UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09453
Nuveen Michigan Dividend Advantage Municipal Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
Date of fiscal year end: February 29
Date of reporting period: February 29, 2012
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.
LIFE IS COMPLEX.
Nuveen makes things e-simple.
It only takes a minute to sign up for e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish.
Free e-Reports right to your e-mail!
www.investordelivery.com
If you receive your Nuveen Fund distributions and statements from your financial advisor or brokerage account.
OR
www.nuveen.com/accountaccess
If you receive your Nuveen Fund distributions and statements directly from Nuveen.
Table of Contents
| Chairman’s Letter to Shareholders | 4 |
| Portfolio Manager’s Comments | 5 |
| Fund Leverage and Other Information | 12 |
| Common Share Dividend and Price Information | 14 |
| Performance Overviews | 16 |
| Shareholder Meeting Report | 23 |
| Report of Independent Registered Public Accounting Firm | 26 |
| Portfolios of Investments | 27 |
| Statement of Assets and Liabilities | 65 |
| Statement of Operations | 67 |
| Statement of Changes in Net Assets | 69 |
| Statement of Cash Flows | 72 |
| Financial Highlights | 74 |
| Notes to Financial Statements | 86 |
| Board Member & Officers | 102 |
| Reinvest Automatically, Easily and Conveniently | 107 |
| Glossary of Terms Used in this Report | 109 |
| Additional Fund Information | 115 |
Chairman’s
Letter to Shareholders
Dear Shareholders,
In recent months the positive atmosphere in financial markets has reflected efforts by central banks in the US and Europe to provide liquidity to the financial system and keep interest rates low. At the same time, future economic growth in these countries still faces serious headwinds in the form of high energy prices, uncertainties about potential political leadership changes and increasing pressure to reduce government spending regardless of its impact on the economy. Together with the continuing political tensions in the Middle East, investors have many reasons to remain cautious.
Though progress has been painfully slow, officials in Europe have taken important steps to address critical issues. The European Central Bank has provided vital liquidity to the banking system. Similarly, officials in the Euro area finally agreed to an enhanced “firewall” of funding to deal with financial crises in member countries. These steps, in addition to the completion of another round of financing for Greece, have eased credit conditions across the Continent. Several very significant challenges remain with the potential to derail the recent progress but European leaders have demonstrated political will and persistence in dealing with their problems.
In the US, strong corporate earnings and continued progress on job creation have contributed to a rebound in the equity market and many of the major stock market indexes are approaching their levels before the financial crisis. The Fed’s commitment to an extended period of low interest rates is promoting economic growth, which remains moderate but steady and raises concerns about the future course of long term rates once the program ends. Pre-election maneuvering has added to the highly partisan atmosphere in the Congress. The end of the Bush-era tax cuts and implementation of the spending restrictions of the Budget Control act of 2011, both scheduled to take place at year-end loom closer with little progress being made to deal with them.
During the last year investors have experienced a sharp decline and a strong recovery in the equity markets. Experienced investment teams keep their eye on a longer time horizon and use their practiced investment disciplines to negotiate through market peaks and valleys to achieve long term goals for investors. Monitoring this process is an important consideration for the Fund Board as it oversees your Nuveen funds on your behalf.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
April 20, 2012
| 4 | Nuveen Investments |
Portfolio Manager’s Comments
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)
Portfolio manager Daniel Close discusses economic and municipal market conditions at both the national and state levels, key investment strategies and the twelve-month 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 twelve-month reporting period ended February 29, 2012?
During this period, the U.S. economy’s progress toward recovery from recession remained modest. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its March 2012 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through late 2014. The Fed also stated that it would continue its program to extend the average maturity of its holdings of U.S. Treasury securities by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
In the fourth quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 3.0%, the best growth number since the end of second quarter 2010 and the tenth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 2.9% year-over-year as of February 2012, while the core CPI (which excludes food and energy) increased 2.2% during the same period, edging above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Labor market conditions have shown some signs of improvement, as national unemployment stood at 8.3% in February 2012, the lowest level in three years, down from 9.0% in February 2011. The housing market continued to be the major weak spot in the economy. For the twelve months ended January 2012 (most recent data available at the time
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.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
| Nuveen Investments | 5 |
this report was prepared), the average home price in the Standard & Poor’s (S&P)/Case-Shiller Index of 20 major metropolitan areas lost 3.8%, as housing prices hit their lowest levels since early 2003. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
Municipal bond prices generally rallied over this period. Historically light issuance of new tax-exempt bonds served as a key driver of performance, as tight supply and strong demand combined to create favorable market conditions for municipal bonds. Concurrent with rising prices, yields declined across most maturities. The depressed level of municipal bond issuance was due in part to the continued impact of the taxable Build America Bonds (BAB) program. Even though the BAB program expired at the end of 2010, issuers had made extensive use of its favorable terms to issue almost $190 billion in taxable BAB bonds during 2009 and 2010, representing approximately 25% of all municipal issuance during that period. Some borrowers accelerated issuance in order to take advantage of the program before its termination, fulfilling their capital program borrowing needs well into 2011 and 2012. This reduced the need for many borrowers to come to market with new tax-exempt issues during this period. The low level of municipal issuance during this period also reflected the current political distaste for additional borrowing by state and local governments and the prevalent atmosphere of municipal budget austerity.
Over the twelve months ended February 29, 2012, municipal bond issuance nationwide totaled $307.4 billion, a decrease of 24% compared with issuance during the twelvemonth period ended February 28, 2011. During this period, demand for municipal bonds remained very strong, especially from individual investors.
