- Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-09459

 

Nuveen Arizona Dividend Advantage Municipal Fund

(Exact name of registrant as specified in charter)

 

Nuveen Investments

        333 West Wacker Drive, Chicago, Illinois 60606         

(Address of principal executive offices) (Zip code)

 

Kevin J. McCarthy

Vice President and Secretary

        333 West Wacker Drive, Chicago, Illinois 60606         

(Name and address of agent for service)

 

Registrant's telephone number, including area code:         312-917-7700        

 

Date of fiscal year end:             2/28          

 

Date of reporting period:          5/31/12         

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 

 

 

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Item 1. Schedule of Investments

 

 

		Portfolio of Investments (Unaudited)
		Nuveen Arizona Dividend Advantage Municipal Fund (NFZ)
		May 31, 2012
Principal			Optional Call
Amount (000)		Description (1)	Provisions (2)	Ratings (3)	Value
		Education and Civic Organizations – 10.7% (7.5% of Total Investments)
$ 280		Arizona Higher Education Loan Authority, Student Loan Revenue Bonds, Series 2007B, Auction	9/12 at 100.00	A	$ 205,456
		Rate Securities, 0.665%, 11/01/41 (Alternative Minimum Tax) (4)
275		Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University,	5/22 at 100.00	A–	299,637
		Refunding Series 2007, 5.000%, 5/15/31
500		Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University,	5/20 at 100.00	A+	526,330
		Refunding Series 2010, 5.125%, 5/15/40
105		Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Brighter	7/22 at 100.00	BB+	107,523
		Choice Foundation Charter Middle Schools Project, Series 2012, 7.500%, 7/01/42
80		Phoenix Industrial Development Authority, Arizona, Education Revenue Bonds, Great Hearts	7/21 at 100.00	BBB	84,150
		Academies – Veritas Project, Series 2012, 6.300%, 7/01/42
100		Phoenix Industrial Development Authority, Arizona, Education Revenue Bonds, Painted Rock	7/20 at 100.00	N/R	102,050
		Academy Charter School Project, Series 2012A, 7.500%, 7/01/42
100		Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Carden	1/22 at 100.00	BBB–	105,655
		Traditional Schools Project, Series 2012, 7.500%, 1/01/42
130		Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise	6/19 at 100.00	BBB–	130,737
		Education Center Project, Series 2010, 6.000%, 6/01/40
165		Pima County Industrial Development Authority, Arizona, Educational Revenue Bonds, Paradise	6/16 at 100.00	BBB–	165,290
		Education Center Charter School, Series 2006, 6.000%, 6/01/36
220		Pima County Industrial Development Authority, Arizona, Educational Revenue Bonds, Valley	7/18 at 100.00	Baa3	225,524
		Academy Charter School Project, Series 2008, 6.500%, 7/01/38
300		Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities	9/12 at 100.00	BBB	300,408
		Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series
		2001, 5.250%, 9/01/21
305		Tucson Industrial Development Authority, Arizona, Charter School Revenue Bonds, Arizona	9/14 at 100.00	BB+	292,297
		Agribusiness and Equine Center Charter School, Series 2004A, 6.125%, 9/01/34
2,560		Total Education and Civic Organizations			2,545,057
		Health Care – 21.4% (15.0% of Total Investments)
565		Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series	1/17 at 100.00	AA–	629,348
		2007A, 5.000%, 1/01/25
325		Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series	1/17 at 100.00	AA–	236,642
		2007B, 1.124%, 1/02/37
720		Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series	1/18 at 100.00	AA–	780,466
		2008D, 5.500%, 1/01/38
10		California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist	3/13 at 100.00	A	10,077
		Health System/West, Series 2003A, 5.000%, 3/01/28
250		Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health	12/15 at 100.00	BBB+	251,473
		Network, Series 2005B, 5.000%, 12/01/37
415		Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health	12/17 at 100.00	BBB+	419,071
		Network, Series 2007, 5.000%, 12/01/42
750		Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds,	7/14 at 100.00	A+	792,315
