESTMENTS) (4) 500 Bridgeport, Connecticut, General Obligation Bonds, Series 9/13 at 100.00 AAA 567,680 2003A, 5.250%, 9/15/23 (Pre-refunded 9/15/13) - AGM Insured 3,100 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 N/R (4) 3,287,271 Revenue Bonds, Trinity College, Series 2001G, 5.000%, 7/01/21 (Pre-refunded 7/01/11) - AMBAC Insured 450 Farmington, Connecticut, General Obligation Bonds, Series 2002, 9/12 at 101.00 Aaa 497,741 5.000%, 9/15/20 (Pre-refunded 9/15/12) 950 New Canaan, Connecticut, General Obligation Bonds, Series 5/11 at 100.00 Aaa 985,701 2002A, 4.500%, 5/01/19 (Pre-refunded 5/01/11) 40 New Haven, Connecticut, General Obligation Bonds, Series 2002A, 11/11 at 101.00 A1 (4) 43,110 5.250%, 11/01/17 - AMBAC Insured (ETM) 3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 3,094,378 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - AGM Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,083,130 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (Pre-refunded 10/01/10) 1,010 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,144,552 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured (ETM) 195 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 210,526 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 1,100 University of Connecticut, General Obligation Bonds, Series 2/13 at 100.00 AA (4) 1,222,892 2003A, 5.125%, 2/15/21 (Pre-refunded 2/15/13) - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 13,395 Total U.S. Guaranteed 14,136,981 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.1% (5.1% OF TOTAL INVESTMENTS) 720 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 727,027 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 860 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 862,073 Facilities Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%, 11/01/37 (Alternative Minimum Tax) 2,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Ba1 1,992,140 American Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A: 665 5.500%, 1/01/14 (Alternative Minimum Tax) 7/10 at 100.00 BBB 666,071 305 5.500%, 1/01/20 (Alternative Minimum Tax) 7/10 at 100.00 BBB 304,997 530 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/20 at 100.00 A3 536,604 Series 2010XX, 5.250%, 7/01/40 - ------------------------------------------------------------------------------------------------------------------------------------ 5,080 Total Utilities 5,088,912 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 14.1% (8.9% OF TOTAL INVESTMENTS) 400 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 N/R 362,860 Bonds, Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37 - SYNCORA GTY Insured (Alternative Minimum Tax) 1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,324,475 2003A, 5.000%, 10/01/16 Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A: 1,230 5.000%, 11/15/30 - NPFG Insured 11/15 at 100.00 A1 1,267,884 640 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 651,616 230 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 235,955 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 - NPFG Insured 8/13 at 100.00 Aa3 2,149,794 590 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 602,101
Nuveen Investments 45 NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,840 South Central Connecticut Regional Water Authority, Water 8/16 at 100.00 Aa3 $ 1,926,367 System Revenue Bonds, Twentieth Series, 2007A, 5.000%, 8/01/30 - NPFG Insured 350 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ 368,309 Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32 - ------------------------------------------------------------------------------------------------------------------------------------ 8,515 Total Water and Sewer 8,889,361 - ------------------------------------------------------------------------------------------------------------------------------------ $ 98,380 Total Investments (cost $97,919,182) - 157.5% 99,333,907 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (9.2)% (5,780,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (50.7)% (5) (32,000,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 1,505,125 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 63,059,032 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (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) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.2%. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 46 Nuveen Investments NMT | Nuveen Massachusetts Premium Income Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 1.2% (0.8% OF TOTAL INVESTMENTS) $ 1,425 Boston Industrial Development Financing Authority, 9/12 at 102.00 Caa3 $ 831,174 Massachusetts, Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 33.7% (22.3% OF TOTAL INVESTMENTS) 1,045 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 A+ 1,062,086 Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37 - NPFG Insured 375 Massachusetts Development Finance Authority, Revenue Bonds, 10/19 at 100.00 A 392,648 Boston University Issue, Series 2009-V1, 5.000%, 10/01/29 830 Massachusetts Development Finance Authority, Revenue Bonds, 9/10 at 100.50 BBB 834,897 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 1,825,427 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- 806,685 Milton Academy, Series 2003A, 5.000%, 9/01/19 1,500 Massachusetts Development Finance Authority, Revenue Bonds, WGBH No Opt. Call N/R 1,677,645 Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC Insured 4,900 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 5,052,684 Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC Insured (UB) 1,090 Massachusetts Development Finance Authority, Revenue Refunding No Opt. Call A2 1,285,197 Bonds, Boston University, Series 1999P, 6.000%, 5/15/29 1,550 Massachusetts Educational Finance Authority, Educational Loan 1/12 at 100.00 AA 1,606,854 Revenue Bonds, Series 2002A, 5.000%, 1/01/13 - AMBAC Insured (Alternative Minimum Tax) 2,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 2,214,700 Revenue Bonds, Boston College, Series 2003N, 5.250%, 6/01/18 500 Massachusetts Health and Educational Facilities Authority, 9/10 at 100.00 N/R 344,410 Revenue Bonds, Hebrew College, Series 1999A, 0.600%, 7/01/31 - RAAI Insured (4) 1,000 Massachusetts Health and Educational Facilities Authority, 10/19 at 100.00 Baa1 1,042,340 Revenue Bonds, Springfield College, Series 2010, 5.500%, 10/15/31 500 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 Aaa 521,855 Revenue Bonds, Wellesley College, Series 2003H, 5.000%, 7/01/26 555 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AAA 607,431 Revenue Bonds, Williams College, Series 2003H, 5.000%, 7/01/21 1,380 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AAA 1,462,703 Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31 500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 A2 500,885 Revenue Bonds, Worcester State College, Series 2002, 5.000%, 11/01/32 - AMBAC Insured 1,645 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/10 at 100.00 Aa1 1,646,579 Whitehead Institute for Biomedical Research, Series 1993, 5.125%, 7/01/26 375 Puerto Rico Industrial, Tourist, Educational, Medical and 8/10 at 100.50 BBB- 375,278 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ 22,240 Total Education and Civic Organizations 23,260,304 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 26.8% (17.7% OF TOTAL INVESTMENTS) 1,250 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 1,267,500 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 BBB 923,720 Revenue Bonds, Cape Cod Health Care Inc., Series 2001C, 5.250%, 11/15/31 - RAAI Insured Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Inc., Series B1 Capital Asset Program Converted June 13,2008: 2,300 5.375%, 2/01/26 - NPFG Insured 8/18 at 100.00 A 2,347,541 770 5.375%, 2/01/28 - NPFG Insured 8/18 at 100.00 A 782,921 1,500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 1,523,175 Revenue Bonds, Caregroup Inc., Series B2, Capital Asset Program, Converted June 9, 2009, 5.375%, 2/01/27 - NPFG Insured
Nuveen Investments 47 NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Massachusetts Health and Educational Facilities Authority, 7/12 at 101.00 BBB $ 1,011,940 Revenue Bonds, Caritas Christi Obligated Group, Series 2002B, 6.250%, 7/01/22 1,000 Massachusetts Health and Educational Facilities Authority, 12/19 at 100.00 AA 1,061,560 Revenue Bonds, Children's Hospital, Series 2009M, 5.500%, 12/01/39 935 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 N/R 777,228 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 A+ 1,027,620 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+ 2,033,440 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- 483,924 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 BB- 681,420 Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 750 Massachusetts Health and Educational Facilities Authority, 7/10 at 100.00 A 733,665 Revenue Bonds, New England Medical Center Hospitals, Series 1993G-1, 5.375%, 7/01/24 - NPFG Insured 75 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 76,780 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+ 378,596 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+ 1,331,596 Revenue Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33 2,000 Massachusetts State, Health and Educational Facilities 7/17 at 100.00 AA 2,021,320 Authority, Partners HealthCare System Inc., Series 2007G, 5.000%, 7/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 18,985 Total Health Care 18,463,946 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.0% (4.6% OF TOTAL INVESTMENTS) 1,320 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 1,271,450 Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 1,775 Massachusetts Development Financing Authority, Assisted Living 6/10 at 102.00 N/R 1,732,666 Revenue Bonds, Prospect House Apartments, Series 1999, 7.000%,12/01/31 500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 6/13 at 100.00 AA- 502,805 Series 2003S, 5.050%, 12/01/23(Alternative Minimum Tax) 250 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 101.00 N/R 252,830 Revenue Bonds, Series 1999D, 5.500%, 7/01/13 - AMBAC Insured (Alternative Minimum Tax) 1,000 Somerville Housing Authority, Massachusetts, GNMA Collateralized 5/12 at 103.00 AAA 1,047,900 Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002, 5.200%, 11/20/22 - ------------------------------------------------------------------------------------------------------------------------------------ 4,845 Total Housing/Multifamily 4,807,651 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.6% (2.4% OF TOTAL INVESTMENTS) 1,500 Massachusetts Housing Finance Agency, Single Family Housing 6/16 at 100.00 AA 1,412,070 Revenue Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative Minimum Tax) 985 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 1,094,808 Revenue Bonds, Series 2008, Trust 3145, 14.169%, 12/01/28 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 2,485 Total Housing/Single Family 2,506,878 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.1% (0.7% OF TOTAL INVESTMENTS) 305 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 290,363 Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax) 400 Massachusetts Development Finance Agency, Solid Waste Disposal No Opt. Call BBB 429,244 Revenue Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ 705 Total Industrials 719,607 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 7.0% (4.7% OF TOTAL INVESTMENTS) 1,270 Boston, Massachusetts, FHA-Insured Mortgage Revenue Bonds, 10/10 at 103.00 AAA 1,321,994 Deutsches Altenheim Inc., Series 1998A, 6.125%, 10/01/31
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 185 Massachusetts Development Finance Agency, Revenue Bonds, 12/19 at 100.00 A- $ 186,271 Carleton-Willard Village, Series 2010, 5.625%, 12/01/30 1,685 Massachusetts Development Finance Agency, Revenue Bonds, Orchard 10/12 at 102.00 N/R 1,374,926 Cove, Series 2007, 5.250%, 10/01/26 1,500 Massachusetts Development Finance Authority, GNMA Collateralized 3/12 at 105.00 AAA 1,584,825 Assisted Living Facility Revenue Bonds, Arbors at Chicopee, Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax) 400 Massachusetts Industrial Finance Agency, First Mortgage Revenue 1/11 at 101.00 BBB 390,808 Bonds, Berkshire Retirement Community, Series 1994B, 4.750%, 7/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ 5,040 Total Long-Term Care 4,858,824 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 17.0% (11.3% OF TOTAL INVESTMENTS) 500 Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5/15 at 100.00 Aa2 539,380 5.250%, 5/15/23 - AMBAC Insured 600 Boston, Massachusetts, General Obligation Bonds, Series 2005A, 1/15 at 100.00 Aaa 675,492 5.000%, 1/01/17 1,000 Fall River, Massachusetts, General Obligation Bonds, Series 2/13 at 101.00 AAA 1,044,130 2003, 5.000%, 2/01/21 - AGM Insured 2,500 Massachusetts Bay Transportation Authority, General Obligation No Opt. Call Aa1 3,078,475 Transportation System Bonds, Series 1991A, 7.000%, 3/01/21 1,275 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call Aa1 1,480,441 Series 2001D, 6.000%, 11/01/13 - NPFG Insured 980 Monson, Massachusetts, General Obligation Bonds, Series 2002, 5/12 at 101.00 A1 1,045,699 5.250%, 5/15/22 - AMBAC Insured 1,260 Norwell, Massachusetts, General Obligation Bonds, Series 2003, No Opt. Call AAA 1,504,868 5.000%, 11/15/20 - FGIC Insured 1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A3 1,070,580 Series 2001A, 5.500%, 7/01/29 - FGIC Insured 1,220 Worcester, Massachusetts, General Obligation Bonds, Series 7/15 at 100.00 A1 1,306,400 2005A, 5.000%, 7/01/19 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,335 Total Tax Obligation/General 11,745,465 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.0% (9.3% OF TOTAL INVESTMENTS) 210 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 A 217,090 Series 2004, 5.000%, 5/01/26 - AMBAC Insured 975 Massachusetts Bay Transportation Authority, Sales Tax Revenue 7/18 at 100.00 AAA 1,074,002 Bonds, Senior Lien Series 2006C, 5.000%, 7/01/26 385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 461,977 Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21 550 Massachusetts College Building Authority, Project Revenue Bonds, 5/14 at 100.00 Aa2 602,817 Series 2004A, 5.000%,5/01/19 - NPFG Insured 325 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 Aa2 338,416 Series 2006A, 5.000%,5/01/31 - AMBAC Insured 1,200 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 1,262,040 Series 2008A, 5.000%,5/01/33 - AGC Insured 1,000 Massachusetts College Building Authority, Project Revenue No Opt. Call Aa2 1,135,200 Refunding Bonds, Series 2003B, 5.375%, 5/01/23 - SYNCORA GTY Insured 1,300 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 1,432,951 Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - AGM Insured 540 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call A1 606,901 Series 2005, 5.000%, 1/01/20 - FGIC Insured 1,000 Massachusetts, Special Obligation Refunding Notes, Federal No Opt. Call Aa2 1,118,360 Highway Grant Anticipation Note Program, Series 2003A, 5.000%, 12/15/13 - AGM Insured 240 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 24,929 Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured 1,300 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 1,410,708 Authority, Series 2003AA, 5.500%, 7/01/19 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 9,025 Total Tax Obligation/Limited 9,685,391 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49 NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 10.4% (6.9% OF TOTAL INVESTMENTS) $ 2,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- $ 2,123,660 5.000%, 7/01/33 - NPFG Insured 1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 A 992,030 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 N/R 178,234 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, 9/10 at 100.00 A 3,766,960 US Airways Group Inc., Series 1996A, 5.750%, 9/01/16 - NPFG Insured (Alternative Minimum Tax) 115 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 A 115,009 Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 7,340 Total Transportation 7,175,893 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 14.0% (9.3% OF TOTAL INVESTMENTS) (5) 650 Boston, Massachusetts, General Obligation Bonds, Series 2005A, 1/15 at 100.00 N/R (5) 747,611 5.000%, 1/01/17 (Pre-refunded 1/01/15) 25 Massachusetts Bay Transportation Authority, Sales Tax Revenue 7/18 at 100.00 AAA 29,372 Bonds, Senior Lien Series 2006C, 5.000%, 7/01/26 (Pre-refunded 7/01/18) 2,500 Massachusetts Development Finance Authority, GNMA Collateralized 10/11 at 105.00 N/R (5) 2,831,525 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 (5) 535,180 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- (5) 1,151,780 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 A (5) 477,605 Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25 (Pre-refunded 7/01/21) - NPFG Insured 600 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (5) 653,814 Revenue Bonds, New England Medical Center Hospitals, Series 2002H, 5.375%, 5/15/19 (Pre-refunded 5/15/12) - FGIC Insured 1,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 100.00 A+ (5) 1,063,080 Revenue Bonds, University of Massachusetts - Worcester Campus, Series 2001B, 5.250%, 10/01/31 (Pre-refunded 10/01/11) - FGIC Insured 420 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/10 at 100.00 AAA 501,371 13.000%, 7/01/13 (ETM) 1,500 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A1 (5) 1,690,065 Series 2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 8,605 Total U.S. Guaranteed 9,681,403 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.9% (2.0% OF TOTAL INVESTMENTS) 1,000 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 A 1,029,630 Revenue Bonds, SEMass System, Series 2001A, 5.625%, 1/01/16 - NPFG Insured 1,000 Massachusetts Industrial Finance Agency, Resource Recovery 6/10 at 101.00 BBB 993,960 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Utilities 2,023,590 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.1% (8.0% OF TOTAL INVESTMENTS) 500 Boston Water and Sewerage Commission, Massachusetts, General 11/19 at 100.00 AA+ 550,265 Revenue Bonds, Senior Lien Refunding Series 2010A, 5.000%, 11/01/30 2,000 Boston Water and Sewerage Commission, Massachusetts, General 11/14 at 100.00 AA+ 2,135,040 Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25 60 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/13 at 100.00 AAA 63,481 Program Bonds, Series 2003-9, 5.000%, 8/01/22 285 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/14 at 100.00 AAA 302,197 Program Bonds, Series 2004-10, 5.000%, 8/01/26 750 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 765,750 Program Bonds, Series 2005-11, 4.500%, 8/01/29 1,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 1,008,570 Program Bonds, Series 2006-12, 4.375%, 8/01/31 1,250 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 1,357,275 MWRA Loan Program, Series 2002A, 5.250%, 8/01/20