How were the economic and market environments in Michigan and Ohio during this period?
After struggling to emerge from recession over the past few years, Michigan’s economy has begun to see improvement. In 2011, overall employment in the state grew 1.7%, the first increase in more than eleven years. As of February 2012, Michigan’s unemployment rate was 8.8%, its best reading since August 2008, down from 10.7% in February 2011, although some of this decrease was attributable to job seekers dropping out of the search for work. Acceleration in the manufacturing sector and rising home sales that outpaced the national average also pointed to improving strength in the Michigan economy. Auto output for the first quarter of 2012 was projected to be 8% higher than a year ago, and U.S. and international automakers, suppliers and research and development facilities have begun expansions. According to the S&P/Case-Shiller Index, housing
| 6 | Nuveen Investments |
prices in Detroit rose 1.7% over the twelve months ended January 2012 (most recent data available at the time this report was prepared), making Detroit one of only three metropolitan areas (along with Phoenix and Denver) to post an increase for this period. Although significant expenditure cuts and one-time revenues were necessary to balance the Michigan state budget for fiscal 2011, the fiscal year ended with a general fund surplus of $370 million, as revenues came in above expectations. Modest surpluses have been used to help replenish the state’s depleted rainy day fund. For fiscal 2012, Michigan implemented $1.6 billion in expenditure cuts broadly spread across state programs including health and human services, school funding and local government revenue sharing. In January 2012, the state eliminated its existing business tax system and implemented a flat 6% corporate income tax in its stead. As of February 2012, Moody’s and S&P rated Michigan general obligation (GO) debt at Aa2 and AA-, respectively, with stable outlooks. During the twelve months ended February 29, 2012, municipal issuance in Michigan totaled $9.6 billion, an increase of 18% compared with the twelve months ended February 2011.
After weathering difficult years during and following the recent recession, the Ohio economy has begun to show signs of growth. As of February 2012, the state’s unemployment rate was 7.6%, the lowest since November 2008, down from 8.9% in February 2011. Ohio’s education and health services industry, the largest source of employment in the state, was the only sector to demonstrate growth. The state’s housing market, while stabilizing, has yet to make the transition to recovery. As of February 2012, year-over-year sales growth of 20% was helping to reduce the inventory of homes for sale, but excess supply continued to be a problem, especially in Cleveland, Dayton and Toledo. According to the S&P/Case-Shiller Index, housing prices in Cleveland fell 3.3% during the twelve months ending January 2012 (most recent data available at the time this report was prepared), dropping home prices in the Cleveland area to 1999 levels. On the fiscal front, the state has seen revenue recovery in line with the economic recovery. Boosted by gains in income and sales taxes, state revenues were projected to run about 9% above fiscal 2011 levels. The state has said it intends to devote a portion of the surplus revenue to its budget stabilization fund, which was depleted during the recession. The biennial budget for fiscal 2012-2013 was under review, as were proposals to reduce the state’s income tax and offset the resultant revenue loss with increased taxes on oil and gas drilling. As of February 2012, Moody’s and S&P rated Ohio general obligation debt at Aa1 and AA+, respectively, with stable outlooks. For the twelve months ended February 29, 2012, municipal issuance in Ohio totaled $7.8 billion, a decrease of 46.5% compared with the twelve months ended February 28th 2011.
| Nuveen Investments | 7 |
What key strategies were used to manage the Michigan and Ohio Funds during this reporting period?
As previously discussed, municipal bond prices generally rallied nationally during this period, as the supply of tax-exempt bonds remained tight and yields continued to be relatively low. In this environment, we continued to take a bottom-up approach to discovering sectors that appeared undervalued as well as individual credits that had the potential to perform well over the long term and helped us keep our Funds fully invested.
During this period, the Michigan Funds took advantage of attractive opportunities to add to their holdings across a diverse array of sectors, including health care, housing, charter schools, airports and water and sewer, as well as general obligation and dedicated tax bonds. In the Ohio Funds, we also purchased health care and dedicated tax bonds and added to our positions in the higher education sector. In addition, the Ohio Funds swapped some of their intermediate maturity Buckeye tobacco holdings for tobacco bonds that were both shorter and longer in maturity, structures we believe will better perform over time.
Our focus in the Michigan and Ohio Funds generally was on purchasing bonds with intermediate and longer maturities in order to keep the Funds’ durations within their targeted objectives, duration and yield curve positioning. The purchase of longer bonds also enabled us to take advantage of more attractive yields at the longer end of the municipal yield curve. From a quality perspective, the Ohio Funds emphasized mid-grade to higher-rated credits, while the Michigan Funds’ purchases were diversified across the spectrum of credit quality categories. The majority of our purchases were made in the primary market based on our belief that it offered more attractive value during this period. Later in the period, as the municipal market rally continued, we began to position the Funds slightly more defensively by purchasing bonds with more defensive structures in terms of coupons and call provisions.
Cash for new purchases was generated primarily by the proceeds from called and maturing bonds. An elevated number of bond calls during this period provided a meaningful source of liquidity, which drove much of our activity as we worked to redeploy the proceeds to keep the Funds fully invested. In addition, NUM closed out its position in out-of-state paper and reinvested the proceeds in additional Michigan bonds, while NMP sold a pre-refunded holding. Overall, selling was minimal, as bond call proceeds produced a substantial amount of cash for reinvestment.
| 8 | Nuveen Investments |
As of February 29, 2012, all of these Funds continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement.