		Catholic Healthcare West, Series 2004A, 5.375%, 7/01/23
1,025		Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds,	7/17 at 100.00	A+	1,102,644
		Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32
		Show Low Industrial Development Authority, Arizona, Hospital Revenue Bonds, Navapache Regional
		Medical Center, Series 2005:
200		5.000%, 12/01/25 – RAAI Insured	12/15 at 100.00	BBB+	202,102
150		5.000%, 12/01/30 – RAAI Insured	12/15 at 100.00	BBB+	150,645
450		University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2011,	7/21 at 100.00	BBB+	505,386
		6.000%, 7/01/39
4,860		Total Health Care			5,080,169
		Housing/Multifamily – 3.8% (2.7% of Total Investments)
1,000		Maricopa County Industrial Development Authority, Arizona, Multifamily Housing Revenue Bonds,	7/12 at 100.00	Baa2	902,340
		Whispering Palms Apartments, Series 1999A, 5.900%, 7/01/29 – NPFG Insured
		Long-Term Care – 0.5% (0.3% of Total Investments)
105		Tempe Industrial Development Authority, Arizona, Revenue Bonds, Friendship Village of Tempe	12/21 at 100.00	N/R	109,635
		Project, Refunding Series 2012A, 6.000%, 12/01/32
		Tax Obligation/General – 18.6% (13.0% of Total Investments)
1,000		Maricopa County Unified School District 11, Peoria, Arizona, General Obligation Bonds, Second	7/15 at 100.00	Aa2	1,123,260
		Series 2005, 5.000%, 7/01/20 – FGIC Insured
180		Pima County Continental Elementary School District 39, Arizona, General Obligation Bonds,	7/21 at 100.00	AA–	222,250
		Series 2011A, 2.000%, 7/01/30 – AGM Insured
1,310		Scottsdale, Arizona, General Obligation Bonds, Preserve Acquisition Series 1999, 5.000%, 7/01/32	7/21 at 100.00	AAA	1,547,188
1,340		Yuma & La Paz Counties Community College District, Arizona, General Obligation Bonds, Series	7/16 at 100.00	Aa2	1,510,434
		2006, 5.000%, 7/01/21 – NPFG Insured
3,830		Total Tax Obligation/General			4,403,132
		Tax Obligation/Limited – 42.5% (29.7% of Total Investments)
660		Arizona Sports and Tourism Authority, Senior Revenue Refunding Bonds, Multipurpose Stadium	7/22 at 100.00	A1	718,588
		Facility Project, Series 2012A, 5.000%, 7/01/36 (WI/DD, Settling 6/05/12)
82		Centerra Community Facilities District, Goodyear, Arizona, General Obligation Bonds, Series	7/15 at 100.00	N/R	75,342
		2005, 5.500%, 7/15/29
204		Estrella Mountain Ranch Community Facilities District, Arizona, Special Assessment Bonds,	1/17 at 100.00	N/R	196,599
		Montecito Assessment District, Series 2007, 5.700%, 7/01/27
117		Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment	7/12 at 100.00	N/R	117,201
		Lien Bonds, Series 2001A, 7.875%, 7/01/25
1,000		Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006-1, 5.000%,	8/16 at 100.00	AA–	1,142,320
		8/01/22 – NPFG Insured
275		Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006A, 5.000%,	8/16 at 100.00	A1	307,395
		8/01/23 – NPFG Insured
1,180		Marana Municipal Property Corporation, Arizona, Revenue Bonds, Series 2003, 5.000%, 7/01/23 –	7/13 at 100.00	AA	1,226,480
		AMBAC Insured
468		Marana, Arizona, Tangerine Farms Road Improvement District Revenue Bonds, Series 2006,	7/16 at 100.00	A2	482,686
		4.600%, 1/01/26
150		Marley Park Community Facilities District, City of Surprise, Arizona, Limited Tax General	7/17 at 100.00	N/R	146,258
		Obligation Bonds, Series 2008 (Bank Qualified), 6.100%, 7/15/32
255		Merrill Ranch Community Facilities District 1, Florence, Arizona, General Obligation Bonds,	7/18 at 100.00	N/R	275,969
		Series 2008A, 7.400%, 7/15/33
330		Palm Valley Community Facility District 3, Goodyear, Arizona, General Obligation Bonds, Series	7/16 at 100.00	N/R	294,264
		2006, 5.300%, 7/15/31
225		Palm Valley Community Facility District 3, Goodyear, Arizona, Limited Tax General Obligation	7/17 at 100.00	N/R	211,761
		Bonds, Series 2007, 5.800%, 7/15/32
100		Parkway Community Facilities District 1, Prescott Valley, Arizona, General Obligation Bonds,	7/16 at 100.00	N/R	89,723
		Series 2006, 5.350%, 7/15/31
725		Phoenix Industrial Development Authority, Arizona, Government Bonds, Capitol Mall LLC II,	8/12 at 100.00	A1	727,371
		Series 2001, 5.250%, 9/15/16 – AMBAC Insured