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,500 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AA+ $ 1,615,455 Series 2005A, 5.000%,8/01/28 - NPFG Insured 625 Massachusetts Water Resources Authority, General Revenue Bonds, 8/16 at 100.00 AA+ 571,591 Series 2006A, 4.000%, 8/01/46 - ------------------------------------------------------------------------------------------------------------------------------------ 7,970 Total Water and Sewer 8,369,624 - ------------------------------------------------------------------------------------------------------------------------------------ $ 101,000 Total Investments (cost $102,413,160) - 150.8% 104,129,750 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.5)% (2,450,000) -------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (29.3)% (6) (20,210,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.9% 1,961,161 -------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (20.9)% (6) (14,400,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 69,030,911 ====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value Measurements for more information. (5) 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. (6) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 19.4% and 13.8%, respectively. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 51 NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 1.0% (0.7% OF TOTAL INVESTMENTS) $ 480 Boston Industrial Development Financing Authority, 9/12 at 102.00 Caa3 $ 279,974 Massachusetts, Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 48.7% (32.0% OF TOTAL INVESTMENTS) 450 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 A+ 457,358 Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37 - NPFG Insured 375 Massachusetts Development Finance Authority, Revenue Bonds, 10/19 at 100.00 A 392,648 Boston University Issue, Series 2009-V1, 5.000%, 10/01/29 495 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 517,815 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- 537,790 Milton Academy, Series 2003A, 5.000%, 9/01/19 500 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call N/R 559,215 WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC Insured 2,100 Massachusetts Development Finance Authority, Revenue Bonds, 1/18 at 100.00 AAA 2,165,436 WGBH Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC Insured (UB) 1,000 Massachusetts Development Finance Authority, Revenue 5/29 at 105.00 A2 1,146,070 Refunding Bonds, Boston University, Series 1999P, 6.000%, 5/15/59 990 Massachusetts Educational Finance Authority, Educational Loan 7/10 at 100.00 AA 991,356 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- 1,107,350 Revenue Bonds, Boston College, Series 2003N, 5.250%, 6/01/18 1,000 Massachusetts Health and Educational Facilities Authority, 9/10 at 100.00 N/R 688,820 Revenue Bonds, Hebrew College, Series 1999A, 0.600%, 7/01/31 - RAAI Insured (4) 500 Massachusetts Health and Educational Facilities Authority, 10/19 at 100.00 Baa1 521,170 Revenue Bonds, Springfield College, Series 2010, 5.500%, 10/15/31 2,000 Massachusetts Health and Educational Facilities Authority, 2/11 at 100.00 Aa2 2,016,840 Revenue Bonds, Tufts University, Series 2001I, 5.500%, 2/15/36 1,500 Massachusetts Health and Educational Facilities Authority, No Opt. Call A2 1,504,470 Revenue Bonds, Wheaton College Issues, Series 2010F, 5.000%, 1/01/41 590 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AAA 625,359 Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31 500 Massachusetts Health and Educational Facilities Authority, 7/19 at 100.00 BBB 513,680 Revenue Refunding Bonds, Suffolk University Issue, Series 2009A, 5.750%, 7/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ 13,500 Total Education and Civic Organizations 13,745,377 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 28.4% (18.6% OF TOTAL INVESTMENTS) 500 Massachusetts Health and Educational Facilities Authority 1/18 at 100.00 N/R 446,765 Revenue Bonds, Quincy Medical Center Issue, Series 2008A, 6.500%, 1/15/38 500 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 507,000 Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31 775 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 791,019 Revenue Bonds, Caregroup Inc., Series B1 Capital Asset Program Converted June 13,2008, 5.375%, 2/01/26 - NPFG Insured 500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 507,725 Revenue Bonds, Caregroup Inc., Series B2, Capital Asset Program, Converted June 9, 2009, 5.375%, 2/01/27 - NPFG Insured 250 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 247,995 Revenue Bonds, Caritas Christi Obligated Group, Series 1999A, 5.625%, 7/01/20 1,000 Massachusetts Health and Educational Facilities Authority, 12/19 at 100.00 AA 1,061,560 Revenue Bonds, Children's Hospital, Series 2009M, 5.500%, 12/01/39 295 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A 300,856 Revenue Bonds, Covenant Health Systems Obligated Group, Series 2002, 6.000%, 7/01/31
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Emerson Hospital, Series 2005E: $ 550 5.000%, 8/15/25 - RAAI Insured 8/15 at 100.00 N/R $ 497,101 315 5.000%, 8/15/35 - RAAI Insured 8/15 at 100.00 N/R 261,847 600 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 A+ 616,572 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+ 1,016,720 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- 239,894 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 BB- 340,710 Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 500 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 378,150 Revenue Bonds, Northern Berkshire Community Services Inc., Series 2004B, 6.375%, 7/01/34 35 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 35,831 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+ 504,795 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+ 262,633 Revenue Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ 8,395 Total Health Care 8,017,173 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 11.4% (7.5% OF TOTAL INVESTMENTS) 565 Massachusetts Development Finance Authority, Multifamily 7/17 at 100.00 AAA 544,219 Housing Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 6/13 at 100.00 AA- 502,805 Series 2003S, 5.050%, 12/01/23 (Alternative Minimum Tax) 1,135 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 N/R 1,136,101 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 1,047,900 Collateralized Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002, 5.200%, 11/20/22 - ------------------------------------------------------------------------------------------------------------------------------------ 3,200 Total Housing/Multifamily 3,231,025 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.0% (2.7% OF TOTAL INVESTMENTS) 650 Massachusetts Housing Finance Agency, Single Family Housing 6/16 at 100.00 AA 611,897 Revenue Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative Minimum Tax) 480 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 529,565 Revenue Bonds, Series 2008, Trust 3145, 15.224%, 12/01/33 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 1,130 Total Housing/Single Family 1,141,462 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.8% OF TOTAL INVESTMENTS) 145 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 138,041 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 214,622 Disposal Revenue Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ 345 Total Industrials 352,663 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 8.6% (5.6% OF TOTAL INVESTMENTS) 100 Massachusetts Development Finance Agency, Revenue Bonds, 12/19 at 100.00 A- 100,687 Carleton-Willard Village, Series 2010, 5.625%, 12/01/30 725 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 N/R 591,586 Orchard Cove, Series 2007, 5.250%, 10/01/26 655 Massachusetts Development Finance Authority, First Mortgage 7/11 at 102.00 BBB 667,517 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 1,056,550 Collateralized Assisted Living Facility Revenue Bonds, Arbors at Chicopee, Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,480 Total Long-Term Care 2,416,340 - ------------------------------------------------------------------------------------------------------------------------------------
Investments Nuveen 53 NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 6.8% (4.5% OF TOTAL INVESTMENTS) $ 310 Ashland, Massachusetts, General Obligation Bonds, Series 5/15 at 100.00 Aa2 $ 334,416 2004, 5.250%, 5/15/23 - AMBAC Insured 440 Fall River, Massachusetts, General Obligation Bonds, Series 2/13 at 101.00 AAA 459,417 2003, 5.000%, 2/01/21 - AGM Insured 500 Norwell, Massachusetts, General Obligation Bonds, Series No Opt. Call AAA 597,170 2003, 5.000%, 11/15/20 - FGIC Insured 500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A3 535,290 Series 2001A, 5.500%, 7/01/29 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 1,750 Total Tax Obligation/General 1,926,293 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 11.9% (7.8% OF TOTAL INVESTMENTS) 395 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 A 408,335 Series 2004, 5.000%, 5/01/26 - AMBAC Insured 85 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 85,385 Series 2000A, 5.250%, 7/01/30 385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 461,977 Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21 230 Massachusetts College Building Authority, Project Revenue 5/14 at 100.00 Aa2 252,087 Bonds, Series 2004A, 5.000%, 5/01/19 - NPFG Insured 250 Massachusetts College Building Authority, Project Revenue 5/16 at 100.00 Aa2 260,320 Bonds, Series 2006A, 5.000%, 5/01/31 - AMBAC Insured 550 Massachusetts College Building Authority, Project Revenue 5/18 at 100.00 AAA 578,435 Bonds, Series 2008A, 5.000%, 5/01/33 - AGC Insured 500 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 551,135 Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - AGM Insured 230 Massachusetts, Special Obligation Dedicated Tax Revenue No Opt. Call A1 258,495 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+ 508,655 Loan Note, Series 1999A, 6.375%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ 3,125 Total Tax Obligation/Limited 3,364,824 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.4% (0.9% OF TOTAL INVESTMENTS) 400 Massachusetts Port Authority, Special Facilities Revenue 7/17 at 100.00 A 396,812 Bonds, BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 14.3% (9.4% OF TOTAL INVESTMENTS) (5) 1,000 Boston, Massachusetts, General Obligation Bonds, Series 2/11 at 100.00 Aaa 1,031,680 2001A, 5.000%, 2/01/20 (Pre-refunded 2/01/11) 1,675 Lawrence, Massachusetts, General Obligation Bonds, Series 2/11 at 100.00 Aa2 (5) 1,728,064 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 (5) 125,569 Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10) 80 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A (5) 87,591 Revenue Bonds, Covenant Health Systems Obligated Group, Series 2002, 6.000%, 7/01/31 (Pre-refunded 1/01/12) 215 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AAA 229,547 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 A1 (5) 845,033 Bonds, Series 2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 3,845 Total U.S. Guaranteed 4,047,484 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.7% (3.7% OF TOTAL INVESTMENTS) 1,070 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 A 1,108,402 Revenue Bonds, SEMass System, Series 2001A, 5.625%, 1/01/14 - NPFG Insured 500 Massachusetts Industrial Finance Agency, Resource Recovery 6/10 at 101.00 BBB 496,980 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,570 Total Utilities 1,605,382 - ------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 8.8% (5.8% OF TOTAL INVESTMENTS) $ 530 Boston Water and Sewerage Commission, Massachusetts, General 11/14 at 100.00 AA+ $ 565,786 Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25 125 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 128,236 System Revenue Bonds, Series 2005, 6.000%, 7/01/25 500 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 510,500 Program Bonds, Series 2005-11, 4.500%, 8/01/29 400 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 403,428 Program Bonds, Series 2006-12, 4.375%, 8/01/31 500 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 542,910 MWRA Loan Program, Series 2002A, 5.250%, 8/01/20 105 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/10 at 100.00 AAA 105,743 MWRA Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29 250 Massachusetts Water Resources Authority, General Revenue 8/16 at 100.00 AA+ 228,635 Bonds, Series 2006A, 4.000%, 8/01/46 - ------------------------------------------------------------------------------------------------------------------------------------ 2,410 Total Water and Sewer 2,485,238 - ------------------------------------------------------------------------------------------------------------------------------------ $ 42,630 Total Investments (cost $42,972,702) - 152.3% 43,010,047 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.7)% (1,050,000) -------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (52.2)% (6) (14,725,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.6% 1,000,446 -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 28,235,493 ====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value Measurements for more information. (5) 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. (6) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.2%. N/R Not rated. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 55 NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 26.4% (17.1% OF TOTAL INVESTMENTS) $ 1,135 Massachusetts Development Finance Agency, Revenue Bonds, Boston 10/15 at 100.00 A $ 1,142,854 University, Series 2005T-1, 5.000%, 10/01/39 - AMBAC Insured 600 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 A+ 609,810 Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37 - NPFG Insured 1,250 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,266,388 Middlesex School, Series 2003, 5.000%, 9/01/33 1,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH No Opt. Call N/R 1,118,430 Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC Insured 3,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 3,093,480 Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC Insured (UB) 1,750 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,834,350 Revenue Bonds, Boston College, Series 2003N, 5.125%, 6/01/37 1,500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 A2 1,502,655 Revenue Bonds, Worcester State College, Series 2002, 5.000%, 11/01/32 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,235 Total Education and Civic Organizations 10,567,967 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 16.5% (10.7% OF TOTAL INVESTMENTS) 500 Massachusetts Health and Educational Facilities Authority, 11/19 at 100.00 AAA 503,530 Revenue Bonds, Cape Cod Healthcare Obligated Group, Series 2004D, 5.125%, 11/15/35 - AGC Insured 455 Massachusetts Health and Educational Facilities Authority, 7/10 at 100.00 A 450,700 Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25 - NPFG Insured Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Inc., Series B1 Capital Asset Program Converted June 13,2008: 450 5.375%, 2/01/26 - NPFG Insured 8/18 at 100.00 A 459,302 600 5.375%, 2/01/27 - NPFG Insured 8/18 at 100.00 A 609,270 1,500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 1,525,170 Revenue Bonds, Caregroup Inc., Series B2, Capital Asset Program, Converted June 9, 2009, 5.375%, 2/01/28 - NPFG Insured 585 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 483,924 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 BB- 136,284 Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 2,400 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R 2,196,792 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+ 230,380 Revenue Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ 6,940 Total Health Care 6,595,352 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 10.0% (6.5% OF TOTAL INVESTMENTS) 765 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 736,863 Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 2,000 Massachusetts Housing Finance Agency, Housing Bonds, Series 12/12 at 100.00 AA- 2,006,740 2003H, 5.125%, 6/01/43 1,265 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/12 at 100.00 AAA 1,271,148 Revenue Bonds, Series 2002H, 5.200%, 7/01/42 - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 4,030 Total Housing/Multifamily 4,014,751 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 7.4% (4.8% OF TOTAL INVESTMENTS) Massachusetts Development Finance Authority, Revenue Bonds, 100 Cambridge Street Redevelopment, M/SRBC Project, Series 2002A: 1,475 5.125%, 8/01/28 - NPFG Insured 2/12 at 100.00 A 1,479,941 1,500 5.125%, 2/01/34 - NPFG Insured 2/12 at 100.00 A 1,488,705 - ------------------------------------------------------------------------------------------------------------------------------------ 2,975 Total Industrials 2,968,646 - ------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.6% (3.0% OF TOTAL INVESTMENTS) $ 1,750 Massachusetts Development Finance Authority, GNMA Collateralized 12/12 at 105.00 AAA $ 1,863,523 Revenue Bonds, Neville Communities, Series 2002A, 6.000%, 6/20/44 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 16.6% (10.7% OF TOTAL INVESTMENTS) 1,280 Littleton, Massachusetts, General Obligation Bonds, Series 2003, 1/13 at 101.00 AA 1,350,042 5.000%, 1/15/21 - FGIC Insured 1,500 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 1,778,865 Series 2004B, 5.250%, 8/01/21 - AGM Insured 1,705 North Attleborough, Massachusetts, General Obligation Bonds, 7/14 at 101.00 Aa2 1,944,672 Series 2004, 5.000%, 7/15/15 - FGIC Insured 1,500 Pittsfield, Massachusetts, General Obligation Bonds, Series 4/12 at 101.00 Aa2 1,574,880 2002, 5.000%, 4/15/18 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,985 Total Tax Obligation/General 6,648,459 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.8% (11.5% OF TOTAL INVESTMENTS) 3,000 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/13 at 100.00 A 3,052,920 Series 2002, 5.000%, 5/01/32 - AMBAC Insured 750 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 788,775 Series 2008A, 5.000%, 5/01/33 - AGC Insured 2,790 Massachusetts College Building Authority, Project Revenue 5/13 at 100.00 Aa2 2,944,175 Refunding Bonds, Series 2003A, 5.250%, 5/01/22 - SYNCORA GTY Insured 300 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call A1 337,167 Series 2005, 5.000%, 1/01/20 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,840 Total Tax Obligation/Limited 7,123,037 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.6% (1.7% OF TOTAL INVESTMENTS) 1,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 1,061,830 5.000%, 7/01/33 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 34.9% (22.6% OF TOTAL INVESTMENTS) (4) 2,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 2,182,860 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) 585,370 Massachusetts College of Pharmacy and Allied Health Sciences, Series 2003C, 6.375%, 7/01/23 (Pre-refunded 7/01/13) 100 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 108,239 Revenue Bonds, New England Medical Center Hospitals, Series 2002H, 5.000%, 5/15/25 (Pre-refunded 5/15/12) - FGIC Insured 415 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/10 at 100.00 AAA 495,402 13.000%, 7/01/13 (ETM) 2,000 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/11 at 100.00 Aa1 (4) 2,122,040 Series 2001D, 5.000%, 11/01/20 (Pre-refunded 11/01/11) - NPFG Insured 1,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A1 (4) 1,126,710 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 1,521,825 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - AGM Insured 3,000 Springfield, Massachusetts, General Obligation Bonds, Series 1/13 at 100.00 AA- (4) 3,330,180 2003, 5.250%, 1/15/22 (Pre-refunded 1/15/13) - NPFG Insured 2,140 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 A+ (4) 2,510,156 Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/21 (Pre-refunded 11/01/14) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 12,655 Total U.S. Guaranteed 13,982,782 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 17.5% (11.4% OF TOTAL INVESTMENTS) 1,900 Lynn Water and Sewer Commission, Massachusetts, General Revenue 12/13 at 100.00 A1 1,916,397 Bonds, Series 2003A, 5.000%, 12/01/32 - NPFG Insured 600 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 605,142 Program Bonds, Series 2006-12, 4.375%, 8/01/31 1,000 Massachusetts Water Resources Authority, General Revenue Bonds, No Opt. Call AAA 1,200,390 Series 2002J, 5.250%, 8/01/19 - AGM Insured 1,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/13 at 100.00 AA+ 1,072,400 Series 2004D, 5.000%, 8/01/24 - NPFG Insured
Nuveen Investments 57 NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) Massachusetts Water Resources Authority, General Revenue Bonds, Series 2006A: $ 1,500 5.000%, 8/01/31 - AMBAC Insured 8/16 at 100.00 AA+ $ 1,584,210 125 4.000%, 8/01/46 8/16 at 100.00 AA+ 114,319 495 Springfield Water and Sewerage Commission, Massachusetts, 7/14 at 100.00 A+ 539,410 General Revenue Bonds, Series 2003A, 5.000%, 7/01/16 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,620 Total Water and Sewer 7,032,268 - ------------------------------------------------------------------------------------------------------------------------------------ $ 59,030 Total Investments (cost $59,804,316) - 154.3% 61,858,615 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.7)% (1,500,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (55.1)% (5) (22,075,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.5% 1,811,020 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 40,094,635 =====================================================================================================================
The Fund intends to invest at least 80% of its net assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (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) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 35.7%. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 58 Nuveen Investments NOM | Nuveen Missouri Premium Income Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS) $ 1,000 Missouri Development Finance Board, Solid Waste Disposal Revenue No Opt. Call AA- $ 1,047,820 Bonds, Procter and Gamble Inc., Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 2.0% (1.3% OF TOTAL INVESTMENTS) 250 Lincoln University, Missouri, Auxiliary System Revenue Bonds, 6/17 at 100.00 AAA 256,430 Series 2007, 5.125%, 6/01/37 - AGC Insured 365 Missouri Health and Educational Facilities Authority, Revenue 4/11 at 100.00 A3 369,906 Bonds, Webster University, Series 2001, 5.500%, 4/01/18 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 615 Total Education and Civic Organizations 626,336 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 28.0% (17.9% OF TOTAL INVESTMENTS) 760 Cape Girardeau County Industrial Development Authority, Missouri, 6/17 at 100.00 N/R 700,211 Health Facilities Revenue Bonds, Southeast Missouri Hospital Association, Series 2007, 5.000%, 6/01/27 930 Cass County, Missouri, Hospital Revenue Bonds, Series 2007, 11/16 at 100.00 N/R 845,677 5.625%, 5/01/38 480 Clinton County Industrial Development Authority, Missouri, 12/17 at 100.00 N/R 346,723 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+ 734,498 Facilities Revenue Bonds, Freeman Health System, Series 2004, 5.500%, 2/15/29 500 Missouri Health & Educational Facilities Authority, St. Luke's 6/11 at 101.00 AAA 509,525 Episcopal- Presbyterian Hospitals Revenue Bonds, Series 2001, 5.250%, 12/01/26 - AGM Insured 2,000 Missouri Health and Educational Facilities Authority, Health 11/20 at 100.00 A+ 2,004,800 Facility Revenue Bonds, St. Lukes's Health System, Series 2010A, 5.000%, 11/15/30 (WI/DD, Settling 6/03/10) 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 1,532,385 1,155 5.250%, 5/15/32 5/13 at 100.00 AA 1,173,318 425 Missouri Health and Educational Facilities Authority, Revenue 8/10 at 100.00 BBB+ 425,319 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+ 502,105 Bonds, Lake Regional Health System, Series 2003, 5.700%, 2/15/34 - ------------------------------------------------------------------------------------------------------------------------------------ 9,000 Total Health Care 8,774,561 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.4% (2.1% OF TOTAL INVESTMENTS) 390 Jefferson County Industrial Development Authority, Missouri, 12/11 at 100.00 N/R 382,812 Multifamily Housing Revenue Bonds, Lakewood Apartments Project, Series 2001B, 5.750%, 11/01/34 (Mandatory put 11/01/16) (Alternative Minimum Tax) 165 Missouri Housing Development Commission, Multifamily Housing 12/11 at 100.00 AA 169,260 Revenue Bonds, Series 2001II, 5.250%, 12/01/16 500 St. Charles County Industrial Development Authority, Missouri, 10/10 at 100.00 AAA 500,235 FHA-Insured Multifamily Housing Revenue Bonds, Ashwood Apartments, Series 1998A, 5.600%, 4/01/30 - AGM Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,055 Total Housing/Multifamily 1,052,307 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.5% (2.9% OF TOTAL INVESTMENTS) 60 Missouri Housing Development Commission, Single Family Mortgage 9/10 at 100.00 AAA 61,796 Revenue Bonds, Homeownership Loan Program, Series 2000B-1, 6.250%, 3/01/31 (Alternative Minimum Tax) 530 Missouri Housing Development Commission, Single Family Mortgage 9/16 at 100.00 AAA 530,249 Revenue Bonds, Homeownership Loan Program, Series 2007A-1, 4.700%, 9/01/27 (Alternative Minimum Tax) 855 Missouri Housing Development Commission, Single Family Mortgage 3/17 at 100.00 AAA 834,266 Revenue Bonds, Homeownership Loan Program, Series 2007C-1, 4.800%, 9/01/38 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,445 Total Housing/Single Family 1,426,311 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59 NOM | Nuveen Missouri Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 8.3% (5.3% OF TOTAL INVESTMENTS) $ 1,750 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R $ 1,708,315 Bonds, Lutheran Senior Services - Heisinger Project, Series 2004, 5.500%, 2/01/35 475 Lees Summit Industrial Development Authority, Missouri, Revenue 8/17 at 100.00 N/R 417,967 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 470,855 Revenue Bonds, Friendship Village of West County, Series 2007A, 5.500%, 9/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ 2,725 Total Long-Term Care 2,597,137 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 2.2% (1.4% OF TOTAL INVESTMENTS) 750 Sugar Creek, Missouri, Industrial Development Revenue Bonds, 6/13 at 101.00 BBB- 694,133 Lafarge North America Inc., Series 2003A, 5.650%, 6/01/37 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 30.8% (19.6% OF TOTAL INVESTMENTS) 1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,645,545 Missouri, General Obligation Bonds, Series 2005, 5.250%, 3/01/24 - AGM Insured (4) 1,685 Independence School District, Jackson County, Missouri, General 3/20 at 100.00 AA+ 1,852,085 Obligation Bonds, Series 2010, 5.000%, 3/01/27 500 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 533,615 General Obligation Refunding and Improvement Bonds, Series 2002, 5.250%, 3/01/18 - AGM Insured 500 Missouri School Boards Association, Lease Participation 3/17 at 100.00 AAA 538,500 Certificates, Clay County School District 53 Liberty, Series 2007, 5.250%, 3/01/27 - AGM Insured 1,630 North Kansas City School District, Missouri, General Obligation 3/13 at 100.00 AA+ 1,760,090 Bonds, Series 2003A, 5.000%, 3/01/23 1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 1,085,420 Series 2001A, 5.500%, 7/01/20 - NPFG Insured 1,800 Ritenour Consolidated School District, St. Louis County, No Opt. Call Aa2 1,932,930 Missouri, General Obligation Bonds, Series 1995, 7.375%, 2/01/12 - FGIC Insured 270 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 300,437 General Obligation Bonds, Series 2004, 5.250%, 3/01/20 - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 8,885 Total Tax Obligation/General 9,648,622 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.6% (13.8% OF TOTAL INVESTMENTS) 600 Chesterfield, Missouri, Certificates of Participation, Series 12/15 at 100.00 Aa1 622,188 2005, 5.000%, 12/01/24 - FGIC Insured 80 Cottleville, Missouri, Certificates of Participation, Series 8/14 at 100.00 N/R 69,571 2006, 5.250%, 8/01/31 335 Fenton, Missouri, Tax Increment Revenue Bonds, Gravois Bluffs 4/14 at 100.00 N/R 324,856 Redevelopment Project, Series 2006, 4.500%, 4/01/21 315 Fulton, Missouri, Tax Increment Revenue Bonds, Fulton Commons 6/16 at 100.00 N/R 254,939 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 410,894 Increment Revenue Bonds, Briarcliff West Project, Series 2006A, 5.400%, 6/01/24 360 Missouri Development Finance Board, Infrastructure Facilities 6/15 at 100.00 A 333,853 Revenue Bonds, Branson Landing Project, Series 2005A, 5.000%, 6/01/35 415 Missouri Development Finance Board, Infrastructure Facilities 3/16 at 100.00 A 415,174 Revenue Bonds, City of Independence, Crackerneck Creek Project, Series 2006C, 5.000%, 3/01/28 450 Monarch-Chesterfield Levee District, St. Louis County, Missouri, 9/10 at 101.00 A 456,156 Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19 - NPFG Insured
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 500 Osage Beach, Missouri, Tax Increment Revenue Bonds, Prewitts 5/12 at 102.00 N/R $ 418,830 Point Transportation Development District, Series 2006, 5.000%, 5/01/23 600 Riverside, Missouri, L-385 Levee Redevelopment Plan Tax Increment 5/15 at 100.00 A 616,458 Revenue Bonds, Series 2004, 5.250%, 5/01/20 2,000 Springfield Public Building Corporation, Missouri, Lease Revenue 6/10 at 100.00 N/R 2,002,360 Bonds, Jordan Valley Park Projects, Series 2000A, 6.125%, 6/01/21 - AMBAC Insured St. Joseph Industrial Development Authority, Missouri, Tax Increment Bonds, Shoppes at North Village Project, Series 2005A: 340 5.375%, 11/01/24 11/14 at 100.00 N/R 309,862 400 5.500%, 11/01/27 11/14 at 100.00 N/R 359,012 200 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 179,506 Increment Bonds, Shoppes at North Village Project, Series 2005B, 5.500%, 11/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 7,070 Total Tax Obligation/Limited 6,773,659 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 16.7% (10.6% OF TOTAL INVESTMENTS) 500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 A 501,870 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, 9/10 at 101.00 N/R 997,830 Revenue Refunding and Improvement Bonds, LCRA Parking Facilities, Series 1999C, 7.000%, 9/01/19 1,000 St. Louis, Missouri, Airport Revenue Bonds, Lambert-St. Louis No Opt. Call A 1,083,010 International Airport, Series 2005, 5.500%, 7/01/18 - NPFG Insured 2,500 St. Louis, Missouri, Airport Revenue Bonds, Lambert-St. Louis 7/17 at 100.00 AAA 2,641,875 International Airport, Series 2007A, 5.000%, 7/01/21 - AGM Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Transportation 5,224,585 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.5% (15.6% OF TOTAL INVESTMENTS) (5) 685 Fenton, Missouri, Tax Increment Refunding and Improvement Revenue 10/12 at 100.00 N/R (5) 763,583 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 AA- (5) 2,644,025 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 N/R (5) 1,038,890 Bonds, St. Anthony's Medical Center, Series 2000, 6.250%, 12/01/30 (Pre-refunded 12/01/10) 1,380 Springfield Center City Development Corporation, Missouri, Lease 11/11 at 100.00 Aa3 (5) 1,465,367 Revenue Bonds, Jordan Valley Park Parking Garage, Series 2002D, 5.000%, 11/01/22 (Pre-refunded 11/01/11) - AMBAC Insured 80 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 91,759 General Obligation Bonds, Series 2004, 5.250%, 3/01/20 (Pre-refunded 3/01/14) - AGM Insured 500 St. Louis County, Missouri, GNMA Collateralized Mortgage Revenue No Opt. Call AAA 573,975 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 N/R (5) 1,088,480 Revenue Bonds, Carnahan Courthouse, Series 2002A, 5.750%, 2/15/16 (Pre-refunded 2/15/12) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 7,145 Total U.S. Guaranteed 7,666,079 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.7% (1.1% OF TOTAL INVESTMENTS) 530 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/20 at 100.00 A3 536,604 2010XX, 5.250%, 7/01/40 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 61 NOM | Nuveen Missouri Premium Income Municipal Fund (continued) Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.9% (6.3% OF TOTAL INVESTMENTS) $ 2,965 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AA+ $ 2,726,584 Authority, Water Facility Revenue Bonds, Missouri-American Water Company, Series 2006, 4.600%, 12/01/36 - AMBAC Insured (Alternative Minimum Tax) (UB) 350 Missouri Environmental Improvement and Energy Resources No Opt. Call Aaa 382,809 Authority, Water Pollution Control Revenue Bonds, State Revolving Fund Program - Kansas City Project, Series 1997C, 6.750%, 1/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ 3,315 Total Water and Sewer 3,109,393 - ------------------------------------------------------------------------------------------------------------------------------------ $ 48,535 Total Investments (cost $48,966,860) - 156.9% 49,177,547 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (7.1)% (2,225,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 395,157 --------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (51.0)% (6) (16,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 31,347,704 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Investment, or portion of investment, has been pledged as collateral for inverse floating rate transactions. (5) 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. (6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.5%. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 62 Nuveen Investments | Statement of | Assets & Liabilities May 31, 2010