How did the Funds perform during the twelve-month period ended February 29, 2012?
Individual results for the 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 2/29/12
| 1-Year | 5-Year | 10-Year | |
| Michigan Funds | |||
| NUM | 19.11% | 6.04% | 6.37% |
| NMP | 17.00% | 5.83% | 6.01% |
| NZW | 19.38% | 5.53% | 6.45% |
| Standard & Poor’s (S&P) Michigan Municipal Bond Index* | 13.07% | 5.12% | 5.30% |
| Standard & Poor’s (S&P) National Municipal Bond Index* | 12.87% | 5.19% | 5.36% |
| Lipper Michigan Municipal Debt Funds Classification Average* | 20.70% | 5.59% | 6.12% |
| Ohio Funds | |||
| NUO | 17.73% | 6.35% | 6.36% |
| NXI | 17.88% | 6.22% | 6.65% |
| NBJ | 17.44% | 6.07% | 6.57% |
| NVJ | 16.88% | 6.12% | N/A |
| Standard & Poor’s (S&P) Ohio Municipal Bond Index* | 12.74% | 4.56% | 4.93% |
| Standard & Poor’s (S&P) National Municipal Bond Index* | 12.87% | 5.19% | 5.36% |
| Lipper Other States Municipal Debt Funds Classification Average* | 18.83% | 5.61% | 6.28% |
For the twelve months ended February 29, 2012, the total return on common share net asset value (NAV) for all seven of the Funds in this report exceeded the returns for their respective state’s Standard & Poor’s (S&P) Municipal Bond Index as well as that of the S&P National Municipal Bond Index. For the same period, the Michigan Funds underper-formed the average return for the Lipper Michigan Municipal Debt Funds Classification Average, while the Ohio Funds lagged the average return for the Lipper Other States Municipal Debt Funds Classification Average. Shareholders of the Ohio Funds should note that the performance of the Lipper Other States classification represents the overall average of returns for funds from ten different states with a wide variety of municipal market conditions, which may make direct comparisons less meaningful.
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, credit exposure and sector allocation. In addition, NUM and NZW benefited from individual security selection. The use of regulatory
| 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 Performance Overview page for your Fund in this report. | |
| * | Refer to Glossary of Terms Used in This Report for definitions. |
| Nuveen Investments | 9 |
leverage also was an important positive factor affecting the Funds’ performance. The impact of regulatory leverage is discussed in more detail later in this report.
During this period, municipal bonds with longer maturities generally outperformed those with shorter maturities. Overall, credits at the longest end of the municipal yield curve posted the strongest returns, while bonds at the shortest end produced the weakest results. Duration and yield curve positioning was a net positive contributor to the performances of all of the Funds in this report except NBJ (and the performance drag was modest). Overall, the Michigan Funds benefited from being overweighted in the outperforming longer part of the yield curve and underweighted in the shorter segments of the curve that underperformed. This was especially true in NZW, which had the longest duration among these seven Funds. Among the Ohio Funds, NUO, NXI and NVJ also were helped by having greater exposure to the longest parts of the curve. NBJ was slightly less advantageously positioned, due mainly to its overweighting in the short part of the curve, which detracted from its performance.
Credit exposure also played a role in performance during these twelve months, as lower-rated bonds, especially those rated BBB, generally outperformed higher-quality bonds rated AAA and AA. This outperformance was due in part to the longer durations typically associated with the lower-rated categories. Overall, the Ohio Funds, all of which were overweighted in lower quality bonds and underweighted in bonds rated AAA, benefited the most from their credit exposure. The Michigan Funds tended to have less exposure to the BBB rating category that outperformed and more exposure to bonds rated AA, which underperformed, both of which hampered their performance for the period.
Holdings that generally made positive contributions to the Funds’ returns during this period included zero coupon bonds, health care, transportation and special tax credits. Lease backed and education bonds also outpaced the general municipal market for the period, while water and sewer credits just edged past the municipal market average. All of these Funds had good weightings in health care, and the Ohio Funds were overweighted in local general obligation bonds, which also boosted their performance. NUM and NMP were underweighted in dedicated tax credits, which limited their participation in the outperformance of this sector.
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, were the poorest performing market segment during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. All seven of these Funds were overweighted in pre-refunded bonds, which negatively impacted performance. The public power, housing and resource recovery sectors also lagged the performance of the general municipal market for this period. NZW, in particular, was overweighted in housing bonds, detracting from performance.
| 10 | Nuveen Investments |
APPROVED FUND REORGANIZATIONS
On April 18, 2012, the Funds’ Board of Directors/Trustees approved a series of reorganizations for all the Michigan and Ohio Funds included in this report. The reorganizations are intended to create a single larger state Fund, which would potentially offer shareholders the following benefits:
| • | Lower Fund expense ratios (excluding the effects of leverage), as fixed costs are spread over a larger asset base; |
| • | Enhanced secondary market trading, as larger Funds potentially make it easier for investors to buy and sell Fund shares; |
| • | Lower per share trading costs through reduced bid/ask spreads due to a larger common share float; and |
| • | Increased Fund flexibility in managing the structure and cost of leverage over time. |
The approved reorganizations are as follows:
| Acquired Fund | Symbol | Acquiring Fund | Symbol | |
| • | Nuveen Michigan Premium | NMP | Michigan Quality Income | NUM |
| Income Municipal Fund, Inc. | Municipal Fund, Inc. | |||
| • | Nuveen Michigan Dividend | NZW | ||
| Advantage Municipal Fund | ||||
| • | Nuveen Ohio Dividend | NXI | ||
| Advantage Municipal Fund | Nuveen Ohio Quality | |||
| • | Nuveen Ohio Dividend | NBJ | Income Municipal Fund, Inc. | NUO |
| Advantage Municipal Fund 2 | ||||
| • | Nuveen Ohio Dividend | NVJ | ||
| Advantage Municipal Fund 3 |
If shareholders approve the reorganizations, and upon the closing of the reorganizations, the Acquired Fund will transfer substantially all of its assets to the Acquiring Fund in exchange for common and preferred shares of the Acquiring Fund, and the assumption by the Acquiring Fund of the liabilities of the Acquired Fund. The Acquired Fund will then be liquidated, dissolved and terminated in accordance with its Declaration of Trust.
