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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Nuveen Michigan Premium Income Municipal Fund, Inc. | NYSE:NMP | NYSE | Ordinary Share |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 15.15 | 0.00 | 01:00:00 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
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.
ANNUAL REPORT | Nuveen Investments
February 28, 2009 | MUNICIPAL CLOSED-END FUNDS
[PHOTO OF: SMALL CHILD]
NUVEEN MICHIGAN
QUALITY INCOME
MUNICIPAL FUND, INC.
NUM
NUVEEN MICHIGAN
PREMIUM INCOME
MUNICIPAL FUND, INC.
NMP
NUVEEN MICHIGAN
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NZW
NUVEEN OHIO
QUALITY INCOME
MUNICIPAL FUND, INC.
NUO
NUVEEN OHIO
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXI
NUVEEN OHIO
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NBJ
NUVEEN OHIO
DIVIDEND ADVANTAGE
MUNICIPAL FUND 3
NVJ
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) | LOGO: NUVEEN Investments
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Chairman's
LETTER TO SHAREHOLDERS
[PHOTO OF ROBERT P. BREMNER] | Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I write this letter in a time of continued uncertainty about the current state of the U.S. financial system and pessimism about the future of the global economy. Many have observed that the conditions that led to the crisis have built up over time and will complicate and extend the course of recovery. At the same time, government officials in the U.S. and abroad have implemented a wide range of programs to restore stability to the financial system and encourage economic recovery. It is believed that these efforts will moderate the extent of the downturn and hasten the inevitable recovery, even though it is hard to envision that outcome in the current environment.
As you will read in this report, the continuing financial and economic problems are weighing heavily on the values of equities and fixed-income assets and unfortunately the performance of your Nuveen Fund has been similarly affected. In addition to the financial statements, I hope that you will carefully review the Portfolio Manager's Comments, the Common Share Dividend and Share Price Information and the Performance Overview sections of this report and please note this is a seven-month annual report. During the current fiscal year period, the Board of Directors/Trustees approved a change in the Funds' fiscal and tax year end from July 31 to February 28/29. These comments highlight the manager's pursuit of investment strategies that depend on thoroughly researched securities, diversified portfolio holdings and well established investment disciplines to achieve your Fund's investment goals. The Fund Board believes that a consistent focus on long-term investment goals provides the basis for successful investment over time and we monitor your Fund with that objective in mind.
Nuveen continues to work on resolving the issues related to the auction rate preferred shares situation, but the unsettled conditions in the credit markets have slowed progress. Nuveen is actively pursuing a number of solutions, all with the goal of providing liquidity for preferred shareholders while preserving the potential benefits of leverage for common shareholders. We appreciate the patience you have shown as we work through the many issues involved. Please consult the Nuveen website: www.nuveen.com, for the most recent information.
On behalf of myself and 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 Nuveen Fund Board April 9, 2009 |
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NUM, NMP, NZW, NUO, NXI, NBJ,
NVJ
During the current fiscal period, the Board of Directors/Trustees of the Funds approved a change in the Funds' fiscal and tax year end from July 31 to February 28/29.
Portfolio manager Daniel Close discusses economic and municipal market conditions at both the national and state levels, key investment strategies, and the performance of the Nuveen Michigan and Ohio Funds. Dan, who joined Nuveen in 2000, assumed portfolio management responsibility for these seven Funds in 2007.
WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING THE SEVEN-MONTH REPORTING PERIOD ENDED FEBRUARY 28, 2009?
During this period, downward pressure on the economy continued and stress in the financial and credit markets led to increased price volatility for most securities, reduced liquidity and a general flight to quality. In an effort to improve overall economic conditions, the Federal Reserve (Fed) cut the fed funds target interest rate to between zero and 0.25%, its lowest level on record. (On March 18, 2009, following the end of this reporting period, the Fed announced that, in addition to maintaining the fed funds rate at its current level, it would buy $300 billion in Treasury securities over the next six months in an effort to improve conditions in private credit markets and up to an additional $750 billion of agency mortgage-backed securities to bolster the housing market.)
After declining at an annual rate of 0.5% in the third quarter of 2008, GDP contracted at an annual rate of 6.2% in the fourth quarter of 2008, the weakest performance since 1982. Signs of a deepening housing recession continued to trouble the economy, with the price of a single-family home falling a record 18.2% in 2008. In the labor markets, February 2009 marked the fourteenth consecutive month of job losses and the third straight month when employment losses topped 600,000, the first such occurrence since records began in 1939. The national unemployment rate for February 2009 was 8.1%, its highest point in more than 25 years. Fortunately, inflation remained largely in check. The Consumer Price Index (CPI), reflecting large drops in energy and transportation prices, registered a 0.2% year-over-year gain in February 2009, while the core CPI (which excludes food and energy) rose 1.8%. Both numbers were within the Fed's unofficial objective of 2.0% or lower.
Beginning in October, the nation's financial institutions and financial markets-- including the municipal bond market--experienced significant turmoil. Reductions in demand
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 manager 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.
decreased valuations of municipal bonds across all credit ratings, especially those with lower credit ratings, and this generally reduced the Funds' common share net asset values. The municipal market is one in which dealer firms make markets in bonds on a principal basis using their proprietary capital, and during the recent market turmoil these firms' capital was severely constrained. As a result, some firms were unwilling to commit their capital to purchase and to serve as a dealer for municipal bonds. This reduction in dealer involvement in the market was accompanied by significant net selling pressure by investors, particularly with respect to lower-rated municipal bonds, as institutional investors generally removed money from the municipal bond market, at least in part because of their need to reduce the leveraging of their municipal investments. This deleveraging was in part driven by the overall reduction in the amount of financing available for such leverage, the increased costs of such leverage financing, and the need to reduce leverage levels that had recently increased due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need for further deleveraging and a supply overhang (a large amount of new issues that were postponed) would cause selling pressure to persist for a period of time. In addition to falling prices, the following market conditions resulted in greater price volatility of municipal bonds - wider credit spreads (i.e., lower quality bonds fell in price more than higher quality bonds); significantly reduced liquidity (i.e., the ability to sell bonds at a price close to their carrying value), particularly for lower quality bonds; and a lack of price transparency (i.e., the ability to accurately determine the price at which a bond would likely trade). Reduced liquidity was most pronounced in mid-October, although it improved considerably after that period.
In the municipal bond market, performance over this period was significantly impacted by concerns about the credit markets, downgrades of municipal bond insurers, and institutional investors' need to unwind various leveraging strategies. These events created surges of selling pressure, as many municipal bond owners tried to sell holdings of longer-maturity bonds into a market already experiencing a lack of liquidity. Combined with the Fed rate cuts, this produced a steepening of the municipal yield curve. In this environment, bonds with shorter maturities generally outperformed longer maturity bonds, and higher quality bonds tended to outperform lower quality credits.
Over the seven months ended February 28, 2009, municipal bond issuance nationwide totaled $174.5 billion, a drop of 16% compared with the seven-month period ended February 29, 2008. While market conditions during this period impacted the demand for municipal bonds, we continued to see demand from investors attracted by higher interest rates and yields relative to taxable bonds.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN MICHIGAN AND OHIO DURING THIS PERIOD?
Michigan's state economy, which ranks as one of the weakest in the nation, continued to worsen during this period, due to sharp cutbacks in auto production, the deepening recession nationwide and mounting job losses. State employment trends declined across all sectors except education/health services, with construction, manufacturing and information services posting the biggest drops. Despite the financial woes of the major U.S. automakers and the thousands of jobs lost in recent years, manufacturing still accounts for 14.5% of employment in Michigan, compared with 10% nationally. In February 2009, Michigan's jobless rate was 12.0%, the highest state unemployment rate in the nation and the highest level for the state in more than 25 years. In addition to employment concerns, Michigan continued to experience declining housing prices and a high foreclosure rate. According to the Standard & Poor's (S&P)/Case-Shiller home price index of 20 major metropolitan areas, housing prices in Detroit fell 21.7% in 2008, compared with an average decline of 18.2% nationwide. Lower home values have forced downward revisions to revenue estimates by state and local governments. Michigan could receive as much as $18 billion from the American Recovery and Reinvestment Act of 2009, which amounts to approximately 5% of its gross state product. The positive impact of this money would likely be limited primarily to job retention, rather than job creation, in 2009. Despite this, the state faces a projected budget shortfall of $200 million for fiscal 2009. This gap is estimated to grow to as much as $1.5 billion in fiscal 2010. As of February 2009, Moody's, S&P and Fitch rated Michigan general obligation debt at Aa3, AA-, and AA-, respectively. During the seven months ended February 28, 2009, municipal issuance in Michigan totaled $3 billion, a decrease of 38% compared with the seven months ended February 29, 2008.
Although the Ohio economy has contracted steadily since mid-2006, continued job losses and the national recession caused the state's economic decline to intensify significantly during this period. Employment in Ohio has remained less diversified than that of the nation as a whole, with heavier dependence on the manufacturing sector, particularly the troubled auto industry, relative to the national average. As of February 2009, Ohio's unemployment rate was 9.4%, the highest since May 1984. The housing recession also continued to serve as a major drag on the Ohio economy, with reduced home values negatively impacting consumer and household spending. In February 2009, the foreclosure rate in Ohio was the tenth highest in the nation. In the wake of growing job losses, slower consumer spending, and weaker household balance sheets, state revenue collection has deteriorated, particularly from non-auto sales and personal income taxes, the state's largest tax sources. Ohio faces an estimated budget deficit of $7.3 billion in fiscal 2010-2011. As part of the American Recovery and Reinvestment Act, Ohio expects to receive at least $8.2 billion and the state is counting on $3.4 billion of that aid to cover part of its budget shortfall. As of February 2009, Moody's, S&P and Fitch rated Ohio general obligation debt at Aa1, AA+, and AA+, respectively. For the
seven months ended February 28, 2009, municipal issuance in Ohio totaled $6.2 billion, a decrease of 42% compared with the seven months ended February 2008.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MICHIGAN AND OHIO FUNDS DURING THIS REPORTING PERIOD?
During this seven-month period, we continued to focus on finding bonds that offered relative value while seeking to preserve liquidity and invest for the long term. Much of our investment activity was driven by the new issuance municipal bond market, which provided opportunities to purchase bonds with better structures (e.g., higher coupons, longer call protection) at attractive prices. During periodic market dislocations, we found opportunities in various sectors by using a fundamental approach to discover undervalued credits with the potential to perform well over the long term. Many of the additions to our portfolios were purchased at the longer end of the yield curve, which we believed not only offered more value during this period, but also helped to offset the natural shortening of the Funds' durations(1) and support and enhance yields. In general, the bonds we purchased were uninsured, as the insurance penetration of the new issuance municipal market declined dramatically during 2008 and early 2009.
During this period, all seven of these Funds purchased general obligation (GO) bonds, including those issued for various school districts. In Michigan, our GO purchases concentrated on the central and western parts of the state, as we continued to de-emphasize issuers in the Detroit area. Dislocations in the market, particularly during the last three months of 2008, provided opportunities to add health care and tobacco credits that we believed represented uncommon value to all of the Michigan and Ohio Funds, as well as industrial development revenue bonds in the Ohio Funds. NUM and NMP also purchased revenue bonds issued for Kent County airport and NXI added a tax increment financing district credit.
To provide the liquidity we needed during this period, we sold pre-refunded(2) bonds in the Michigan Funds and NBJ. In addition, we closed out our positions in Detroit and Puerto Rico GOs across all of these Funds. In the Ohio Funds, the proceeds from a substantial number of bond calls also supplied capital for purchases.
Going into this period, all of the Michigan and Ohio Funds continued to use inverse floating rate securities(3) as part of a disciplined approach to duration management. Inverse floaters typically help to bring the Funds' durations closer to our strategic target and to enhance their income-generation capabilities. During this period, as previously described, we were able to purchase longer maturity bonds offering attractive yields and better structures that accomplished many of the same goals as the inverse floaters. This enabled us to terminate the inverse floaters in the four Ohio Funds. However, the three Michigan Funds continued to use inverse floaters as of February 28, 2009. NMP, NUO, NXI, NBJ and NVJ also invested in additional types of derivatives(4) during this period. The goal of this strategy was to help us manage net asset value (NAV) volatility without having a negative impact on income streams or common share dividends over the short term. As of February 28, 2009, all of these derivatives had been removed.
(2) Pre-refundings, also known as advance refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers.
(3) An inverse floating rate security, also known as inverse floaters, 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 shareholder report.
(4) Each Fund may invest in derivatives instruments such as forwards, futures, option and swap transactions. For additional information on derivative instruments in which each Fund was invested during and at the end of the reporting period, see the Portfolio of Investments, Financial Statements and Notes to Financial Statements sections of this shareholder report
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Michigan and Ohio 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 2/28/09 Seven-Month 1-Year 5-Year 10-Year Michigan Funds NUM -1.27% 3.66% 1.88% 4.56% NMP -1.62% 2.53% 1.95% 4.50% NZW -4.20% 0.31% 1.35% N/A Lipper Michigan Municipal Debt Funds Average(5) -4.35% 0.10% 1.09% 4.04% Barclays Capital Municipal Bond Index(6) 1.22% 5.18% 3.13% 4.61% S&P National Municipal Bond Index(7) -0.58% 3.09% 2.82% 4.43% Ohio Funds NUO -0.49% 3.66% 2.20% 4.39% NXI -0.15% 3.99% 2.95% N/A NBJ -3.01% 1.01% 1.82% N/A NVJ 0.36% 4.18% 2.81% N/A Lipper Other States Municipal Debt Funds Average(8) -4.35% 0.17% 1.41% 3.89% Barclays Capital Municipal Bond Index(6) 1.22% 5.18% 3.13% 4.61% S&P National Municipal Bond Index(7) -0.58% 3.09% 2.82% 4.43% ---------- |
*Seven-month returns are cumulative; returns for one year, five years, and ten years are annualized.
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for your Fund in this report.
(5) The Lipper Michigan Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 7 months, 7 funds; 1 year, 7 funds; 5 years, 7 funds; and 10 years, 4 funds. Fund and Lipper returns assume reinvestment of dividends.
(6) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Barclays Capital Index do not reflect any expenses.
(7) The Standard & Poor's National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the investment-grade U.S. municipal bond market.
(8) 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: 7 months, 46 funds; 1 year, 46 funds; 5 years, 27 funds; and 10 years, 18 funds. Fund and Lipper returns assume reinvestment of dividends. The performance of the Lipper Other States category represents the overall average of returns for funds from 10 different states with a wide variety of municipal market conditions. Fund and Lipper returns assume reinvestment of dividends.
For the seven months ended February 28, 2009, the cumulative returns on common share NAV for all of the Michigan and Ohio Funds exceeded the average returns for the Lipper Michigan Municipal Debt Funds Average and the Lipper Other States Municipal Debt Funds Average, respectively. NUO, NXI and NVJ outperformed the Standard & Poor's (S&P) National Municipal Bond Index, while NUM, NMP, NZW and NBJ trailed this index for the seven-month period. All of the Funds underperformed the national Barclays Capital Municipal Bond Index. Shareholders should note that the Barclays Capital Municipal Bond Index and the S&P National Municipal Bond Index include bonds from other states in addition to Michigan and Ohio, which may make direct comparisons between the Funds and these benchmarks less meaningful.
Key management factors that influenced the Funds' returns during this period included duration and yield curve positioning, the use of derivatives, credit exposure, and sector allocations. In addition, the use of leverage was a principal factor affecting each Fund's performance over this period. The impact of leverage is discussed in more detail on page 11.
Over the course of this reporting period, the yield curve remained steep. Given this interest rate environment, bonds in the Barclays Capital Municipal Bond Index with maturities between two and eight years, especially those maturing in approximately five years, benefited the most. Because they were less sensitive to interest rate changes, these bonds generally outperformed credits with longer maturities, with the biggest losses experienced by bonds with the longest maturities (22 years and longer). While the Funds were relatively overweighted in the underperforming longer part of the yield curve when compared with the index, this was offset in NVJ by an over exposure to both the outperforming shorter and intermediate parts of the yield curve. NUO, NXI and--to a lesser extent--NUM and NMP also had good weightings in the intermediate area of the curve. In general, NZW and NBJ were not as advantageously positioned in terms of duration, particularly NBJ, which had less exposure to the short end of the curve and greater exposure to the long end than the other Ohio Funds. This was a factor in the underperformance of NZW and NBJ relative to the other Nuveen Michigan and Ohio funds, respectively. Overall, duration positioning was a net positive for the performances of NUO, NXI and NVJ and a comparative negative in NUM, NMP, NZW and NBJ.
As mentioned earlier, NMP, NUO, NXI, NBJ and NVJ used derivative financial instruments during this period to synthetically extend duration and move them closer to our strategic duration target. Despite the fact that longer duration municipal bonds
generally underperformed those with shorter durations, the use of these derivatives had a positive impact on return performance, especially in NXI and NVJ, which had greater derivative exposure. The positive impact was attributable to the fact that these derivatives provided exposure to taxable markets during a period when, in contrast to historical trends, the taxable markets and the municipal market moved in the opposite directions. As municipal market performance lagged the gains in the taxable markets, these derivatives performed well. On the other hand, the inverse floaters used by the Funds had a negative impact on performance. This resulted from the fact that the inverse floaters effectively increased the Funds' exposure to longer maturity bonds during a period when shorter maturities were in favor in the market.
Credit exposure also was an important factor in performance. Because risk-averse investors generally sought higher quality investments as disruptions in the financial markets deepened, bonds with higher credit quality typically performed very well. At the same time, securities rated BBB or below and non-rated bonds generally posted poor returns. As of February 28, 2009, NUM and NMP had allocated approximately 6% and 7%, respectively, of their portfolios to bonds rated BBB and lower, while NZW had an allocation of 14% to the lower credit quality categories and non-rated bonds. Although lower-rated and non-rated bonds accounted for approximately 12% to 13% of each of the Ohio Funds' portfolios, NVJ's performance was boosted by its heavier exposure to bonds rated AAA, which comprised more than half of its portfolio. We continue to believe that lower-rated credits can offer attractive opportunities despite their generally greater risks.
During this period, pre-refunded bonds, which are backed by U.S. Treasury securities, were one of the top performing segments of the municipal market, due primarily to their shorter effective maturities, higher credit quality and perceived safety. Among these Funds, NUM, NXI and NVJ held the heaviest weightings of pre-refunded bonds. Some of the Funds also saw positive contributions from pre-refunded activity, which benefited them through price appreciation and enhanced credit quality. Additional sectors of the market that generally contributed to the Funds' returns included general obligation and other tax-supported bonds, water and sewer, education, and housing credits, particularly in Ohio where GNMA (Government National Mortgage Association) housing bonds rated AAA and backed by the federal government performed well. However, most of the Funds had lower weightings in tax-supported
bonds than the market as a whole, which lessened the positive contribution from this sector.
Holdings that generally detracted from the Funds' performances included Industrial Development Bonds (IDB) and health care (including continuing care retirement community) bonds, which underperformed the overall municipal market, posting negative returns for the period. Next to the IDB sector, zero coupon bonds were among the worst performing categories in the municipal market, and the Funds were negatively impacted by their holdings of longer maturity zero coupon credits. The impact of the poor performance of lower-rated tobacco bonds was somewhat mitigated by the Funds' relatively low exposures, which ranged from less than 1% of the Michigan Funds' portfolios to approximately 2% to 4% of the Ohio Funds as of February 28, 2009.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In this generally unfavorable investment environment, the most significant factor impacting the return 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 returns for common shareholders. However, use of leverage also can expose common shareholders to additional risk--especially when market conditions are as unfavorable as they were during this period. As the prices of many securities held by these Funds declined during the this time period, the negative impact of these valuation changes on common share net asset value and common shareholder total return was magnified by the use of leverage.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their position in bonds backed by municipal bond insurers that experienced downgrades in their credit ratings. During the period covered by this report, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA (formerly XLCA) experienced one or more rating reductions by at least one or more rating agencies. At the time this report was prepared, at least one rating agency has placed each of these insurers except AGC on "negative credit watch" or "credit watch developing," which may presage one or more rating reductions for such insurer or insurers in the future. As concern
increased about the balance sheets of these insurers, prices on bonds insured by these companies - especially those bonds with weaker underlying credits - declined, detracting from the Funds' performance. By the end of this period, most insured bonds were being valued according to their fundamentals as if they were uninsured. On the whole, the holdings of all of our Funds continued to be well diversified not only between insured and uninsured bonds, but also within the insured bond category. It is important to note that municipal bonds historically have had a very low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
As noted in the last shareholder report, beginning in February 2008, more shares were submitted for sale in the regularly scheduled auctions for the auction rate preferred shares issued by these Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many or all of the Funds' auction rate preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This decline in liquidity in auction rate preferred shares did not lower the credit quality of these shares, and auction rate preferred 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 auction rate preferred shares.
These developments generally have not affected the portfolio management or investment policies of these Funds. However, one continuing implication for common shareholders of these auction failures is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future common share earnings may be lower than they otherwise might have been. As noted in the last shareholder report, the Funds' Board of Director's/Trustees authorized a plan to use tender option bonds (TOBs), also known as floating rate securities, to refinance a portion of the Funds' outstanding auction rate preferred shares.
On January 8, 2009, thirty-five closed-end municipal funds called for redemption at par a portion of their outstanding auction rate preferred securities. This series of redemptions will collectively total $250.1 million. This new series of redemptions brings the total amount of Nuveen's municipal closed-end funds'
auction rate preferred securities redemptions to nearly $2 billion of the original $11 billion outstanding.
As of February 28, 2009, NUM, NZW and NBJ have redeemed $3,100,000, $1,075,000 and $900,000 auction rate preferred shares, respectively, (3.3%, 6.7% and 3.8% of their original outstanding auction rate preferred shares of $94,000,000, $16,000,000 and $24,000,000, respectively). While the Funds' Board of Directors/Trustees and management continue to work to resolve this situation, the Funds cannot provide any assurance on when the remaining outstanding auction rate preferred shares might be redeemed.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Common Share
Dividend and Share Price
INFORMATION
During the seven-month reporting period ended February 28, 2009, NUO, NXI, NBJ and NVJ each had one increase in their monthly dividends. The dividend of NUM remained stable throughout the reporting period, while NMP and NZW each had one dividend reduction.
Due to normal portfolio activity, common shareholders of NZW received a long-term capital gains distributions of $0.0120 at the end of December 2008.
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 February 28, 2009, all of the Funds in this report except NZW had a positive UNII balance for both tax and financial statement purposes. NZW had a positive UNII balance for tax purposes and a negative UNII balance for financial statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
On July 30, 2008, the Funds' Board of Directors/Trustees approved an open-market share repurchase program under which each Fund may repurchase up to 10% of its outstanding common shares. As of February 28, 2009, NMP, NXI and NVJ repurchased 26,700, 600 and 1,700 common shares, respectively, representing approximately 0.35%, 0.01% and 0.08%, respectively, of each Fund's total common shares outstanding. Since the inception of this program, NMP, NXI, and NVJ repurchased their common shares at a weighted average price of $10.58, $11.50 and $11.82, respectively, and a weighted average discount per common share of 20.80%, 17.21% and 16.10%, respectively.