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ---------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $115,609,318, $60,267,853, $53,119,452 and $97,919,182, respectively) $ 118,239,107 $ 61,714,970 $ 54,742,155 $ 99,333,907 Cash -- -- -- -- Receivables: Interest 1,762,986 807,532 731,090 1,469,971 Investments sold 400,000 250,000 -- -- Deferred offering costs 514,699 547,818 487,147 704,903 Other assets 20,505 6,474 30,866 10,585 - ---------------------------------------------------------------------------------------------------------------------- Total assets 120,937,297 63,326,794 55,991,258 101,519,366 - ---------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft 138,105 10,549 288,379 36,404 Floating rate obligations 7,965,000 3,820,000 3,460,000 5,780,000 Payables: Investments purchased -- -- -- -- Auction Rate Preferred share dividends 1,052 -- -- -- Common share dividends 284,973 155,102 146,226 239,029 Interest 40,412 44,352 36,725 70,667 Offering costs 257,865 234,400 224,400 248,907 MuniFund Term Preferred shares, at liquidation value 18,300,000 20,470,000 16,950,000 32,000,000 Accrued expenses: Management fees 62,911 30,390 24,433 46,483 Other 56,050 29,646 28,043 38,844 - ---------------------------------------------------------------------------------------------------------------------- Total liabilities 27,106,368 24,794,439 21,158,206 38,460,334 - ---------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred shares, at liquidation value 15,725,000 -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 78,105,929 $ 38,532,355 $ 34,833,052 $ 63,059,032 ====================================================================================================================== Common shares outstanding 5,365,029 2,584,269 2,319,104 4,367,134 ====================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.56 $ 14.91 $ 15.02 $ 14.44 ====================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ---------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 53,650 $ 25,843 $ 23,191 $ 43,671 Paid-in surplus 74,500,251 36,644,120 32,822,344 61,584,748 Undistributed (Over-distribution of) net investment income 967,954 451,596 416,725 516,876 Accumulated net realized gain (loss) (45,715) (36,321) (51,911) (500,988) Net unrealized appreciation (depreciation) 2,629,789 1,447,117 1,622,703 1,414,725 - ---------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 78,105,929 $ 38,532,355 $ 34,833,052 $ 63,059,032 ====================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Auction Rate Preferred Unlimited Unlimited Unlimited Unlimited MuniFund Term Preferred Unlimited Unlimited Unlimited Unlimited ======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 63 | Statement of | Assets & Liabilities (continued)
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ---------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $102,413,160, $42,972,702, $59,804,316 and $48,966,860, respectively) $ 104,129,750 $ 43,010,047 $ 61,858,615 $ 49,177,547 Cash 250,652 249,337 691,270 784,388 Receivables: Interest 1,726,360 726,929 927,612 818,320 Investments sold 125,000 -- 110,000 950,000 Deferred offering costs 541,587 448,113 536,783 -- Other assets 17,458 4,994 31,912 7,869 - ---------------------------------------------------------------------------------------------------------------------- Total assets 106,790,807 44,439,420 64,156,192 51,738,124 - ---------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft -- -- -- -- Floating rate obligations 2,450,000 1,050,000 1,500,000 2,225,000 Payables: Investments purchased -- -- -- 1,987,280 Auction Rate Preferred share dividends 1,141 -- -- 749 Common share dividends 284,330 130,748 166,734 125,610 Interest 44,630 31,904 48,749 -- Offering costs 264,275 219,316 211,575 -- MuniFund Term Preferred shares, at liquidation value 20,210,000 14,725,000 22,075,000 -- Accrued expenses: Management fees 55,773 21,307 29,266 25,459 Other 49,747 25,652 30,233 26,322 - ---------------------------------------------------------------------------------------------------------------------- Total liabilities 23,359,896 16,203,927 24,061,557 4,390,420 - ---------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred shares, at liquidation value 14,400,000 -- -- 16,000,000 - ---------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 69,030,911 $ 28,235,493 $ 40,094,635 $ 31,347,704 ====================================================================================================================== Common shares outstanding 4,767,916 1,963,953 2,725,887 2,314,214 ====================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.48 $ 14.38 $ 14.71 $ 13.55 ====================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ---------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 47,679 $ 19,640 $ 27,259 $ 23,142 Paid-in surplus 66,163,333 27,786,504 38,377,333 31,026,177 Undistributed (Over-distribution of) net investment income 914,982 342,155 340,463 440,220 Accumulated net realized gain (loss) 188,327 49,849 (704,719) (352,522) Net unrealized appreciation (depreciation) 1,716,590 37,345 2,054,299 210,687 - ---------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 69,030,911 $ 28,235,493 $ 40,094,635 $ 31,347,704 ====================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Auction Rate Preferred Unlimited Unlimited Unlimited Unlimited MuniFund Term Preferred Unlimited Unlimited Unlimited -- ======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 64 Nuveen Investments | Statement of | Operations Year Ended May 31, 2010
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ---------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 5,451,756 $ 2,764,474 $ 2,477,798 $ 4,335,057 - ---------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 731,002 368,471 331,952 609,899 Auction fees 42,171 19,649 17,242 27,005 Dividend disbursing agent fees 10,000 7,479 9,151 14,192 Shareholders' servicing agent fees and expenses 8,796 1,337 1,210 1,206 Interest expense and amortization of offering costs 278,519 135,503 116,787 347,914 Custodian's fees and expenses 27,089 17,527 16,785 23,867 Trustees' fees and expenses 3,170 1,521 1,375 2,571 Professional fees 15,875 10,954 10,571 13,605 Shareholders' reports -- printing and mailing expenses 33,835 18,918 17,452 26,501 Stock exchange listing fees 9,167 364 327 616 Investor relations expense 8,866 4,307 3,964 7,041 Other expenses 16,816 22,900 24,604 16,366 - ---------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 1,185,306 608,930 551,420 1,090,783 Custodian fee credit (1,450) (827) (445) (1,720) Expense reimbursement -- (47,839) (73,300) (100,751) - ---------------------------------------------------------------------------------------------------------------------- Net expenses 1,183,856 560,264 477,675 988,312 - ---------------------------------------------------------------------------------------------------------------------- Net investment income 4,267,900 2,204,210 2,000,123 3,346,745 - ---------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 60,723 10,610 12,514 1,887 Change in net unrealized appreciation (depreciation) of investments 4,700,543 1,900,772 1,510,001 3,514,247 - ---------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 4,761,266 1,911,382 1,522,515 3,516,134 - ---------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS From net investment income (119,197) (66,605) (59,765) (92,898) From accumulated net realized gains (5,151) -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders (124,348) (66,605) (59,765) (92,898) - ---------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 8,904,818 $ 4,048,987 $ 3,462,873 $ 6,769,981 ======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 65 | Statement of | Operations (continued)
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ---------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 5,212,230 $ 2,165,478 $ 2,882,384 $ 2,340,581 - ---------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 646,378 268,929 390,406 295,984 Auction fees 42,698 17,823 21,173 23,999 Dividend disbursing agent fees 10,000 7,479 15,863 10,000 Shareholders' servicing agent fees and expenses 5,198 591 600 3,427 Interest expense and amortization of offering costs 249,452 96,954 223,654 10,418 Custodian's fees and expenses 25,804 15,227 16,010 14,319 Trustees' fees and expenses 2,898 1,377 1,725 1,290 Professional fees 15,395 10,102 11,437 11,824 Shareholders' reports -- printing and mailing expenses 34,167 16,480 19,975 20,872 Stock exchange listing fees 9,167 277 384 326 Investor relations expense 8,282 3,475 4,792 3,993 Other expenses 17,508 22,156 22,008 18,359 - ---------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 1,066,947 460,870 728,027 414,811 Custodian fee credit (307) (319) (281) (675) Expense reimbursement -- (34,986) (72,462) -- - ---------------------------------------------------------------------------------------------------------------------- Net expenses 1,066,640 425,565 655,284 414,136 - ---------------------------------------------------------------------------------------------------------------------- Net investment income 4,145,590 1,739,913 2,227,100 1,926,445 - ---------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 209,192 60,102 (18,813) 12,118 Change in net unrealized appreciation (depreciation) of investments 5,077,663 1,496,853 2,157,735 2,255,157 - ---------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 5,286,855 1,556,955 2,138,922 2,267,275 - ---------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS From net investment income (122,559) (45,739) (68,205) (67,634) From accumulated net realized gains -- (13,657) -- -- - ---------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders (122,559) (59,396) (68,205) (67,634) - ---------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 9,309,886 $ 3,237,472 $ 4,297,817 $ 4,126,086 ======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 66 Nuveen Investments | Statement of | Changes in Net Assets
CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK) --------------------------- --------------------------- ---------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,267,900 $ 4,513,886 $ 2,204,210 $ 2,342,463 $ 2,000,123 $ 2,107,759 Net realized gain (loss) from: Investments 60,723 (65,422) 10,610 (52,277) 12,514 (53,947) Forward swaps -- -- -- -- -- -- Futures -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 4,700,543 (3,446,470) 1,900,772 (1,392,610) 1,510,001 (903,421) Forward swaps -- -- -- -- -- -- Distributions to Auction Rate Preferred Shareholders: From net investment income (119,197) (772,216) (66,605) (377,309) (59,765) (335,215) From accumulated net realized gains (5,151) (147,930) -- (97,695) -- (99,314) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 8,904,818 81,848 4,048,987 422,572 3,462,873 715,862 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,693,594) (3,221,068) (1,898,150) (1,722,367) (1,752,532) (1,538,392) From accumulated net realized gains (21,997) (400,689) -- (273,291) -- (288,702) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,715,591) (3,621,757) (1,898,150) (1,995,658) (1,752,532) (1,827,094) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 15,348 -- 52,783 28,119 30,801 15,125 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 15,348 -- 52,783 28,119 30,801 15,125 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 5,204,575 (3,539,909) 2,203,620 (1,544,967) 1,741,142 (1,096,107) Net assets applicable to Common shares at the beginning of year 72,901,354 76,441,263 36,328,735 37,873,702 33,091,910 34,188,017 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 78,105,929 $ 72,901,354 $ 38,532,355 $ 36,328,735 $ 34,833,052 $ 33,091,910 ==================================================================================================================================== Undistributed (Over-distribution of)net investment income at the end of year $ 967,954 $ 474,468 $ 451,596 $ 196,527 $ 416,725 $ 211,796 ====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 67 | Statement of | Changes in Net Assets (continued)
CONNECTICUT MASSACHUSETTS MASSACHUSETTS DIVIDEND ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) DIVIDEND ADVANTAGE (NMB) --------------------------- --------------------------- ---------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 3,346,745 $ 3,669,187 $ 4,145,590 $ 4,318,144 $ 1,739,913 $ 1,871,615 Net realized gain (loss) from: Investments 1,887 (124,826) 209,192 136,221 60,102 29,163 Forward swaps -- -- -- 101,206 -- 62,818 Futures -- -- -- (44,426) -- (13,669) Change in net unrealized appreciation (depreciation) of: Investments 3,514,247 (2,451,332) 5,077,663 (4,755,329) 1,496,853 (1,831,289) Forward swaps -- -- -- (92,080) -- (57,153) Distributions to Auction Rate Preferred Shareholders: From net investment income (92,898) (720,819) (122,559) (717,206) (45,739) (334,450) From accumulated net realized gains -- -- -- (80,090) (13,657) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 6,769,981 372,210 9,309,886 (1,133,560) 3,237,472 (272,965) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,973,311) (2,604,243) (3,645,432) (3,084,501) (1,507,494) (1,359,879) From accumulated net realized gains -- -- -- (197,208) (55,550) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,973,311) (2,604,243) (3,645,432) (3,281,709) (1,563,044) (1,359,879) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 17,921 -- 45,881 15,479 31,080 27,520 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 17,921 -- 45,881 15,479 31,080 27,520 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 3,814,591 (2,232,033) 5,710,335 (4,399,790) 1,705,508 (1,605,324) Net assets applicable to Common shares at the beginning of year 59,244,441 61,476,474 63,320,576 67,720,366 26,529,985 28,135,309 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 63,059,032 $ 59,244,441 $ 69,030,911 $ 63,320,576 $ 28,235,493 $ 26,529,985 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 516,876 $ 191,277 $ 914,982 $ 495,820 $ 342,155 $ 137,815 ====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 68 Nuveen Investments
INSURED MASSACHUSETTS MISSOURI TAX-FREE ADVANTAGE (NGX) PREMIUM INCOME (NOM) --------------------------- ---------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,227,100 $ 2,473,655 $ 1,926,445 $ 1,972,280 Net realized gain (loss) from: Investments (18,813) (175,187) 12,118 (348,183) Forward swaps -- -- -- -- Futures -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 2,157,735 (1,160,172) 2,255,157 (2,238,845) Forward swaps -- -- -- -- Distributions to Auction Rate Preferred Shareholders: From net investment income (68,205) (465,067) (67,634) (360,699) From accumulated net realized gains -- -- -- -- - ------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 4,297,817 673,229 4,126,086 (975,447) - ------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,982,428) (1,808,499) (1,571,225) (1,509,479) From accumulated net realized gains -- -- -- -- - ------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,982,428) (1,808,499) (1,571,225) (1,509,479) - ------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 24,769 16,315 58,988 48,910 - ------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 24,769 16,315 58,988 48,910 - ------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 2,340,158 (1,118,955) 2,613,849 (2,436,016) Net assets applicable to Common shares at the beginning of year 37,754,477 38,873,432 28,733,855 31,169,871 - ------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 40,094,635 $ 37,754,477 $ 31,347,704 $ 28,733,855 ====================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 340,463 $ 129,654 $ 440,220 $ 152,639 ======================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 69 | Statement of | Cash Flows Year Ended May 31, 2010
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ---------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 8,904,818 $ 4,048,987 $ 3,462,873 $ 6,769,981 Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: Purchases of investments (9,675,247) (6,678,087) (4,482,500) (11,612,984) Proceeds from sales and maturities of investments 5,733,200 2,287,500 1,718,450 2,623,750 Amortization (Accretion) of premiums and discounts, net 247,577 129,667 101,075 208,740 (Increase) Decrease in receivable for interest (3,812) (14,364) (3,140) (98,816) (Increase) Decrease in receivable for investments sold (215,000) (160,000) -- -- (Increase) Decrease in other assets (2,408) 6,424 (995) 2,468 Increase (Decrease) in payable for Auction Rate Preferred share dividends (434) (1,429) (995) (2,859) Increase (Decrease) in payable for interest 40,412 44,352 36,725 70,667 Increase (Decrease) in accrued management fees 3,455 5,064 3,627 9,427 Increase (Decrease) in accrued other liabilities 19,466 7,649 6,729 7,018 Net realized (gain) loss from investments (60,723) (10,610) (12,514) (1,887) Change in net unrealized (appreciation) depreciation of investments (4,700,543) (1,900,772) (1,510,001) (3,514,247) Taxes paid on undistributed capital gains (1,361) (535) -- (10) - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities 289,400 (2,236,154) (680,666) (5,538,752) - ---------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in cash overdraft balance 138,105 10,549 288,379 36,404 Cash distributions paid to Common shareholders (3,672,118) (1,827,242) (1,706,177) (2,920,659) Increase (Decrease) in payable for Auction Rate Preferred shares noticed for redemption, at liquidation value (1,525,000) (750,000) (675,000) (1,750,000) (Increase) Decrease in deferred offering costs (514,699) (547,818) (487,147) (704,903) Increase (Decrease) in payable for offering costs 257,865 234,400 224,400 248,907 Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value 18,300,000 20,470,000 16,950,000 32,000,000 Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (17,725,000) (17,250,000) (15,450,000) (28,275,000) - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities (4,740,847) 339,889 (855,545) (1,365,251) - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH (4,451,447) (1,896,265) (1,536,211) (6,904,003) Cash at the beginning of year 4,451,447 1,896,265 1,536,211 6,904,003 - ---------------------------------------------------------------------------------------------------------------------------------- CASH AT THE END OF YEAR $ -- $ -- $ -- $ -- ==================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ---------------------------------------------------------------------------------------------------------------------------------- $ 15,348 $ 52,783 $ 30,801 $ 17,921 ==================================================================================================================================