| Nuveen Investments | 11 |
Fund Leverage and
Other Information
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the return of the Funds relative to their benchmarks was the Funds’ use of leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities held by a Fund generally are rising. Leverage had a positive impact on the performance of the Funds over this reporting period.
THE FUNDS’ REGULATORY LEVERAGE
As of February 29, 2012, each of the Funds has redeemed all of their outstanding auction rate preferred shares (ARPS) at liquidation value.
As of February 29, 2012, the Funds have issued and outstanding MuniFund Term Preferred (MTP) Shares or Variable Rate MuniFund Term Preferred (VMTP) Shares as shown in the accompanying tables.
MTP Shares
| MTP Shares Issued | Annual | NYSE | ||
| Fund | Series | at Liquidation Value | Interest Rate | Ticker |
| NZW | 2015 | $16,313,000 | 2.30% | NZW PrC |
| NXI | 2015 | $19,450,000 | 2.35% | NXI PrC |
| NXI | 2016 | $11,653,400 | 2.95% | NXI PrD |
| NBJ | 2014 | $24,244,000 | 2.35% | NBJ PrA |
| NVJ | 2014 | $18,470,150 | 2.35% | NVJ PrA |
VMTP Shares
| VMTP Shares Issued | ||
| Fund | Series | at Liquidation Value |
| NUM | 2014 | $87,900,000 |
| NMP | 2014 | $53,900,000 |
| NUO | 2014 | $73,500,000 |
(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP and VMTP Shares.)
As of October 5, 2011, all 84 of the Nuveen closed-end municipal funds that had issued ARPS, approximately $11.0 billion, have redeemed at liquidation value all of these
| 12 | Nuveen Investments |
shares. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
RISK CONSIDERATIONS
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
Investment and Market Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in common shares represents an indirect investment in the municipal securities owned by the Fund, which generally trade in the over-the-counter markets. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
Price Risk. Shares of closed-end investment companies like these Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.
Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.
Inverse Floater Risk. The Funds invest in inverse floaters. Due to their leveraged nature, these investments can greatly increase a Fund’s exposure to interest rate risk and credit risk. In addition, investments in inverse floaters involve the risk that the Fund could lose more than its original principal investment.
| Nuveen Investments | 13 |
Common Share Dividend
and Price Information
DIVIDEND INFORMATION
During the twelve-month reporting period ended February 29, 2012, NUM, NMP and NUO each had one increase in their monthly dividends, while the dividends of NZW, NXI, NBJ and NVJ remained stable throughout the reporting period.
All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund’s past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of February 29, 2012, all of the Funds in this report had positive UNII balances for both tax and financial reporting purposes.
COMMON SHARE REPURCHASES AND PRICE INFORMATION
As of February 29, 2012 and the since inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their common shares as shown in the accompanying table. Since the inception of the Funds’ repurchase programs, NUO and NBJ have not repurchased any of their outstanding common shares.
| Common Shares | % of Outstanding | |
| Funds | Repurchased and Retired | Common Shares |
| NUM | 160,700 | 1.4% |
| NMP | 145,400 | 1.9% |
| NZW | 13,900 | 0.7% |
| NUO | — | — |
| NXI | 600 | 0.0%* |
| NBJ | — | — |
| NVJ | 1,700 | 0.1% |
* Rounds to less than 0.1%.
| 14 | Nuveen Investments |
During the twelve-month reporting period, the following Fund repurchased and retired common shares at a weighted average price and a weighted average discount per common share as shown in the accompanying table.
| Weighted Average | Weighted Average | |||||||||
| Common Shares | Price Per Share | Discount Per Share | ||||||||
| Fund | Repurchased and Retired | Repurchased and Retired | Repurchased and Retired | |||||||
| NUM | 3,400 | $ | 13.00 | 14.30 | % | |||||
As of February 29, 2012, the Funds’ common share prices were trading at (+) premiums or (-) discounts to their common share NAVs as shown in the accompanying table.