As of February 28, 2009, the Funds' common share prices were trading at discounts to their common share NAVs as shown in the accompanying chart:
2/28/09 Seven-Month Average Discount Discount NUM -21.70% -20.11% NMP -21.27% -20.01% NZW -15.13% -17.07% NUO -11.40% -12.62% NXI -12.51% -14.81% NBJ -11.33% -14.80% NVJ -14.46% -13.82% |
NUM Performance OVERVIEW | Nuveen Michigan Quality Income Municipal Fund, Inc. as of February 28, 2009
Common Share Price $ 10.61 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.55 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -21.70% -------------------------------------------------------------------------------- Market Yield 6.28% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 9.11% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 158,717 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.09 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.84 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 7-Month (Cumulative) -10.68% -1.27% -------------------------------------------------------------------------------- 1-Year -9.71% 3.66% -------------------------------------------------------------------------------- 5-Year -2.70% 1.88% -------------------------------------------------------------------------------- 10-Year 1.68% 4.56% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 36.7% -------------------------------------------------------------------------------- U.S. Guaranteed 22.5% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.8% -------------------------------------------------------------------------------- Utilities 9.9% -------------------------------------------------------------------------------- Water and Sewer 6.3% -------------------------------------------------------------------------------- Health Care 5.9% -------------------------------------------------------------------------------- Other 7.9% -------------------------------------------------------------------------------- [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 45% AA 41% A 8% BBB 5% BB or Lower 1% |
[BAR CHART]
2008-2009 Monthly Tax-Free Dividends Per Common Share
Mar $ 0.0555 Apr 0.0555 May 0.0555 Jun 0.0555 Jul 0.0555 Aug 0.0555 Sep 0.0555 Oct 0.0555 Nov 0.0555 Dec 0.0555 Jan 0.0555 Feb 0.0555 |
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
3/01/08 $ 12.67 12.86 12.67 12.49 12.799 12.99 13.1 13.07 13.14 13.2 13.3301 13.32 13.38 13.34 13.22 13.06 12.71 12.56 12.75 12.61 12.62 12.3601 12.34 12.27 12.31 12.22 12.36 12.46 12.25 11.56 11.29 10.666 8.23 9.46 10.835 10.64 10.64 9.958 9.2 9.69 9.01 8.47 9.1 9.47 10.09 11.15 10.84 10.57 11.05 11.23 11.23 10.52 2/28/09 10.61 |
(1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
NMP Performance OVERVIEW | Nuveen Michigan Premium Income Municipal Fund, Inc. as of February 28, 2009
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 33% AA 48% A 12% BBB 6% BB or Lower 1% |
[BAR CHART]
2008-2009 Monthly Tax-Free Dividends Per Common Share
Mar $ 0.055 Apr 0.055 May 0.055 Jun 0.055 Jul 0.055 Aug 0.055 Sep 0.055 Oct 0.053 Nov 0.053 Dec 0.053 Jan 0.053 Feb 0.053 |
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
3/01/08 $ 12.46 12.54 12.39 12.35 12.57 12.74 12.794 12.78 12.74 12.8 12.9599 12.9 13.08 13.05 13.03 12.88 12.46 12.52 12.63 12.7 12.58 12.21 12.37 12.49 12.34 12.14 12.32 12.38 12.192 11.34 11.1 10.55 7.95 9.49 10.25 10.25 10.54 9.91 9.2 9.14 8.79 8.35 8.73 9.24 9.94 11 10.55 10.3899 10.61 10.966 11.01 10.444 2/28/09 10.44 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 10.44 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.26 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -21.27% -------------------------------------------------------------------------------- Market Yield 6.09% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.84% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 102,434 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.26 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.20 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 7-Month (Cumulative) -12.57% -1.62% -------------------------------------------------------------------------------- 1-Year -10.95% 2.53% -------------------------------------------------------------------------------- 5-Year -2.50% 1.95% -------------------------------------------------------------------------------- 10-Year 2.49% 4.50% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 36.2% -------------------------------------------------------------------------------- U.S. Guaranteed 14.4% -------------------------------------------------------------------------------- Tax Obligation/Limited 14.4% -------------------------------------------------------------------------------- Water and Sewer 11.0% -------------------------------------------------------------------------------- Utilities 10.8% -------------------------------------------------------------------------------- Other 13.2% -------------------------------------------------------------------------------- |
(1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
NZW Performance OVERVIEW | Nuveen Michigan Dividend Advantage Municipal Fund as of February 28, 2009
Common Share Price $ 10.77 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 12.69 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -15.13% -------------------------------------------------------------------------------- Market Yield 6.18% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.97% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 26,236 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.41 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.88 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 7-Month (Cumulative) -14.48% -4.20% -------------------------------------------------------------------------------- 1-Year -8.21% 0.31% -------------------------------------------------------------------------------- 5-Year -1.97% 1.35% -------------------------------------------------------------------------------- Since Inception 1.21% 4.02% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 33.6% -------------------------------------------------------------------------------- U.S. Guaranteed 12.8% -------------------------------------------------------------------------------- Utilities 12.3% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.5% -------------------------------------------------------------------------------- Health Care 10.0% -------------------------------------------------------------------------------- Water and Sewer 9.3% -------------------------------------------------------------------------------- Other 11.5% -------------------------------------------------------------------------------- [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 41% AA 33% A 12% BBB 9% BB or Lower 1% N/R 4% |
[BAR CHART]
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
Mar 0.0585 Apr 0.0585 May 0.0585 Jun 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0585 Oct 0.0555 Nov 0.0555 Dec 0.0555 Jan 0.0555 Feb 0.0555 |
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
3/01/08 $ 12.5 12.82 12.7399 12.65 12.8 13.06 13.14 13.11 13.156 13.18 13.4 13.2 13.33 13.23 13.25 13.05 13 12.9 13.21 13.4 13.8 13.462 13.1 13.1 12.7 12.38 12.5 12.58 12.45 11.9 11.306 11.25 8.8 8.72 9.55 10.31 10.6001 9.84 8.82 9 8.8247 8.25 8.6 8.96 9.65 10.63 10.4 10.18 10.22 10.5499 10.57 10.32 2/28/09 10.77 |
(1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2008 of $0.0120 per share.
NUO Performance OVERVIEW | Nuveen Ohio Quality Income Municipal Fund, Inc. as of February 28, 2009
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 34% AA 32% A 21% BBB 10% N/R 3% |
[BAR CHART]
2008-2009 Monthly Tax-Free Dividends Per Common Share
Mar $ 0.055 Apr 0.055 May 0.055 Jun 0.055 Jul 0.055 Aug 0.055 Sep 0.056 Oct 0.056 Nov 0.056 Dec 0.056 Jan 0.056 Feb 0.056 |
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
3/01/08 $ 13.9 13.827 13.75 13.5899 14.0499 14.08 13.95 14 13.92 13.89 13.9334 13.98 13.93 13.94 13.9 13.65 13.54 13.53 13.6901 13.58 13.43 13.41 13.41 13.44 13.52 13.5 13.62 13.57 13.39 13.0101 12.4101 12.01 8.47 10.71 11.71 11.67 12.132 11.79 11.3 12.33 11.4 10.7 12 11.6705 12.51 13.53 13.14 13.5 13.4 13.36 13.31 12.79 2/28/09 12.9 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.90 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.56 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -11.40% -------------------------------------------------------------------------------- Market Yield 5.21% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 7.65% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 141,883 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.57 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.81 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 7-Month (Cumulative) -0.71% -0.49% -------------------------------------------------------------------------------- 1-Year -1.01% 3.66% -------------------------------------------------------------------------------- 5-Year -1.63% 2.20% -------------------------------------------------------------------------------- 10-Year 2.00% 4.39% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 26.6% -------------------------------------------------------------------------------- U.S. Guaranteed 16.8% -------------------------------------------------------------------------------- Health Care 12.0% -------------------------------------------------------------------------------- Education and Civic Organizations 10.3% -------------------------------------------------------------------------------- Tax Obligation/Limited 8.3% -------------------------------------------------------------------------------- Utilities 7.3% -------------------------------------------------------------------------------- Housing/Multifamily 4.9% -------------------------------------------------------------------------------- Other 13.8% -------------------------------------------------------------------------------- |
(1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
NXI Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund as of February 28, 2009
Common Share Price $ 12.10 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.83 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -12.51% -------------------------------------------------------------------------------- Market Yield 5.45% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.00% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 58,692 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.70 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.21 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 7-Month (Cumulative) -2.08% -0.15% -------------------------------------------------------------------------------- 1-Year -2.87% 3.99% -------------------------------------------------------------------------------- 5-Year -0.94% 2.95% -------------------------------------------------------------------------------- Since Inception 2.96% 5.34% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 25.9% -------------------------------------------------------------------------------- Tax Obligation/General 19.4% -------------------------------------------------------------------------------- Tax Obligation/Limited 9.8% -------------------------------------------------------------------------------- Health Care 9.0% -------------------------------------------------------------------------------- Utilities 8.2% -------------------------------------------------------------------------------- Housing/Multifamily 6.3% -------------------------------------------------------------------------------- Education and Civic Organizations 6.2% -------------------------------------------------------------------------------- Industrials 4.3% -------------------------------------------------------------------------------- Other 10.9% -------------------------------------------------------------------------------- [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 39% AA 33% A 15% BBB 8% N/R 5% |
[BAR CHART]
2008-2009 Monthly Tax-Free Dividends Per Common Share
Mar $ 0.054 Apr 0.054 May 0.054 Jun 0.054 Jul 0.054 Aug 0.054 Sep 0.055 Oct 0.055 Nov 0.055 Dec 0.055 Jan 0.055 Feb 0.055 |
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
3/01/08 $ 13.04 13.26 13.17 12.96 13.26 13.22 13.38 13.35 13.34 13.33 13.55 13.35 13.37 13.42 13.47 13.15 12.97 12.88 12.98 12.99 12.76 12.84 12.87 12.97 12.7 12.75 12.92 13 13.04 12.35 11.75 11.25 8.18 10.562 10.914 11.46 11.604 10.88 10.48 10.85 9.78 9.66 9.84 10.89 11.12 12.49 12.2699 12 12.15 12.264 12.05 11.57 2/28/09 12.1 |
(1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
NBJ Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund 2 as of February 28, 2009
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 32% AA 32% A 23% BBB 9% N/R 4% |
[BAR CHART]
2008-2009 Monthly Tax-Free Dividends Per Common Share
Mar $ 0.053 Apr 0.053 May 0.053 Jun 0.053 Jul 0.053 Aug 0.053 Sep 0.0545 Oct 0.0545 Nov 0.0545 Dec 0.0545 Jan 0.0545 Feb 0.0545 |
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
3/01/08 $ 13.08 13.12 12.89 12.67 13.04 12.9696 12.91 13.07 13.14 13.07 13.18 13.06 12.99 13.05 13.26 12.82 12.66 12.73 12.6 12.61 12.47 12.3699 12.41 12.37 12.242 12.33 12.4 12.33 12.17 11.7 11.1 10.6 7.66 9.64 9.92 10.47 10.9 10.87 9.8 11 9.6921 9.2 10.45 9.8 9.93 11.27 11.17 11.2 11.36 11.65 11.4326 11.15 2/28/09 11.58 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 11.58 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.06 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -11.33% -------------------------------------------------------------------------------- Market Yield 5.65% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.30% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 40,755 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.84 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.42 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 7-Month (Cumulative) -3.09% -3.01% -------------------------------------------------------------------------------- 1-Year -5.51% 1.01% -------------------------------------------------------------------------------- 5-Year -0.87% 1.82% -------------------------------------------------------------------------------- Since Inception 2.11% 4.32% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 30.2% -------------------------------------------------------------------------------- U.S. Guaranteed 14.9% -------------------------------------------------------------------------------- Health Care 14.5% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.2% -------------------------------------------------------------------------------- Utilities 8.3% -------------------------------------------------------------------------------- Education and Civic Organizations 8.2% -------------------------------------------------------------------------------- Industrials 5.1% -------------------------------------------------------------------------------- Other 8.6% -------------------------------------------------------------------------------- |
(1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
NVJ Performance OVERVIEW | Nuveen Ohio Dividend Advantage Municipal Fund 3 as of February 28, 2009
Common Share Price $ 11.95 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.97 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -14.46% -------------------------------------------------------------------------------- Market Yield 5.72% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.40% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 30,127 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 13.19 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.83 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 7-Month (Cumulative) -4.29% 0.36% -------------------------------------------------------------------------------- 1-Year -6.57% 4.18% -------------------------------------------------------------------------------- 5-Year -0.96% 2.81% -------------------------------------------------------------------------------- Since Inception 2.29% 5.17% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 28.4% -------------------------------------------------------------------------------- Tax Obligation/General 21.6% -------------------------------------------------------------------------------- Tax Obligation/Limited 14.1% -------------------------------------------------------------------------------- Health Care 9.2% -------------------------------------------------------------------------------- Utilities 6.2% -------------------------------------------------------------------------------- Education and Civic Organizations 4.1% -------------------------------------------------------------------------------- Transportation 3.9% -------------------------------------------------------------------------------- Other 12.5% -------------------------------------------------------------------------------- [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 52% AA 19% A 17% BBB 8% N/R 4% |
[BAR CHART]
2008-2009 Monthly Tax-Free Dividends Per Common Share
Mar $ 0.0555 Apr 0.0555 May 0.0555 Jun 0.0555 Jul 0.0555 Aug 0.0555 Sep 0.057 Oct 0.057 Nov 0.057 Dec 0.057 Jan 0.057 Feb 0.057 |
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
3/01/08 $ 13.99 13.78 13.48 13.178 13.5038 13.7 13.58 13.65 13.55 13.67 13.651 13.81 13.81 13.57 13.76 13.65 13.55 13.35 13.2499 13.18 12.9 12.83 12.99 12.85 12.95 12.95 13.188 13.12 12.85 12.24 11.96 11.8 8.5 10.37 11.15 12.1 11.34 11.35 11.7299 11.35 10.35 10.65 10.56 10.6 11 12.57 12.69 12.93 12.7499 12.418 12.23 11.75 2/28/09 11.95 |
(1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC. NUVEEN MICHIGAN DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 3
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Michigan Dividend Advantage Municipal Fund, Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend Advantage Municipal Fund, Nuveen Ohio Dividend Advantage Municipal Fund 2 and Nuveen Ohio Dividend Advantage Municipal Fund 3 (the "Funds"), as of February 28, 2009, and the related statements of operations, changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and 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 February 28, 2009, by correspondence with the custodian. 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 Michigan Quality Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Michigan Dividend Advantage Municipal Fund, Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend Advantage Municipal Fund, Nuveen Ohio Dividend Advantage Municipal Fund 2 and Nuveen Ohio Dividend Advantage Municipal Fund 3 at February 28, 2009, the results of their operations, the changes in their net assets and the financial highlights for each of the periods indicated therein in conformity with US generally accepted accounting principles.
/s/ Ernst & Young LLP Chicago, Illinois April 9, 2009 |
NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.5% (1.0% OF TOTAL INVESTMENTS) $ 3,500 Michigan Tobacco Settlement Finance Authority, Tobacco Settlement 6/18 at 100.00 Baa3 $ 2,402,400 Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.4% (4.1% OF TOTAL INVESTMENTS) 700 Chandler Park Academy, Michigan, Public School Academy Charter School 11/15 at 100.00 BBB 434,273 Revenue Bonds, Series 2005, 5.125%, 11/01/35 1,685 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100.00 Baa1 1,790,060 Revenue Refunding Bonds, Kettering University, Series 2001, 5.500%, 9/01/17 - AMBAC Insured 1,500 Michigan Higher Education Student Loan Authority, Revenue Bonds, No Opt. Call Aaa 1,438,650 Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured (Alternative Minimum Tax) 1,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, 9/12 at 100.00 AA 848,400 Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax) 1,115 Michigan Technological University, General Revenue Bonds, Series 10/13 at 100.00 AA- 1,142,507 2004A, 5.000%, 10/01/22 - MBIA Insured Wayne State University, Michigan, General Revenue Bonds, Series 1999: 3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AA- 3,532,111 1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AA- 995,500 ------------------------------------------------------------------------------------------------------------------------------------ 10,430 Total Education and Civic Organizations 10,181,501 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 9.2% (5.9% OF TOTAL INVESTMENTS) 2,900 Michigan Hospital Financing Authority, Revenue Bonds, Oakwood 7/17 at 100.00 A 2,096,062 Obligated Group, Series 2007A, 5.000%, 7/15/37 2,700 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/09 at 100.00 BB- 1,563,489 Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 1,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/09 at 101.00 BBB+ 906,550 Bonds, Memorial Healthcare Center Obligated Group, Series 1999, 5.875%, 11/15/21 Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 1,025 5.000%, 5/15/30 5/15 at 100.00 BBB 730,733 500 5.000%, 5/15/37 5/15 at 100.00 BBB 322,135 1,500 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette 5/15 at 100.00 Baa3 1,089,195 General Hospital, Series 2005A, 5.000%, 5/15/26 1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 1,225,187 Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 11/11 at 100.00 AA- 4,455,110 Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured 2,195 University of Michigan, Medical Service Plan Revenue Bonds, Series No Opt. Call AA+ 2,128,667 1991, 0.000%, 12/01/10 ------------------------------------------------------------------------------------------------------------------------------------ 18,470 Total Health Care 14,517,128 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.5% (1.6% OF TOTAL INVESTMENTS) 2,675 Michigan Housing Development Authority, FNMA Limited Obligation 12/20 at 101.00 AAA 2,561,767 Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative Minimum Tax) 215 Michigan Housing Development Authority, Rental Housing Revenue Bonds, 4/09 at 101.00 AA 194,259 Series 1999A, 5.300%, 10/01/37 - MBIA Insured (Alternative Minimum Tax) |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,300 Michigan Housing Development Authority, Rental Housing Revenue Bonds, 7/15 at 100.00 AAA $ 1,216,579 Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,190 Total Housing/Multifamily 3,972,605 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 641,530 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 200 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 7/09 at 100.00 BBB 155,678 Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28 ------------------------------------------------------------------------------------------------------------------------------------ 1,200 Total Long-Term Care 797,208 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,250 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB 910,188 Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 56.8% (36.7% OF TOTAL INVESTMENTS) 1,000 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 5/12 at 100.00 AA- 1,006,050 General Obligation Refunding Bonds, Series 2002, 5.000%, 5/01/25 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, Unlimited Tax General Obligation Refunding Bonds, Series 2001: 2,500 5.000%, 5/01/21 5/11 at 100.00 AAA 2,551,775 3,200 5.000%, 5/01/29 5/11 at 100.00 AAA 3,183,680 1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 992,340 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 1,320 Bridgeport Spaulding Community School District, Saginaw County, 5/12 at 100.00 AA- 1,440,793 Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/16 2,110 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/13 at 100.00 AA- 2,248,289 Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/20 1,000 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/15 at 100.00 AA- 1,011,420 Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 - MBIA Insured 2,319 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/17 at 100.00 AA- 2,080,955 Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.067%, 5/01/32 - MBIA Insured (IF) 2,000 Detroit City School District, Wayne County, Michigan, General No Opt. Call AA- 2,172,000 Obligation Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC Insured 285 East Grand Rapids Public Schools, County of Kent, State of Michigan, 5/11 at 100.00 AA 285,473 General Obligation Bonds, Series 2001, Refunding, 5.125%, 5/01/29 Grand Rapids and Kent County Joint Building Authority, Michigan, Limited Tax General Obligation Bonds, Devos Place Project, Series 2001: 8,900 0.000%, 12/01/25 No Opt. Call AAA 3,758,381 3,000 0.000%, 12/01/26 No Opt. Call AAA 1,180,650 5,305 0.000%, 12/01/29 No Opt. Call AAA 1,703,913 1,700 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AA 1,728,271 5.000%, 9/01/27 - MBIA Insured 2,000 Hartland Consolidated School District, Livingston County, Michigan, 5/11 at 100.00 AA- 2,003,320 General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,400 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 1,448,846 Obligation Bonds, Series 2003, 5.000%, 5/01/21 1,065 Jackson Public Schools, Jackson County, Michigan, General Obligation 5/14 at 100.00 AAA 1,100,209 School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 1,935 Kalamazoo Public Schools, Michigan, General Obligation Bonds, Series 5/16 at 100.00 AAA 1,986,142 2006, 5.000%, 5/01/25 - FSA Insured 200 L'Anse Creuse Public Schools, Macomb County, Michigan, General 5/15 at 100.00 AAA 194,858 Obligation Bonds, Series 2005, 5.000%, 5/01/35 - FSA Insured |
NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,505 Lincoln Consolidated School District, Washtenaw and Wayne Counties, 5/16 at 100.00 AA- $ 2,537,540 Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 - MBIA Insured 2,810 Livonia Public Schools, Wayne County, Michigan, General Obligation 5/14 at 100.00 AA- 2,937,405 Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, General 5/17 at 100.00 AAA 839,500 Obligation Bonds, Series 2007, 5.000%, 5/01/37 - FSA Insured 1,500 Marshall Public Schools, Calhoun County, Michigan, General Obligation 5/17 at 100.00 AA- 1,482,510 Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA GTY Insured 2,100 Michigan Municipal Bond Authority, General Obligation Bonds, Detroit 6/15 at 100.00 AAA 2,263,380 City School District, Series 2005, 5.000%, 6/01/18 - FSA Insured 4,000 Michigan, General Obligation Bonds, Environmental Protection Program, 5/13 at 100.00 AA- 4,079,240 Series 2003A, 5.250%, 5/01/20 2,500 Montrose School District, Michigan, School Building and Site Bonds, No Opt. Call AA- 2,935,850 Series 1997, 6.000%, 5/01/22 - MBIA Insured 1,100 Muskegon County, Michigan, Limited Tax General Obligation Wastewater 7/11 at 100.00 AA- 1,106,204 Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 1,000 Oakland County Building Authority, Michigan, General Obligation 9/11 at 100.00 AAA 1,031,110 Bonds, Series 2002, 5.125%, 9/01/22 2,250 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 2,236,590 General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - FSA Insured 1,595 Oakridge Public Schools, Muskegon County, Michigan, General 5/15 at 100.00 AA- 1,657,540 Obligation Bonds, Series 2005, 5.000%, 5/01/22 - MBIA Insured Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007: 4,330 5.000%, 8/01/26 - MBIA Insured 8/17 at 100.00 Aa1 4,429,677 1,120 5.000%, 8/01/30 - MBIA Insured 8/17 at 100.00 Aa1 1,124,547 1,245 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 1,044,941 Obligation Bonds, Tender Option Bond Trust 2836, 10.052%, 5/01/36 - FSA Insured (IF) 4,340 Plymouth-Canton Community School District, Wayne and Washtenaw 5/14 at 100.00 AA- 4,366,648 Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/26 - FGIC Insured 1,000 Rockford Public Schools, Kent County, Michigan, General Obligation 5/18 at 100.00 AAA 976,620 Bonds, Series 2008, 5.000%, 5/01/33 - FSA Insured 3,175 South Redford School District, Wayne County, Michigan, General 5/15 at 100.00 AA- 3,142,044 Obligation Bonds, School Building and Site, Series 2005, 5.000%, 5/01/30 - MBIA Insured 1,655 Southfield Library Building Authority, Michigan, General Obligation 5/15 at 100.00 AA+ 1,684,525 Bonds, Series 2005, 5.000%, 5/01/26 - MBIA Insured 2,200 Thornapple Kellogg School District, Barry County, Michigan, General 5/17 at 100.00 AA- 2,152,568 Obligation Bonds, Series 2007, 5.000%, 5/01/32 - MBIA Insured 2,000 Trenton Public Schools District, Michigan, General Obligation Bonds, 5/18 at 100.00 AAA 1,952,280 Series 2008, 5.000%, 5/01/34 - FSA Insured 2,275 Troy City School District, Oakland County, Michigan, General 5/16 at 100.00 Aa2 2,477,339 Obligation Bonds, Series 2006, 5.000%, 5/01/19 - MBIA Insured Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building and Site, Series 2008: 310 5.000%, 5/01/31 - FSA Insured 5/18 at 100.00 AAA 304,677 575 5.000%, 5/01/38 - FSA Insured 5/18 at 100.00 AAA 557,790 5,000 Wayne County, Michigan, Limited Tax General Obligation Airport Hotel 12/11 at 101.00 AA- 5,015,749 Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/21 - MBIA Insured 3,350 Wayne Westland Community Schools, Michigan, General Obligation Bonds, 11/14 at 100.00 AAA 3,712,370 Series 2004, 5.000%, 5/01/17 - FSA Insured |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,725 Williamston Community School District, Michigan, Unlimited Tax No Opt. Call AA- $ 1,963,533 General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 98,764 Total Tax Obligation/General 90,089,542 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.7% (10.8% OF TOTAL INVESTMENTS) 1,000 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax No Opt. Call AA 1,091,180 General Obligation Bonds, Series 1998, 5.000%, 4/01/16 1,345 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax 10/11 at 100.00 AA 1,358,746 General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured Michigan Building Authority, Revenue Bonds, Series 2006IA: 7,000 0.000%, 10/15/27 - FGIC Insured 10/16 at 58.27 AAA 2,230,900 6,200 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA 1,826,086 4,440 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 AA- 4,026,947 40 Michigan Municipal Bond Authority, Local Government Loan Program 5/09 at 100.00 A 40,174 Revenue Sharing Bonds, Series 1992D, 6.650%, 5/01/12 2,135 Michigan State Building Authority, Revenue Bonds, Facilities Program, 10/15 at 100.00 A+ 1,946,202 Series 2005II, 5.000%, 10/15/33 - AMBAC Insured Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,100 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AA- 5,226,733 5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AA- 5,080,249 3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 5.250%, 10/12 at 100.00 AAA 3,715,775 10/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 35,760 Total Tax Obligation/Limited 26,542,992 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Michigan, Revenue Refunding Bonds, 7/12 at 100.00 AA- 940,570 Series 2002, 5.250%, 7/01/21 - MBIA Insured (Alternative Minimum Tax) 200 Kent County, Michigan, Airport Revenue Bonds, Series 1999, 5.000%, 1/10 at 100.00 AAA 200,660 1/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 1,200 Total Transportation 1,141,230 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 34.7% (22.5% OF TOTAL INVESTMENTS) (4) 690 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 5/09 at 100.00 AA- (4) 696,721 General Obligation Bonds, Series 1999I, 6.000%, 5/01/29 (Pre-refunded 5/01/09) - FGIC Insured 1,200 Birmingham, Michigan, General Obligation Bonds, Series 2002, 5.000%, 10/12 at 100.50 AAA 1,347,384 10/01/20 (Pre-refunded 10/01/12) 935 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 1,055,091 Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) - FSA Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 3,400 5.750%, 7/01/28 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 A+ (4) 3,756,490 770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 834,495 730 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 792,379 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A: 4,025 5.000%, 7/01/24 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 AA (4) 4,527,642 1,500 5.000%, 7/01/25 (Pre-refunded 7/01/13) - MBIA Insured 7/13 at 100.00 AA (4) 1,687,320 1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1/10 at 101.00 Aaa 1,053,120 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1,085 Freeland Community School District, Saginaw, Midland and Bay 5/10 at 100.00 AA- (4) 1,141,594 Counties, Michigan, General Obligation Bonds, Series 2000, 5.250%, 5/01/19 (Pre-refunded 5/01/10) 2,000 Lake Fenton Community Schools, Genesee County, Michigan, General 5/12 at 100.00 AA- (4) 2,210,800 Obligation Bonds, Series 2002, 5.000%, 5/01/24 (Pre-refunded 5/01/12) 1,790 Lansing Building Authority, Michigan, General Obligation Bonds, 6/13 at 100.00 AA+ (4) 2,024,526 Series 2003A, 5.000%, 6/01/26 (Pre-refunded 6/01/13) - MBIA Insured |
NUM | Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 3,880 Mayville Community Schools, Tuscola County, Michigan, General 11/14 at 100.00 AA- (4) $ 4,467,510 Obligation Bonds, School Building and Site Project, Series 2004, 5.000%, 5/01/34 (Pre-refunded 11/01/14) - FGIC Insured 250 Michigan South Central Power Agency, Power Supply System Revenue No Opt. Call A3 (4) 272,988 Bonds, Series 2000, 6.000%, 5/01/12 (ETM) Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Ascension Health Credit Group, Series 1999A: 1,000 6.125%, 11/15/23 (Pre-refunded 11/15/09) - MBIA Insured 11/09 at 101.00 Aa1 (4) 1,050,030 500 6.125%, 11/15/26 (Pre-refunded 11/15/09) 11/09 at 101.00 AAA 525,015 3,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 11/09 at 101.00 A1 (4) 3,141,600 Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 (Pre-refunded 11/15/09) 1,500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 3/13 at 100.00 A1 (4) 1,720,755 Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Mercy Mt. Clemens Corporation Obligated Group, Series 1999A: 3,385 5.750%, 5/15/17 (Pre-refunded 5/15/09) - MBIA Insured 5/09 at 101.00 AA (4) 3,455,171 500 5.750%, 5/15/29 (Pre-refunded 5/15/09) - MBIA Insured 5/09 at 101.00 AA- (4) 510,365 1,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/09 at 101.00 A (4) 1,048,090 Bonds, OSF Healthcare System, Series 1999, 6.125%, 11/15/19 (Pre-refunded 11/15/09) 3,460 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 5/09 at 100.50 Aaa 3,503,112 Bonds, St. John's Health System, Series 1998A, 5.000%, 5/15/28 - AMBAC Insured (ETM) 1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 5.000%, 11/01/25 11/11 at 100.00 AAA 1,094,270 (Pre-refunded 11/01/11) - FSA Insured 2,000 Michigan, Certificates of Participation, Series 2000, 5.500%, 6/01/27 6/10 at 100.00 A (4) 2,111,200 (Pre-refunded 6/01/10) - AMBAC Insured 700 Muskegon Heights, Muskegon County, Michigan, Water Supply System 11/10 at 100.00 Baa1 (4) 752,598 Revenue Bonds, Series 2000A, 5.625%, 11/01/30 (Pre-refunded 11/01/10) - MBIA Insured 1,125 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/10 at 101.00 BBB (4) 1,201,489 Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded 7/01/10) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 98,876 915 6.000%, 8/01/26 (ETM) No Opt. Call AAA 1,064,374 4,100 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 Aaa 4,943,369 Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) 1,000 Rochester Community School District, Oakland and Macomb Counties, 5/10 at 100.00 AA- (4) 1,056,670 Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19 (Pre-refunded 5/01/10) - FGIC Insured 800 Romulus Community Schools, Wayne County, Michigan, Unlimited Tax 5/09 at 100.00 AA- (4) 807,480 General Obligation School Building and Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded 5/01/09) - FGIC Insured 1,050 Warren Consolidated School District, Macomb and Oakland Counties, 11/11 at 100.00 AAA 1,159,295 Michigan, General Obligation Bonds, Series 2001, 5.375%, 5/01/19 (Pre-refunded 11/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 50,375 Total U.S. Guaranteed 55,111,819 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 15.2% (9.9% OF TOTAL INVESTMENTS) 5,000 Lansing Board of Water and Light, Michigan, Steam and Electric 7/18 at 100.00 AA- 4,891,799 Utility System Revenue Bonds, Series 2008A, 5.000%, 7/01/32 3,000 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 1/12 at 100.00 A 3,012,360 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 3,225 Michigan South Central Power Agency, Power Supply System Revenue No Opt. Call A3 3,279,954 Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/09 at 102.00 AA- 819,000 Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 4,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/11 at 100.00 A- $ 3,782,920 Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 2,050 Michigan Strategic Fund, Limited Obligation Pollution Control Revenue No Opt. Call Baa1 2,099,692 Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 3,630 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, No Opt. Call A 3,940,075 Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 - AMBAC Insured 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 12/12 at 100.00 Baa1 2,335,500 Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 24,905 Total Utilities 24,161,300 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.8% (6.3% OF TOTAL INVESTMENTS) 5,500 Detroit Water Supply System, Michigan, Water Supply System Revenue 7/16 at 100.00 AAA 4,683,305 Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call AA- 1,362,510 Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 565 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 588,097 Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 1,500 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/13 at 100.00 AA- 1,352,970 Series 2003A, 5.000%, 7/01/25 - MBIA Insured 675 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 1/18 at 100.00 AA+ 669,857 2008, 5.000%, 1/01/38 4,210 Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue 10/14 at 100.00 AAA 4,634,663 Bonds, Series 2004, 5.000%, 10/01/19 1,150 Michigan Municipal Bond Authority, Drinking Water Revolving Fund 10/14 at 100.00 AAA 1,190,066 Revenue Bonds, Series 2004, 5.000%, 10/01/23 1,000 Michigan Municipal Bond Authority, Water Revolving Fund Revenue 10/17 at 100.00 AAA 1,042,150 Bonds, Series 2007, 5.000%, 10/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 16,100 Total Water and Sewer 15,523,618 ------------------------------------------------------------------------------------------------------------------------------------ $ 266,144 Total Investments (cost $248,570,756) - 154.6% 245,351,531 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.7% 4,264,969 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (57.3)% (5) (90,900,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $158,716,500 ===================================================================================================================== |
(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 higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 37.0%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.1% (0.7% OF TOTAL INVESTMENTS) $ 1,650 Michigan Tobacco Settlement Finance Authority, Tobacco Settlement 6/18 at 100.00 Baa3 $ 1,132,560 Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 5.3% (3.5% OF TOTAL INVESTMENTS) 440 Chandler Park Academy, Michigan, Public School Academy Charter School 11/15 at 100.00 BBB 272,972 Revenue Bonds, Series 2005, 5.125%, 11/01/35 2,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, 9/12 at 100.00 AA 1,696,800 Series 2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax) 3,500 Wayne State University, Michigan, General Revenue Bonds, Series 1999, 11/09 at 101.00 AA- 3,484,250 5.125%, 11/15/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,940 Total Education and Civic Organizations 5,454,022 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 4.9% (3.3% OF TOTAL INVESTMENTS) 1,800 Michigan Hospital Financing Authority, Revenue Bonds, Oakwood 7/17 at 100.00 A 1,301,004 Obligated Group, Series 2007A, 5.000%, 7/15/37 Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 425 5.000%, 5/15/25 5/15 at 100.00 BBB 327,705 150 5.000%, 5/15/30 5/15 at 100.00 BBB 106,937 1,005 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette 5/15 at 100.00 Baa3 729,761 General Hospital, Series 2005A, 5.000%, 5/15/26 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A: 2,000 6.250%, 8/15/13 8/09 at 100.00 BB- 1,912,700 500 6.500%, 8/15/18 8/09 at 100.00 BB- 420,745 250 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 266,345 Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 6,130 Total Health Care 5,065,197 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.2% (4.8% OF TOTAL INVESTMENTS) 895 Michigan Housing Development Authority, GNMA Collateralized Limited 4/12 at 102.00 Aaa 843,690 Obligation Multifamily Housing Revenue Bonds, Burkshire Pointe Apartments, Series 2002A, 5.400%, 10/20/32 (Alternative Minimum Tax) 1,500 Michigan Housing Development Authority, Limited Obligation Revenue 4/09 at 100.00 AAA 1,501,605 Bonds, Breton Village Green Project, Series 1993, 5.625%, 10/15/18 - FSA Insured 2,235 Michigan Housing Development Authority, Limited Obligation Revenue 4/09 at 100.00 AAA 2,256,612 Bonds, Walled Lake Villa Project, Series 1993, 6.000%, 4/15/18 - FSA Insured 800 Michigan Housing Development Authority, Rental Housing Revenue Bonds, 7/15 at 100.00 AAA 748,664 Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section 8 Assisted Multifamily Housing Revenue Refunding Bonds, Clinton Place Project, Series 1992A: 535 6.600%, 6/01/13 6/09 at 100.00 AAA 536,332 1,500 6.600%, 6/01/22 6/09 at 100.00 AAA 1,501,740 ------------------------------------------------------------------------------------------------------------------------------------ 7,465 Total Housing/Multifamily 7,388,643 ------------------------------------------------------------------------------------------------------------------------------------ |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.4% (0.3% OF TOTAL INVESTMENTS) $ 665 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R $ 426,617 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.8% (0.5% OF TOTAL INVESTMENTS) 1,050 Dickinson County Economic Development Corporation, Michigan, 11/14 at 100.00 BBB 764,558 Pollution Control Revenue Bonds, International Paper Company, Series 2004A, 4.800%, 11/01/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 55.1% (36.2% OF TOTAL INVESTMENTS) 1,475 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 11/13 at 100.00 AA- 1,526,463 General Obligation Bonds, Series 2003, 5.000%, 5/01/21 2,500 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 5/11 at 100.00 AAA 2,551,775 Unlimited Tax General Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/21 1,000 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 992,340 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 2,250 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/15 at 100.00 AA- 2,267,325 Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/26 - MBIA Insured 1,501 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/17 at 100.00 AA- 1,346,922 Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.067%, 5/01/32 - MBIA Insured (IF) Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2002A: 1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AA- 2,037,537 750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AA- 828,923 2,500 Detroit City School District, Wayne County, Michigan, General 5/13 at 100.00 AA 2,456,250 Obligation Bonds, Series 2003B, 5.000%, 5/01/23 - FGIC Insured 7,000 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General 8/09 at 100.00 AA- 6,919,640 Obligation Building Authority Stadium Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured 860 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AA 893,015 5.000%, 9/01/24 - MBIA Insured 1,500 Hartland Consolidated School District, Livingston County, Michigan, 5/11 at 100.00 AA- 1,502,490 General Obligation Refunding Bonds, Series 2001, 5.125%, 5/01/29 1,650 Holly Area School District, Oakland County, Michigan, General 5/16 at 100.00 AA- 1,642,113 Obligation Bonds, Series 2006, 5.125%, 5/01/32 - MBIA Insured 2,000 Howell Public Schools, Livingston County, Michigan, General 11/13 at 100.00 AA- 2,060,340 Obligation Bonds, Series 2003, 5.000%, 5/01/22 1,250 Kalamazoo Public Schools, Michigan, General Obligation Bonds, Series 5/16 at 100.00 AAA 1,283,038 2006, 5.000%, 5/01/25 - FSA Insured 500 Lansing School District, Ingham County, Michigan, General Obligation 5/14 at 100.00 AA- 516,530 Bonds, Series 2004, 5.000%, 5/01/22 1,000 Livonia Public Schools, Wayne County, Michigan, General Obligation 5/14 at 100.00 AA- 1,045,340 Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured 865 Lowell Area Schools, Counties of Ionia and Kent, Michigan, General 5/17 at 100.00 AAA 839,500 Obligation Bonds, Series2007, 5.000%, 5/01/37 - FSA Insured 425 Marshall Public Schools, Calhoun County, Michigan, General Obligation 5/17 at 100.00 AA- 420,045 Bonds, Series 2007, 5.000%, 5/01/30 - SYNCORA GTY Insured 1,000 Michigan Municipal Bond Authority, General Obligation Bonds, Detroit 6/15 at 100.00 AAA 1,077,800 City School District, Series 2005, 5.000%, 6/01/18 - FSA Insured Michigan, General Obligation Bonds, Environmental Protection Program, Series 2003A: 1,000 5.250%, 5/01/20 5/13 at 100.00 AA- 1,019,810 2,000 5.250%, 5/01/21 5/13 at 100.00 AA- 2,026,760 1,450 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 1,441,358 General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - FSA Insured 3,500 Ottawa County, Michigan, Water Supply System, General Obligation 8/17 at 100.00 Aa1 3,514,210 Bonds, Series 2007, 5.000%, 8/01/30 - MBIA Insured |
NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, Michigan, 5/14 at 100.00 AAA $ 1,121,879 General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured 805 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 675,645 Obligation Bonds, Tender Option Bond Trust 2836, 10.052%, 5/01/36 - FSA Insured (IF) 1,000 Rockford Public Schools, Kent County, Michigan, General Obligation 5/15 at 100.00 AAA 1,004,150 Bonds, Series 2005, 5.000%, 5/01/27 - FSA Insured 1,000 Rockford Public Schools, Kent County, Michigan, General Obligation 5/18 at 100.00 AAA 976,620 Bonds, Series 2008, 5.000%, 5/01/33 - FSA Insured 1,100 Thornapple Kellogg School District, Barry County, Michigan, General 5/17 at 100.00 AA- 1,076,284 Obligation Bonds, Series 2007, 5.000%, 5/01/32 - MBIA Insured 1,500 Trenton Public Schools District, Michigan, General Obligation Bonds, 5/18 at 100.00 AAA 1,464,210 Series 2008, 5.000%, 5/01/34 - FSA Insured 1,350 Van Dyke Public Schools, Macomb County, Michigan, General Obligation 5/18 at 100.00 AAA 1,309,595 Bonds, School Building and Site, Series 2008, 5.000%, 5/01/38 - FSA Insured 2,830 Warren Consolidated School District, Macomb and Oakland Counties, 5/13 at 100.00 AA 3,015,478 Michigan, General Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 Wayne County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A: 1,500 5.500%, 12/01/18 - MBIA Insured 12/11 at 101.00 AA- 1,555,605 4,435 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AA- 3,999,173 ------------------------------------------------------------------------------------------------------------------------------------ 56,411 Total Tax Obligation/General 56,408,163 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.9% (14.4% OF TOTAL INVESTMENTS) 2,880 Michigan Building Authority, Revenue Bonds, Series 2006IA, 5.000%, 10/16 at 100.00 AA- 2,612,074 10/15/36 - FGIC Insured Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2001I: 2,570 5.500%, 10/15/19 10/11 at 100.00 A+ 2,640,135 6,500 5.000%, 10/15/24 10/11 at 100.00 A+ 6,443,970 1,600 Michigan State Building Authority, Revenue Bonds, Facilities Program, 10/15 at 100.00 A+ 1,474,720 Series 2005II, 5.000%, 10/15/30 - AMBAC Insured Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: 5,000 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AA- 5,124,250 2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AA- 2,519,804 1,500 Michigan, Comprehensive Transportation Revenue Refunding Bonds, 11/11 at 100.00 AAA 1,576,185 Series 2001A, 5.000%, 11/01/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,530 Total Tax Obligation/Limited 22,391,138 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.2% (0.1% OF TOTAL INVESTMENTS) 200 Kent County, Michigan, Airport Revenue Bonds, Series 1999, 5.000%, 1/10 at 100.00 AAA 200,660 1/01/25 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.9% (14.4% OF TOTAL INVESTMENTS) (4) 915 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 AA (4) 1,050,429 Bonds, Series 2005A, 5.000%, 7/01/30 (Pre-refunded 7/01/15) - MBIA Insured 1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/11 at 100.00 A+ (4) 1,501,008 Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1/10 at 101.00 Aaa 2,106,240 1999A, 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 500 Lansing School District, Ingham County, Michigan, General Obligation 5/14 at 100.00 AA- (4) 571,275 Bonds, Series 2004, 5.000%, 5/01/22 (Pre-refunded 5/01/14) 75 Michigan South Central Power Agency, Power Supply System Revenue No Opt. Call A3 (4) 81,896 Bonds, Series 2000, 6.000%, 5/01/12 (ETM) |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,500 Michigan State Building Authority, Revenue Bonds, Facilities Program, 10/10 at 100.00 A+ (4) $ 1,602,150 Series 2000I, 5.375%, 10/15/20 (Pre-refunded 10/15/10) 2,500 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 11/09 at 101.00 AAA 2,625,075 Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26 (Pre-refunded 11/15/09) 3,075 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 11/09 at 101.00 A1 (4) 3,220,140 Henry Ford Health System, Series 1999A, 6.000%, 11/15/24 (Pre-refunded 11/15/09) 1,500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 3/13 at 100.00 A1 (4) 1,720,755 Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) 1,500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 5/09 at 101.00 AA- (4) 1,531,095 Bonds, Mercy Mt. Clemens Corporation Obligated Group, Series 1999A, 5.750%, 5/15/29 (Pre-refunded 5/15/09) - MBIA Insured 500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/11 at 101.00 A+ (4) 560,080 Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31 (Pre-refunded 11/15/11) 3,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 5/09 at 100.00 A (4) 3,067,560 Bonds, St. John's Hospital, Series 1993A, 6.000%, 5/15/13 - AMBAC Insured (ETM) 1,000 Otsego Public Schools District, Allegan and Kalamazoo Counties, 5/14 at 100.00 AAA 1,142,550 Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 (Pre-refunded 5/01/14) - FSA Insured 1,425 Walled Lake Consolidated School District, Oakland County, Michigan, 5/14 at 100.00 AA (4) 1,645,533 General Obligation Bonds, Series 2004, 5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,875 Total U.S. Guaranteed 22,425,786 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 16.5% (10.8% OF TOTAL INVESTMENTS) 2,500 Lansing Board of Water and Light, Michigan, Steam and Electric 7/18 at 100.00 AA- 2,445,900 Utility System Revenue Bonds, Series 2008A, 5.000%, 7/01/32 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 1/12 at 100.00 A 1,004,120 Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured 925 Michigan South Central Power Agency, Power Supply System Revenue No Opt. Call A3 940,762 Bonds, Series 2000, 6.000%, 5/01/12 1,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/09 at 102.00 AA- 819,000 Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) 5,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/11 at 100.00 A- 4,728,650 Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C, 5.450%, 9/01/29 3,000 Michigan Strategic Fund, Limited Obligation Pollution Control Revenue No Opt. Call Baa1 3,072,720 Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured 3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 12/12 at 100.00 Baa1 2,335,500 Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax) 1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, Series 2002, 10/09 at 100.50 AA- 1,519,020 5.375%, 10/01/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,925 Total Utilities 16,865,672 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 16.7% (11.0% OF TOTAL INVESTMENTS) 3,500 Detroit Water Supply System, Michigan, Water Supply System Revenue 7/16 at 100.00 AAA 2,980,285 Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,085 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 AA- 912,203 Bonds, Series 2005A, 5.000%, 7/01/30 - MBIA Insured 1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call AA- 1,362,510 Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 1,120 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 1,165,786 Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured |
NMP | Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,330 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 7/15 at 100.00 AA+ $ 1,330,625 2005, 5.000%, 1/01/30 - MBIA Insured 450 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 1/18 at 100.00 AA+ 446,571 2008, 5.000%, 1/01/38 1,000 Michigan Municipal Bond Authority, Water Revolving Fund Revenue 10/17 at 100.00 AAA 1,042,150 Bonds, Series 2007, 5.000%, 10/01/24 8,245 North Kent Sewer Authority, Michigan, Sewer Revenue Bonds, Series 11/16 at 100.00 AA- 7,899,201 2006, 5.000%, 11/01/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,230 Total Water and Sewer 17,139,331 ------------------------------------------------------------------------------------------------------------------------------------ $ 159,071 Total Investments (cost $159,800,186) - 152.0% 155,662,347 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.7% 2,772,100 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.7)% (5) (56,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $102,434,447 ===================================================================================================================== |
(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 higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.0%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
NZW | Nuveen Michigan Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.0% (0.7% OF TOTAL INVESTMENTS) $ 400 Michigan Tobacco Settlement Finance Authority, Tobacco Settlement 6/18 at 100.00 Baa3 $ 274,560 Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.8% (4.4% OF TOTAL INVESTMENTS) 230 Chandler Park Academy, Michigan, Public School Academy Charter 11/15 at 100.00 BBB 142,690 School Revenue Bonds, Series 2005, 5.125%, 11/01/35 500 Concord Academy, Boyne City, Michigan, Certificates of 11/17 at 100.00 N/R 365,810 Participation, Series 2007, 5.450%, 11/01/22 1,150 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100.00 Baa1 1,092,075 Revenue Refunding Bonds, Kettering University, Series 2001, 5.000%, 9/01/26 - AMBAC Insured 250 Michigan Public Educational Facilities Authority, Charter School 12/17 at 100.00 N/R 174,218 Revenue Bonds, American Montessori Academy, Series 2007, 6.500%, 12/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 2,130 Total Education and Civic Organizations 1,774,793 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 15.4% (10.0% OF TOTAL INVESTMENTS) 500 Allegan Hospital Finance Authority, Michigan, Revenue Bonds, Allegan 11/09 at 101.00 N/R 448,540 General Hospital, Series 1999, 7.000%, 11/15/21 500 Garden City Hospital Finance Authority, Michigan, Revenue Bonds, 8/17 at 100.00 N/R 257,480 Garden City Hospital Obligated Group, Series 2007A, 5.000%, 8/15/38 600 Michigan Hospital Financing Authority, Revenue Bonds, Oakwood 7/17 at 100.00 A 433,668 Obligated Group, Series 2007A, 5.000%, 7/15/37 610 Michigan State Hospital Finance Authority, Hospital Revenue 7/09 at 100.00 Ba3 529,572 Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16 Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: 425 5.000%, 5/15/30 5/15 at 100.00 BBB 302,987 335 5.000%, 5/15/37 5/15 at 100.00 BBB 215,830 400 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette 5/15 at 100.00 Baa3 290,452 General Hospital, Series 2005A, 5.000%, 5/15/26 100 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 9/18 at 100.00 A1 106,538 Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue 11/11 at 100.00 AA- 1,458,035 Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,270 Total Health Care 4,043,102 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.9% (4.4% OF TOTAL INVESTMENTS) 1,700 Michigan Housing Development Authority, GNMA Collateralized Limited 8/12 at 102.00 Aaa 1,610,035 Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative Minimum Tax) 200 Michigan Housing Development Authority, Rental Housing Revenue 7/15 at 100.00 AAA 187,166 Bonds, Series 2006D, 5.125%, 4/01/31 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,900 Total Housing/Multifamily 1,797,201 ------------------------------------------------------------------------------------------------------------------------------------ |