100		Phoenix Mesa Gateway Airport Authority, Arizona, Special Facility Revenue Bonds, Mesa Project,	7/22 at 100.00	AA+	102,747
		Series 2012, 5.000%, 7/01/38 (Alternative Minimum Tax)
680		Pinal County Industrial Development Authority, Arizona, Correctional Facilities Contract	10/12 at 100.00	BBB–	682,387
		Revenue Bonds, Florence West Prison LLC, Series 2002A, 5.000%, 10/01/18 – ACA Insured
600		San Luis Civic Improvement Corporation, Arizona, Municipal Facilities Excise Tax Revenue	7/15 at 100.00	A+	633,078
		Bonds, Series 2005, 5.000%, 7/01/25 – SYNCORA GTY Insured
1,000		Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series	No Opt. Call	AAA	1,269,489
		2006, 5.000%, 7/01/24
350		Tartesso West Community Facility District, Buckeye, Arizona, Limited Tax General Obligation	7/17 at 100.00	N/R	333,361
		Bonds, Series 2007, 5.900%, 7/15/32
500		Vistancia Community Facilities District, Peoria, Arizona, General Obligation Bonds, Series	7/15 at 100.00	A1	532,750
		2005, 5.750%, 7/15/24
339		Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, Series	7/16 at 100.00	N/R	314,650
		2005, 6.000%, 7/01/30
225		Westpark Community Facilities District, Buckeye, Arizona, General Obligation Tax Increment	7/16 at 100.00	N/R	199,393
		Bonds Series 2006, 5.250%, 7/15/31
9,565		Total Tax Obligation/Limited			10,079,812
		U.S. Guaranteed – 14.9% (10.4% of Total Investments) (5)
1,220		Arizona Tourism and Sports Authority, Tax Revenue Bonds, Multipurpose Stadium Facility	7/13 at 100.00	A1 (5)	1,281,768
		Project, Series 2003A, 5.000%, 7/01/31 (Pre-refunded 7/01/13) – NPFG Insured
240		Maricopa County Union High School District 210 Phoenix, Arizona, General Obligation Bonds,	7/16 at 100.00	AA (5)	281,842
		Series 2006C, 5.000%, 7/01/24 (Pre-refunded 7/01/16) – NPFG Insured
630		Mesa, Arizona, Utility System Revenue Refunding Bonds, Series 2002, 5.250%, 7/01/17 –	No Opt. Call	Aa2 (5)	768,493
		FGIC Insured (ETM)
1,200		Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series	7/12 at 100.00	AAA	1,204,764
		2002, 5.000%, 7/01/26 (Pre-refunded 7/01/12) – FGIC Insured
3,290		Total U.S. Guaranteed			3,536,867
		Utilities – 24.9% (17.5% of Total Investments)
1,500		Arizona Power Authority, Special Obligation Power Resource Revenue Refunding Crossover Bonds,	No Opt. Call	AA	1,823,129
		Hoover Project, Series 2001, 5.250%, 10/01/17
600		Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Refunding	6/20 at 100.00	A1	659,472
		Bonds, Southern California Edison Company, Series 2000A, 5.000%, 6/01/35
370		Mesa, Arizona, Utility System Revenue Refunding Bonds, Series 2002, 5.250%, 7/01/17 –	No Opt. Call	Aa2	443,175
		FGIC Insured
665		Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric Power	1/15 at 100.00	BBB–	707,347
		Company, Refunding Series 2008, 5.750%, 9/01/29
400		Pinal County Electrical District 3, Arizona, Electric System Revenue Bonds, Refunding Series	7/21 at 100.00	A	437,912
		2011, 5.250%, 7/01/36
1,000		Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/26 –	7/15 at 100.00	BBB+	1,054,680
		SYNCORA GTY Insured
560		Salt River Project Agricultural Improvement and Power District, Arizona, Electric System	1/18 at 100.00	Aa1	792,915
		Revenue Bonds, Tender Option Bond Trust 09-9W, 17.850%, 1/01/38 (IF) (6)
5,095		Total Utilities			5,918,630
		Water and Sewer – 5.6% (3.9% of Total Investments)
475		Goodyear, Arizona, Water and Sewer Revenue Obligations, Series 2010, 5.625%, 7/01/39	7/20 at 100.00	A+	518,757
		Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007:
225		4.700%, 4/01/22	4/14 at 100.00	A–	228,953
260		4.900%, 4/01/32	4/17 at 100.00	A–	264,264
325		Yuma County Industrial Development Authority, Arizona, Exempt Revenue Bonds, Far West Water &	12/17 at 100.00	N/R	320,330
		Sewer Inc. Refunding, Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax)
1,285		Total Water and Sewer			1,332,304
$ 31,590		Total Investments (cost $31,515,238) – 142.9%			33,907,946
		MuniFund Term Preferred Shares, at Liquidation Value – (46.8)% (7)			(11,100,000)
		Other Assets Less Liabilities – 3.9%			913,893
		Net Assets Applicable to Common Shares – 100%			$ 23,721,839