| 2/29/12 | Twelve-Month Average | |
| Fund | (+)Premium/(-) Discount | (-) Discount |
| NUM | (-)3.45% | (-) 7.88% |
| NMP | (-)2.92% | (-) 7.63% |
| NZW | (-)6.10% | (-) 8.60% |
| NUO | (-)1.69% | (-) 3.55% |
| NXI | (-)2.08% | (-) 5.17% |
| NBJ | (-)4.17% | (-) 7.22% |
| NVJ | (+)2.60% | (-) 3.76% |
| Nuveen Investments | 15 |
| NUM | Nuveen Michigan | |
| Performance | Quality Income | |
| OVERVIEW | Municipal Fund, Inc. | |
| as of February 29, 2012 |
| Fund Snapshot | ||||
| Common Share Price | $ | 15.40 | ||
| Common Share Net Asset Value (NAV) | $ | 15.95 | ||
| Premium/(Discount) to NAV | -3.45 | % | ||
| Market Yield | 5.77 | % | ||
Taxable-Equivalent Yield1 | 8.37 | % | ||
| Net Assets Applicable to Common Shares ($000) | $ | 184,270 | ||
| Leverage | ||||
| Regulatory Leverage | 32.30 | % | ||
| Effective Leverage | 35.07 | % |
| Average Annual Total Returns | |||||||
| (Inception 10/17/91) | |||||||
| On Share Price | On NAV | ||||||
| 1-Year | 28.44 | % | 19.11 | % | |||
| 5-Year | 7.30 | % | 6.04 | % | |||
| 10-Year | 6.07 | % | 6.37 | % | |||
Portfolio Composition3 | ||||
| (as a % of total investments) | ||||
| Tax Obligation/General | 35.5 | % | ||
| Tax Obligation/Limited | 12.9 | % | ||
| U.S. Guaranteed | 12.7 | % | ||
| Health Care | 11.2 | % | ||
| Water and Sewer | 9.4 | % | ||
| Utilities | 6.7 | % | ||
| Other | 11.6 | % |
| Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. | |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| 16 | Nuveen Investments |
| NMP | Nuveen Michigan | |
| Performance | Premium Income | |
| OVERVIEW | Municipal Fund, Inc. | |
| as of February 29, 2012 |
| Fund Snapshot | ||||
| Common Share Price | $ | 14.95 | ||
| Common Share Net Asset Value (NAV) | $ | 15.40 | ||
| Premium/(Discount) to NAV | -2.92 | % | ||
| Market Yield | 5.86 | % | ||
Taxable-Equivalent Yield1 | 8.51 | % | ||
| Net Assets Applicable to Common Shares ($000) | $ | 117,155 | ||
| Leverage | ||||
| Regulatory Leverage | 31.51 | % | ||
| Effective Leverage | 34.56 | % |
| Average Annual Total Returns | |||||||
| (Inception 12/17/92) | |||||||
| On Share Price | On NAV | ||||||
| 1-Year | 25.65 | % | 17.00 | % | |||
| 5-Year | 6.76 | % | 5.83 | % | |||
| 10-Year | 6.47 | % | 6.01 | % | |||
Portfolio Composition3 | ||||
| (as a % of total investments) | ||||
| Tax Obligation/General | 37.3 | % | ||
| Health Care | 14.5 | % | ||
| Water and Sewer | 13.7 | % | ||
| Utilities | 8.5 | % | ||
| Tax Obligation/Limited | 8.5 | % | ||
| U.S. Guaranteed | 5.9 | % | ||
| Other | 11.6 | % |
| Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. | |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| Nuveen Investments | 17 |
| NZW | Nuveen Michigan | |
| Performance | Dividend Advantage | |
| OVERVIEW | Municipal Fund | |
| as of February 29, 2012 |
| Fund Snapshot | ||||
| Common Share Price | $ | 14.31 | ||
| Common Share Net Asset Value (NAV) | $ | 15.24 | ||
| Premium/(Discount) to NAV | -6.10 | % | ||
| Market Yield | 5.62 | % | ||
Taxable-Equivalent Yield1 | 8.16 | % | ||
| Net Assets Applicable to Common Shares ($000) | $ | 31,289 | ||
| Leverage | ||||
| Regulatory Leverage | 34.27 | % | ||
| Effective Leverage | 37.47 | % |
| Average Annual Total Returns | |||||||
| (Inception 9/25/01) | |||||||
| On Share Price | On NAV | ||||||
| 1-Year | 25.34 | % | 19.38 | % | |||
| 5-Year | 5.01 | % | 5.53 | % | |||
| 10-Year | 5.77 | % | 6.45 | % | |||
Portfolio Composition3 | ||||
| (as a % of total investments) | ||||
| Tax Obligation/General | 25.1 | % | ||
| Health Care | 13.7 | % | ||
| Tax Obligation/Limited | 13.1 | % | ||
| Water and Sewer | 13.0 | % | ||
| U.S. Guaranteed | 8.0 | % | ||
| Utilities | 7.3 | % | ||
| Education and Civic Organizations | 6.9 | % | ||
| Housing/Multifamily | 5.2 | % | ||
| Other | 7.7 | % |
| Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. | |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| 18 | Nuveen Investments |
| NUO | Nuveen Ohio | |
| Performance | Quality Income | |
| OVERVIEW | Municipal Fund, Inc. | |
| as of February 29, 2012 |
| Fund Snapshot | ||||
| Common Share Price | $ | 16.88 | ||
| Common Share Net Asset Value (NAV) | $ | 17.17 | ||
| Premium/(Discount) to NAV | -1.69 | % | ||
| Market Yield | 5.69 | % | ||
Taxable-Equivalent Yield1 | 8.36 | % | ||
| Net Assets Applicable to Common Shares ($000) | $ | 167,709 | ||
| Leverage | ||||
| Regulatory Leverage | 30.47 | % | ||
| Effective Leverage | 34.52 | % |