NZW | Nuveen Michigan Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS) $ 500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, Republic No Opt. Call BBB $ 433,640 Services Inc., Series 2001, 4.250%, 8/01/31 (Mandatory put 4/01/14) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.8% (0.5% OF TOTAL INVESTMENTS) 335 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 N/R 214,913 Presbyterian Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 51.8% (33.6% OF TOTAL INVESTMENTS) 200 Ann Arbor, Michigan, General Obligation Bonds, Court & Police 5/18 at 100.00 AA+ 198,468 Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 437 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/17 at 100.00 AA- 392,142 Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.067%, 5/01/32 - MBIA Insured (IF) 300 Grand Rapids, Michigan, General Obligation Bonds, Series 2007, 9/17 at 100.00 AA 304,989 5.000%, 9/01/27 - MBIA Insured 940 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA- 944,606 Michigan, General Obligation Bonds, Series 2001, 5.000%, 5/01/27 500 Jackson Public Schools, Jackson County, Michigan, General Obligation 5/14 at 100.00 AAA 516,530 School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured 430 Lowell Area Schools, Counties of Ionia and Kent, Michigan, General 5/17 at 100.00 AAA 417,324 Obligation Bonds, Series 2007, 5.000%, 5/01/37 - FSA Insured 400 Michigan Municipal Bond Authority, General Obligation Bonds, Detroit 6/15 at 100.00 AAA 431,120 City School District, Series 2005, 5.000%, 6/01/18 - FSA Insured 1,150 Muskegon County, Michigan, Limited Tax General Obligation Wastewater 7/11 at 100.00 AA- 1,156,486 Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured 1,410 New Haven Community Schools, Macomb County, Michigan, General 5/16 at 100.00 AAA 1,428,315 Obligation Bonds, Series 2006, 5.000%, 5/01/25 - FSA Insured 400 Oakland Intermediate School District, Oakland County, Michigan, 5/17 at 100.00 AAA 397,616 General Obligation Bonds, Series 2007, 5.000%, 5/01/36 - FSA Insured 1,000 Ottawa County, Michigan, Water Supply System, General Obligation 8/17 at 100.00 Aa1 1,004,060 Bonds, Series 2007, 5.000%, 8/01/30 - MBIA Insured 235 Parchment School District, Kalamazoo County, Michigan, General 5/17 at 100.00 AAA 197,238 Obligation Bonds, Tender Option Bond Trust 2836, 10.052%, 5/01/36 - FSA Insured (IF) 750 Plainwell Community Schools, Allegan County, Michigan, General 5/18 at 100.00 AAA 749,948 Obligation Bonds, School Building & Site, Series 2008, 5.000%, 5/01/28 - AGC Insured 100 Rockford Public Schools, Kent County, Michigan, General Obligation 5/18 at 100.00 AAA 97,662 Bonds, Series 2008, 5.000%, 5/01/33 - FSA Insured 330 Thornapple Kellogg School District, Barry County, Michigan, General 5/17 at 100.00 AA- 322,885 Obligation Bonds, Series 2007, 5.000%, 5/01/32 - MBIA Insured 100 Trenton Public Schools District, Michigan, General Obligation Bonds, 5/18 at 100.00 AAA 97,614 Series 2008, 5.000%, 5/01/34 - FSA Insured 225 Van Dyke Public Schools, Macomb County, Michigan, General Obligation 5/18 at 100.00 AAA 218,266 Bonds, School Building and Site, Series 2008, 5.000%, 5/01/38 - FSA Insured Washtenaw County, Michigan, Limited Tax General Obligation Bonds, Sylvan Township Water and Wastewater System, Series 2001: 500 5.000%, 5/01/19 - MBIA Insured 5/09 at 100.50 AA+ 505,035 800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AA+ 808,056 1,690 Wayne County, Michigan, Limited Tax General Obligation Airport Hotel 12/11 at 101.00 AA- 1,523,923 Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - MBIA Insured 500 Wayne Westland Community Schools, Michigan, General Obligation 11/14 at 100.00 AAA 554,085 Bonds, Series 2004, 5.000%, 5/01/17 - FSA Insured |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,300 Willow Run Community Schools, Washtenaw County, Michigan, General 5/11 at 100.00 AA- $ 1,326,923 Obligation Bonds, Series 2001, 5.000%, 5/01/21 ------------------------------------------------------------------------------------------------------------------------------------ 13,697 Total Tax Obligation/General 13,593,291 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.2% (10.5% OF TOTAL INVESTMENTS) 1,100 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax 10/11 at 100.00 AA 1,111,242 General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured 905 Kalkaska County Hospital Authority, Michigan, Hospital Revenue No Opt. Call BBB 845,243 Bonds, Series 2007, 5.125%, 5/01/14 Michigan Building Authority, Revenue Bonds, Series 2006IA: 1,520 0.000%, 10/15/28 - FGIC Insured 10/16 at 55.35 AAA 447,686 720 5.000%, 10/15/36 - FGIC Insured 10/16 at 100.00 AA- 653,018 1,205 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 A+ 1,194,613 Program, Series 2001I, 5.000%, 10/15/24 ------------------------------------------------------------------------------------------------------------------------------------ 5,450 Total Tax Obligation/Limited 4,251,802 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 0.6% (0.4% OF TOTAL INVESTMENTS) 150 Kent County, Michigan, Airport Revenue Bonds, Series 1999, 5.000%, 1/10 at 100.00 AAA 150,495 1/01/25 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.8% (12.8% OF TOTAL INVESTMENTS) (4) 1,000 Detroit City School District, Wayne County, Michigan, Unlimited Tax 5/12 at 100.00 AAA 1,120,840 School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/21 (Pre-refunded 5/01/12) - FSA Insured 720 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 812,477 Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) - FSA Insured 1,000 Garden City School District, Wayne County, Michigan, General 5/11 at 100.00 AA- (4) 1,079,150 Obligation Refunding Bonds, Series 2001, 5.000%, 5/01/26 (Pre-refunded 5/01/11) 1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum 7/11 at 101.00 AA (4) 1,096,490 Health, Series 2001A, 5.250%, 1/15/21 (Pre-refunded 7/15/11) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 85 6.000%, 8/01/26 (ETM) No Opt. Call BBB- (4) 98,876 615 6.000%, 8/01/26 (ETM) No Opt. Call AAA 715,399 250 Warren Building Authority, Michigan, Limited Tax General Obligation 11/10 at 100.00 AA (4) 266,818 Bonds, Series 2001, 5.150%, 11/01/22 (Pre-refunded 11/01/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,670 Total U.S. Guaranteed 5,190,050 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 18.9% (12.3% OF TOTAL INVESTMENTS) 1,115 Lansing Board of Water and Light, Michigan, Steam and Electric 7/13 at 100.00 AAA 1,148,015 Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 750 Lansing Board of Water and Light, Michigan, Steam and Electric 7/18 at 100.00 AA- 733,770 Utility System Revenue Bonds, Series 2008A, 5.000%, 7/01/32 1,235 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 1/12 at 100.00 A 1,250,512 Project, Series 2001A, 5.250%, 1/01/24 - AMBAC Insured 2,215 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/11 at 100.00 A3 1,837,541 Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 - SYNCORA GTY Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,315 Total Utilities 4,969,838 ------------------------------------------------------------------------------------------------------------------------------------ |
NZW | Nuveen Michigan Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 14.4% (9.3% OF TOTAL INVESTMENTS) $ 1,000 Detroit Water Supply System, Michigan, Water Supply System Revenue 7/16 at 100.00 AAA $ 851,510 Bonds, Series 2006A, 5.000%, 7/01/34 - FSA Insured 1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue No Opt. Call AA- 908,340 Bonds, Series 2001B, 5.500%, 7/01/29 - FGIC Insured 280 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue 7/13 at 100.00 AAA 291,446 Bonds, Series 2003A, 5.000%, 7/01/17 - FSA Insured 125 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 1/18 at 100.00 AA+ 124,048 2008, 5.000%, 1/01/38 1,000 Michigan Municipal Bond Authority, Clean Water Revolving Fund 10/15 at 100.00 AAA 1,084,860 Revenue Bonds, Series 2005, 5.000%, 10/01/19 500 Michigan Municipal Bond Authority, Water Revolving Fund Revenue 10/17 at 100.00 AAA 525,200 Bonds, Series 2007, 5.000%, 10/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 3,905 Total Water and Sewer 3,785,404 ------------------------------------------------------------------------------------------------------------------------------------ $ 43,722 Total Investments (cost $42,925,644) - 154.3% 40,479,089 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.6% 681,847 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.9)% (5) (14,925,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 26,235,936 ===================================================================================================================== |
(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 higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.9%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.3% (4.2% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 4,735 5.875%, 6/01/30 6/17 at 100.00 BBB $ 3,002,984 1,650 5.750%, 6/01/34 6/17 at 100.00 BBB 984,275 8,450 5.875%, 6/01/47 6/17 at 100.00 BBB 4,805,260 125 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 89,590 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 14,960 Total Consumer Staples 8,882,109 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.5% (10.3% OF TOTAL INVESTMENTS) 1,650 Ohio Higher Education Facilities Commission, General Revenue Bonds, 7/16 at 100.00 A+ 1,482,377 Kenyon College, Series 2006, 5.000%, 7/01/41 1,750 Ohio Higher Education Facilities Commission, General Revenue Bonds, 10/13 at 100.00 AA 1,808,363 Oberlin College, Series 2003, 5.125%, 10/01/24 1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 728,430 Wittenberg University, Series 2005, 5.000%, 12/01/29 2,420 Ohio Higher Educational Facilities Commission, General Revenue 12/16 at 100.00 A 2,235,596 Bonds, University of Dayton, 2006 Project, Series 2006, 5.000%, 12/01/30 - AMBAC Insured 1,415 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/14 at 100.00 AA 1,449,866 Denison University, Series 2004, 5.000%, 11/01/21 1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/14 at 100.00 A 1,286,274 University of Dayton, Series 2004, 5.000%, 12/01/25 - AMBAC Insured 1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa2 950,910 Wittenberg University, Series 2001, 5.500%, 12/01/15 1,500 Ohio State Higher Education Facilities, Revenue Bonds, Case Western 12/16 at 100.00 AA- 1,460,895 Reserve University, Series 2006, 5.000%, 12/01/44 - MBIA Insured 1,200 Ohio State University, General Receipts Bonds, Series 2002A, 5.125%, 12/12 at 100.00 AA 1,204,584 12/01/31 3,000 Ohio State University, General Receipts Bonds, Series 2003B, 5.250%, 6/13 at 100.00 AA 3,168,270 6/01/22 1,510 University of Akron, Ohio, General Receipts Bonds, Series 2003A, 1/13 at 100.00 A 1,545,394 5.000%, 1/01/21 - AMBAC Insured 850 University of Cincinnati, Ohio, General Receipts Bonds, Series 6/13 at 100.00 AA- 857,557 2003C, 5.000%, 6/01/22 - FGIC Insured University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D: 1,200 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 A+ 1,238,472 2,605 5.000%, 6/01/25 - AMBAC Insured 6/14 at 100.00 A+ 2,587,625 ------------------------------------------------------------------------------------------------------------------------------------ 22,420 Total Education and Civic Organizations 22,004,613 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 17.9% (12.0% OF TOTAL INVESTMENTS) 2,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/09 at 101.00 Baa1 1,726,320 Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 3,650 Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati 5/16 at 100.00 N/R 2,809,223 Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured |
NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and Improvement 8/09 at 100.00 AA- $ 1,000,010 Bonds, MetroHealth System, Series 1997, 5.625%, 2/15/17 - MBIA Insured 2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland Clinic 7/13 at 100.00 Aa2 2,013,080 Health System, Series 2003A, 6.000%, 1/01/32 4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 3,640,005 Regional Medical Center, Series 2002A, 5.625%, 8/15/32 1,000 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children's 11/18 at 100.00 Aa2 862,010 Hospital Project, Series 2005, 5.000%, 11/01/40 2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital Medical 5/14 at 100.00 AA- 2,554,403 Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured 785 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 673,632 Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A: 1,500 5.000%, 5/01/30 5/14 at 100.00 AA 1,352,085 2,500 5.000%, 5/01/32 No Opt. Call AA 2,233,450 1,350 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, 11/14 at 100.00 AA- 1,352,727 Series 2009A, 6.250%, 11/15/39 1,315 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 1,304,967 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 830 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 800,635 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 1,200 Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health 11/16 at 100.00 A- 943,824 System Group, Series 2006, 5.250%, 11/15/36 600 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health 12/18 at 100.00 A 557,148 System Series 2008, 5.750%, 12/01/35 1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, Union 10/11 at 101.00 A3 1,634,907 Hospital Project, Series 2001, 5.750%, 10/01/21 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 28,390 Total Health Care 25,458,426 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.3% (4.9% OF TOTAL INVESTMENTS) 1,385 Clermont County, Ohio, GNMA Collateralized Mortgage Revenue Bonds, 8/09 at 100.00 Aaa 1,385,319 S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 885 Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing 9/12 at 102.00 Aaa 854,680 Mortgage Revenue Bonds, Livingston Park Apartments Project, Series 2002A, 5.350%, 9/20/27 (Alternative Minimum Tax) Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Longwood Phase One Associates LP, Series 2001A: 2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,515,516 2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,144,880 985 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage 7/09 at 100.00 Aa2 983,917 Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax) 800 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue 10/18 at 101.00 Aaa 750,040 Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 850 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 Aaa 702,789 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 1,200 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 1,071,840 Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,830 Total Housing/Multifamily 10,408,981 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.7% (1.8% OF TOTAL INVESTMENTS) 1,315 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 3/09 at 102.00 Aaa 1,261,493 Residential Mortgage Revenue Bonds, Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax) |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 815 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 3/09 at 100.75 AAA $ 801,667 Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax) 1,995 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, 9/15 at 100.00 Aaa 1,766,074 Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,125 Total Housing/Single Family 3,829,234 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.4% (1.6% OF TOTAL INVESTMENTS) 870 Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue 11/15 at 100.00 N/R 693,599 Bonds, Bond Fund Program - Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) 1,420 Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue 5/09 at 101.00 N/R 1,212,723 Bonds, Jergens Inc., Series 1998A, 5.375%, 5/15/18 (Alternative Minimum Tax) 1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, Emery Air 8/09 at 101.00 AA- 1,512,690 Freight Corporation and Emery Worldwide Airlines Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 3,790 Total Industrials 3,419,012 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,600 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, Life 1/17 at 100.00 BBB 1,032,816 Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.5% (1.0% OF TOTAL INVESTMENTS) 2,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, Cargill No Opt. Call A 2,099,100 Inc., Series 2004B, 4.500%, 12/01/15 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 39.9% (26.6% OF TOTAL INVESTMENTS) Butler County, Ohio, General Obligation Bonds, Series 2002: 1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aa2 1,401,517 1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aa2 1,252,536 1,500 Centerville City School District, Montgomery County, Ohio, General 6/15 at 100.00 Aa2 1,518,375 Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured 1,000 Central Ohio Solid Waste Authority, General Obligation Bonds, Series 6/14 at 100.00 AAA 1,107,970 2004A, 5.000%, 12/01/15 - AMBAC Insured 2,600 Cincinnati City School District, Hamilton County, Ohio, General 12/12 at 100.00 AAA 2,709,616 Obligation Bonds, Series 2002, 5.250%, 6/01/21 - FSA Insured 1,000 Cleveland Municipal School District, Cuyahoga County, Ohio, General 6/14 at 100.00 AAA 1,020,070 Obligation Bonds, Series 2004, 5.000%, 12/01/22 - FSA Insured 1,200 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AA+ 1,270,884 12/01/21 1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 5.250%, 12/01/19 - 6/14 at 100.00 A+ 1,096,970 AMBAC Insured 1,000 Dublin City School District, Franklin, Delaware and Union Counties, 12/13 at 100.00 AAA 1,045,860 Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 - FSA Insured 1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement Bonds, Series 12/10 at 100.00 Aaa 1,025,470 2000A, 5.000%, 12/01/20 1,195 Fairview Park City School District, Cuyahoga County, Ohio, General 6/15 at 100.00 A2 1,208,993 Obligation Bonds, Series 2005, 5.000%, 12/01/24 - MBIA Insured 1,840 Franklin County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/17 at 100.00 AAA 1,907,234 12/01/28 1,500 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 12/15 at 100.00 AA 1,541,595 7,020 Hamilton City School District, Ohio, General Obligation Bonds, Series 6/17 at 100.00 AAA 7,057,204 2007, 5.000%, 12/01/34 - FSA Insured 1,850 Hilliard School District, Franklin County, Ohio, General Obligation 12/15 at 100.00 Aa2 1,883,948 Bonds, School Construction, Series 2005, 5.000%, 12/01/26 - MBIA Insured 3,000 Hilliard School District, Franklin County, Ohio, General Obligation 12/16 at 100.00 AA 3,081,510 Bonds, Series 2006A, 5.000%, 12/01/25 - MBIA Insured |
NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,580 Indian Lake Local School District, Logan and Auglaize Counties, Ohio, 6/17 at 100.00 AA- $ 2,454,328 School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - MBIA Insured 1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aa3 1,207,734 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured 800 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 821,704 Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured 2,000 Louisville City School District, Ohio, General Obligation Bonds, 12/11 at 100.00 A3 1,876,960 Series 2001, 5.000%, 12/01/29 - FGIC Insured 505 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA 513,681 Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 500 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 504,680 General Obligation Bonds, Series 2007, 5.000%, 12/01/31 1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Baa1 1,609,294 Series 2003, 5.250%, 12/01/21 - MBIA Insured 1,350 Milford Exempted Village School District, Ohio, General Obligation 12/18 at 100.00 A2 1,330,479 Bonds, Series 2008, 5.250%, 12/01/36 640 New Albany Plain Local School District, Franklin County, Ohio, 6/12 at 100.00 Aa2 693,965 General Obligation Bonds, Series 2002, 5.500%, 12/01/17 - FGIC Insured 1,000 Newark City School District, Licking County, Ohio, General Obligation 12/15 at 100.00 AA- 980,240 Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured 1,000 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa2 992,520 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, Series 2/13 at 100.00 AA+ 3,090,030 2003F, 5.000%, 2/01/23 1,510 Painesville City School District, Ohio, General Obligation Bonds, 12/14 at 100.00 AA- 1,571,155 Series 2004, 5.000%, 12/01/22 - FGIC Insured 280 Plain Local School District, Franklin and Licking Counties, Ohio, 6/11 at 100.00 Aa2 300,698 General Obligation Bonds, Series 2000, 6.000%, 12/01/20 - FGIC Insured 1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 5.000%, 12/11 at 100.00 AA 1,452,283 12/01/27 - FGIC Insured 2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 5.000%, 12/11 at 100.00 Aa1 2,062,400 12/01/21 - FGIC Insured 70 Strongsville, Ohio, Limited Tax General Obligation Various Purpose 4/09 at 100.00 Aa1 70,267 Improvement Bonds, Series 1996, 5.950%, 12/01/21 Warren City School District, Trumbull County, Ohio, General Obligation Bonds, Series 2004: 2,515 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AA 2,661,247 1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AA 1,219,304 1,000 West Chester Township, Butler County, Ohio, General Obligation Bonds, 12/13 at 100.00 Aa1 1,002,020 Series 2003, 5.000%, 12/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 55,290 Total Tax Obligation/General 56,544,741 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 12.5% (8.3% OF TOTAL INVESTMENTS) 1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, Series 6/14 at 100.00 A 1,304,956 2004A, 5.000%, 12/01/25 - AMBAC Insured 3,000 Franklin County, Ohio, Excise Tax and Lease Revenue Anticipation 12/15 at 100.00 Aaa 3,047,910 Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured 1,085 Hamilton County Convention Facilities Authority, Ohio, First Lien 6/14 at 100.00 AA- 1,143,265 Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC Insured 4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 12/16 at 100.00 A2 4,402,382 2006, 5.000%, 12/01/32 - AMBAC Insured 1,000 Hudson City School District, Ohio, Certificates of Participation, 6/14 at 100.00 A1 961,890 Series 2004, 5.000%, 6/01/26 - MBIA Insured |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds, Series 2001B: $ 1,000 5.500%, 10/01/15 - AMBAC Insured 4/12 at 100.00 A $ 1,017,040 1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 A 1,024,040 800 Ohio State Building Authority, State Facilities Bonds, Administrative 4/15 at 100.00 AAA 818,936 Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 2,645 Ohio State Building Authority, State Facilities Bonds, Adult 4/14 at 100.00 AA 2,955,946 Correctional Building Fund Project, Series 2004A, 5.250%, 4/01/15 - MBIA Insured 1,000 Ohio, State Appropriation Lease Bonds, Mental Health Capital 6/13 at 100.00 AA 1,093,340 Facilities, Series 2003B-II, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ 17,510 Total Tax Obligation/Limited 17,769,705 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.6% (2.4% OF TOTAL INVESTMENTS) 3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox International 12/13 at 100.00 BBB+ 2,737,500 Airport, Series 2003C, 5.250%, 12/01/23 - RAAI Insured (Alternative Minimum Tax) 2,000 Ohio Turnpike Commission, Revenue Refunding Bonds, Series 1998A, No Opt. Call AA 2,323,080 5.500%, 2/15/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Transportation 5,060,580 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 25.3% (16.8% OF TOTAL INVESTMENTS) (4) Butler County, Ohio, General Obligation Judgment Bonds, Series 2002: 2,030 5.250%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 Aa2 (4) 2,315,926 2,140 5.250%, 12/01/22 (Pre-refunded 12/01/12) 12/12 at 101.00 Aa2 (4) 2,441,419 1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, Series 6/09 at 101.00 A (4) 1,235,991 1999, 4.875%, 12/01/24 (Pre-refunded 6/01/09) - AMBAC Insured 1,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox International No Opt. Call BBB+ (4) 1,151,050 Airport, Series 2005B, 5.000%, 12/01/14 - SYNCORA GTY Insured (ETM) 385 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. Project, No Opt. Call AAA 392,038 Series 1979, 7.500%, 6/01/09 (ETM) 2,000 Garfield Heights City School District, Cuyahoga County, Ohio, General 12/11 at 100.00 Baa1 (4) 2,192,820 Obligation School Improvement Bonds, Series 2001, 5.000%, 12/15/26 (Pre-refunded 12/15/11) - MBIA Insured 1,500 Hamilton County, Ohio, Sewer System Revenue and Improvement Bonds, 6/10 at 101.00 AA (4) 1,605,660 Metropolitan Sewer District of Greater Cincinnati, Series 2000A, 5.750%, 12/01/25 (Pre-refunded 6/01/10) - MBIA Insured 1,000 Hilliard School District, Ohio, General Obligation School Improvement 12/10 at 101.00 AA (4) 1,090,880 Bonds, Series 2000, 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FGIC Insured 2,000 Lakota Local School District, Butler County, Ohio, Unlimited Tax 6/11 at 100.00 Aa1 (4) 2,169,920 General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured 760 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 N/R (4) 859,780 Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) - FGIC Insured 3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, Kettering 4/10 at 101.00 A (4) 3,205,440 Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10) 1,260 Morgan Local School District, Morgan, Muskingum and Washington 12/10 at 101.00 AA (4) 1,375,441 Counties, Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series 2000, 5.750%, 12/01/22 (Pre-refunded 12/01/10) 460 New Albany Plain Local School District, Franklin County, Ohio, 6/12 at 100.00 Aa2 (4) 516,847 General Obligation Bonds, Series 2002, 5.500%, 12/01/17 (Pre-refunded 6/01/12) - FGIC Insured Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A: 1,315 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AA+ (4) 1,512,973 3,380 5.250%, 12/01/24 (Pre-refunded 6/01/14) - FGIC Insured 6/14 at 100.00 AA+ (4) 3,888,857 |