Cash paid for interest (excluding amortization of offering costs, where applicable) was as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ---------------------------------------------------------------------------------------------------------------------------------- $ 198,306 $ 71,919 $ 62,959 $ 232,150 ==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 70 Nuveen Investments
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NMT) (NMB) (NGX) - ---------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 9,309,886 $ 3,237,472 $ 4,297,817 Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: Purchases of investments (5,313,966) (4,983,784) (2,001,969) Proceeds from sales and maturities of investments 3,351,027 4,503,675 620,000 Amortization (Accretion) of premiums and discounts, net 264,657 85,880 147,670 (Increase) Decrease in receivable for interest (25,782) (6,540) (17,267) (Increase) Decrease in receivable for investments sold (15,000) -- (15,000) (Increase) Decrease in other assets (2,190) 6,659 4,644 Increase (Decrease) in payable for Auction Rate Preferred share dividends (242) (1,132) (1,265) Increase (Decrease) in payable for interest 44,630 31,904 48,749 Increase (Decrease) in accrued management fees 2,312 2,368 5,064 Increase (Decrease) in accrued other liabilities 13,414 7,281 7,768 Net realized (gain) loss from investments (209,192) (60,102) 18,813 Change in net unrealized (appreciation) depreciation of investments (5,077,663) (1,496,853) (2,157,735) Taxes paid on undistributed capital gains (24) (242) -- - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities 2,341,867 1,326,586 957,289 - ---------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in cash overdraft balance -- -- -- Cash distributions paid to Common shareholders (3,577,699) (1,514,040) (1,940,160) Increase (Decrease) in payable for Auction Rate Preferred shares noticed for redemption, at liquidation value -- -- -- (Increase) Decrease in deferred offering costs (541,587) (448,113) (536,783) Increase (Decrease) in payable for offering costs 264,275 219,316 211,575 Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value 20,210,000 14,725,000 22,075,000 Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (19,600,000) (14,250,000) (20,500,000) - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities (3,245,011) (1,267,837) (690,368) - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH (903,144) 58,749 266,921 Cash at the beginning of year 1,153,796 190,588 424,349 - ---------------------------------------------------------------------------------------------------------------------------------- CASH AT THE END OF YEAR $ 250,652 $ 249,337 $ 691,270 ==================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NMT) (NMB) (NGX) - ---------------------------------------------------------------------------------------------------------------------------------- $ 45,881 $ 31,080 $ 24,769 ==================================================================================================================================
Cash paid for interest (excluding amortization of offering costs, where applicable) was as follows:
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NMT) (NMB) (NGX) - ---------------------------------------------------------------------------------------------------------------------------------- $ 163,259 $ 47,288 $ 140,563 ==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 71 | Notes to | Financial Statements 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state 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) (collectively, the "Funds"). Common shares of Connecticut Premium Income (NTC) and Massachusetts Premium Income (NMT) are traded on the New York Stock Exchange ("NYSE") 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 NYSE Amex. 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 portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. In June 2009, the Financial Accounting Standards Board ("FASB") established the FASB Accounting Standards Codification(TM) (the "Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). The Codification supersedes existing non-grandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification did not have a material effect on the Funds' financial statements. 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 ("U.S. GAAP"). 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. 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. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates 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 May 31, 2010, Missouri Premium Income (NOM) had outstanding when-issued/delayed delivery purchase commitments of $1,987,280. There were no such outstanding purchase commitments in any of the other Funds. 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. 72 Nuveen Investments INCOME TAXES Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its 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 that 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. For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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 at least 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. GAAP. AUCTION RATE PREFERRED SHARES The following Funds have issued and outstanding Auction Rate Preferred Shares ("ARPS"), $25,000 stated value per share, which approximates market value, as a means of effecting financial leverage. Each Fund's ARPS 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. As of May 31, 2010, the number of ARPS outstanding for each Fund is as follows:
CONNECTICUT MASSACHUSETTS MISSOURI PREMIUM PREMIUM PREMIUM INCOME INCOME INCOME (NTC) (NMT) (NOM) - ---------------------------------------------------------------------------------------------------------------------------------- Number of shares: Series TH 629 576 640 ==================================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. ARPS shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of May 31, 2010, the aggregate amount of outstanding ARPS redeemed by each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ---------------------------------------------------------------------------------------------------------------------------------- ARPS redeemed, at liquidation value $ 22,575,000 $ 19,500,000 $ 17,500,000 $ 32,000,000 ==================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ---------------------------------------------------------------------------------------------------------------------------------- ARPS redeemed, at liquidation value $ 19,600,000 $ 15,000,000 $ 20,500,000 $ -- ==================================================================================================================================
Nuveen Investments 73 | Notes to | Financial Statements (continued) MUNIFUND TERM PREFERRED SHARES The following funds have issued and outstanding MuniFund Term Preferred ("MTP") Shares, with a $10 stated value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem all, or a portion of, each Fund's outstanding ARPS. Each Fund's MTP Shares are issued in one Series. Dividends, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of May 31, 2010, the number of MTP Shares outstanding, annual interest rate and NYSE "ticker" symbol for each Fund are as follows:
CONNECTICUT PREMIUM INCOME (NTC) CONNECTICUT DIVIDEND ADVANTAGE (NFC) ------------------------------------- -------------------------------------- ANNUAL ANNUAL SHARES INTEREST NYSE SHARES INTEREST NYSE OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER - ------------------------------------------------------------------------------------------------------------------------------------ Series 2015 1,830,000 2.65% NTC Pr C 2,047,000 2.60% NFC Pr C ====================================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) ------------------------------------- -------------------------------------- ANNUAL ANNUAL SHARES INTEREST NYSE SHARES INTEREST NYSE OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER - ------------------------------------------------------------------------------------------------------------------------------------ Series 2015 1,695,000 2.60% NGK Pr C 3,200,000 2.65% NGO Pr C ====================================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT) MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) ------------------------------------- -------------------------------------- ANNUAL ANNUAL SHARES INTEREST NYSE SHARES INTEREST NYSE OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER - ------------------------------------------------------------------------------------------------------------------------------------ Series 2015 2,021,000 2.65% NMT Pr C 1,472,500 2.60% NMB Pr C ====================================================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) ------------------------------------------------- ANNUAL SHARES INTEREST NYSE OUTSTANDING RATE TICKER - ------------------------------------------------------------------------------------------------------------------------------------ Series 2015 2,207,500 2.65% NGX Pr C ====================================================================================================================================
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document ("Term Redemption Date"), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund ("Optional Redemption Date"), subject to a payment of premium for one year following the Optional Redemption Date ("Premium Expiration Date"), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund's MTP Shares are as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) SERIES 2015 SERIES 2015 SERIES 2015 SERIES 2015 - ------------------------------------------------------------------------------------------------------------------------------------ Term Redemption Date February 1, 2015 April 1, 2015 April 1, 2015 March 1, 2015 Optional Redemption Date February 1, 2011 April 1, 2011 April 1, 2011 March 1, 2011 Premium Expiration Date January 31, 2012 March 31, 2012 March 31, 2012 February 29, 2012 ====================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NMT) (NMB) (NGX) SERIES 2015 SERIES 2015 SERIES 2015 - ------------------------------------------------------------------------------------------------------------------------------------ Term Redemption Date February 1, 2015 April 1, 2015 March 1, 2015 Optional Redemption Date February 1, 2011 April 1, 2011 March 1, 2011 Premium Expiration Date January 31, 2012 March 31, 2012 February 29, 2012 ====================================================================================================================================
74 Nuveen Investments The average liquidation value of MTP Shares outstanding for each Fund during the fiscal year ended May 31, 2010, was as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC)* (NFC)** (NGK)** (NGO)*** - -------------------------------------------------------------------------------------------------------------------------------- Average liquidation value of MTP Shares outstanding $ 18,300,000 $ 19,944,754 $ 16,753,279 $ 31,672,727 ================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NMT)**** (NMB)***** (NGX)*** - -------------------------------------------------------------------------------------------------------------------------------- Average liquidation value of MTP Shares outstanding $ 20,210,000 $ 14,725,000 $ 21,965,909 ================================================================================================================================
* For the period January 19, 2010 (first issuance date of shares) through May 31, 2010. ** For the period March 31, 2010 (first issuance date of shares) through May 31, 2010. *** For the period February 9, 2010 (first issuance date of shares) through May 31, 2010. **** For the period January 21, 2010 (first issuance date of shares) through May 31, 2010. ***** For the period March 23, 2010 (first issuance date of shares) through May 31, 2010. For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as "Interest payable" on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Net amounts earned by Nuveen Investments, Inc. ("Nuveen") as underwriter of each Fund's MTP Share offering were recorded as reductions of offering costs recognized by the Funds. For the fiscal year ended May 31, 2010 the net amounts earned by Nuveen for each Fund were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - -------------------------------------------------------------------------------------------------------------------------------- Net amounts earned by Nuveen $ 662 $ 1,974 $ -- $ -- ================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NMT) (NMB) (NGX) - -------------------------------------------------------------------------------------------------------------------------------- Net amounts earned by Nuveen $ 1,195 $ -- $ 1,174 ================================================================================================================================
INSURANCE Under normal circumstances, and during the period from June 1, 2009 through May 2, 2010, the Insured Massachusetts Tax-Free Advantage (NGX) invested at least 80% of its net assets, (as defined in Footnote 7 - Management Fees and Other Transactions with Affiliates) in municipal securities that were covered by insurance guaranteeing the timely payment of principal and interest. For purposes of this 80%, insurers must have a claims paying ability rated at least "A" at the time of purchase by at least one independent rating agency. In addition, the Fund invested at least 80% of its net assets in municipal securities that were rated at least "AA" at the time of purchase (based on the higher of the rating of the insurer, if any, or the underlying security) by at least one independent rating agency, or are unrated but judged to be of similar credit quality by Nuveen Asset Management (the "Adviser"), a wholly-owned subsidiary of Nuveen, or are backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities or U.S. Treasury-issued State and Local Government Series securities to ensure timely payment of principal and interest. Inverse floating rate securities whose underlying bonds are covered by insurance are included for purposes of the 80%. Each Fund may also invest up to 20% of its net assets in municipal securities rated below "AA' but at least "BBB" (based on the higher rating of the insurer, if any, or the underlying bond) or are unrated but judged to be of comparable quality by the Adviser. On May 3, 2010, the Funds' Board of Trustees approved changes to Insured Massachusetts Tax-Free Advantage's (NGX) insurance investment policies in response to the continuing challenges faced by municipal bond insurers. The changes to Insured Massachusetts Tax-Free Advantage (NGX)'s investment policies are intended to increase the Fund's investment flexibility in pursuing its investment objective, while retaining the insured nature of its portfolio. The changes, which were effective immediately, provide that under normal circumstances, Insured Massachusetts Tax-Free Advantage (NGX) invest at least 80% of its net assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. In addition, the municipal securities in which Insured Massachusetts Tax-Free Advantage (NGX) invests will be investment grade at the time of purchase (including (i) bonds insured by investment grade insurers or rated investment grade; (ii) unrated bonds that are judged to be investment grade by the Adviser; and (iii) escrowed bonds). Ratings below BBB by one or more national rating agencies are considered to be below investment grade. Nuveen Investments 75 | Notes to | Financial Statements (continued) 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, and is reflected as an expense over the term of the policy, when applicable. 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 include 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 is authorized to 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. 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"). 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 "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust reflected as a financing transaction," 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 recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. During the fiscal year ended May 31, 2010, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") 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 issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At May 31, 2010, the Funds were not invested in externally-deposited Recourse Trusts.