| Average Annual Total Returns | |||||||
| (Inception 10/17/91) | |||||||
| On Share Price | On NAV | ||||||
| 1-Year | 20.55 | % | 17.73 | % | |||
| 5-Year | 7.18 | % | 6.35 | % | |||
| 10-Year | 5.46 | % | 6.36 | % | |||
Portfolio Composition3 | ||||
| (as a % of total investments) | ||||
| Tax Obligation/General | 21.6 | % | ||
| Health Care | 19.3 | % | ||
| Tax Obligation/Limited | 14.0 | % | ||
| U.S. Guaranteed | 13.3 | % | ||
| Education and Civic Organizations | 9.7 | % | ||
| Utilities | 5.6 | % | ||
| Consumer Staples | 5.1 | % | ||
| Other | 11.4 | % |
| Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. | |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| Nuveen Investments | 19 |
| NXI | Nuveen Ohio | |
| Performance | Dividend Advantage | |
| OVERVIEW | Municipal Fund | |
| as of February 29, 2012 |
| Fund Snapshot | ||||
| Common Share Price | $ | 15.52 | ||
| Common Share Net Asset Value (NAV) | $ | 15.85 | ||
| Premium/(Discount) to NAV | -2.08 | % | ||
| Market Yield | 5.68 | % | ||
Taxable-Equivalent Yield1 | 8.34 | % | ||
| Net Assets Applicable to Common Shares ($000) | $ | 67,292 | ||
| Leverage | ||||
| Regulatory Leverage | 31.61 | % | ||
| Effective Leverage | 35.47 | % |
| Average Annual Total Returns | |||||||
| (Inception 3/27/01) | |||||||
| On Share Price | On NAV | ||||||
| 1-Year | 24.11 | % | 17.88 | % | |||
| 5-Year | 5.98 | % | 6.22 | % | |||
| 10-Year | 6.18 | % | 6.65 | % | |||
Portfolio Composition3 | ||||
| (as a % of total investments) | ||||
| Health Care | 19.3 | % | ||
| Tax Obligation/General | 18.3 | % | ||
| Tax Obligation/Limited | 18.3 | % | ||
| U.S. Guaranteed | 12.1 | % | ||
| Education and Civic Organizations | 8.6 | % | ||
| Utilities | 7.0 | % | ||
| Industrials | 4.6 | % | ||
| Other | 11.8 | % |
| Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. | |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| 20 | Nuveen Investments |
| NBJ | Nuveen Ohio | |
| Performance | Dividend Advantage | |
| OVERVIEW | Municipal Fund 2 | |
| as of February 29, 2012 |
| Fund Snapshot | ||||
| Common Share Price | $ | 14.95 | ||
| Common Share Net Asset Value (NAV) | $ | 15.60 | ||
| Premium/(Discount) to NAV | -4.17 | % | ||
| Market Yield | 5.62 | % | ||
Taxable-Equivalent Yield1 | 8.25 | % | ||
| Net Assets Applicable to Common Shares ($000) | $ | 48,707 | ||
| Leverage | ||||
| Regulatory Leverage | 33.23 | % | ||
| Effective Leverage | 37.50 | % |
| Average Annual Total Returns | |||||||
| (Inception 9/25/01) | |||||||
| On Share Price | On NAV | ||||||
| 1-Year | 22.12 | % | 17.44 | % | |||
| 5-Year | 6.56 | % | 6.07 | % | |||
| 10-Year | 6.09 | % | 6.57 | % | |||
Portfolio Composition3 | ||||
| (as a % of total investments) | ||||
| Tax Obligation/General | 26.6 | % | ||
| Health Care | 17.7 | % | ||
| Tax Obligation/Limited | 15.0 | % | ||
| U.S. Guaranteed | 9.7 | % | ||
| Education and Civic Organizations | 8.3 | % | ||
| Industrials | 7.0 | % | ||
| Utilities | 6.5 | % | ||
| Other | 9.2 | % |
| Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. | |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| Nuveen Investments | 21 |
| NVJ | Nuveen Ohio | |
| Performance | Dividend Advantage | |
| OVERVIEW | Municipal Fund 3 | |
| as of February 29, 2012 |
| Fund Snapshot | ||||
| Common Share Price | $ | 16.20 | ||
| Common Share Net Asset Value (NAV) | $ | 15.79 | ||
| Premium/(Discount) to NAV | 2.60 | % | ||
| Market Yield | 5.59 | % | ||
Taxable-Equivalent Yield1 | 8.21 | % | ||
| Net Assets Applicable to Common Shares ($000) | $ | 34,075 | ||
| Leverage | ||||
| Regulatory Leverage | 35.15 | % | ||
| Effective Leverage | 37.84 | % |
| Average Annual Total Returns | |||||||
| (Inception 3/25/02) | |||||||
| On Share Price | On NAV | ||||||
| 1-Year | 25.66 | % | 16.88 | % | |||
| 5-Year | 7.41 | % | 6.12 | % | |||
| Since Inception | 6.66 | % | 6.71 | % | |||
Portfolio Composition3 | ||||
| (as a % of total investments) | ||||
| Tax Obligation/General | 25.0 | % | ||
| Health Care | 21.4 | % | ||
| U.S. Guaranteed | 15.6 | % | ||
| Tax Obligation/Limited | 9.7 | % | ||
| Utilities | 5.2 | % | ||
| Education and Civic Organizations | 4.7 | % | ||
| Industrials | 4.6 | % | ||
| Other | 13.8 | % |
| Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. | |
| 1 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.9%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 2 | Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency. |
| 3 | Holdings are subject to change. |