NUO | Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 Princeton City School District, Butler County, Ohio, General 12/13 at 100.00 AAA $ 1,143,980 Obligation Bonds, Series 2003, 5.000%, 12/01/30 (Pre-refunded 12/01/13) - MBIA Insured 1,670 Richland County, Ohio, Hospital Facilities Revenue Improvement Bonds, 11/10 at 101.00 A- (4) 1,830,621 MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) 2,830 Springfield Township, Hamilton County, Ohio, Various Purpose Limited 12/11 at 100.00 Aa3 (4) 3,120,613 Tax General Obligation Bonds, Series 2002, 5.250%, 12/01/27 (Pre-refunded 12/01/11) 1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 A3 (4) 1,625,070 Improvement Bonds, Trinity Health System, Series 2000, 6.375%, 10/01/20 (Pre-refunded 10/01/10) 2,000 Westerville City School District, Franklin and Delaware Counties, 6/11 at 100.00 AA (4) 2,164,360 Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 32,440 Total U.S. Guaranteed 35,839,686 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.0% (7.3% OF TOTAL INVESTMENTS) 2,500 American Municipal Power Ohio Inc., General Revenue Bonds, Series 2/18 at 100.00 A1 2,466,400 2008, 5.250%, 2/15/43 4,000 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 A2 4,052,998 Improvement Revenue Bonds, Series 2002, 5.000%, 2/15/22 - MBIA Insured Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B: 2,105 0.000%, 11/15/32 - MBIA Insured No Opt. Call AA 517,767 2,155 0.000%, 11/15/34 - MBIA Insured No Opt. Call AA 465,458 3,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG Funding 4/09 at 100.00 Baa1 2,851,650 Limited Partnership Project, Series 1997, 5.625%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 800 Ohio Municipal Electric Generation Agency, Beneficial Interest No Opt. Call AA- 229,536 Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2001, 0.000%, 2/15/29 - MBIA Insured 2,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 A1 2,011,400 Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured 3,900 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, 3/09 at 102.00 N/R 3,043,209 Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 20,460 Total Utilities 15,638,418 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.5% (2.3% OF TOTAL INVESTMENTS) 430 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, Series 12/17 at 100.00 A3 411,527 2007, 5.000%, 12/01/32 - AMBAC Insured 1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding and No Opt. Call Aa2 1,104,530 Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - MBIA Insured 40 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding and 7/09 at 100.00 Aa2 40,042 Improvement Bonds, Series 1996H, 5.750%, 1/01/26 - MBIA Insured 1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, Series 2005, 5.250%, 10/15 at 100.00 Aa3 1,275,193 10/01/22 - FSA Insured 525 Ohio Water Development Authority, Revenue Bonds, Drinking Water 6/18 at 100.00 AAA 541,454 Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,500 Ohio Water Development Authority, Water Pollution Control Loan Fund 6/15 at 100.00 AAA $ 1,563,690 Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 4,715 Total Water and Sewer 4,936,436 ------------------------------------------------------------------------------------------------------------------------------------ $ 223,530 Total Investments (cost $217,552,694) - 150.1% 212,923,857 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 4.2% 5,958,928 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.3)% (5) (77,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $141,882,785 ===================================================================================================================== |
(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 higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
NXI | Nuveen Ohio Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.8% (3.2% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 1,320 5.875%, 6/01/30 6/17 at 100.00 BBB $ 837,157 3,375 5.875%, 6/01/47 6/17 at 100.00 BBB 1,919,261 50 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 35,836 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 4,745 Total Consumer Staples 2,792,254 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.4% (6.2% OF TOTAL INVESTMENTS) 700 Ohio Higher Education Facilities Commission, General Revenue Bonds, 7/16 at 100.00 A+ 628,887 Kenyon College, Series 2006, 5.000%, 7/01/41 2,650 Ohio Higher Education Facilities Commission, Revenue Bonds, Ohio 5/12 at 100.00 A2 2,618,359 Northern University, Series 2002, 5.000%, 5/01/22 500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 388,400 Wittenberg University, Series 2005, 5.000%, 12/01/24 1,760 Ohio University at Athens, Subordinate Lien General Receipts Bonds, 6/14 at 100.00 AA- 1,865,266 Series 2004, 5.000%, 12/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,610 Total Education and Civic Organizations 5,500,912 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.6% (9.0% OF TOTAL INVESTMENTS) 1,425 Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati 5/16 at 100.00 N/R 1,096,751 Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland Clinic 7/13 at 100.00 Aa2 1,107,194 Health System, Series 2003A, 6.000%, 1/01/32 500 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children's 11/18 at 100.00 Aa2 431,005 Hospital Project, Series 2005, 5.000%, 11/01/40 1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare 11/09 at 101.00 A 1,701,980 Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured 330 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 283,183 Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, 5/14 at 100.00 AA 901,390 Series 2004A, 5.000%, 5/01/30 375 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 11/14 at 100.00 AA- 375,758 2009A, 6.250%, 11/15/39 1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 1,041,989 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 335 Richland County, Ohio, Hospital Facilities Revenue Improvement Bonds, 11/10 at 101.00 A- 323,148 MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 500 Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health 11/16 at 100.00 A- 393,260 System Group, Series 2006, 5.250%, 11/15/36 375 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health 12/18 at 100.00 A 348,218 System Series 2008, 5.750%, 12/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 8,940 Total Health Care 8,003,876 ------------------------------------------------------------------------------------------------------------------------------------ |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.5% (6.3% OF TOTAL INVESTMENTS) $ 1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease Revenue Bonds, 8/15 at 100.00 A $ 1,168,134 Euclid Avenue Housing Corporation - Fenn Tower Project, Series 2005, 5.000%, 8/01/23 - AMBAC Insured 350 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue 10/18 at 101.00 Aaa 328,143 Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue Bonds, 4/11 at 102.00 Aa2 2,889,039 Asbury Woods Project, Series 2001A, 5.450%, 4/01/26 340 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 Aaa 281,115 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 1,000 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 893,200 Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,740 Total Housing/Multifamily 5,559,631 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.5% (1.7% OF TOTAL INVESTMENTS) 275 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 270,075 Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 720 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 713,088 Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 45,428 Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 500 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, 9/15 at 100.00 Aaa 442,625 Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,540 Total Housing/Single Family 1,471,216 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 6.4% (4.3% OF TOTAL INVESTMENTS) 1,500 Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond Fund 5/12 at 102.00 N/R 1,270,695 Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 360 Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue 11/15 at 100.00 N/R 287,006 Bonds, Bond Fund Program - Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) 880 Ohio State Water Development Authority, Solid Waste Revenue Bonds, 7/12 at 100.00 BBB 785,778 Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding Bonds, No Opt. Call Baa3 933,000 CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 700 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 496,426 Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,440 Total Industrials 3,772,905 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS) 550 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, Life 1/17 at 100.00 BBB 355,031 Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 29.3% (19.4% OF TOTAL INVESTMENTS) 1,500 Centerville City School District, Montgomery County, Ohio, General 6/15 at 100.00 Aa2 1,518,375 Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured 400 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 141,716 Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured 500 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 529,535 5.000%, 12/01/21 1,355 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,411,490 5.000%, 12/01/27 470 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 12/15 at 100.00 AA 483,033 2,550 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 2,563,515 Series 2007, 5.000%, 12/01/34 - FSA Insured |
NXI | Nuveen Ohio Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,000 Indian Lake Local School District, Logan and Auglaize Counties, 6/17 at 100.00 AA- $ 1,902,580 Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - MBIA Insured 430 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 429,402 Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured 1,005 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA 1,022,276 Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 200 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 201,872 General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General Obligation 12/18 at 100.00 A2 49,277 Bonds, Series 2008, 5.250%, 12/01/36 750 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa2 744,390 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 2,000 Ohio, General Obligation Higher Education Capital Facilities Bonds, 2/11 at 100.00 AA+ 2,140,340 Series 2001A, 5.000%, 2/01/20 2,415 Troy City School District, Miami County, Ohio, General Obligation 12/14 at 100.00 Aa3 2,455,886 Bonds, Series 2005, 5.000%, 12/01/28 - FSA Insured 1,485 West Chester Township, Butler County, Ohio, Various Purpose Limited 11/11 at 101.00 Aa1 1,624,575 Tax General Obligation Refunding Bonds, Series 2001, 5.500%, 12/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,110 Total Tax Obligation/General 17,218,262 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.8% (9.8% OF TOTAL INVESTMENTS) 2,000 Franklin County, Ohio, Excise Tax and Lease Revenue Anticipation 12/15 at 100.00 Aaa 2,031,940 Bonds, Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC Insured 1,415 Hamilton County Convention Facilities Authority, Ohio, First Lien 6/14 at 100.00 AA- 1,454,733 Revenue Bonds, Series 2004, 5.000%, 12/01/21 - FGIC Insured 2,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 12/16 at 100.00 A2 1,914,080 2006, 5.000%, 12/01/32 - AMBAC Insured 500 New Albany Community Authority, Ohio, Community Facilities Revenue 4/12 at 100.00 A 508,520 Refunding Bonds, Series 2001B, 5.500%, 10/01/15 - AMBAC Insured 345 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 353,166 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 1,000 Ohio State Building Authority, State Facilities Bonds, Adult 4/15 at 100.00 AAA 1,035,130 Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured 1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan 10/10 at 101.00 BBB+ 1,404,424 Note, Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 8,660 Total Tax Obligation/Limited 8,701,993 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.5% (2.3% OF TOTAL INVESTMENTS) 2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 5.500%, 2/11 at 100.00 AA 2,045,900 2/15/26 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 39.1% (25.9% OF TOTAL INVESTMENTS) (4) 1,000 Bay Village City School District, Ohio, General Obligation Unlimited 12/10 at 100.00 Aa2 (4) 1,068,020 Tax School Improvement Bonds, Series 2001, 5.000%, 12/01/25 (Pre-refunded 12/01/10) 1,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 1,175,600 Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) - FSA Insured 1,000 Lakewood City School District, Cuyahoga County, Ohio, General 12/14 at 100.00 AAA 1,164,510 Obligation Bonds, Series 2004, 5.250%, 12/01/16 (Pre-refunded 12/01/14) - FSA Insured |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,000 Lakota Local School District, Butler County, Ohio, Unlimited Tax 6/11 at 100.00 Aa1 (4) $ 2,169,920 General Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured 910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, Series 2001, 12/10 at 101.00 A (4) 988,742 5.500%, 12/01/18 (Pre-refunded 12/01/10) - AMBAC Insured 1,000 Medina City School District, Medina County, Ohio, Unlimited Tax 12/09 at 100.00 Aa3 (4) 1,036,310 General Obligation School Building Construction Bonds, Series 1999, 5.250%, 12/01/28 (Pre-refunded 12/01/09) - FGIC Insured 1,000 Middletown City School District, Butler County, Ohio, General 12/13 at 100.00 N/R (4) 1,131,290 Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) - FGIC Insured 1,000 Nordonia Hills Local School District, Ohio, General Obligation 12/10 at 101.00 AA (4) 1,085,660 Bonds, Series 2000, 5.450%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 2,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/11 at 101.00 AA (4) 2,219,400 Denison University, Series 2001, 5.200%, 11/01/26 (Pre-refunded 11/01/11) 1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/10 at 101.00 A (4) 1,083,030 University of Dayton, Series 2000, 5.500%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC Insured 1,900 Olentangy Local School District, Delaware and Franklin Counties, 6/14 at 100.00 AA+ (4) 2,186,045 Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/23 (Pre-refunded 6/01/14) - FGIC Insured 2,000 Puerto Rico Municipal Finance Agency, Series 1999A, 6.000%, 8/01/16 8/09 at 101.00 AAA 2,067,120 (Pre-refunded 8/01/09) - FSA Insured 665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 728,960 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) 1,275 Sycamore Community School District, Hamilton County, Ohio, Unlimited 12/09 at 101.00 AA (4) 1,331,572 Tax General Obligation School Improvement Bonds, Series 1999, 5.000%, 12/01/23 (Pre-refunded 12/01/09) - MBIA Insured 2,735 University of Cincinnati, Ohio, General Receipts Bonds, Series 6/12 at 100.00 A+ (4) 3,059,396 2002F, 5.375%, 6/01/19 (Pre-refunded 6/01/12) 400 Westerville City School District, Franklin and Delaware Counties, 6/11 at 100.00 AA (4) 432,872 Ohio, Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27 (Pre-refunded 6/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,885 Total U.S. Guaranteed 22,928,447 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.4% (8.2% OF TOTAL INVESTMENTS) 1,000 American Municipal Power Ohio Inc., General Revenue Bonds, Series 2/18 at 100.00 A1 986,560 2008, 5.250%, 2/15/43 1,440 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 A2 1,505,650 Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - MBIA Insured 2,130 Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B, No Opt. Call AA 523,916 0.000%, 11/15/32 - MBIA Insured 2,000 Ohio Air Quality Development Authority, Revenue Refunding Bonds, 5/09 at 101.00 AA- 1,811,160 Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 1,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 A1 994,020 Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/21 - AMBAC Insured 1,900 Ohio Water Development Authority, Solid Waste Disposal Revenue 3/09 at 102.00 N/R 1,482,589 Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,470 Total Utilities 7,303,895 ------------------------------------------------------------------------------------------------------------------------------------ |
NXI | Nuveen Ohio Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.0% (3.3% OF TOTAL INVESTMENTS) $ 175 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 A3 $ 167,482 Series 2007, 5.000%, 12/01/32 - AMBAC Insured 325 Ohio Water Development Authority, Revenue Bonds, Drinking Water 6/18 at 100.00 AAA 335,186 Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured 2,375 Ohio Water Development Authority, Revenue Bonds, Water Development 12/13 at 100.00 Aa2 2,414,021 Community Assistance Program, Series 2003, 5.000%, 12/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,875 Total Water and Sewer 2,916,689 ------------------------------------------------------------------------------------------------------------------------------------ $ 92,565 Total Investments (cost $90,233,019) - 150.9% 88,571,011 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.9% 1,121,097 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.8)% (5) (31,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 58,692,108 ===================================================================================================================== |
(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 higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 35.0%.
N/R Not rated.
See accompanying notes to financial statements.
NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.5% (2.3% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 250 5.875%, 6/01/30 6/17 at 100.00 BBB $ 158,553 2,200 5.875%, 6/01/47 6/17 at 100.00 BBB 1,251,074 45 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 32,252 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 2,495 Total Consumer Staples 1,441,879 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.6% (8.2% OF TOTAL INVESTMENTS) 1,345 Bowling Green State University, Ohio, General Receipts Bonds, Series 6/13 at 100.00 A 1,440,105 2003, 5.250%, 6/01/18 - AMBAC Insured 450 Ohio Higher Education Facilities Commission, General Revenue Bonds, 7/16 at 100.00 A+ 404,285 Kenyon College, Series 2006, 5.000%, 7/01/41 1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/11 at 100.00 Baa2 998,456 Wittenberg University, Series 2001, 5.500%, 12/01/15 1,000 University of Cincinnati, Ohio, General Receipts Bonds, Series 6/13 at 100.00 AA- 1,008,890 2003C, 5.000%, 6/01/22 - FGIC Insured 1,245 University of Cincinnati, Ohio, General Receipts Bonds, Series 6/14 at 100.00 A+ 1,284,915 2004D, 5.000%, 6/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,090 Total Education and Civic Organizations 5,136,651 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 22.4% (14.5% OF TOTAL INVESTMENTS) 1,150 Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati 5/16 at 100.00 N/R 885,098 Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 911,560 Regional Medical Center, Series 2002A, 5.500%, 8/15/22 250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children's 11/18 at 100.00 Aa2 215,503 Hospital Project, Series 2005, 5.000%, 11/01/40 1,850 Lorain County, Ohio, Hospital Revenue Refunding and Improvement 10/11 at 101.00 AA- 1,865,762 Bonds, Catholic Healthcare Partners, Series 2001A, 5.400%, 10/01/21 225 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 193,079 Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 700 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, 5/14 at 100.00 AA 630,973 Series 2004A, 5.000%, 5/01/30 90 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, 11/14 at 100.00 AA- 90,182 Series 2009A, 6.250%, 11/15/39 35 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 34,733 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 641,472 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 350 Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health 11/16 at 100.00 A- 275,282 System Group, Series 2006, 5.250%, 11/15/36 90 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health 12/18 at 100.00 A 83,572 System Series 2008, 5.750%, 12/01/35 |
NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, Union 10/11 at 101.00 A3 $ 3,286,408 Hospital Project, Series 2001, 5.750%, 10/01/26 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,075 Total Health Care 9,113,624 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.2% (3.4% OF TOTAL INVESTMENTS) 1,000 Franklin County, Ohio, GNMA Collateralized Multifamily Housing 5/12 at 102.00 Aaa 1,020,810 Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) 250 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue 10/18 at 101.00 Aaa 234,388 Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 250 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 Aaa 206,703 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) 750 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA 669,900 Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,250 Total Housing/Multifamily 2,131,801 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.2% (1.4% OF TOTAL INVESTMENTS) 995 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, 9/15 at 100.00 Aaa 880,824 Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 7.9% (5.1% OF TOTAL INVESTMENTS) 3,000 Ohio State Sewage and Solid Waste Disposal Facilities, Revenue 11/11 at 100.00 BBB+ 2,278,500 Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative Minimum Tax) 640 Ohio State Water Development Authority, Solid Waste Revenue Bonds, 7/12 at 100.00 BBB 571,475 Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 500 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 354,590 Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,140 Total Industrials 3,204,565 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.8% (0.5% OF TOTAL INVESTMENTS) 475 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, Life 1/17 at 100.00 BBB 306,617 Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 46.3% (30.2% OF TOTAL INVESTMENTS) 1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation Bonds, 11/11 at 101.00 A2 1,707,803 One Renaissance Center Acquisition, Series 2001, 5.000%, 11/01/26 - AMBAC Insured Cleveland Municipal School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2004: 1,000 5.000%, 12/01/15 - FSA Insured 6/14 at 100.00 AAA 1,107,970 1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,020,070 300 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 106,287 Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured 400 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 423,628 5.000%, 12/01/21 1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,041,690 5.000%, 12/01/27 400 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 12/15 at 100.00 AA 411,092 1,905 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 1,915,097 Series 2007, 5.000%, 12/01/34 - FSA Insured 1,000 Indian Lake Local School District, Logan and Auglaize Counties, 6/17 at 100.00 AA- 951,290 Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - MBIA Insured 345 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 344,520 Obligation Bonds, Series 2007, 5.000%, 12/01/30 - FGIC Insured 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice Center 12/12 at 100.00 Aa3 2,558,424 Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,005 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA $ 1,022,276 Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 200 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 201,872 General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General Obligation 12/18 at 100.00 A2 49,277 Bonds, Series 2008, 5.250%, 12/01/36 2,665 Newark City School District, Licking County, Ohio, General 12/15 at 100.00 AA- 2,612,340 Obligation Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured 400 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa2 397,008 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 5.000%, 12/11 at 100.00 AA 1,979,463 12/01/25 - FGIC Insured 1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/12 at 100.00 AA+ 1,037,320 12/01/25 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,750 Total Tax Obligation/General 18,887,427 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.6% (10.2% OF TOTAL INVESTMENTS) 1,400 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 12/16 at 100.00 A2 1,339,856 2006, 5.000%, 12/01/32 - AMBAC Insured 250 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 255,918 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 1,000 Ohio State Building Authority, State Facilities Bonds, Adult 4/15 at 100.00 AAA 1,035,130 Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured 1,500 Ohio, State Appropriation Lease Bonds, Higher Education Capital No Opt. Call AA 1,555,800 Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured 1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation Capital 12/13 at 100.00 AA 1,178,844 Facilities, Series 2004A-II, 5.000%, 12/01/18 1,000 Summit County Port Authority, Ohio, Revenue Bonds, Civic Theatre 12/11 at 100.00 A 1,001,170 Project, Series 2001, 5.500%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,245 Total Tax Obligation/Limited 6,366,718 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.9% (14.9% OF TOTAL INVESTMENTS) (4) 1,845 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 5.250%, 1/10 at 101.00 AAA 1,934,925 1/01/18 (Pre-refunded 1/01/10) - FSA Insured 605 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 711,238 Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) - FSA Insured 1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aa3 (4) 1,099,320 Obligation Capital Improvement Bonds, Series 2001A, 5.125%, 12/01/21 (Pre-refunded 12/01/11) - MBIA Insured 2,250 Lebanon City School District, Warren County, Ohio, General 12/11 at 100.00 AAA 2,496,218 Obligation Bonds, Series 2001, 5.500%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 1,000 Marysville Exempted Village School District, Ohio, Certificates of 6/15 at 100.00 A3 (4) 1,168,650 Participation, School Facilities Project, Series 2005, 5.250%, 12/01/21 (Pre-refunded 6/01/15) - MBIA Insured 1,050 Olentangy Local School District, Delaware and Franklin Counties, 6/14 at 100.00 AA+ (4) 1,221,045 Ohio, General Obligation Bonds, Series 2004A, 5.500%, 12/01/15 (Pre-refunded 6/01/14) - FGIC Insured 635 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 696,074 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) ------------------------------------------------------------------------------------------------------------------------------------ 8,385 Total U.S. Guaranteed 9,327,470 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.8% (8.3% OF TOTAL INVESTMENTS) 1,000 American Municipal Power Ohio Inc., General Revenue Bonds, Series 2/18 at 100.00 A1 986,560 2008, 5.250%, 2/15/43 1,065 Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B, No Opt. Call AA 261,958 0.000%, 11/15/32 - MBIA Insured |
NBJ | Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 2,500 Ohio Air Quality Development Authority, Revenue Refunding Bonds, 5/09 at 101.00 AA- $ 2,263,950 Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured 595 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 A1 598,392 Certificates, Belleville Hydroelectric Project - Joint Venture 5, Series 2004, 5.000%, 2/15/20 - AMBAC Insured 1,400 Ohio Water Development Authority, Solid Waste Disposal Revenue 3/09 at 102.00 N/R 1,092,434 Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,560 Total Utilities 5,203,294 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.5% (1.0% OF TOTAL INVESTMENTS) 130 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 A3 124,415 Series 2007, 5.000%, 12/01/32 - AMBAC Insured 210 Ohio Water Development Authority, Revenue Bonds, Drinking Water 6/18 at 100.00 AAA 216,581 Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured 270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 279,742 Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 610 Total Water and Sewer 620,738 ------------------------------------------------------------------------------------------------------------------------------------ $ 66,070 Total Investments (cost $65,487,335) - 153.7% 62,621,608 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 3.0% 1,232,892 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.7)% (5) (23,100,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 40,754,500 ===================================================================================================================== |
(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 higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.9%.
N/R Not rated.
See accompanying notes to financial statements.
NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.5% (3.6% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 1,100 5.875%, 6/01/30 6/17 at 100.00 BBB $ 697,631 1,670 5.875%, 6/01/47 6/17 at 100.00 BBB 949,679 20 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 14,334 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 2,790 Total Consumer Staples 1,661,644 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.3% (4.1% OF TOTAL INVESTMENTS) 350 Ohio Higher Education Facilities Commission, General Revenue Bonds, 7/16 at 100.00 A+ 314,444 Kenyon College, Series 2006, 5.000%, 7/01/41 1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, Ohio 5/12 at 100.00 A2 1,186,740 Northern University, Series 2002, 5.750%, 5/01/16 500 Ohio Higher Education Facilities Commission, Revenue Bonds, 12/15 at 100.00 Baa2 388,400 Wittenberg University, Series 2005, 5.000%, 12/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 1,975 Total Education and Civic Organizations 1,889,584 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 14.0% (9.2% OF TOTAL INVESTMENTS) 775 Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati 5/16 at 100.00 N/R 596,479 Children's Medical Center Project, Series 2006K, 5.000%, 5/15/31 - FGIC Insured 1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,595,230 Regional Medical Center, Series 2002A, 5.500%, 8/15/22 250 Franklin County, Ohio, Hospital Revenue Bonds, Nationwide 11/18 at 100.00 Aa2 215,503 Children's Hospital Project, Series 2005, 5.000%, 11/01/40 160 Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, 5/16 at 100.00 A- 137,301 Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 500 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 450,695 Initiatives, Series 2004A, 5.000%, 5/01/30 60 Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, 11/14 at 100.00 AA- 60,121 Series 2009A, 6.250%, 11/15/39 600 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/18 at 100.00 Aa2 595,422 Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 335 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- 323,148 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 250 Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health 11/16 at 100.00 A- 196,630 System Group, Series 2006, 5.250%, 11/15/36 60 Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health 12/18 at 100.00 A 55,715 System Series 2008, 5.750%, 12/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 4,740 Total Health Care 4,226,244 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.4% (2.2% OF TOTAL INVESTMENTS) 200 Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing 10/18 at 101.00 Aaa 187,510 Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) 200 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 6/16 at 102.00 Aaa 165,362 Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) |
NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 750 Summit County Port Authority, Ohio, Multifamily Housing Revenue 9/17 at 102.00 AAA $ 669,900 Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,150 Total Housing/Multifamily 1,022,772 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.5% (2.3% OF TOTAL INVESTMENTS) 130 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 127,672 Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) 440 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 435,776 Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 45 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 45,428 Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16 500 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, 9/15 at 100.00 Aaa 442,625 Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,115 Total Housing/Single Family 1,051,501 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 3.9% (2.6% OF TOTAL INVESTMENTS) 555 Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond Fund 5/12 at 102.00 N/R 470,157 Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 480 Ohio State Water Development Authority, Solid Waste Revenue Bonds, 7/12 at 100.00 BBB 428,606 Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) 400 Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue 7/17 at 102.00 N/R 283,672 Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,435 Total Industrials 1,182,435 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.9% (0.6% OF TOTAL INVESTMENTS) 400 Hamilton County, Ohio, Health Care Revenue Refunding Bonds, Life 1/17 at 100.00 BBB 258,204 Enriching Communities Project, Series 2006A, 5.000%, 1/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 33.0% (21.6% OF TOTAL INVESTMENTS) 1,815 Columbus City School District, Franklin County, Ohio, General No Opt. Call AAA 643,036 Obligation Bonds, Series 2006, 0.000%, 12/01/27 - FSA Insured 300 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA+ 317,721 5.000%, 12/01/21 1,000 Franklin County, Ohio, General Obligation Bonds, Series 2007, 12/17 at 100.00 AAA 1,041,690 5.000%, 12/01/27 250 Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 12/15 at 100.00 AA 256,933 1,275 Hamilton City School District, Ohio, General Obligation Bonds, 6/17 at 100.00 AAA 1,281,758 Series 2007, 5.000%, 12/01/34 - FSA Insured 1,000 Indian Lake Local School District, Logan and Auglaize Counties, 6/17 at 100.00 AA- 951,290 Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 - MBIA Insured 1,000 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aa3 1,041,150 Obligation Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured 200 Lakewood City School District, Cuyahoga County, Ohio, General 12/17 at 100.00 AA- 205,426 Obligation Bonds, Series 2007, 5.000%, 12/01/25 - FGIC Insured 1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 5.125%, 12/12 at 100.00 Baa1 1,144,346 12/01/26 - AMBAC Insured 500 Marysville Exempted School District, Union County, Ohio, General 12/15 at 100.00 AAA 508,595 Obligation Bonds, Series 2006, 5.000%, 12/01/25 - FSA Insured 100 Mason City School District, Counties of Warren and Butler, Ohio, 6/17 at 100.00 Aa1 100,936 General Obligation Bonds, Series 2007, 5.000%, 12/01/31 50 Milford Exempted Village School District, Ohio, General Obligation 12/18 at 100.00 A2 49,277 Bonds, Series 2008, 5.250%, 12/01/36 |
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 150 Northmor Local School District, Morrow County, Ohio, General 11/18 at 100.00 Aa2 $ 148,878 Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 1,000 Ohio, Common Schools Capital Facilities, General Obligation Bonds, 9/11 at 100.00 AA+ 1,051,770 Series 2001B, 5.000%, 9/15/20 1,130 Solon, Ohio, General Obligation Refunding and Improvement Bonds, 12/12 at 100.00 AAA 1,216,852 Series 2002, 5.000%, 12/01/18 ------------------------------------------------------------------------------------------------------------------------------------ 11,040 Total Tax Obligation/General 9,959,658 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.5% (14.1% OF TOTAL INVESTMENTS) 1,000 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 12/16 at 100.00 A2 957,040 2006, 5.000%, 12/01/32 - AMBAC Insured 1,000 Midview Local School District, Lorain County, Ohio, Certificates of 5/13 at 100.00 A 915,750 Participation, Series 2003, 5.000%, 11/01/30 1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,344,338 Administrative Building Fund Projects, Series 2002A, 5.500%, 4/01/18 - FSA Insured 200 Ohio State Building Authority, State Facilities Bonds, 4/15 at 100.00 AAA 204,734 Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured 1,000 Ohio, State Appropriation Lease Bonds, Higher Education Capital No Opt. Call AA 1,037,200 Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured 2,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 2,013,220 Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,450 Total Tax Obligation/Limited 6,472,282 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.0% (3.9% OF TOTAL INVESTMENTS) 1,550 Ohio Turnpike Commission, Revenue Refunding Bonds, Series 1998A, No Opt. Call AA 1,800,387 5.500%, 2/15/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 43.3% (28.4% OF TOTAL INVESTMENTS) (4) 725 Eaton City School District, Preble County, Ohio, General Obligation 12/12 at 101.00 A1 (4) 840,282 Bonds, Series 2002, 5.750%, 12/01/21 (Pre-refunded 12/01/12) - FGIC Insured 1,300 Granville Exempt Village School District, Ohio, General Obligation 12/11 at 100.00 Aa2 (4) 1,442,259 Bonds, Series 2001, 5.500%, 12/01/28 (Pre-refunded 12/01/11) 1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 5.375%, 12/12 at 100.00 Aa2 (4) 1,135,980 12/01/22 (Pre-refunded 12/01/12) 500 Miami East Local School District, Miami County, Ohio, General 6/12 at 100.00 AAA 556,535 Obligation Bonds, Series 2002, 5.125%, 12/01/29 (Pre-refunded 6/01/12) - FSA Insured 1,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 A (4) 1,068,480 Kettering Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10) 1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA (4) 1,102,250 Initiatives, Series 2001, 5.500%, 9/01/12 (Pre-refunded 9/01/11) 2,000 Ohio Higher Education Facilities Commission, Revenue Bonds, Case 10/12 at 100.00 AA- (4) 2,268,738 Western Reserve University, Series 2002B, 5.500%, 10/01/22 (Pre-refunded 10/01/12) 1,000 Ohio State University, General Receipts Bonds, Series 1999A, 12/09 at 101.00 AA (4) 1,050,440 5.800%, 12/01/29 (Pre-refunded 12/01/09) 1,000 Olentangy Local School District, Delaware and Franklin Counties, 6/14 at 100.00 AA+ (4) 1,150,550 Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/21 (Pre-refunded 6/01/14) - FGIC Insured 1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AA- (4) 1,692,629 Counties, Ohio, General Obligation Bonds, School Facilities Construction and Improvement, Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) - FGIC Insured 665 Richland County, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101.00 A- (4) 728,960 Bonds, MedCentral Health System Obligated Group, Series 2000B, 6.375%, 11/15/30 (Pre-refunded 11/15/10) ------------------------------------------------------------------------------------------------------------------------------------ 11,725 Total U.S. Guaranteed 13,037,103 ------------------------------------------------------------------------------------------------------------------------------------ |
NVJ | Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.4% (6.2% OF TOTAL INVESTMENTS) $ 500 American Municipal Power Ohio Inc., General Revenue Bonds, Series 2/18 at 100.00 A1 $ 493,280 2008, 5.250%, 2/15/43 1,500 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 A2 1,568,385 Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - MBIA Insured 1,595 Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B, No Opt. Call AA 392,322 0.000%, 11/15/32 - MBIA Insured 500 Ohio Water Development Authority, Solid Waste Disposal Revenue 3/09 at 102.00 N/R 390,155 Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,095 Total Utilities 2,844,142 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.9% (1.2% OF TOTAL INVESTMENTS) 130 City of Marysville, Ohio, Water System Mortgage Revenue Bonds, 12/17 at 100.00 A3 124,415 Series 2007, 5.000%, 12/01/32 - AMBAC Insured 160 Ohio Water Development Authority, Revenue Bonds, Drinking Water 6/18 at 100.00 AAA 165,014 Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 - FSA Insured 270 Ohio Water Development Authority, Revenue Bonds, Fresh Water 12/11 at 100.00 AAA 279,742 Development, Series 2001A, 5.000%, 12/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 560 Total Water and Sewer 569,171 ------------------------------------------------------------------------------------------------------------------------------------ $ 49,025 Total Investments (cost $46,425,514) - 152.6% 45,975,127 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.2% 652,141 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.8)% (5) (16,500,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 30,127,268 ===================================================================================================================== |
(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 higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds insured by AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of February 28, 2009. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 35.9%.
N/R Not rated.
See accompanying notes to financial statements.
| Statement of ASSETS & LIABILITIES February 28, 2009
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $248,570,756, $159,800,186 and $42,925,644, respectively) $ 245,351,531 $ 155,662,347 $ 40,479,089 Cash 1,325,728 740,310 216,601 Receivables: Interest 3,715,047 2,553,244 617,111 Investments sold -- -- -- Other assets 18,290 5,528 284 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 250,410,596 158,961,429 41,313,085 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payables: Common shares repurchased -- 34,744 -- Common share dividends 580,306 359,237 110,478 Preferred share dividends 5,844 4,352 9,588 Accrued expenses: Management fees 124,353 79,476 15,934 Other 83,593 49,173 16,149 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 794,096 526,982 152,149 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 90,900,000 56,000,000 14,925,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 158,716,500 $ 102,434,447 $ 26,235,936 ==================================================================================================================================== Common shares outstanding 11,714,953 7,724,348 2,066,986 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.55 $ 13.26 $ 12.69 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 117,150 $ 77,243 $ 20,670 Paid-in surplus 163,942,156 108,108,662 29,276,195 Undistributed (Over-distribution of) net investment income 210,824 73,500 (16,421) Accumulated net realized gain (loss) from investments and derivative transactions (2,334,405) (1,687,119) (597,953) Net unrealized appreciation (depreciation) of investments and derivative transactions (3,219,225) (4,137,839) (2,446,555) ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 158,716,500 $ 102,434,447 $ 26,235,936 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 Unlimited Preferred 1,000,000 1,000,000 Unlimited ==================================================================================================================================== |
See accompanying notes to financial statements.
| Statement of ASSETS & LIABILITIES (continued) February 28, 2009
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $217,552,694, $90,233,019, $65,487,335 and $46,425,514, respectively) $ 212,923,857 $ 88,571,011 $ 62,621,608 $ 45,975,127 Cash 2,097,131 77,472 472,485 91,791 Receivables: Interest 2,936,840 1,248,811 973,155 661,407 Investments sold 1,572,351 75,000 -- 45,000 Other assets 1,336 2,036 324 4,850 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 219,531,515 89,974,330 64,067,572 46,778,175 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payables: Common shares repurchased -- -- -- -- Common share dividends 468,098 221,050 161,884 118,447 Preferred share dividends 5,082 2,407 3,467 1,751 Accrued expenses: Management fees 108,647 34,513 24,577 16,197 Other 66,903 24,252 23,144 14,512 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 648,730 282,222 213,072 150,907 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 77,000,000 31,000,000 23,100,000 16,500,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 141,882,785 $ 58,692,108 $ 40,754,500 $ 30,127,268 ==================================================================================================================================== Common shares outstanding 9,746,032 4,243,493 3,121,477 2,156,758 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.56 $ 13.83 $ 13.06 $ 13.97 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 97,460 $ 42,435 $ 31,215 $ 21,568 Paid-in surplus 147,811,741 60,263,805 44,255,705 30,521,415 Undistributed (Over-distribution of) net investment income 355,545 250,348 65,127 87,202 Accumulated net realized gain (loss) from investments and derivative transactions (1,753,124) (202,472) (731,820) (52,530) Net unrealized appreciation (depreciation) of investments and derivative transactions (4,628,837) (1,662,008) (2,865,727) (450,387) ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 141,882,785 $ 58,692,108 $ 40,754,500 $ 30,127,268 ==================================================================================================================================== Authorized shares: Common 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited Unlimited ==================================================================================================================================== |
See accompanying notes to financial statements.
| Statement of OPERATIONS
MICHIGAN MICHIGAN MICHIGAN QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW) ---------------------------- ---------------------------- ---------------------------- SEVEN SEVEN SEVEN MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED 2/28/09 7/31/08 2/28/09 7/31/08 2/28/09 7/31/08 ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 7,504,985 $ 13,055,842 $ 4,808,284 $ 8,439,692 $ 1,295,893 $ 2,264,968 ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 929,123 1,672,600 589,333 1,061,252 157,837 290,376 Preferred shares - auction fees 135,863 235,594 81,315 140,353 23,005 40,101 Preferred shares - dividend disbursing agent fees 11,616 20,000 11,616 20,000 5,801 10,000 Shareholders' servicing agent fees and expenses 9,776 20,771 7,694 15,756 350 820 Interest expense on floating rate obligations -- 70,020 -- 160,686 -- 12,937 Custodian's fees and expenses 31,686 60,538 21,832 37,107 7,912 15,898 Directors'/Trustees' fees and expenses 2,769 6,577 1,812 4,376 459 1,269 Professional fees 20,911 25,401 16,417 20,225 9,277 10,598 Shareholders' reports - printing and mailing expenses 33,141 51,006 23,132 36,480 8,905 12,520 Stock exchange listing fees 5,345 9,404 5,345 9,408 169 244 Investor relations expense 13,090 30,527 8,441 19,863 2,390 5,785 Other expenses 17,218 27,563 10,702 16,974 9,476 12,005 ---------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 1,210,538 2,230,001 777,639 1,542,480 225,581 412,553 Custodian fee credit (3,416) (22,051) (2,043) (16,783) (2,600) (4,952) Expense reimbursement -- -- -- -- (40,346) (95,272) ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 1,207,122 2,207,950 775,596 1,525,697 182,635 312,329 ---------------------------------------------------------------------------------------------------------------------------------- Net investment income 6,297,863 10,847,892 4,032,688 6,913,995 1,113,258 1,952,639 ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (1,757,557) (263,137) (1,285,668) (512,989) (206,695) (97,468) Forward swaps -- -- 69,797 (6,970) -- -- Futures -- -- 41,405 -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (5,268,940) (7,931,308) (3,725,846) (5,009,333) (1,840,743) (1,870,613) Forward swaps -- -- (71,362) 207,726 -- -- Futures -- -- (13,813) 13,813 -- -- ---------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (7,026,497) (8,194,445) (4,985,487) (5,307,753) (2,047,438) (1,968,081) ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,528,357) (2,850,189) (911,943) (1,775,079) (265,934) (491,691) From accumulated net realized gains -- (431,262) -- (187,020) (8,429) (48,339) ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,528,357) (3,281,451) (911,943) (1,962,099) (274,363) (540,030) ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ (2,256,991) $ (628,004) $ (1,864,742) $ (355,857) $ (1,208,543) $ (555,472) ================================================================================================================================== |
See accompanying notes to financial statements.
| Statement of OPERATIONS (continued)
OHIO OHIO QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) ---------------------------- ---------------------------- SEVEN SEVEN MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED 2/28/09 7/31/08 2/28/09 7/31/08 ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 6,537,075 $ 11,401,219 $ 2,666,579 $ 4,650,740 ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 802,703 1,440,999 332,007 593,332 Preferred shares - auction fees 111,809 192,987 45,014 77,696 Preferred shares - dividend disbursing agent fees 17,425 29,151 5,808 10,000 Shareholders' servicing agent fees and expenses 10,858 22,659 621 1,107 Interest expense on floating rate obligations 32,715 239,395 12,540 94,080 Custodian's fees and expenses 29,223 96,078 14,557 30,610 Directors'/Trustees' fees and expenses 2,724 5,787 1,085 2,321 Professional fees 19,001 23,666 11,454 13,003 Shareholders' reports - printing and mailing expenses 29,949 49,745 13,650 23,492 Stock exchange listing fees 5,345 9,440 348 501 Investor relations expense 13,132 28,491 4,287 10,361 Other expenses 12,452 19,208 10,075 13,509 ---------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 1,087,336 2,157,606 451,446 870,012 Custodian fee credit (6,090) (14,572) (2,690) (7,191) Expense reimbursement -- -- (77,084) (171,421) ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 1,081,246 2,143,034 371,672 691,400 ---------------------------------------------------------------------------------------------------------------------------------- Net investment income 5,455,829 9,258,185 2,294,907 3,959,340 ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (963,174) (894,117) (160,768) (240,447) Forward swaps -- (113,636) 104,696 (31,726) Futures 348,303 (8,573) 276,060 (8,580) Change in net unrealized appreciation (depreciation) of: Investments (4,408,974) (6,068,561) (2,005,025) (2,295,579) Forward swaps -- 141,307 (107,042) 220,088 Futures (101,622) 101,622 (41,291) 41,291 ---------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (5,125,467) (6,841,958) (1,933,370) (2,314,953) ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,253,559) (2,439,092) (507,674) (974,550) From accumulated net realized gains -- (235,804) -- (133,387) ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,253,559) (2,674,896) (507,674) (1,107,937) ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ (923,197) $ (258,669) $ (146,137) $ 536,450 ================================================================================================================================== |
See accompanying notes to financial statements.
OHIO OHIO DIVIDEND ADVANTAGE 2 (NBJ) DIVIDEND ADVANTAGE 3 (NVJ) ---------------------------- ---------------------------- SEVEN SEVEN MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED 2/28/09 7/31/08 2/28/09 7/31/08 ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 1,952,373 $ 3,393,532 $ 1,390,993 $ 2,404,109 ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 240,426 437,799 173,067 307,644 Preferred shares - auction fees 34,676 60,150 23,958 41,353 Preferred shares - dividend disbursing agent fees 5,801 10,000 5,808 10,000 Shareholders' servicing agent fees and expenses 616 1,195 490 935 Interest expense on floating rate obligations 9,368 70,334 6,270 48,021 Custodian's fees and expenses 11,463 21,586 8,789 17,878 Directors'/Trustees' fees and expenses 921 1,400 559 1,275 Professional fees 10,565 11,578 9,459 10,503 Shareholders' reports - printing and mailing expenses 11,343 17,814 9,406 13,707 Stock exchange listing fees 256 368 177 255 Investor relations expense 5,696 9,195 4,742 6,569 Other expenses 8,768 12,736 8,454 12,058 ---------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 339,899 654,155 251,179 470,198 Custodian fee credit (1,285) (7,350) (890) (6,018) Expense reimbursement (61,443) (143,623) (53,575) (113,089) ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 277,171 503,182 196,714 351,091 ---------------------------------------------------------------------------------------------------------------------------------- Net investment income 1,675,202 2,890,350 1,194,279 2,053,018 ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (424,412) (326,158) (55,182) (272,641) Forward swaps -- (45,455) 104,696 -- Futures 64,124 -- 173,467 23,859 Change in net unrealized appreciation (depreciation) of: Investments (2,249,194) (1,953,136) (958,880) (1,043,820) Forward swaps -- 56,523 (107,042) 107,042 Futures (19,976) 19,976 (21,252) 9,550 ---------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (2,629,458) (2,248,250) (864,193) (1,176,010) ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (391,035) (790,428) (265,893) (496,884) From accumulated net realized gains -- (67,354) -- (45,494) ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (391,035) (857,782) (265,893) (542,378) ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ (1,345,291) $ (215,682) $ 64,193 $ 334,630 ================================================================================================================================== |
See accompanying notes to financial statements.
| Statement of CHANGES in NET ASSETS
MICHIGAN MICHIGAN QUALITY INCOME (NUM) PREMIUM INCOME (NMP) ------------------------------------------- ------------------------------------------- SEVEN SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 2/28/09 7/31/08 7/31/07 ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 6,297,863 $ 10,847,892 $ 11,023,625 $ 4,032,688 $ 6,913,995 $ 6,952,299 Net realized gain (loss) from: Investments (1,757,557) (263,137) 2,021,802 (1,285,668) (512,989) 1,318,366 Forward swaps -- -- -- 69,797 (6,970) -- Futures -- -- -- 41,405 -- -- Change in net unrealized appreciation (depreciation) of: Investments (5,268,940) (7,931,308) (3,145,750) (3,725,846) (5,009,333) (2,008,515) Forward swaps -- -- -- (71,362) 207,726 (136,364) Futures -- -- -- (13,813) 13,813 -- Distributions to Preferred Shareholders: From net investment income (1,528,357) (2,850,189) (2,968,560) (911,943) (1,775,079) (1,756,872) From accumulated net realized gains -- (431,262) (232,090) -- (187,020) (174,588) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (2,256,991) (628,004) 6,699,027 (1,864,742) (355,857) 4,194,326 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,551,261) (7,897,051) (8,329,332) (2,906,120) (5,138,948) (5,530,371) From accumulated net realized gains -- (1,193,754) (859,878) -- (574,353) (717,747) ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,551,261) (9,090,805) (9,189,210) (2,906,120) (5,713,301) (6,248,118) ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased -- -- -- (283,094) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- -- (283,094) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (6,808,252) (9,718,809) (2,490,183) (5,053,956) (6,069,158) (2,053,792) Net assets applicable to Common shares at the beginning of period 165,524,752 175,243,561 177,733,744 107,488,403 113,557,561 115,611,353 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 158,716,500 $ 165,524,752 $ 175,243,561 $ 102,434,447 $ 107,488,403 $ 113,557,561 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 210,824 $ (7,421) $ (85,440) $ 73,500 $ (141,120) $ (133,697) =================================================================================================================================== |
See accompanying notes to financial statements.
MICHIGAN OHIO DIVIDEND ADVANTAGE (NZW) QUALITY INCOME (NUO) ------------------------------------------- ------------------------------------------- SEVEN SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 2/28/09 7/31/08 7/31/07 ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,113,258 $ 1,952,639 $ 1,965,259 $ 5,455,829 $ 9,258,185 $ 9,361,633 Net realized gain (loss) from: Investments (206,695) (97,468) 397,159 (963,174) (894,117) 1,187,125 Forward swaps -- -- (50,922) -- (113,636) -- Futures -- -- -- 348,303 (8,573) -- Change in net unrealized appreciation (depreciation) of: Investments (1,840,743) (1,870,613) (641,385) (4,408,974) (6,068,561) (2,229,443) Forward swaps -- -- 23,573 -- 141,307 (141,307) Futures -- -- -- (101,622) 101,622 -- Distributions to Preferred Shareholders: From net investment income (265,934) (491,691) (505,441) (1,253,559) (2,439,092) (2,526,574) From accumulated net realized gains (8,429) (48,339) (4,070) -- (235,804) (109,526) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (1,208,543) (555,472) 1,184,173 (923,197) (258,669) 5,541,908 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (815,426) (1,457,223) (1,592,223) (3,810,698) (6,520,095) (7,105,832) From accumulated net realized gains (24,804) (150,270) (16,105) -- (656,883) (409,333) ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (840,230) (1,607,493) (1,608,328) (3,810,698) (7,176,978) (7,515,165) ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- 8,680 40,054 -- -- -- Repurchased -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 8,680 40,054 -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (2,048,773) (2,154,285) (384,101) (4,733,895) (7,435,647) (1,973,257) Net assets applicable to Common shares at the beginning of period 28,284,709 30,438,994 30,823,095 146,616,680 154,052,327 156,025,584 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 26,235,936 $ 28,284,709 $ 30,438,994 $ 141,882,785 $ 146,616,680 $ 154,052,327 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (16,421) $ (48,259) $ (51,915) $ 355,545 $ 3,336 $ (293,613) =================================================================================================================================== |
See accompanying notes to financial statements.
| Statement of CHANGES in NET ASSETS (continued)
OHIO OHIO DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------- ------------------------------------------- SEVEN SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 2/28/09 7/31/08 7/31/07 ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,294,907 $ 3,959,340 $ 3,996,849 $ 1,675,202 $ 2,890,350 $ 2,885,530 Net realized gain (loss) from: Investments (160,768) (240,447) 458,042 (424,412) (326,158) 356,781 Forward swaps 104,696 (31,726) -- -- (45,455) -- Futures 276,060 (8,580) -- 64,124 -- -- Change in net unrealized appreciation (depreciation) of: Investments (2,005,025) (2,295,579) (728,528) (2,249,194) (1,953,136) (612,925) Forward swaps (107,042) 220,088 (113,046) -- 56,523 (56,523) Futures (41,291) 41,291 -- (19,976) 19,976 -- Distributions to Preferred Shareholders: From net investment income (507,674) (974,550) (1,023,335) (391,035) (790,428) (788,031) From accumulated net realized gains -- (133,387) (34,050) -- (67,354) (39,456) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (146,137) 536,450 2,555,932 (1,345,291) (215,682) 1,745,376 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,629,732) (2,775,637) (3,063,555) (1,186,161) (2,007,110) (2,156,940) From accumulated net realized gains -- (399,794) (131,955) -- (185,104) (137,033) ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,629,732) (3,175,431) (3,195,510) (1,186,161) (2,192,214) (2,293,973) ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 17,968 -- -- -- Repurchased (6,912) -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (6,912) -- 17,968 -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (1,782,781) (2,638,981) (621,610) (2,531,452) (2,407,896) (548,597) Net assets applicable to Common shares at the beginning of period 60,474,889 63,113,870 63,735,480 43,285,952 45,693,848 46,242,445 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 58,692,108 $ 60,474,889 $ 63,113,870 $ 40,754,500 $ 43,285,952 $ 45,693,848 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 250,348 $ 108,618 $ (98,082) $ 65,127 $ (32,879) $ (125,378) =================================================================================================================================== |
See accompanying notes to financial statements.
OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------- SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,194,279 $ 2,053,018 $ 2,070,882 Net realized gain (loss) from: Investments (55,182) (272,641) 233,291 Forward swaps 104,696 -- (32,854) Futures 173,467 23,859 34,159 Change in net unrealized appreciation (depreciation) of: Investments (958,880) (1,043,820) (450,205) Forward swaps (107,042) 107,042 15,013 Futures (21,252) 9,550 (11,622) Distributions to Preferred Shareholders: From net investment income (265,893) (496,884) (530,895) From accumulated net realized gains -- (45,494) (21,569) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 64,193 334,630 1,306,200 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (857,987) (1,454,801) (1,545,319) From accumulated net realized gains -- (132,313) (76,833) ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (857,987) (1,587,114) (1,622,152) ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 3,269 Repurchased (20,129) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (20,129) -- 3,269 ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (813,923) (1,252,484) (312,683) Net assets applicable to Common shares at the beginning of period 30,941,191 32,193,675 32,506,358 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 30,127,268 $ 30,941,191 $ 32,193,675 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 87,202 $ 24,308 $ (76,726) =================================================================================================================================== |
See accompanying notes to financial statements.
| Notes to FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP), Nuveen Michigan Dividend Advantage Municipal Fund (NZW), Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO), Nuveen Ohio Dividend Advantage Municipal Fund (NXI), Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) and Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (collectively, the "Funds"). Common shares of Michigan Quality Income (NUM), Michigan Premium Income (NMP), and Ohio Quality Income (NUO) are traded on the New York Stock Exchange while Common shares of Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ) are traded on the NYSE Alternext US (formerly American Stock Exchange). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories.
During the current fiscal period, the Board of Directors/Trustees of the Funds approved a change in the Funds' fiscal and tax year end from July 31 to February 28/29.
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with US generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. Prices
of forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors/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 Directors/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 February 28, 2009, there
were no such outstanding purchase commitments in any of the 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.
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 which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, 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). Further, 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 US generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more 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 February 28, 2009, the number of Preferred shares outstanding, by Series and
in total, for each Fund is as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Number of shares: Series M -- 840 -- Series W -- -- 597 Series TH 3,094 1,400 -- Series F 542 -- -- -------------------------------------------------------------------------------- Total 3,636 2,240 597 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Number of shares: Series M 680 -- -- -- Series T -- -- -- 660 Series W -- 1,240 -- -- Series TH 1,400 -- -- -- Series TH2 1,000 -- -- -- Series F -- -- 924 -- -------------------------------------------------------------------------------- Total 3,080 1,240 924 660 ================================================================================ |
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Preferred 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 Preferred shares.
| Notes to FINANCIAL STATEMENTS (continued)
These developments have generally not affected the portfolio management or investment policies of the Funds. However, one implication of these auction failures for Common shareholders is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may be lower than they otherwise would have been.
As of February 28, 2009, Michigan Quality Income (NUM), Michigan Dividend Advantage (NZW) and Ohio Dividend Advantage 2 (NBJ) redeemed $3,100,000, $1,075,000 and $900,000 of their outstanding Preferred shares, respectively, at liquidation value. There were no Preferred share redemptions in any of the other Funds.
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 an "Inverse floating rate investment". An investment in a self-deposited inverse floater is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards No. 140 (SFAS No. 140) "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as an "Underlying bond of an inverse floating rate trust", with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in "Investment Income" the entire earnings of the underlying bond and the related interest paid to the holders of the short-term floating rate certificates is recognized as "Interest expense on floating rate obligations" on the Statement of Operations.
During the seven months ended February 28, 2009, 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 February 28, 2009, the Funds were not invested in any externally-deposited Recourse Trusts.
MICHIGAN MICHIGAN MICHIGAN OHIO OHIO OHIO OHIO QUALITY PREMIUM DIVIDEND QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME INCOME ADVANTAGE INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUM) (NMP) (NZW) (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------------------------------- Maximum exposure $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======================================================================================================== |
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the seven months ended February 28, 2009, were as follows:
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------------------------- Average floating rate obligations $ 1,610,825 $ 617,453 $ 461,274 $ 308,726 Average annual interest rate and fees 3.50% 3.50% 3.50% 3.50% ================================================================================================== |
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
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 forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Michigan Premium Income
(NMP), Ohio Dividend Advantage (NXI) and Ohio Dividend Advantage 3 (NVJ) were
the only Funds to invest in forward interest rate swap transactions during the
seven months ended February 28, 2009.
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized on the Statement of Assets and Liabilities. Additionally, the Statement of Assets and Liabilities reflects a receivable or payable for the variation margin, when applicable. Michigan Quality Income (NUM) and Michigan Dividend Advantage (NZW) were the only Funds that did not invest in futures contracts during the seven months ended February 28, 2009.
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.
Market and 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 (credit risk). Similar to credit risk, each Fund may be
exposed to counterparty risk, or the risk that an institution or other entity
with which the Fund has unsettled or open transactions will default. The
potential loss could exceed the value of the financial assets recorded on the
financial statements. Financial assets, which potentially expose each Fund to
credit risk, consist principally of cash due from counterparties on forward,
option and swap transactions. The extent of each Fund's exposure to credit and
counterparty risks in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities.
| Notes to FINANCIAL STATEMENTS (continued)
Each Fund helps manage credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments Inc. ("Nuveen") 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. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
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 Directors/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 US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value Measurements." SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about 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 methodology 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 February 28, 2009:
MICHIGAN QUALITY INCOME (NUM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------------------------------------------------------------------------------------------- Investments $ -- $ 245,351,531 $ -- $ 245,351,531 ============================================================================================== MICHIGAN PREMIUM INCOME (NMP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------------------------------------------------------------------------------------------- Investments $ -- $ 155,662,347 $ -- $ 155,662,347 ============================================================================================== MICHIGAN DIVIDEND ADVANTAGE (NZW) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------------------------------------------------------------------------------------------- Investments $ -- $ 40,479,089 $ -- $ 40,479,089 ============================================================================================== OHIO QUALITY INCOME (NUO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------------------------------------------------------------------------------------------- Investments $ -- $ 212,923,857 $ -- $ 212,923,857 ============================================================================================== OHIO DIVIDEND ADVANTAGE (NXI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------------------------------------------------------------------------------------------- Investments $ -- $ 88,571,011 $ -- $ 88,571,011 ============================================================================================== OHIO DIVIDEND ADVANTAGE 2 (NBJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------------------------------------------------------------------------------------------- Investments $ -- $ 62,621,608 $ -- $ 62,621,608 ============================================================================================== OHIO DIVIDEND ADVANTAGE 3 (NVJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------------------------------------------------------------------------------------------- Investments $ -- $ 45,975,127 $ -- $ 45,975,127 ============================================================================================== |
| Notes to FINANCIAL STATEMENTS (continued)
3. FUND SHARES
Common Shares
On July 30, 2008, the Funds' Board of Directors/Trustees approved an open market
share repurchase program under which each Fund may repurchase an aggregate of up
to approximately 10% of its outstanding Common shares. Transactions in Common
shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM INCOME (NUM) INCOME (NMP) ------------------------------------------- --------------------------------------------- SEVEN MONTHS SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 2/28/09 7/31/08 7/31/07 ---------------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased -- -- -- (26,700) -- -- ---------------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased -- -- -- $ 10.58 -- -- Discount per share repurchased -- -- -- 20.80% -- -- ================================================================================================================================== |
MICHIGAN DIVIDEND OHIO QUALITY ADVANTAGE (NZW) INCOME (NUO) ------------------------------------------- --------------------------------------------- SEVEN MONTHS SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 2/28/09 7/31/08 7/31/07 ---------------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- 595 2,587 -- -- -- Repurchased -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased -- -- -- -- -- -- Discount per share repurchased -- -- -- -- -- -- ================================================================================================================================== |
OHIO DIVIDEND OHIO DIVIDEND ADVANTAGE (NXI) ADVANTAGE 2 (NBJ) ------------------------------------------- --------------------------------------------- SEVEN MONTHS SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 2/28/09 7/31/08 7/31/07 ---------------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- 1,177 -- -- -- Repurchased (600) -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased $ 11.50 -- -- -- -- -- Discount per share repurchased 17.21% -- -- -- -- -- ================================================================================================================================== |
OHIO DIVIDEND ADVANTAGE 3 (NVJ) --------------------------------------------- SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 ---------------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- 219 Repurchased (1,700) -- -- ---------------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased $ 11.82 -- -- Discount per share repurchased 16.10% -- -- ================================================================================================================================== |
Preferred Shares
Transactions in Preferred shares were as follows:
MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------ SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 ------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series TH 106 $ 2,650,000 -- $ -- -- $ -- Series F 18 450,000 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total 124 $ 3,100,000 -- $ -- -- $ -- ================================================================================================================================== |
MICHIGAN DIVIDEND ADVANTAGE (NZW) ------------------------------------------------------------------------------------------ SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 ------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series W 43 $ 1,075,000 -- $ -- -- $ -- ================================================================================================================================== |
OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------------ SEVEN MONTHS ENDED YEAR ENDED YEAR ENDED 2/28/09 7/31/08 7/31/07 ------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series F 36 $ 900,000 -- $ -- -- $ -- ================================================================================================================================== |
| Notes to FINANCIAL STATEMENTS (continued)
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the seven months ended February 28, 2009, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Purchases $ 8,361,874 $ 4,804,213 $ 1,756,867 Sales and maturities 11,647,349 3,996,571 2,827,176 ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Purchases $ 21,246,447 $ 9,059,856 $ 3,009,447 $ 3,984,725 Sales and maturities 26,975,977 9,665,532 5,048,482 4,549,351 ================================================================================================================================== |
5. 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 transactions subject to SFAS No. 140, 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 values of the Funds.
At February 28, 2009, the cost of investments was as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Cost of investments $ 248,672,011 $ 159,776,175 $ 42,917,320 ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Cost of investments $ 217,470,339 $ 90,177,164 $ 65,463,411 $ 46,414,323 ================================================================================================================================== |
Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2009, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 8,668,619 $ 2,931,059 $ 811,267 Depreciation (11,989,099) (7,044,887) (3,249,498) ---------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ (3,320,480) $ (4,113,828) $ (2,438,231) ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 6,135,461 $ 2,750,416 $ 1,349,649 $ 1,979,372 Depreciation (10,681,943) (4,356,569) (4,191,452) (2,418,568) ---------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ (4,546,482) $ (1,606,153) $ (2,841,803) $ (439,196) ================================================================================================================================== |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at February 28, 2009, the Funds' tax year end, were as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 791,183 $ 464,129 $ 99,521 Undistributed net ordinary income ** -- -- -- Undistributed net long-term capital gains -- -- -- ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 822,568 $ 378,027 $ 214,793 $ 200,792 Undistributed net ordinary income ** 1,478 52,302 -- -- Undistributed net long-term capital gains -- -- -- -- ================================================================================================================================== |
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 3, 2009, paid on March 2, 2009.
** 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 seven months ended February 28, 2009, and during the tax years ended July 31, 2008 and July 31, 2007, was designated for purposes of the dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income*** $ 6,134,177 $ 3,859,940 $ 1,079,536 Distributions from net ordinary income ** -- -- -- Distributions from net long-term capital gains**** -- -- 33,173 ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 SEVEN MONTHS ENDED FEBRUARY 28, 2009 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income*** $ 5,095,614 $ 2,133,665 $ 1,578,459 $ 1,122,076 Distributions from net ordinary income ** -- -- -- -- Distributions from net long-term capital gains**** -- -- -- -- ================================================================================================================================== |
** 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 seven months ended February 28, 2009, 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 seven months ended February 28, 2009.
| Notes to FINANCIAL STATEMENTS (continued)
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE 2008 (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 10,748,540 $ 6,922,965 $ 1,960,679 Distributions from net ordinary income ** 68,426 12,818 -- Distributions from net long-term capital gains 1,574,122 748,463 198,609 ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2008 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 8,988,444 $ 3,778,712 $ 2,803,986 $ 1,968,527 Distributions from net ordinary income ** 10,212 -- 3,297 -- Distributions from net long-term capital gains 882,398 532,929 248,931 177,807 ================================================================================================================================== |
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE 2007 (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 11,324,987 $ 7,313,161 $ 2,109,139 Distributions from net ordinary income ** -- -- -- Distributions from net long-term capital gains 1,091,968 892,335 20,175 ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2007 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 9,691,928 $ 4,111,327 $ 2,959,465 $ 2,078,890 Distributions from net ordinary income ** 8,612 -- 1,566 20,184 Distributions from net long-term capital gains 511,427 166,005 174,923 78,218 ================================================================================================================================== |
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
At February 28, 2009, the Funds' tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Expiration: February 28, 2016 $ -- $ 34,858 $ -- February 28, 2017 337,855 336,297 457,422 ---------------------------------------------------------------------------------------------------------------------------------- Total $ 337,855 $ 371,155 $ 457,422 ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Expiration: February 28, 2016 $ -- $ -- $ 14,045 $ -- February 28, 2017 1,309,059 40,911 522,972 52,530 ---------------------------------------------------------------------------------------------------------------------------------- Total $ 1,309,059 $ 40,911 $ 537,017 $ 52,530 ================================================================================================================================== |
The Funds have elected to defer net realized losses from investments incurred from November 1, 2008 through February 28, 2009, the Funds' 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:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) ---------------------------------------------------------------------------------------------------------------------------------- Post-October capital losses $ 1,819,630 $ 1,315,963 $ 140,530 ================================================================================================================================== |
OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Post-October capital losses $ 444,066 $ 161,562 $ 194,805 $ -- ================================================================================================================================== |
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows:
MICHIGAN QUALITY INCOME (NUM) MICHIGAN PREMIUM INCOME (NMP) OHIO QUALITY INCOME (NUO) AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ==================================================================================================================== |
MICHIGAN DIVIDEND ADVANTAGE (NZW) OHIO DIVIDEND ADVANTAGE (NXI) OHIO DIVIDEND ADVANTAGE 2 (NBJ) OHIO DIVIDEND ADVANTAGE 3 (NVJ) AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ==================================================================================================================== |
| Notes to FINANCIAL STATEMENTS (continued)
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the following table. As of February 28, 2009, the complex-level fee rate was .2000%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSETS BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ |
(1) The complex-level component of the management fee for the funds is calculated based upon the aggregate daily net assets of all Nuveen funds, with such daily net assets to include assets attributable to preferred stock issued by or borrowings by such funds but to exclude assets attributable to investments in other Nuveen funds.
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 Directors/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 Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.
For the first ten years of Ohio Dividend Advantage's (NXI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, ----------------------------------------------------------------------- 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 Ohio Dividend Advantage (NXI) for any portion of its fees and expenses beyond March 31, 2011.
For the first ten years of Michigan Dividend Advantage's (NZW) and Ohio Dividend Advantage 2's (NBJ) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, ----------------------------------------------------------------------- 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 Michigan Dividend Advantage (NZW) and Ohio Dividend Advantage 2 (NBJ) for any portion of their fees and expenses beyond September 30, 2011.
For the first ten years of Ohio Dividend Advantage 3's (NVJ) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, ----------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ======================================================================= |
* From the commencement of operations.
The Adviser has not agreed to reimburse Ohio Dividend Advantage 3 (NVJ) for any portion of its fees and expenses beyond March 31, 2012.
7. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS 161)
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of February 28, 2009,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
8. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on April 1, 2009, to shareholders of record on
March 15, 2009, as follows:
MICHIGAN MICHIGAN MICHIGAN QUALITY PREMIUM DIVIDEND INCOME INCOME ADVANTAGE (NUM) (NMP) (NZW) -------------------------------------------------------------------------------- Dividend per share $ .0555 $ .0530 $ .0555 ================================================================================ OHIO OHIO OHIO OHIO QUALITY DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NUO) (NXI) (NBJ) (NVJ) -------------------------------------------------------------------------------- Dividend per share $ .0575 $ .0570 $ .0545 $ .0590 ================================================================================ |
| Financial HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations -------------------------------------------------------------------------------- Distributions Distributions Beginning from Net from Common Net Investment Capital Share Net Realized/ Income to Gains to Net Asset Investment Unrealized Preferred Preferred Value Income Gain (Loss) Shareholders+ Shareholders+ Total ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) $ 14.13 $ .54 $ (.60) $ (.13) $ -- $ (.19) Year Ended 7/31: 2008 14.96 .93 (.71) (.24) (.04) (.06) 2007 15.17 .94 (.10) (.25) (.02) .57 2006 15.88 .96 (.52) (.21) (.02) .21 2005 15.51 .98 .57 (.13) (.01) 1.41 2004 15.14 1.01 .49 (.06) (.01) 1.43 MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) 13.87 .52 (.63) (.12) -- (.23) Year Ended 7/31: 2008 14.65 .89 (.69) (.23) (.02) (.05) 2007 14.92 .90 (.12) (.23) (.02) .53 2006 15.55 .91 (.40) (.18) (.02) .31 2005 15.19 .93 .50 (.11) -- 1.32 2004 15.24 .97 .38 (.04) (.03) 1.28 ==================================================================================================================================== Less Distributions ------------------------------------------- Offering Net Costs and Ending Investment Capital Preferred Common Income to Gains to Share Share Ending Common Common Underwriting Net Asset Market Shareholders Shareholders Total Discounts Value Value ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) $ (.39) $ -- $ (.39) $ -- $ 13.55 $ 10.61 Year Ended 7/31: 2008 (.67) (.10) (.77) -- 14.13 12.32 2007 (.71) (.07) (.78) -- 14.96 14.16 2006 (.81) (.11) (.92) -- 15.17 14.41 2005 (.93) (.11) (1.04) -- 15.88 15.67 2004 (.95) (.11) (1.06) -- 15.51 15.20 MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) (.38) -- (.38) -- 13.26 10.44 Year Ended 7/31: 2008 (.66) (.07) (.73) -- 13.87 12.38 2007 (.71) (.09) (.80) -- 14.65 13.80 2006 (.79) (.15) (.94) -- 14.92 14.27 2005 (.91) (.05) (.96) -- 15.55 15.68 2004 (.94) (.39) (1.33) -- 15.19 14.37 ============================================================================================================================== |
Preferred Shares at End of Period ------------------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share --------------------------------------------------------------------------------------------------------------- MICHIGAN QUALITY INCOME (NUM) --------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) $ 90,900 $ 25,000 $ 68,651 Year Ended 7/31: 2008 94,000 25,000 69,023 2007 94,000 25,000 71,607 2006 94,000 25,000 72,270 2005 94,000 25,000 74,441 2004 94,000 25,000 73,169 MICHIGAN PREMIUM INCOME (NMP) --------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 56,000 25,000 70,730 Year Ended 7/31: 2008 56,000 25,000 72,986 2007 56,000 25,000 75,695 2006 56,000 25,000 76,612 2005 56,000 25,000 78,783 2004 56,000 25,000 77,468 =============================================================================================================== |
Ratios/Supplemental Data ---------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement ---------------------- ---------------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) (10.68)% (1.27)% $ 158,717 1.33%*** 1.33%*** 6.92%*** Year Ended 7/31: 2008 (7.77) (.43) 165,525 1.29 1.25 6.28 2007 3.64 3.77 175,244 1.26 1.22 6.12 2006 (2.28) 1.41 177,734 1.23 1.23 6.17 2005 9.94 9.28 185,900 1.22 1.22 6.13 2004 5.17 9.52 181,114 1.22 1.22 6.44 MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) (12.57) (1.62) 102,434 1.32*** 1.32*** 6.83*** Year Ended 7/31: 2008 (5.09) (.36) 107,488 1.38 1.23 6.16 2007 2.16 3.59 113,558 1.38 1.22 5.97 2006 (3.12) 2.06 115,611 1.20 1.20 6.03 2005 16.03 8.80 120,475 1.19 1.19 5.97 2004 5.46 8.56 117,529 1.20 1.20 6.28 ==================================================================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------ Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ---------------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate ------------------------------------------------------------------------------------------------------------------------ MICHIGAN QUALITY INCOME (NUM) ------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) 1.33%*** 1.33%*** 6.93%*** 3% Year Ended 7/31: 2008 1.28 1.24 6.29 18 2007 1.24 1.20 6.14 13 2006 1.22 1.22 6.19 18 2005 1.21 1.21 6.14 8 2004 1.22 1.22 6.45 15 MICHIGAN PREMIUM INCOME (NMP) ------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) 1.31*** 1.31*** 6.83*** 3 Year Ended 7/31: 2008 1.36 1.22 6.18 20 2007 1.37 1.21 5.98 15 2006 1.19 1.19 6.03 6 2005 1.17 1.17 5.98 11 2004 1.19 1.19 6.30 28 ======================================================================================================================== |
* 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.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the seven months ended February 28, 2009.
See accompanying notes to financial statements.
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations ------------------------------------------------------------------------- Distributions Distributions Beginning from Net from Common Net Investment Capital Share Net Realized/ Income to Gains to Net Asset Investment Unrealized Preferred Preferred Value Income Gain (Loss) Shareholders+ Shareholders+ Total ----------------------------------------------------------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) $ 13.68 $ .54 $ (1.00) $ (.13) $ --**** $ (.59) Year Ended 7/31: 2008 14.73 .94 (.95) (.24) (.02) (.27) 2007 14.94 .95 (.14) (.24) --**** .57 2006 15.44 .97 (.40) (.20) -- .37 2005 14.82 .98 .63 (.11) -- 1.50 2004 14.30 .99 .47 (.05) -- 1.41 =================================================================================================================================== Less Distributions ---------------------------------------------- Offering Net Costs and Ending Investment Capital Preferred Common Income to Gains to Share Share Ending Common Common Underwriting Net Asset Market Shareholders Shareholders Total Discounts Value Value ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN DIVIDEND ADVANTAGE (NZW) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) $ (.39) $ (.01) $ (.40) $ -- $ 12.69 $ 10.77 Year Ended 7/31: 2008 (.71) (.07) (.78) -- 13.68 13.10 2007 (.77) (.01) (.78) -- 14.73 15.10 2006 (.87) -- (.87) -- 14.94 15.81 2005 (.89) -- (.89) .01 15.44 16.79 2004 (.89) -- (.89) -- 14.82 14.65 ==================================================================================================================================== |
Preferred Shares at End of Period ------------------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ---------------------------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) ---------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) $ 14,925 $ 25,000 $ 68,946 Year Ended 7/31: 2008 16,000 25,000 69,195 2007 16,000 25,000 72,561 2006 16,000 25,000 73,161 2005 16,000 25,000 74,720 2004 16,000 25,000 72,716 ==================================================================================================== |
Ratios/Supplemental Data ------------------------------------------------------------------ Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement ------------------- ------------------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN DIVIDEND ADVANTAGE (NZW) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) (14.48)% (4.20)% $ 26,236 1.48%*** 1.48%*** 7.03%*** Year Ended 7/31: 2008 (8.10) (1.95) 28,285 1.39 1.34 6.23 2007 .46 3.79 30,439 1.38 1.35 5.89 2006 (.47) 2.46 30,823 1.31 1.31 5.92 2005 21.34 10.41 31,821 1.27 1.27 5.93 2004 2.99 10.00 30,538 1.28 1.28 6.13 ==================================================================================================================================== Ratios/Supplemental Data -------------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ------------------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate -------------------------------------------------------------------------------------------------------------------- MICHIGAN DIVIDEND ADVANTAGE (NZW) -------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 1.20%*** 1.20%*** 7.31%*** 4% Year Ended 7/31: 2008 1.05 1.01 6.57 18 2007 .96 .93 6.31 19 2006 .83 .83 6.40 8 2005 .81 .81 6.39 8 2004 .81 .81 6.60 9 ==================================================================================================================== |
* 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.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
**** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the seven months ended February 28, 2009.
See accompanying notes to financial statements.