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ------------------------------------------------------------------------------------------------------------------- Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- ===================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------- Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- ===================================================================================================================
76 Nuveen Investments The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended May 31, 2010, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ------------------------------------------------------------------------------------------------------------------- Average floating rate obligations outstanding $ 7,965,000 $ 3,820,000 $ 3,460,000 $ 5,780,000 Average annual interest rate and fees 0.79% 0.78% 0.78% 0.76% ===================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------- Average floating rate obligations outstanding $ 2,450,000 $ 1,050,000 $ 1,500,000 $ 2,225,000 Average annual interest rate and fees 0.65% 0.65% 0.65% 0.47% ===================================================================================================================
FORWARD SWAP CONTRACTS Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality). Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund's 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 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. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as "Unrealized appreciation or depreciation on forward swaps" with the change during the fiscal period recognized on the Statement of Operations as "Change in net unrealized appreciation (depreciation) of forward swaps." 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. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as "Net realized gain (loss) from forward swaps." 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. The Funds did not invest in forward interest rate swap transactions during the fiscal year ended May 31, 2010. FUTURES CONTRACTS Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in attempt to manage such risk. 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." Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as "Deposits with brokers for open futures contracts" on the Statement of Assets and Liabilities. Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable or payable for "Variation margin on futures contracts" on the Statement of Assets and Liabilities, when applicable. During the period the futures contract is open, changes in the value of the contract are recorded as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract and is recognized as "Change in net unrealized appreciation (depreciation) of futures contracts" on the Statement of Operations. 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 and is recognized as "Net realized gain (loss) from futures contracts" on the Statement of Operations. 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. The Funds did not invest in futures contracts during the fiscal year ended May 31, 2010. Nuveen Investments 77 | Notes to | Financial Statements (continued) MARKET AND COUNTERPARTY CREDIT RISK In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, 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 valuations fluctuate, either up or down, by at least the predetermined threshold amount. ZERO COUPON SECURITIES Each Fund is authorized to 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. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. OFFERING COSTS Costs incurred by the Funds in connection with their offerings of MTP Shares were recorded as a deferred charge, which will be amortized over the 5-year life of the shares. Each Fund's amortized deferred charges are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Each Fund's offering costs incurred were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - --------------------------------------------------------------------------------------------------------- MTP Shares offering costs $ 553,838 $ 565,076 $ 504,250 $ 750,000 =========================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NMT) (NMB) (NGX) - --------------------------------------------------------------------------------------------------------- MTP Shares offering costs $ 581,955 $ 465,875 $ 569,951 =========================================================================================================
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 a 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. GAAP 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. 78 Nuveen Investments 2. FAIR VALUE MEASUREMENTS In determining the value of each Fund's investments, various inputs are used. These inputs are summarized in the three broad levels listed below: Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 - Significant unobservable inputs (including management's assumptions in determining the fair value of investments). The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of May 31, 2010:
CONNECTICUT PREMIUM INCOME (NTC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $118,239,107 $ -- $118,239,107 ================================================================================================== CONNECTICUT DIVIDEND ADVANTAGE (NFC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 61,714,970 $ -- $ 61,714,970 ================================================================================================== CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 54,742,155 $ -- $ 54,742,155 ================================================================================================== CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 99,333,907 $ -- $ 99,333,907 ================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $103,785,340 $344,410 $104,129,750 ================================================================================================== MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 42,321,227 $688,820 $ 43,010,047 ================================================================================================== INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 61,858,615 $ -- $ 61,858,615 ================================================================================================== MISSOURI PREMIUM INCOME (NOM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 49,177,547 $ -- $ 49,177,547 ==================================================================================================
The following is a reconciliation of the following Fund's Level 3 investments held at the beginning and end of the measurement period:
MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND INCOME ADVANTAGE (NMT) (NMB) LEVEL3 LEVEL3 INVESTMENTS INVESTMENTS - --------------------------------------------------------------------------------------------- Balance at the beginning of year $ 457,505 $ 915,010 Gains (losses): Net realized gains (losses) -- -- Net change in unrealized appreciation (depreciation) (113,095) (226,190) Net purchases at cost (sales at proceeds) -- -- Net discounts (premiums) -- -- Net transfers in to (out of) at end of period fair value -- -- - --------------------------------------------------------------------------------------------- Balance at the end of year $ 344,410 $ 688,820 =============================================================================================
Nuveen Investments 79 | Notes to | Financial Statements (continued) "Change in net unrealized appreciation (depreciation) of investments" on the Statement of Operations includes net unrealized appreciation (depreciation) related to securities classified as Level 3 at year end as follows:
MASSACHUSETTS MASSACHUSETTS PREMIUM DIVIDEND INCOME ADVANTAGE (NMT) (NMB) - -------------------------------------------------------------------------------------------------------------------- Level 3 net unrealized appreciation (depreciation) $ (113,095) $ (226,190) ====================================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended May 31, 2010. 4. FUND SHARES COMMON SHARES Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding Common shares. Transactions in Common shares were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK) -------------------------- ------------------------ --------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ---------------------------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 1,053 -- 3,615 1,966 2,074 1,051 ==================================================================================================================================
CONNECTICUT MASSACHUSETTS MASSACHUSETTS DIVIDEND ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) DIVIDEND ADVANTAGE (NMB) -------------------------- ------------------------ --------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ---------------------------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 1,261 -- 3,206 1,224 2,198 2,066 ==================================================================================================================================
INSURED MASSACHUSETTS MISSOURI TAX-FREE ADVANTAGE (NGX) PREMIUM INCOME (NOM) ------------------------ --------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 - ---------------------------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 1,696 1,233 4,352 3,842 ==================================================================================================================================
PREFERRED SHARES Transactions in ARPS were as follows:
CONNECTICUT PREMIUM INCOME (NTC) CONNECTICUT DIVIDEND ADVANTAGE (NFC) ------------------------------------------ -------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ----------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ ARPS redeemed and/or noticed for redemption: Series T -- $ -- -- $ -- 609 $17,250,000 90 $2,250,000 Series TH 709 17,725,000 194 4,850,000 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 709 $17,725,000 194 $4,850,000 609 $17,250,000 90 $2,250,000 ====================================================================================================================================
80 Nuveen Investments
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) ------------------------------------------ -------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ----------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ ARPS redeemed and/or noticed for redemption: Series W 618 $15,450,000 82 $2,050,000 -- $ -- -- $ -- Series F -- -- -- -- 1,131 28,275,000 149 3,725,000 - ------------------------------------------------------------------------------------------------------------------------------------ Total 618 $15,450,000 82 $2,050,000 1,131 $28,275,000 149 $3,725,000 ====================================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT) MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) ------------------------------------------ -------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ----------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ ARPS redeemed and/or noticed for redemption: Series T -- $ -- -- $ -- 570 $14,250,000 30 $750,000 Series TH 784 19,600,000 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 784 $19,600,000 -- $ -- 570 $14,250,000 30 $750,000 ====================================================================================================================================
INSURED MASSACHUSETTS TAX-FREE (NGX) -------------------------------------------- YEAR ENDED YEAR ENDED 5/31/10 5/31/09 -------------------------------------------- SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ ARPS redeemed and/or noticed for redemption: Series W 820 $ 20,500,000 -- $ -- ====================================================================================================================================
During the fiscal years ended May 31, 2010 and May 31, 2009, Missouri Premium Income (NOM) did not have any transactions in ARPS. Transactions in MTP Shares were as follows:
CONNECTICUT CONNECTICUT PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) ----------------------------------------- ------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/10 5/31/09 5/31/10 5/31/09 -------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------------------------------------------------- MTP Shares issued: Series 2015 1,830,000 $18,300,000 -- -- 2,047,000 $20,470,000 -- -- =================================================================================================================================
CONNECTICUT CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) DIVIDEND ADVANTAGE 3 (NGO) ----------------------------------------- ------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/10 5/31/09 5/31/10 5/31/09 -------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------------------------------------------------- MTP Shares issued: Series 2015 1,695,000 $16,950,000 -- -- 3,200,000 $32,000,000 -- -- =================================================================================================================================
MASSACHUSETTS MASSACHUSETTS PREMIUM INCOME (NMT) DIVIDEND ADVANTAGE (NMB) ----------------------------------------- ------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/10 5/31/09 5/31/10 5/31/09 -------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------------------------------------------------- MTP Shares issued: Series 2015 2,021,000 $20,210,000 -- -- 1,472,500 $14,725,000 -- -- =================================================================================================================================
Nuveen Investments 81 | Notes to | Financial Statements (continued)
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) ------------------------------------------ YEAR ENDED YEAR ENDED 5/31/10 5/31/09 ------------------------------------------ SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ MTP Shares issued: Series 2015 2,207,500 $22,075,000 -- -- ====================================================================================================================================
5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the fiscal year ended May 31, 2010, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ------------------------------------------------------------------------------------------------------------------------------------ Purchases $9,675,247 $6,678,087 $4,482,500 $11,612,984 Sales and maturities 5,733,200 2,287,500 1,718,450 2,623,750 ====================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Purchases $5,313,966 $4,983,784 $2,001,969 $ 8,052,334 Sales and maturities 3,351,027 4,503,675 620,000 2,920,000 ====================================================================================================================================
6. 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 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 securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At May 31, 2010, the cost and unrealized appreciation (depreciation) of investments as determined on a federal income tax basis, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ------------------------------------------------------------------------------------------------------------------------------------ Cost of investments $107,707,432 $56,455,855 $49,665,853 $92,176,374 - ------------------------------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $ 3,758,562 $ 1,969,557 $ 2,116,003 $ 2,845,364 Depreciation (1,189,947) (530,759) (499,766) (1,466,538) - ------------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $ 2,568,615 $ 1,438,798 $ 1,616,237 $ 1,378,826 ====================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Cost of investments $99,869,135 $41,899,354 $58,304,176 $46,718,530 - ------------------------------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $ 4,143,755 $ 1,228,860 $ 2,506,986 $ 1,338,171 Depreciation (2,333,115) (1,168,156) (452,532) (1,103,692) - ------------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $ 1,810,640 $ 60,704 $ 2,054,454 $ 234,479 ====================================================================================================================================
82 Nuveen Investments Permanent differences, primarily due to federal taxes paid, taxable market discount and distribution character reclassifications, resulted in reclassifications among the Funds' components of net assets at May 31, 2010, the Funds' tax year end, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NTC) (NFC) (NGK) (NGO) - ------------------------------------------------------------------------------------------------------------------------------------ Paid-in surplus $(39,747) $(16,159) $(17,103) $(45,073) Undistributed (Over-distribution of) net investment income 38,377 15,614 17,103 45,063 Accumulated net realized gain (loss) 1,370 545 -- 10 ====================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Paid-in surplus $(41,587) $(18,004) $(34,342) $ -- Undistributed (Over-distribution of) net investment income 41,563 17,660 34,342 (5) Accumulated net realized gain (loss) 24 344 -- 5 ====================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2010, the Funds' 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* $1,288,968 $617,741 $559,855 $799,489 Undistributed net ordinary income ** 2,399 6,433 -- -- Undistributed net long-term capital gains 50,047 9,165 1,210 -- ====================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Undistributed net tax-exempt income* $1,175,615 $469,338 $559,768 $553,717 Undistributed net ordinary income ** 1,005 16,872 1,015 -- Undistributed net long-term capital gains 188,326 49,847 -- -- ====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared May 3, 2010, and paid on June 1, 2010. ** 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' tax years ended May 31, 2010 and May 31, 2009, 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 2010 (NTC) (NFC) (NGK) (NGO) - ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income*** $3,919,054 $1,989,927 $1,832,795 $3,217,850 Distributions from net ordinary income ** -- -- -- -- Distributions from net long-term capital gains**** 27,148 -- -- -- ====================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME 2010 (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income*** $3,896,180 $1,576,968 $2,164,823 $1,628,139 Distributions from net ordinary income ** -- 69,207 -- -- Distributions from net long-term capital gains**** -- -- -- -- ====================================================================================================================================
Nuveen Investments 83 | Notes to | Financial Statements (continued)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2009 (NTC) (NFC) (NGK) (NGO) - ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $3,972,803 $2,099,897 $1,866,508 $3,322,638 Distributions from net ordinary income ** 487,842 223,136 275,669 -- Distributions from net long-term capital gains 60,777 147,900 112,806 -- ====================================================================================================================================
INSURED MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI PREMIUM DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE INCOME 2009 (NMT) (NMB) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $3,759,696 $1,690,469 $2,271,085 $1,871,464 Distributions from net ordinary income ** 123,018 -- -- -- Distributions from net long-term capital gains 154,203 -- -- -- ====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended May 31, 2010, as Exempt Interest Dividends. **** The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852 (b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended May 31, 2010. At May 31, 2010, the Funds' 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 MASSACHUSETTS MISSOURI DIVIDEND TAX-FREE PREMIUM ADVANTAGE 3 ADVANTAGE INCOME (NGO) (NGX) (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Expiration: May 31, 2013 $ 35,642 $ 18,655 $ -- May 31, 2014 111,331 427,135 -- May 31, 2015 211,213 -- -- May 31, 2017 43,691 215,629 260,982 May 31, 2018 13,130 24,486 91,539 - ------------------------------------------------------------------------------------------------------------------------------------ Total $415,007 $685,905 $352,521 ====================================================================================================================================
During the tax year ended May 31, 2010, Connecticut Dividend Advantage (NFC) and Connecticut Dividend Advantage 2 (NGK) utilized $1,980 and $443, respectively, of their capital loss carryforwards. The following Fund elected to defer net realized losses from investments incurred from November 1, 2009 through May 31, 2010, the Fund's 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 following fiscal year:
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) - ------------------------------------------------------------------------------------------------------------------------------------ Post-October capital losses $18,813 ====================================================================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all fund assets managed by the Adviser. This pricing structure enables each Fund's shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser. 84 Nuveen Investments The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