| 22 | Nuveen Investments |
| NUM | Shareholder Meeting Report | |
| NMP | ||
| NZW | The annual meeting of shareholders was held in the offices of Nuveen Investments on November 15, 2011; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting was subsequently adjourned to December 16, 2011. The meeting for NBJ and NVJ was additionally adjourned to January 31, 2012. |
| NUM | NMP | NZW | |||||||||||||||||
Common and Preferred shares voting together as a class | Preferred shares voting together as a class | Common and Preferred shares voting together as a class | Preferred shares voting together as a class | Common and Preferred shares voting together as a class | Preferred shares voting together as a class | ||||||||||||||
| To approve the elimination of the fundamental policies relating to the Fund’s ability to make loans. | |||||||||||||||||||
| For | 4,803,505 | 879 | 3,491,138 | 539 | 1,629,481 | 607,781 | |||||||||||||
| Against | 299,570 | — | 250,280 | — | 167,851 | 64,066 | |||||||||||||
| Abstain | 216,820 | — | 131,909 | — | 27,697 | 2,500 | |||||||||||||
| Broker Non-Votes | 1,506,493 | — | 1,305,937 | — | 448,334 | 226,484 | |||||||||||||
| Total | 6,826,388 | 879 | 5,179,264 | 539 | 2,273,363 | 900,831 | |||||||||||||
| To approve the new fundamental policy relating to the Fund’s ability to make loans. | |||||||||||||||||||
| For | 4,772,514 | 879 | 3,478,699 | 539 | 1,617,323 | 606,281 | |||||||||||||
| Against | 310,746 | — | 261,585 | — | 171,009 | 65,566 | |||||||||||||
| Abstain | 236,637 | — | 133,043 | — | 36,697 | 2,500 | |||||||||||||
| Broker Non-Votes | 1,506,491 | — | 1,305,937 | — | 448,334 | 226,484 | |||||||||||||
| Total | 6,826,388 | 879 | 5,179,264 | 539 | 2,273,363 | 900,831 | |||||||||||||
| Approval of the Board Members was reached as follows: | |||||||||||||||||||
| John P. Amboian | |||||||||||||||||||
| For | 6,605,936 | — | 4,908,951 | — | 2,186,843 | — | |||||||||||||
| Withhold | 220,452 | — | 270,313 | — | 86,520 | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | 2,273,363 | — | |||||||||||||
| Robert P. Bremner | |||||||||||||||||||
| For | 6,614,415 | — | 4,902,918 | — | — | — | |||||||||||||
| Withhold | 211,973 | — | 276,346 | — | — | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | — | — | |||||||||||||
| Jack B. Evans | |||||||||||||||||||
| For | 6,613,625 | — | 4,896,575 | — | — | — | |||||||||||||
| Withhold | 212,763 | — | 282,689 | — | — | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | — | — | |||||||||||||
| William C. Hunter | |||||||||||||||||||
| For | — | 879 | — | 539 | — | 879,111 | |||||||||||||
| Withhold | — | — | — | — | — | 21,720 | |||||||||||||
| Total | — | 879 | — | 539 | — | 900,831 | |||||||||||||
| David J. Kundert | |||||||||||||||||||
| For | 6,615,880 | — | 4,878,294 | — | 2,181,143 | — | |||||||||||||
| Withhold | 210,508 | — | 300,970 | — | 92,220 | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | 2,273,363 | — | |||||||||||||
| William J. Schneider | |||||||||||||||||||
| For | — | 879 | — | 539 | — | 874,111 | |||||||||||||
| Withhold | — | — | — | — | — | 26,720 | |||||||||||||
| Total | — | 879 | — | 539 | — | 900,831 | |||||||||||||
| Judith M. Stockdale | |||||||||||||||||||
| For | 6,614,042 | — | 4,876,355 | — | — | — | |||||||||||||
| Withhold | 212,346 | — | 302,909 | — | — | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | — | — | |||||||||||||
| Carole E. Stone | |||||||||||||||||||
| For | 6,612,926 | — | 4,907,476 | — | — | — | |||||||||||||
| Withhold | 213,462 | — | 271,788 | — | — | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | — | — | |||||||||||||
| Virginia L. Stringer | |||||||||||||||||||
| For | 6,614,530 | — | 4,916,436 | — | — | — | |||||||||||||
| Withhold | 211,858 | — | 262,828 | — | — | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | — | — | |||||||||||||
| Terence J. Toth | |||||||||||||||||||
| For | 6,607,313 | — | 4,910,741 | — | 2,183,443 | — | |||||||||||||
| Withhold | 219,075 | — | 268,523 | — | 89,920 | — | |||||||||||||
| Total | 6,826,388 | — | 5,179,264 | — | 2,273,363 | — | |||||||||||||
| Nuveen Investments | 23 |
| NUO | Shareholder Meeting Report (continued) | |
| NXI | ||
| NBJ |
| NUO | NXI | NBJ | |||||||||||||||||
Common and Preferred shares voting together as a class | Preferred shares voting together as a class | Common and Preferred shares voting together as a class | Preferred shares voting together as a class | Common and Preferred shares voting together as a class | Preferred shares voting together as a class | ||||||||||||||