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations ---------------------------------------------------------------------------- Distributions Distributions Beginning from Net from Common Net Investment Capital Share Net Realized/ Income to Gains to Net Asset Investment Unrealized Preferred Preferred Value Income Gain (Loss) Shareholders+ Shareholders+ Total ------------------------------------------------------------------------------------------------------------------------------------ OHIO QUALITY INCOME (NUO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) $ 15.04 $ .56 $ (.52) $ (.13) $ -- $ (.09) Year Ended 7/31: 2008 15.81 .95 (.71) (.25) (.02) (.03) 2007 16.01 .96 (.12) (.26) (.01) .57 2006 16.58 .98 (.42) (.22) (.01) .33 2005 16.21 1.02 .49 (.12) -- 1.39 2004 16.17 1.07 .25 (.06) (.01) 1.25 OHIO DIVIDEND ADVANTAGE (NXI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) 14.25 .54 (.46) (.12) -- (.04) Year Ended 7/31: 2008 14.87 .93 (.55) (.23) (.03) .12 2007 15.02 .94 (.09) (.24) (.01) .60 2006 15.55 .96 (.40) (.21) -- .35 2005 15.05 1.00 .57 (.11) -- 1.46 2004 14.66 1.04 .40 (.06) -- 1.38 ==================================================================================================================================== Less Distributions ------------------------------------------- Offering Net Costs and Ending Investment Capital Preferred Common Income to Gains to Share Share Ending Common Common Underwriting Net Asset Market Shareholders Shareholders Total Discounts Value Value ----------------------------------------------------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) $ (.39) $ -- $ (.39) $ -- $ 14.56 $ 12.90 Year Ended 7/31: 2008 (.67) (.07) (.74) -- 15.04 13.40 2007 (.73) (.04) (.77) -- 15.81 14.43 2006 (.85) (.05) (.90) -- 16.01 15.83 2005 (.98) (.04) (1.02) -- 16.58 16.96 2004 (1.00) (.21) (1.21) -- 16.21 16.30 OHIO DIVIDEND ADVANTAGE (NXI) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) (.38) -- (.38) -- 13.83 12.10 Year Ended 7/31: 2008 (.65) (.09) (.74) -- 14.25 12.77 2007 (.72) (.03) (.75) -- 14.87 14.39 2006 (.85) (.03) (.88) -- 15.02 15.05 2005 (.96) -- (.96) -- 15.55 17.00 2004 (.97) (.02) (.99) -- 15.05 14.80 ============================================================================================================================= |
Preferred Shares at End of Period ------------------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ------------------------------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) ------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) $ 77,000 $ 25,000 $ 71,066 Year Ended 7/31: 2008 77,000 25,000 72,603 2007 77,000 25,000 75,017 2006 77,000 25,000 75,658 2005 77,000 25,000 77,267 2004 77,000 25,000 75,855 OHIO DIVIDEND ADVANTAGE (NXI) ------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 31,000 25,000 72,332 Year Ended 7/31: 2008 31,000 25,000 73,770 2007 31,000 25,000 75,898 2006 31,000 25,000 76,400 2005 31,000 25,000 78,123 2004 31,000 25,000 76,324 ======================================================================================================= |
Ratios/Supplemental Data ---------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement ---------------------- ---------------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ ------------------------------------------------------------------------------------------------------------------------------------ OHIO QUALITY INCOME (NUO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) (0.71)% (0.49)% $ 141,883 1.35%*** 1.31%*** 6.77%*** Year Ended 7/31: 2008 (2.18) (.26) 146,617 1.42 1.26 6.08 2007 (4.25) 3.56 154,052 1.29 1.19 5.94 2006 (1.36) 2.10 156,026 1.20 1.20 6.05 2005 10.25 8.70 160,982 1.19 1.19 6.16 2004 2.59 7.87 156,634 1.20 1.20 6.46 OHIO DIVIDEND ADVANTAGE (NXI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) (2.08) (0.15) 58,692 1.35*** 1.31*** 6.64*** Year Ended 7/31: 2008 (6.21) .83 60,475 1.39 1.24 6.06 2007 .52 4.02 63,114 1.32 1.22 5.85 2006 (6.53) 2.32 63,735 1.21 1.21 5.85 2005 21.79 9.87 65,873 1.21 1.21 6.00 2004 10.70 9.54 63,642 1.20 1.20 6.41 ==================================================================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ------------------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate ------------------------------------------------------------------------------------------------------------------- OHIO QUALITY INCOME (NUO) ------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 1.34%*** 1.30%*** 6.78%*** 10% Year Ended 7/31: 2008 1.41 1.25 6.09 14 2007 1.27 1.17 5.95 15 2006 1.19 1.19 6.06 9 2005 1.18 1.18 6.17 14 2004 1.19 1.19 6.47 31 OHIO DIVIDEND ADVANTAGE (NXI) ------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 1.11*** 1.08*** 6.88*** 10 Year Ended 7/31: 2008 1.11 .96 6.34 17 2007 .96 .86 6.21 14 2006 .76 .76 6.30 6 2005 .76 .76 6.46 14 2004 .75 .75 6.86 10 =================================================================================================================== |
* 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.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the seven months ended February 28, 2009.
See accompanying notes to financial statements.
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations -------------------------------------------------------------------------- Distributions Distributions Beginning from Net from Common Net Investment Capital Share Net Realized/ Income to Gains to Net Asset Investment Unrealized Preferred Preferred Value Income Gain (Loss) Shareholders+ Shareholders+ Total ------------------------------------------------------------------------------------------------------------------------------------ OHIO DIVIDEND ADVANTAGE 2 (NBJ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) $ 13.87 $ .54 $ (.84) $ (.13) $ -- $ (.43) Year Ended 7/31: 2008 14.64 .93 (.73) (.25) (.02) (.07) 2007 14.81 .92 (.10) (.25) (.01) .56 2006 15.37 .93 (.41) (.22) (.01) .29 2005 14.85 .95 .61 (.12) -- 1.44 2004 14.31 .99 .53 (.06) -- 1.46 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 2/28: 2009(b) 14.33 .55 (.39) (.12) -- .04 Year Ended 7/31: 2008 14.92 .95 (.56) (.23) (.02) .14 2007 15.06 .96 (.08) (.25) (.01) .62 2006 15.57 .95 (.45) (.22) -- .28 2005 14.93 .95 .69 (.11) -- 1.53 2004 14.48 .96 .51 (.06) (.01) 1.40 ==================================================================================================================================== Less Distributions --------------------------------------------- Offering Net Costs and Ending Investment Capital Preferred Common Income to Gains to Share Share Ending Common Common Underwriting Net Asset Market Shareholders Shareholders Total Discounts Value Value -------------------------------------------------------------------------------------------------------------------------------- OHIO DIVIDEND ADVANTAGE 2 (NBJ) -------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) $ (.38) $ -- $ (.38) $ -- $ 13.06 $ 11.58 Year Ended 7/31: 2008 (.64) (.06) (.70) -- 13.87 12.37 2007 (.69) (.04) (.73) -- 14.64 13.80 2006 (.80) (.05) (.85) -- 14.81 14.70 2005 (.90) (.02) (.92) -- 15.37 15.48 2004 (.92) -- (.92) -- 14.85 14.70 OHIO DIVIDEND ADVANTAGE 3 (NVJ) -------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) (.40) -- (.40) -- 13.97 11.95 Year Ended 7/31: 2008 (.67) (.06) (.73) -- 14.33 12.91 2007 (.72) (.04) (.76) -- 14.92 14.35 2006 (.79) -- (.79) -- 15.06 14.75 2005 (.87) (.02) (.89) -- 15.57 15.90 2004 (.88) (.07) (.95) -- 14.93 14.30 ================================================================================================================================ |
Preferred Shares at End of Period ------------------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share -------------------------------------------------------------------------------------------------------- OHIO DIVIDEND ADVANTAGE 2 (NBJ) -------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) $ 23,100 $ 25,000 $ 69,107 Year Ended 7/31: 2008 24,000 25,000 70,090 2007 24,000 25,000 72,598 2006 24,000 25,000 73,169 2005 24,000 25,000 74,935 2004 24,000 25,000 73,196 OHIO DIVIDEND ADVANTAGE 3 (NVJ) -------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 16,500 25,000 70,647 Year Ended 7/31: 2008 16,500 25,000 71,881 2007 16,500 25,000 73,778 2006 16,500 25,000 74,252 2005 16,500 25,000 75,918 2004 16,500 25,000 73,800 ======================================================================================================== |
Ratios/Supplemental Data ---------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement --------------------- --------------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ ---------------------------------------------------------------------------------------------------------------------------------- OHIO DIVIDEND ADVANTAGE 2 (NBJ) ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) (3.09)% (3.01)% $ 40,755 1.46%*** 1.42%*** 6.91%*** Year Ended 7/31: 2008 (5.46) (.51) 43,286 1.46 1.30 6.10 2007 (1.26) 3.80 45,694 1.41 1.31 5.76 2006 .35 1.96 46,242 1.27 1.27 5.71 2005 11.63 9.90 47,937 1.23 1.23 5.71 2004 9.60 10.33 46,268 1.25 1.25 6.13 OHIO DIVIDEND ADVANTAGE 3 (NVJ) ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) (4.29) .36 30,127 1.46*** 1.42*** 6.63*** Year Ended 7/31: 2008 (5.13) .95 30,941 1.47 1.32 6.05 2007 2.32 4.06 32,194 1.41 1.31 5.85 2006 (2.33) 1.87 32,506 1.28 1.28 5.76 2005 17.60 10.40 33,606 1.27 1.27 5.68 2004 5.86 9.72 32,208 1.28 1.28 5.87 ================================================================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ------------------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate -------------------------------------------------------------------------------------------------------------- OHIO DIVIDEND ADVANTAGE 2 (NBJ) -------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 1.19%*** 1.15%*** 7.18%*** 5% Year Ended 7/31: 2008 1.12 .96 6.43 16 2007 1.00 .90 6.17 14 2006 .78 .78 6.19 8 2005 .77 .77 6.17 14 2004 .79 .79 6.60 15 OHIO DIVIDEND ADVANTAGE 3 (NVJ) -------------------------------------------------------------------------------------------------------------- Year Ended 2/28: 2009(b) 1.14*** 1.11*** 6.94*** 9 Year Ended 7/31: 2008 1.10 .95 6.43 19 2007 .96 .86 6.30 19 2006 .81 .81 6.23 2 2005 .81 .81 6.14 3 2004 .81 .81 6.34 8 ============================================================================================================== |
* 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.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the seven months ended February 28, 2009.
See accompanying notes to financial statements.
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 Private Investor and Management 8/22/40 Chairman of Consultant; Treasurer and Director, 333 W. Wacker Drive the Board 1997 193 Humanities Council of Washington D.C. Chicago, IL 60606 and Board member o JACK B. EVANS President, The Hall-Perrine Foundation, 10/22/48 a private philanthropic corporation 333 W. Wacker Drive Board member 1999 193 (since 1996); Director and Vice Chicago, IL 60606 Chairman, United Fire Group, a publicly held company; Member of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and Iowa College Foundation; Member of the Advisory Council of the Department of Finance in the Tippie College of Business, University of Iowa; 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, 3/6/48 University of Iowa (since July 2006); 333 W. Wacker Drive Board member 2004 193 formerly, Dean and Distinguished Chicago, IL 60606 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 (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly Director (1997-2007), Credit Research Center at Georgetown University. o DAVID J. KUNDERT Director, Northwestern Mutual Wealth 10/28/42 Management Company; Retired (since 333 W. Wacker Drive Board member 2005 193 2004) as Chairman, JPMorgan Fleming Chicago, IL 60606 Asset Management, President and 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 Investment Committee, Greater Milwaukee Foundation. o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners 9/24/44 Ltd., a real estate investment company; 333 W. Wacker Drive Board member 1997 193 Senior Partner and Chief Operating Chicago, IL 60606 Officer (retired, 2004) of Miller-Valentine Group; Member, University of Dayton Business School Advisory Council; member, Dayton Philharmonic Orchestra Board; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition. |
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 12/29/47 Dorothy Donnelley Foundation (since 333 W. Wacker Drive Board member 1997 193 1994); prior thereto, Executive Chicago, IL 60606 Director, Great Lakes Protection Fund (from 1990 to 1994). o CAROLE E. STONE Director, Chicago Board Options 6/28/47 Exchange (since 2006); Commissioner, 333 W. Wacker Drive Board member 2007 193 New York State Commission on Public Chicago, IL 60606 Authority Reform (since 2005); formerly, Chair New York Racing Association Oversight Board (2005-2007); formerly, Director, New York State Division of the Budget (2000-2004), Chair, Public Authorities Control Board (2000-2004) and Director, Local Government Assistance Corporation (2000-2004). o TERENCE J. TOTH 9/29/59 Director, Legal & General Investment 333 W. Wacker Drive Board Member 2008 193 Management America, Inc. (since 2008); Chicago, IL 60606 Managing Partner, Musso Capital Management (since 2008); Private Investor (since 2007); CEO and President, Northern Trust Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2004-2007); 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 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 Chief Executive Officer (since July 6/14/61 2007) and Director (since 1999) of 333 W. Wacker Drive Board Member 2008 193 Nuveen Investments, Inc.; Chief Chicago, IL 60606 Executive Officer (since 2007) of Nuveen Asset Management, Rittenhouse Asset Management, Nuveen Investments Advisors, Inc. formerly, President (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3) |
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN BY OCCUPATION(S) & ADDRESS WITH THE FUNDS APPOINTED(4) OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o GIFFORD R. ZIMMERMAN Managing Director (since 2002), 9/9/56 Chief Assistant Secretary and Associate 333 W. Wacker Drive Administrative 1988 193 General Counsel of Nuveen Investments, Chicago, IL 60606 Officer LLC; Managing Director (since 2002), Associate General Counsel and Assistant Secretary, of Nuveen Asset Management; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Symphony Asset Management LLC, and NWQ Investment Management Company, LLC (since 2003), 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.; formerly, Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst. o WILLIAM ADAMS IV Executive Vice President of Nuveen 6/9/55 Investments, Inc.; Executive Vice 333 W. Wacker Drive Vice President 2007 121 President, U.S. Structured Products of Chicago, IL 60606 Nuveen Investments, LLC, (since 1999), prior thereto, Managing Director of Structured Investments. o MARK J.P. ANSON President and Executive Director of 6/10/59 Nuveen Investments, Inc. (since 2007); 333 W. Wacker Drive Vice President 2009 193 President of Nuveen Investments Chicago, IL 60606 Institutional Services Group LLC (since 2007); previously, Chief Executive Officer of the British Telecom Pension Scheme (2006-2007) and Chief Investment Officer of Calpers (1999-2006); PhD, Chartered Financial Analyst, Chartered Alternative Investment Analyst, Certified Public Accountant, Certified Management Accountant and Certified Internal Auditor. o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004) 1/11/62 previously, Vice President (1993-2004) 333 W. Wacker Drive Vice President 2007 121 of Nuveen Investments, LLC. Chicago, IL 60606 o NIZIDA ARRIAGA Vice President of Nuveen Investments, 6/1/68 LLC (since 2007); previously, 333 W. Wacker Drive Vice President 2009 193 Portfolio Manager, Allstate Chicago, IL 60606 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 333 W. Wacker Drive and Assistant 2000 193 Nuveen Asset Management (since 2005). Chicago, IL 60606 Secretary o MARGO L. COOK Executive Vice President (since Oct 4/11/64 2008) of Nuveen Investments, Inc.; 333 W. Wacker Drive Vice President 2009 193 previously, Head of Institutional Chicago, IL 60606 Asset Management (2007-2008) of 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), 10/24/45 formerly, Vice President of Nuveen 333 W. Wacker Drive Vice President 1998 193 Investments, LLC; Managing Director Chicago, IL 60606 (since 2005) of Nuveen Asset Management; Managing Director (2004-2005), formerly, Vice President (1998-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3) |
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN BY OCCUPATION(S) & ADDRESS WITH THE FUNDS APPOINTED(4) OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o STEPHEN D. FOY Vice President (since 1993) and Funds 5/31/54 Vice President Controller (since 1998) of Nuveen 333 W. Wacker Drive and Controller 1998 193 Investments, LLC; Vice President Chicago, IL 60606 (since 2005) of Nuveen Asset Management; Certified Public Accountant. o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal 5/7/69 Fixed Income (since 2008) of Nuveen 333 W. Wacker Drive Vice President 2009 193 Asset Management; previously, Chicago, IL 60606 Chairman, President and Chief Executive Officer (2002 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; CPA. o WALTER M. KELLY Senior Vice President (since 2008), 2/24/70 Chief Compliance Vice President (2006-2008) formerly, 333 W. Wacker Drive Officer and 2003 193 Assistant Vice President and Assistant Chicago, IL 60606 Vice President General Counsel (2003-2006) of Nuveen Investments, LLC; Vice President (since 2006) and Assistant Secretary (since 2008) of Nuveen Asset Management. o DAVID J. LAMB Senior Vice President (since 2009), 3/22/63 formerly Vice President (2000-2009) of 333 W. Wacker Drive Vice President 2000 193 Nuveen Investments, LLC; Vice Chicago, IL 60606 President of Nuveen Asset Management (since 2005); Certified Public Accountant. o TINA M. LAZAR Senior Vice President (since 2009), 8/27/61 formerly, Vice President of Nuveen 333 W. Wacker Drive Vice President 2002 193 Investments, LLC (1999-2009); Vice Chicago, IL 60606 President of Nuveen Asset Management (since 2005). o LARRY W. MARTIN Vice President, Assistant Secretary 7/27/51 Vice President and Assistant General Counsel of 333 W. Wacker Drive and Assistant 1988 193 Nuveen Investments, LLC; Vice Chicago, IL 60606 Secretary 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); formerly, Vice President and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3) o KEVIN J. MCCARTHY Managing Director (since 2008), 3/26/66 Vice President formerly, Vice President (2007-2008), 333 W. Wacker Drive and Secretary 2007 193 Nuveen Investments, LLC; Vice Chicago, IL 60606 President, and Assistant Secretary, Nuveen Asset Management, Rittenhouse Asset Management, Inc., Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, 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). |
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN BY OCCUPATION(S) & ADDRESS WITH THE FUNDS APPOINTED(4) OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o JOHN V. MILLER Managing Director (since 2007), 4/10/67 Vice President 2007 193 formerly, Vice President (2002-2007) of 333 W. Wacker Drive Nuveen Asset Management and Nuveen Chicago, IL 60606 Investments, LLC; Chartered Financial Analyst. o GREGORY MINO Vice President of Nuveen Investments, 1/4/71 Vice President 2009 193 LLC (since 2008); previously, Director 333 W. Wacker Drive (2004-2007) and Executive Director Chicago, IL 60606 (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 8/1/71 Vice President (since 2008); Vice President and 333 W. Wacker Drive and Assistant 2008 193 Assistant Secretary, Nuveen Asset Chicago, IL 60606 Secretary Management (since 2008); prior thereto, Associate, Skadden, Arps, Slate Meagher & Flom LLP (2002-2008). o JAMES F. RUANE Vice President, Nuveen Investments, LLC 7/3/62 Vice President (since 2007); prior thereto, Partner, 333 W. Wacker Drive and Assistant 2007 193 Deloitte & Touche USA LLP (2005-2007), Chicago, IL 60606 Secretary formerly, senior tax manager (2002-2005); Certified Public Accountant. o MARK L. WINGET Vice President, Nuveen Investments, LLC 12/21/68 Vice President (since 2008); Vice President and 333 W. Wacker Drive and Assistant 2008 193 Assistant Secretary, Nuveen Asset Chicago, IL 60606 Secretary Management (since 2008); prior 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) 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.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005.
(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.
Reinvest Automatically EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.
NOTES
Glossary of NOTES 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 common share 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 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.
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 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.
| Other Useful INFORMATION
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, 2008, 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 Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF DIRECTORS/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
Each Fund intends to repurchase and/or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, NMP, NXI and NVJ repurchased 26,700, 600 and 1,700 shares of their common stock, respectively, and NUM, NZW and NBJ redeemed 124, 43 and 36 shares of their preferred stock, respectively. Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report.
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
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. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $119 billion of assets on December 31, 2008.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef Share prices Fund details Daily financial news Investor education Interactive planning tools |
EAN-C-0209D
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 Michigan Premium Income Municipal Fund, Inc.
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) ----------------------------------------------------------------------------------------------------------------------------- February 28, 2009(5) $ 12,753 $ 0 $ 0 $ 1,700 ----------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------------------------------- July 31, 2008 $ 12,343 $ 0 $ 500 $ 3,300 ----------------------------------------------------------------------------------------------------------------------------- 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.
(5) Fund changed fiscal year from July to February starting in 2009.
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 ("Control Affiliate") 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 ----------------------------------------------------------------------------------------------------- February 28, 2009(1) $ 0 $ 0 $ 0 ----------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------- July 31, 2008 $ 0 $ 0 $ 0 ----------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------- |
(1) Fund changed fiscal year from July to February starting in 2009.
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 ---------------------------------------------------------------------------------------------------------------------- February 28, 2009(1) $ 1,700 $ 0 $ 0 $ 1,700 July 31, 2008 $ 3,800 $ 0 $ 0 $ 3,800 |
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax Fees" billed to Adviser in their respective amounts from the previous table.
(1) Fund changed fiscal year from July to February starting in 2009.
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.
See Portfolio of Investments in Item 1.
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
Daniel J. Close Nuveen Michigan Premium Income Municipal Fund, Inc.
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* -------------------------------------------------------------------------------- Daniel J. Close Registered Investment Company 26 $4.66 billion Other Pooled Investment Vehicles 1 $1.5 million Other Accounts 3 $.20 million |
* Assets are as of February 28, 2009. 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 February 28, 2009, the S&P/Investortools Municipal Bond index was comprised of 51,571 securities with an aggregate current market value of $1,024 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 led 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.
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 February 28, 2009, 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 EQUITY SECURITIES DOLLAR BENEFICIALLY OWNED RANGE OF IN THE REMAINDER OF EQUITY NUVEEN FUNDS SECURITIES MANAGED BY NAM'S BENEFICIALLY MUNICIPAL NAME OF PORTFOLIO OWNED IN INVESTMENT MANAGER FUND FUND TEAM ------------------------------------------------------------------------------------------------------------- Daniel J. Close Nuveen Michigan Premium Income Municipal Fund, Inc. $0 $1--$10,000 |
PORTFOLIO MANAGER BIO:
Daniel J. Close, CFA, Vice President, Nuveen Asset Management. Mr. Close joined Nuveen Investments in 2000 as a member of Nuveen's product management and development team, where he was responsible for the oversight and development of Nuveen's mutual fund product line. He then served as a research analyst for Nuveen's municipal investing team, covering corporate-backed, energy, transportation and utility credits. Currently, he manages investments for 27 Nuveen-sponsored investment companies. He received his BS in Business from Miami University, and his MBA from Northwestern University's Kellogg School of Management.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)* TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR UNIT) PROGRAMS PROGRAMS AUGUST 7-31, 2008 0 0 775,000 SEPTEMBER 1-30, 2008 0 0 775,000 OCTOBER 1-31, 2008 0 0 775,000 NOVEMBER 1-30, 2008 0 0 775,000 DECEMBER 1-31, 2008 0 0 775,000 JANUARY 1-31, 2009 7,100 $10.55 7,100 767,900 FEBRUARY 1-28, 2009 19,600 $10.59 19,600 748,300 TOTAL 26,700 |
* The registrant's repurchase program, which authorized the repurchase of 775,000 shares, was announced on August 7, 2008. Any repurchases made by the registrant pursuant to the program were made through open-market transactions.
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.
By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: April 24, 2009 ------------------------------------------------------------------- |
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: April 24, 2009 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: April 24, 2009 ------------------------------------------------------------------- |
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