CONNECTICUT PREMIUM INCOME (NTC) MASSACHUSETTS PREMIUM INCOME (NMT) MISSOURI PREMIUM INCOME (NOM) AVERAGE DAILY NET ASSETS* 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) MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) AVERAGE DAILY NET ASSETS* 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 for each Fund, payable monthly, is calculated according to the following schedule:
COMPLEX-LEVEL MANAGED ASSET BREAKPOINT LEVEL* 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 ===================================================================================
* The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds, with such daily managed assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fees, daily net assets and managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds' use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed assets in certain circumstances. As of May 31, 2010, the complex-level fee rate was .1855%. 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. Nuveen Investments 85 | Notes to | Financial Statements (continued) 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, 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. 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, 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, 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, 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. 86 Nuveen Investments 8. NEW ACCOUNTING STANDARDS FAIR VALUE MEASUREMENTS On January 21, 2010, FASB issued changes to the authoritative guidance under U.S. GAAP for fair value measurements. The objective of this guidance is to provide guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for both Level 2 and Level 3 positions, ii) transfers between all levels (including Level 1 and Level 2) on a gross basis (i.e., transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer and iii) purchases, sales, issuances and settlements in the Level 3 rollforward must be shown on a gross basis rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of this guidance and the impact it will have to the financial statement amounts and footnote disclosures, if any. Nuveen Investments 87 | Financial | Highlights Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ------------------------------------------------------------- ---------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL NET BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE ==================================================================================================================================== CONNECTICUT PREMIUM INCOME (NTC) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $13.59 $.80 $ .88 $(.02) $ --* $1.66 $(.69) $ --* $(.69) $14.56 $13.94 2009 14.25 .84 (.66) (.14) (.03) .01 (.60) (.07) (.67) 13.59 13.35 2008 14.39 .83 (.09) (.22) (.01) .51 (.62) (.03) (.65) 14.25 14.08 2007 14.42 .83 .07 (.20) (.01) .69 (.65) (.07) (.72) 14.39 14.91 2006 15.26 .84 (.54) (.14) (.03) .13 (.75) (.22) (.97) 14.42 13.95 CONNECTICUT DIVIDEND ADVANTAGE (NFC) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 14.08 .85 .75 (.03) -- 1.57 (.74) -- (.74) 14.91 15.29 2009 14.69 .91 (.55) (.15) (.04) .17 (.67) (.11) (.78) 14.08 13.75 2008 14.76 .91 .01 (.24) (.02) .66 (.67) (.06) (.73) 14.69 14.93 2007 14.75 .92 .04 (.22) -- .74 (.73) -- (.73) 14.76 16.37 2006 15.39 .93 (.55) (.17) -- .21 (.85) -- (.85) 14.75 16.26 ====================================================================================================================================
AUCTION RATE PREFERRED SHARES AND MUNIFUND AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD AT END OF PERIOD ----------------------------------- ------------------------------------------------------------ ----------------------- AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE ASSET COVERAGE PER $1 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE LIQUIDATION PREFERENCE ==================================================================================================================================== CONNECTICUT PREMIUM INCOME (NTC) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $15,725 $25,000 $82,389 $18,300 $10.00 $10.00 $10.02** $32.96 $3.30 2009 34,975 25,000 77,110 -- -- -- -- -- -- 2008 38,300 25,000 74,896 -- -- -- -- -- -- 2007 38,300 25,000 75,360 -- -- -- -- -- -- 2006 38,300 25,000 75,443 -- -- -- -- -- -- CONNECTICUT DIVIDEND ADVANTAGE (NFC) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 -- -- -- 20,470 10.00 9.98 9.95*** 28.82 -- 2009 18,000 25,000 75,457 -- -- -- -- -- -- 2008 19,500 25,000 73,556 -- -- -- -- -- -- 2007 19,500 25,000 73,749 -- -- -- -- -- -- 2006 19,500 25,000 73,596 -- -- -- -- -- -- ====================================================================================================================================
88 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA -------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) ------------------- ------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME ======================================================================================================= CONNECTICUT PREMIUM INCOME (NTC) - ------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 9.76% 12.49% $78,106 1.57% 1.25% 5.64% 2009 .32 .45 72,901 1.43 1.32 6.40 2008 (1.08) 3.60 76,441 1.30 1.27 5.82 2007 12.33 4.79 77,151 1.24 1.24 5.67 2006 (6.00) .88 77,278 1.25 1.25 5.66 CONNECTICUT DIVIDEND ADVANTAGE (NFC) - ------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 16.92 11.34 38,532 1.62 1.31 5.73 2009 (2.10) 1.50 36,329 1.47 1.36 6.45 2008 (4.10) 4.62 37,874 1.33 1.31 5.90 2007 5.46 5.05 38,024 1.29 1.29 5.78 2006 8.79 1.38 37,905 1.29 1.29 5.70 =======================================================================================================
RATIOS/SUPPLEMENTAL DATA ---------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT(c)(d) ---------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(e) INTEREST INCOME RATE =========================================================================== CONNECTICUT PREMIUM INCOME (NTC) - --------------------------------------------------------------------------- Year Ended 5/31: 2010 N/A% N/A% N/A% 5% 2009 N/A N/A N/A 0 2008 N/A N/A N/A 22 2007 N/A N/A N/A 8 2006 N/A N/A N/A 16 CONNECTICUT DIVIDEND ADVANTAGE (NFC) - --------------------------------------------------------------------------- Year Ended 5/31: 2010 1.49 1.18 5.86 4 2009 1.26 1.15 6.66 0 2008 1.05 1.03 6.18 20 2007 .94 .94 6.14 9 2006 .86 .86 6.12 14 ===========================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based 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 may take 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 Based 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. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * Rounds to less than $.01 per share. ** For the period January 19, 2010 (first issuance date of shares) through May 31, 2010. *** For the period March 31, 2010 (first issuance date of shares) through May 31, 2010. N/A Fund does not have a contractual reimbursement with the Adviser. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 89 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ------------------------------------------------------------- --------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL NET BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE ==================================================================================================================================== CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $14.28 $.86 $ .67 $(.03) $ -- $1.50 $(.76) $ -- $(.76) $15.02 $16.20 2009 14.76 .91 (.43) (.14) (.04) .30 (.66) (.12) (.78) 14.28 14.30 2008 14.85 .91 (.01) (.23) (.02) .65 (.67) (.07) (.74) 14.76 15.00 2007 14.86 .91 .08 (.22) (.01) .76 (.73) (.04) (.77) 14.85 16.38 2006 15.64 .91 (.60) (.17) (.01) .13 (.83) (.08) (.91) 14.86 16.60 CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 13.57 .77 .80 (.02) -- 1.55 (.68) -- (.68) 14.44 14.06 2009 14.08 .84 (.58) (.17) -- .09 (.60) -- (.60) 13.57 13.04 2008 14.30 .87 (.23) (.25) -- .39 (.61) -- (.61) 14.08 13.63 2007 14.18 .86 .13 (.23) -- .76 (.64) -- (.64) 14.30 14.70 2006 14.78 .84 (.54) (.18) -- .12 (.72) -- (.72) 14.18 14.09 ====================================================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD ------------------------------------- --------------------------------------------------------------- AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE ============================================================================================================================ CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) - ---------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 $ -- $ -- $ -- $16,950 $10.00 $ 9.97 $ 9.96* $30.55 2009 16,125 25,000 76,305 -- -- -- -- -- 2008 17,500 25,000 73,840 -- -- -- -- -- 2007 17,500 25,000 74,094 -- -- -- -- -- 2006 17,500 25,000 74,074 -- -- -- -- -- CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) - ---------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 -- -- -- 32,000 10.00 10.00 9.99** 29.71 2009 30,025 25,000 74,329 -- -- -- -- -- 2008 32,000 25,000 73,028 -- -- -- -- -- 2007 32,000 25,000 73,691 -- -- -- -- -- 2006 32,000 25,000 73,302 -- -- -- -- -- ============================================================================================================================
90 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA --------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) ------------------- ----------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME ====================================================================================================== CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) - ------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 19.15% 10.69% $34,833 1.61% 1.32% 5.64% 2009 1.40 2.52 33,092 1.48 1.37 6.31 2008 (3.63) 4.54 34,188 1.36 1.33 5.79 2007 3.58 5.13 34,366 1.31 1.31 5.60 2006 9.78 .84 34,352 1.29 1.29 5.51 CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) - ------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 13.26 11.66 63,059 1.78 1.28 5.28 2009 .53 .89 59,244 1.43 1.32 6.12 2008 (3.07) 2.79 61,476 1.29 1.27 5.70 2007 9.15 5.42 62,325 1.26 1.26 5.44 2006 1.84 .83 61,826 1.24 1.24 5.30 ======================================================================================================
RATIOS/SUPPLEMENTAL DATA ----------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT(c)(d) ----------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(e) INTEREST INCOME RATE ============================================================================ CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) - ---------------------------------------------------------------------------- Year Ended 5/31: 2010 1.40% 1.11% 5.86% 3% 2009 1.19 1.08 6.60 0 2008 1.00 .97 6.15 23 2007 .87 .87 6.04 12 2006 .84 .84 5.96 11 CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) - ---------------------------------------------------------------------------- Year Ended 5/31: 2010 1.61 1.12 5.45 3 2009 1.14 1.03 6.41 0 2008 .88 .86 6.11 24 2007 .78 .78 5.92 15 2006 .76 .76 5.78 9 ============================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based 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 may take 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 Based 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. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * For the period March 31, 2010 (first issuance date of shares) through May 31, 2010. ** For the period February 10, 2010 (first issuance date of shares) through May 31, 2010. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 91 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ------------------------------------------------------------- ------------------------------ DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL NET BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE ==================================================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $13.29 $.87 $1.12 $(.03) $ -- $1.96 $(.77) $ -- $(.77) $14.48 $14.93 2009 14.22 .91 (.98) (.15) (.02) (.24) (.65) (.04) (.69) 13.29 13.28 2008 14.56 .88 (.32) (.25) (.01) .30 (.62) (.02) (.64) 14.22 13.61 2007 14.45 .88 .13 (.23) --* .78 (.67) --* (.67) 14.56 14.33 2006 15.10 .88 (.50) (.18) -- .20 (.81) (.04) (.85) 14.45 14.35 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 13.52 .89 .80 (.02) (.01) 1.66 (.77) (.03) (.80) 14.38 14.10 2009 14.36 .95 (.93) (.17) -- (.15) (.69) -- (.69) 13.52 13.83 2008 14.84 .94 (.45) (.26) (.01) .22 (.68) (.02) (.70) 14.36 14.61 2007 14.83 .93 .08 (.25) -- .76 (.75) -- (.75) 14.84 16.28 2006 15.65 .95 (.54) (.17) (.02) .22 (.85) (.19) (1.04) 14.83 15.53 ====================================================================================================================================
AUCTION RATE PREFERRED SHARES AND MUNIFUND AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD AT END OF PERIOD ----------------------------------- ------------------------------------------------------------ ----------------------- AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE ASSET COVERAGE PER $1 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE LIQUIDATION PREFERENCE ==================================================================================================================================== MASSACHUSETTS PREMIUM INCOME (NMT) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $14,400 $25,000 $74,863 $20,210 $10.00 $10.00 $10.00** $29.95 $2.99 2009 34,000 25,000 71,559 -- -- -- -- -- -- 2008 34,000 25,000 74,794 -- -- -- -- -- -- 2007 34,000 25,000 75,973 -- -- -- -- -- -- 2006 34,000 25,000 75,571 -- -- -- -- -- -- MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 -- -- -- 14,725 10.00 9.98 9.95*** 29.18 -- 2009 14,250 25,000 71,544 -- -- -- -- -- -- 2008 15,000 25,000 71,892 -- -- -- -- -- -- 2007 15,000 25,000 73,453 -- -- -- -- -- -- 2006 15,000 25,000 73,340 -- -- -- -- -- -- ====================================================================================================================================
92 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) ------------------- ----------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME ================================================================================================= MASSACHUSETTS PREMIUM INCOME (NMT) - ------------------------------------------------------------------------------------------------- Year Ended 5/31: 18.77% 15.03% $69,031 1.60% 1.29% 6.21% 2010 3.54 (1.36) 63,321 1.43 1.34 7.01 2009 (.48) 2.08 67,720 1.26 1.26 6.09 2008 4.60 5.47 69,323 1.24 1.24 5.97 2007 (6.14) 1.41 68,776 1.25 1.25 5.98 2006 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) - ------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 7.90 12.50 28,235 1.67 1.38 6.16 2009 (.04) (.70) 26,530 1.54 1.44 7.09 2008 (5.73) 1.55 28,135 1.32 1.32 6.11 2007 10.04 5.14 29,072 1.33 1.33 5.84 2006 (5.23) 1.49 29,004 1.29 1.29 5.79 =================================================================================================
RATIOS/SUPPLEMENTAL DATA ---------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT(c)(d) ---------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(e) INTEREST INCOME RATE ======================================================================= MASSACHUSETTS PREMIUM INCOME (NMT) - ----------------------------------------------------------------------- Year Ended 5/31: N/A% N/A% N/A% 3% 2010 N/A N/A N/A 1 2009 N/A N/A N/A 14 2008 N/A N/A N/A 9 2007 N/A N/A N/A 13 2006 MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) - ----------------------------------------------------------------------- Year Ended 5/31: 2010 1.54 1.25 6.29 11 2009 1.33 1.23 7.30 1 2008 1.05 1.05 6.39 15 2007 .97 .97 6.19 9 2006 .86 .86 6.21 13 =======================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based 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 may take 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 Based 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. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * Rounds to less than $.01 per share. ** For the period January 21, 2010 (first issuance date of shares) through May 31, 2010. *** For the period March 23, 2010 (first issuance date of shares) through May 31, 2010. N/A Fund does not have a contractual reimbursement with the Adviser. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 93 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ------------------------------------------------------------- --------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL NET BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE ==================================================================================================================================== INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $13.86 $.82 $ .79 $(.03) $ -- $1.58 $(.73) $ -- $(.73) $14.71 $15.79 2009 14.28 .91 (.50) (.17) -- .24 (.66) -- (.66) 13.86 13.15 2008 14.50 .90 (.21) (.26) -- .43 (.65) -- (.65) 14.28 14.14 2007 14.39 .90 .08 (.25) -- .73 (.62) -- (.62) 14.50 14.45 2006 14.93 .90 (.53) (.20) -- .17 (.71) -- (.71) 14.39 13.43 MISSOURI PREMIUM INCOME (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 12.44 .83 .99 (.03) -- 1.79 (.68) -- (.68) 13.55 16.50 2009 13.52 .85 (1.12) (.16) -- (.43) (.65) -- (.65) 12.44 12.90 2008 14.27 .89 (.62) (.20) (.04) .03 (.65) (.13) (.78) 13.52 14.76 2007 14.40 .90 (.08) (.23) --* .59 (.72) --* (.72) 14.27 16.56 2006 15.11 .92 (.51) (.17) (.01) .23 (.84) (.10) (.94) 14.40 16.35 ====================================================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD ------------------------------------- --------------------------------------------------------------- AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE ============================================================================================================================ INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) - ---------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 $ -- $ -- $ -- $22,075 $10.00 $10.00 $9.98** $28.16 2009 20,500 25,000 71,042 -- -- -- -- -- 2008 20,500 25,000 72,407 -- -- -- -- -- 2007 20,500 25,000 73,120 -- -- -- -- -- 2006 20,500 25,000 72,779 -- -- -- -- -- MISSOURI PREMIUM INCOME (NOM) - ---------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 16,000 25,000 73,981 -- -- -- -- -- 2009 16,000 25,000 69,897 -- -- -- -- -- 2008 16,000 25,000 73,703 -- -- -- -- -- 2007 16,000 25,000 76,291 -- -- -- -- -- 2006 16,000 25,000 76,460 -- -- -- -- -- ============================================================================================================================
94 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d) ------------------- ---------------------------------- ----------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE ==================================================================================================================================== INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 26.19% 11.61% $40,095 1.86% 1.38% 5.50% 1.67% 1.19% 5.69% 1% 2009 (2.11) 2.00 37,754 1.47 1.38 6.47 1.16 1.06 6.78 0 2008 2.49 3.04 38,873 1.29 1.29 5.82 .85 .85 6.25 13 2007 12.49 5.12 39,458 1.28 1.28 5.67 .79 .79 6.15 6 2006 (11.62) 1.20 39,179 1.29 1.29 5.66 .81 .81 6.14 5 MISSOURI PREMIUM INCOME (NOM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 34.31 14.69 31,348 1.37 1.34 6.37 N/A N/A N/A 7 2009 (7.83) (2.92) 28,734 1.55 1.42 6.96 N/A N/A N/A 2 2008 (5.74) .26 31,170 1.52 1.31 6.43 N/A N/A N/A 5 2007 5.98 4.17 32,826 1.39 1.30 6.15 N/A N/A N/A 16 2006 (3.53) 1.57 32,934 1.29 1.29 6.20 N/A N/A N/A 9 ====================================================================================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based 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 may take 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 Based 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. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * Rounds to less than $.01 per share. ** For the period February 9, 2010 (first issuance date of shares) through May 31, 2010. N/A Fund does not have a contractual reimbursement with the Adviser. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 95 Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o ROBERT P. BREMNER(2) Private Investor and Management Consultant; 8/22/40 Chairman of Treasurer and Director, Humanities Council of 333 W. Wacker Drive the Board 1996 200 Washington, D.C. Chicago, IL 60606 and Board Member o JACK B. EVANS President, The Hall-Perrine Foundation, a 10/22/48 private philanthropic corporation (since 1996); 333 W. Wacker Drive Board Member 1999 200 Director and Chairman, United Fire Group, a Chicago, IL 60606 publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. o WILLIAM C. HUNTER Dean, Tippie College of Business, University of 3/6/48 Iowa (since 2006); Director (since 2004) of 333 W. Wacker Drive Board Member 2004 200 Xerox Corporation; Director (since 2005), Beta Chicago, IL 60606 Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997-2007), Credit Research Center at Georgetown University. o DAVID J. KUNDERT(2) Director, Northwestern Mutual Wealth Management 10/28/42 Company; retired (since 2004) as Chairman, 333 W. Wacker Drive Board Member 2005 200 JPMorgan Fleming Asset Management, President and Chicago, IL 60606 CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and chair of Investment Committee, Greater Milwaukee Foundation. o WILLIAM J. SCHNEIDER(2) Chairman of Miller-Valentine Partners Ltd., a 9/24/44 real estate investment company; formerly, Senior 333 W. Wacker Drive Board Member 1997 200 Partner and Chief Operating Officer (retired, Chicago, IL 60606 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition.