 

 

 

 

 

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Fair Value Measurements

 

Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is 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 the Fund’s fair value measurements as of May 31, 2012:

 

		Level 1				Level 2				Level 3				Total
Long-Term Investments:
Municipal Bonds		$	—			$	33,702,490			$	205,456			$	33,907,946

 

 

The following is a reconciliation of the Fund’s Level 3 investments held at the beginning and end of the measurement period:

		Level 3
		Municipal Bonds
Balance at the beginning of period		$	219,476
Gains (losses):
Net realized gains (losses)			—
Change in net unrealized appreciation (depreciation)			(14,020	)
Purchases at cost			—
Sales at proceeds			—
Net discounts (premiums)			—
Transfers in to			—
Transfers out of			—
Balance at the end of period		$	205,456

 

 

During the period ended May 31, 2012, the Fund recognized no transfers to or from Level 1, Level 2 or Level 3.

 

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 on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

 

At May 31, 2012, the cost of investments was $31,492,169.

 

Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 2012, were as follows:

Gross unrealized:
Appreciation		$	2,741,515
Depreciation			(325,738	)
Net unrealized appreciation (depreciation) of investments		$	2,415,777

 

 

(1)		All percentages shown in the Portfolio of Investments are based on net assets applicable to Common
		shares unless otherwise noted.
(2)		Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption.
		There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities
		may be subject to periodic principal paydowns.
(3)		Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors 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. Holdings designated N/R are not rated
		by any of these national rating agencies.
(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.
(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. Certain bonds backed by U.S. Government or
		agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)		Investment, or portion of investment, has been pledged to collateralize the net payment obligations for
		investments in inverse floating rate transactions.
(7)		MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.7%.

N/R		Not rated.
WI/DD		Purchased on a when-issued or delayed delivery basis.
(ETM)		Escrowed to maturity.
(IF)		Inverse floating rate investment.

 

 

 

 

 

 

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Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (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 registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

 

Item 3. Exhibits.

File as exhibits as part of this Form 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)), exactly as set forth below: See EX-99 CERT attached hereto.

 

 

 

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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 Arizona Dividend Advantage Municipal Fund 

 

By (Signature and Title)     /s/ Kevin J. McCarthy                    

                                                   Kevin J. McCarthy

                                                   Vice President and Secretary

 

Date:          July 30, 2012        

 

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:          July 30, 2012        

 

By (Signature and Title)     /s/ Stephen D. Foy                              

                                                   Stephen D. Foy

                                                  Vice President and Controller (principal financial officer) 

 

Date:          July 30, 2012