96 Nuveen Investments
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive Board Member 1997 200 thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (1990-1994). o CAROLE E. STONE(2) Director, Chicago Board Options Exchange (since 6/28/47 2006); Director, C2 Options Exchange, 333 W. Wacker Drive Board Member 2007 200 Incorporated (since 2009); Commissioner, New Chicago, IL 60606 York State Commission on Public Authority Reform (since 2005); formerly, Chair, New York Racing Association Oversight Board (2005-2007). o TERENCE J. TOTH(2) 9/29/59 Director, Legal & General Investment Management 333 W. Wacker Drive Board Member 2008 200 America, Inc. (since 2008); Managing Partner, Chicago, IL 60606 Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). INTERESTED BOARD MEMBER: o JOHN P. AMBOIAN(3) Chief Executive Officer (since July 2007), 6/14/61 Director (since 1999) and Chairman (since 2007) 333 W. Wacker Drive Board Member 2008 200 of Nuveen Investments, Inc.; Chief Executive Chicago, IL 60606 Officer (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc.; President (since 2005) of Nuveen Commodities Asset Management, LLC.
Nuveen Investments 97 Board Members & Officers (continued)
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant 9/9/56 Chief Secretary and Associate General Counsel of 333 W. Wacker Drive Administrative 1988 200 Nuveen Investments, LLC; Managing Director, Chicago, IL 60606 Officer Associate General Counsel and Assistant Secretary, of Nuveen Asset Management (since 2002) and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2005) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. o WILLIAM ADAMS IV Executive Vice President of Nuveen Investments, 6/9/55 Inc.; Executive Vice President, U.S. Structured 333 W. Wacker Drive Vice President 2007 125 Products of Nuveen Investments, LLC, (since Chicago, IL 60606 1999),; Executive Vice President (since 2005) of Nuveen Commodities Asset Management, LLC. o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously, 1/11/62 Vice President (1993-2004) of Nuveen 333 W. Wacker Drive Vice President 2007 125 Investments, LLC. Chicago, IL 60606 o NIZIDA ARRIAGA Senior Vice President of Nuveen Investments, LLC 6/1/68 (since 2010); formerly, Vice President 333 W. Wacker Drive Vice President 2009 200 (2007-2010); previously, Portfolio Manager, Chicago, IL 60606 Allstate Investments, LLC (1996-2006); Chartered Financial Analyst. o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen 2/3/66 Vice President Investments, LLC.; Vice President of Nuveen 333 W. Wacker Drive and Assistant 2000 200 Asset Management (since 2005). Chicago, IL 60606 Secretary o MARGO L. COOK Executive Vice President (since Oct 2008) of 4/11/64 Nuveen Investments, Inc.; previously, Head of 333 W. Wacker Drive Vice President 2009 200 Institutional Asset Management (2007-2008) of Chicago, IL 60606 Bear Stearns Asset Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen 10/24/45 Investments, LLC and Managing Director (since 333 W. Wacker Drive Vice President 1998 200 2005) of Nuveen Asset Management. Chicago, IL 60606 o STEPHEN D. FOY Senior Vice President (since 2010), formerly, 5/31/54 Vice President Vice President (1993-2010) and Funds Controller 333 W. Wacker Drive and Controller 1998 200 (since 1998) of Nuveen Investments, LLC; Vice Chicago, IL 60606 President (2005-2010) of Nuveen Asset Management; Certified Public Accountant. o SCOTT S. GRACE Managing Director, Corporate Finance & 8/20/70 Vice President Development, Treasurer (since September 2009) of 333 W. Wacker Drive and Treasurer 2009 200 Nuveen Investments, LLC; Managing Director and Chicago, IL 60606 Treasurer of Nuveen Asset Management (since 2009); formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley's Global Financial Services Group (2000-2003); Chartered Accountant Designation.
98 Nuveen Investments
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed Income 5/7/69 (since 2008) of Nuveen Asset Management; 333 W. Wacker Drive Vice President 2009 136 previously, Chairman, President and Chief Chicago, IL 60606 Executive Officer (2002 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; Certified Public Accountant. o WALTER M. KELLY Senior Vice President (since 2008), Vice 2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice 333 W. Wacker Drive Officer and 2003 200 President and Assistant General Counsel Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Senior Vice President (since 2008), formerly, Vice President (2006-2008) and Assistant Secretary (since 2008) of Nuveen Asset Management. o DAVID J. LAMB Senior Vice President (since 2009), formerly, 3/22/63 Vice President (2000-2009) of Nuveen 333 W. Wacker Drive Vice President 2000 200 Investments, LLC; Vice President (since 2005) of Chicago, IL 60606 Nuveen Asset Management; Certified Public Accountant. o TINA M. LAZAR Senior Vice President (since 2009), formerly, 8/27/61 Vice President of Nuveen Investments, LLC 333 W. Wacker Drive Vice President 2002 200 (1999-2009); Vice President of Nuveen Asset Chicago, IL 60606 Management (since 2005). o LARRY W. MARTIN Senior Vice President (since 2010), formerly, 7/27/51 Vice President Vice President (1993- 2010), Assistant Secretary 333 W. Wacker Drive and Assistant 1988 200 and Assistant General Counsel of Nuveen Chicago, IL 60606 Secretary Investments, LLC; Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007). o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice 3/26/66 Vice President President (2007-2008), Nuveen Investments, LLC; 333 W. Wacker Drive and Secretary 2007 200 Managing Director (since 2008), formerly, Vice Chicago, IL 60606 President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). o JOHN V. MILLER Chief Investment Officer and Managing Director 4/10/67 (since 2007), formerly, Vice President 333 W. Wacker Drive Vice President 2007 136 (2002-2007) of Nuveen Asset Management and Chicago, IL 60606 Managing Director (since 2007), formerly Vice President (2002-2007) Nuveen Investments, LLC; Chartered Financial Analyst.
Nuveen Investments 99 Board Members & Officers (continued)
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o GREGORY MINO Senior Vice President (since 2010) of Nuveen 1/4/71 Investments, LLC, formerly, Vice President 333 W. Wacker Drive Vice President 2009 200 (2008-2010); previously, Director (2004- 2007) Chicago, IL 60606 and Executive Director (2007-2008) of UBS Global Asset Management; previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since 8/1/71 Vice President 2008); Vice President and Assistant Secretary, 333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate, Meagher & Flom LLP (2002-2008). o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since 7/3/62 Vice President 2007); prior thereto, Partner, Deloitte & Touche 333 W. Wacker Drive and Assistant 2007 200 USA LLP (2005-2007), formerly, senior tax Chicago, IL 60606 Secretary manager (2002-2005); Certified Public Accountant. o MARK L. WINGET Vice President, Nuveen Investments, LLC (since 12/21/68 Vice President 2008); Vice President and Assistant Secretary, 333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (2) Also serves as a trustee of the Nuveen Diversified Commodity Fund, a Nuveen-sponsored commodity pool that has filed a registration statement on Form S-1 with the SEC for a proposed initial public offering. The S-1 has not been declared effective, and the commodity pool has not commenced operations. (3) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 100 Nuveen Investments Annual Investment Management Agreement Approval Process The Investment Company Act of 1940, as amended (the "1940 ACT"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "INDEPENDENT BOARD MEMBERS"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 25-26, 2010 (the "MAY MEETING"), the Boards of Trustees or Directors (as the case may be) (each a "BOARD" and each Trustee or Director, a "BOARD MEMBER") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "ADVISORY AGREEMENT") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2010 (the "APRIL MEETING"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting. In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute and comparative performance, fee and expense information for the Funds (as described in more detail below), the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as Nuveen Investments 101 Annual Investment Management Agreement Approval Process (continued) all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM'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 applicable fund product line, including continued activities to refinance auction rate preferred securities, manage leverage during periods of market turbulence and implement an enhanced leverage management process, modify investment mandates in light of market conditions and seek shareholder approval as necessary, maintain the fund share repurchase program and maintain shareholder communications to keep shareholders apprised of Nuveen's efforts in refinancing preferred shares. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, 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 an investor relations program to provide timely information and education to financial advisers and investors; providing marketing for the closed-end funds; maintaining and enhancing a closed-end fund website; participating in conferences and having direct communications with analysts and financial advisors. As part of their review, the Independent Board Members also evaluated the background, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks. In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members also considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures. 102 Nuveen Investments Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM The Board considered the performance results of each Fund over various time periods. The Board reviewed, among other things, each Fund's historic investment performance as well as information comparing the Fund's performance information with that of other funds (the "PERFORMANCE PEER GROUP") based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks. In this regard, the Board reviewed each Fund's total return information compared to its Performance Peer Group for the quarter, one-, three- and five-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for Funds that did not exist during part of the foregoing time frame). In addition, the Board reviewed each Fund's total return information compared to recognized and/or customized benchmarks for the quarter, one- and three-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for Funds that did not exist during part of the foregoing time frame). Moreover, the Board reviewed the peer ranking of the Nuveen municipal funds advised by NAM in the aggregate. The Independent Board Members also reviewed historic premium and discount levels. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. In reviewing peer comparison information, the Independent Board Members recognized that the Performance Peer Group of certain funds may not adequately represent the objectives and strategies of the funds, thereby limiting the usefulness of comparing a fund's performance with that of its Performance Peer Group. In this regard, the Independent Board Members considered that the Performance Peer Groups of certain funds (including the Funds) were classified as having significant differences from such funds based on considerations such as special fund objectives, potential investable universe and the composition of the peer set (e.g., the number and size of competing funds and number of competing managers). Based on their review, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. The Independent Board Members noted that the Nuveen Connecticut Dividend Advantage Municipal Fund and the Nuveen Connecticut Dividend Advantage Municipal Fund 2 outperformed or matched the performance of their respective benchmarks in the one- and three-year periods and that each other Fund outperformed the performance of its respective benchmark in the one-year period but underperformed such benchmark in the three-year period. Nuveen Investments 103 Annual Investment Management Agreement Approval Process (continued) C. FEES, EXPENSES AND PROFITABILITY 1. Fees and Expenses The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "PEER UNIVERSE") and in certain cases, to a more focused subset of funds in the Peer Universe (the "PEER GROUP") and any expense limitations. The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and/or Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; the differences in the type and use of leverage; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data, thereby limiting the ability to make a meaningful comparison with peers. In reviewing the fee schedule for a Fund, the Independent Board Members also 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 closed-end funds launched since 1999). Except as set forth in the following sentence, the Independent Board Members noted that the Funds had net management fees and/or net expense ratios below, at or near (within 5 basis points or less) the peer averages of their Peer Group or Peer Universe. The Nuveen Connecticut Premium Income Municipal Fund, the Nuveen Massachusetts Premium Income Municipal Fund and the Nuveen Missouri Premium Income Municipal Fund had net advisory fees above the peer average but net expense ratios below, at or near the peer expense ratio average. Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. Comparisons with the Fees of Other Clients The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients, including municipal separately managed accounts and passively managed municipal bond exchange traded funds (ETFs) that are sub-advised by NAM. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent 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 104 Nuveen Investments regulatory requirements. The Independent 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. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. 3. Profitability of Nuveen In conjunction with its review of fees, the Independent 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. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2009. The Independent 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 Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent 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 Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business. Based on their review, the Independent 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 Independent 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 Independent Board Nuveen Investments 105 Annual Investment Management Agreement Approval Process (continued) Members determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio. In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase. E. INDIRECT BENEFITS In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk and as co-manager in initial public offerings of new closed-end funds. In addition to the above, the Independent 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. The Independent 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. 106 Nuveen Investments Based on their review, the Independent 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 Independent 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 Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed. Nuveen Investments 107 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 AUTOMATIC REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 quarter you'll receive a statement showing your total 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. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may 108 Nuveen Investments exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the 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. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. 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 financial 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 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. Nuveen Investments 109 Glossary of Terms Used in this Report o AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed," with current holders receiving a formula-based interest rate until the next scheduled auction. o 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. o 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. o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse floaters, 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. 110 Nuveen Investments o 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. o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value. o 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. o 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. Nuveen Investments 111 Notes 112 Nuveen Investments Other Useful Information BOARD OF TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth 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 QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's 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, 2009, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange ("NYSE") the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/or redeem shares of its own common and/or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or preferred stock as shown in the accompanying table. COMMON SHARES PREFERRED SHARES FUND REPURCHASED REDEEMED NTC -- 709 NFC -- 609 NGK -- 618 NGO -- 1,131 NMT -- 784 NMB -- 570 NGX -- 820 NOM -- -- Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. Nuveen Investments 113 Nuveen Investments: Serving Investors for Generations Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, longterm investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio. FOCUSED ON MEETING INVESTOR NEEDS. Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $150 billion of assets on March 31, 2010. FIND OUT HOW WE CAN HELP YOU. To learn more about the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain 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/CEF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com EAN-B-0510D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Connecticut Premium Income Municipal Fund The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2010 $ 10,967 $ 15,000 $ 0 $ 850 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2009 $ 10,967 $ 0 $ 0 $ 850 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2010 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2009 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2010 $ 850 $ 0 $ 0 $ 850 May 31, 2009 $ 850 $ 0 $ 0 $ 850
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert. ITEM 6. SCHEDULE OF INVESTMENTS. a) See Portfolio of Investments in Item 1. b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND Cathryn P. Steeves Nuveen Connecticut Premium Income Municipal Fund Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: TYPE OF ACCOUNT NUMBER OF PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS* - -------------------------------------------------------------------------------- Cathryn P. Steeves Registered Investment Company 44 $8.258 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 0 $0 * Assets are as of May 31, 2010. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of May 31, 2010, the S&P/Investortools Municipal Bond index was comprised of 55,306 securities with an aggregate current market value of $1,205 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors lead by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. In addition, in July 2009, Nuveen Investments created and funded a trust, as part of a newly-established incentive program, which purchased shares of certain Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain employees, including portfolio managers. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of May 31, 2010, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF DOLLAR EQUITY SECURITIES RANGE OF BENEFICIALLY OWNED EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS BENEFICIALLY MANAGED BY NAM'S NAME OF PORTFOLIO OWNED IN MUNICIPAL MANAGER FUND FUND INVESTMENT TEAM - ----------------------------------------------------------------------------------------------------------------------- Cathryn P. Steeves Nuveen Connecticut Premium Income Municipal Fund $0 $10,001-$50,000
PORTFOLIO MANAGER BIO: Cathryn P. Steeves, PhD, Senior Vice President of NAM, is currently a portfolio manager for 45 state-specific municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst in the healthcare sector. Ms. Steeves has an undergraduate degree from Wake Forest University as well as an MA, an MPhil and a PhD from Columbia University. 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. Letter or number the exhibits in the sequence indicated. (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 because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) (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: August 6, 2010 ------------------------------------------------------------------- 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: August 6, 2010 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: August 6, 2010 ------------------------------------------------------------------- EX-99.CERT 2 ex99cert.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Connecticut Premium Income Municipal Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 6, 2010 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Connecticut Premium Income Municipal Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 6, 2010 /s/ Stephen D. Foy ------------------------- -------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) EX-99.906 CERT 3 ex99cert906.txt CERTIFICATION Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Connecticut Premium Income Municipal Fund (the "Fund") certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended May 31, 2010 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: August 6, 2010 ----------------------- /s/ Gifford R. Zimmerman --------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy --------------------------------- Stephen D. Foy Vice President, Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----