| To approve the elimination of the fundamental policies relating to the Fund’s ability to make loans. | |||||||||||||||||||
| For | 4,289,577 | 735 | 3,150,830 | 1,231,680 | 2,411,599 | 718,267 | |||||||||||||
| Against | 425,905 | — | 320,793 | 124,100 | 380,673 | 197,800 | |||||||||||||
| Abstain | 277,776 | — | 86,982 | 6,200 | 98,512 | 25,500 | |||||||||||||
| Broker Non-Votes | 1,217,275 | — | 1,030,941 | 398,682 | 782,297 | 548,433 | |||||||||||||
| Total | 6,210,533 | 735 | 4,589,546 | 1,760,662 | 3,673,081 | 1,490,000 | |||||||||||||
| To approve the new fundamental policy relating to the Fund’s ability to make loans. | |||||||||||||||||||
| For | 4,245,914 | 735 | 3,141,646 | 1,231,680 | 2,361,917 | 702,267 | |||||||||||||
| Against | 461,012 | — | 325,817 | 124,100 | 403,510 | 213,800 | |||||||||||||
| Abstain | 286,332 | — | 91,142 | 6,200 | 125,357 | 25,500 | |||||||||||||
| Broker Non-Votes | 1,217,275 | — | 1,030,941 | 398,682 | 782,297 | 548,433 | |||||||||||||
| Total | 6,210,533 | 735 | 4,589,546 | 1,760,662 | 3,673,081 | 1,490,000 | |||||||||||||
| Approval of the Board Members was reached as follows: | |||||||||||||||||||
| John P. Amboian | |||||||||||||||||||
| For | 5,731,164 | — | 4,356,867 | — | 3,173,458 | — | |||||||||||||
| Withhold | 479,369 | — | 232,679 | — | 274,802 | — | |||||||||||||
| Total | 6,210,533 | — | 4,589,546 | — | 3,448,260 | — | |||||||||||||
| Robert P. Bremner | |||||||||||||||||||
| For | 5,728,807 | — | — | — | — | — | |||||||||||||
| Withhold | 481,726 | — | — | — | — | — | |||||||||||||
| Total | 6,210,533 | — | — | — | — | — | |||||||||||||
| Jack B. Evans | |||||||||||||||||||
| For | 5,735,643 | — | — | — | — | — | |||||||||||||
| Withhold | 474,890 | — | — | — | — | — | |||||||||||||
| Total | 6,210,533 | — | — | — | — | — | |||||||||||||
| William C. Hunter | |||||||||||||||||||
| For | — | 735 | — | 1,690,938 | — | 1,267,100 | |||||||||||||
| Withhold | — | — | — | 69,724 | — | 109,100 | |||||||||||||
| Total | — | 735 | — | 1,760,662 | — | 1,376,200 | |||||||||||||
| David J. Kundert | |||||||||||||||||||
| For | 5,733,056 | — | 4,357,441 | — | 3,173,458 | — | |||||||||||||
| Withhold | 477,477 | — | 232,105 | — | 274,802 | — | |||||||||||||
| Total | 6,210,533 | — | 4,589,546 | — | 3,448,260 | — | |||||||||||||
| William J. Schneider | |||||||||||||||||||
| For | — | 735 | — | 1,690,938 | — | 1,267,100 | |||||||||||||
| Withhold | — | — | — | 69,724 | — | 109,100 | |||||||||||||
| Total | — | 735 | — | 1,760,662 | — | 1,376,200 | |||||||||||||
| Judith M. Stockdale | |||||||||||||||||||
| For | 5,720,195 | — | — | — | — | — | |||||||||||||
| Withhold | 490,338 | — | — | — | — | — | |||||||||||||
| Total | 6,210,533 | — | — | — | — | — | |||||||||||||
| Carole E. Stone | |||||||||||||||||||
| For | 5,726,214 | — | — | — | — | — | |||||||||||||
| Withhold | 484,319 | — | — | — | — | — | |||||||||||||
| Total | 6,210,533 | — | — | — | — | — | |||||||||||||
| Virginia L. Stringer | |||||||||||||||||||
| For | 5,727,404 | — | — | — | — | — | |||||||||||||
| Withhold | 483,129 | — | — | — | — | — | |||||||||||||
| Total | 6,210,533 | — | — | — | — | — | |||||||||||||
| Terence J. Toth | |||||||||||||||||||
| For | 5,739,868 | — | 4,357,441 | — | 3,173,458 | — | |||||||||||||
| Withhold | 470,665 | — | 232,105 | — | 274,802 | — | |||||||||||||
| Total | 6,210,533 | — | 4,589,546 | — | 3,448,260 | — | |||||||||||||
| 24 | Nuveen Investments |
| NVJ | |
| NVJ | |||||||
Common and Preferred shares voting together as a class | Preferred shares voting together as a class | ||||||
To approve the elimination of the fundamental policies relating to the Fund’s ability to make loans. | |||||||
| For | 1,773,549 | 701,000 | |||||
| Against | 176,688 | 60,000 | |||||
| Abstain | 144,072 | — | |||||
| Broker Non-Votes | 522,497 | 251,015 | |||||
| Total | 2,616,806 | 1,012,015 | |||||
To approve the new fundamental policy relating to the Fund’s ability to make loans. | |||||||
| For | 1,754,984 | 695,000 | |||||
| Against | 176,262 | 60,000 | |||||
| Abstain | 163,063 | 6,000 | |||||
| Broker Non-Votes | 522,497 | 251,015 | |||||
| Total | 2,616,806 | 1,012,015 | |||||
| Approval of the Board Members was reached as follows: | |||||||
| John P. Amboian | |||||||
| For | 2,443,417 | — | |||||
| Withhold | 124,022 | — | |||||
| Total | 2,567,439 | — | |||||
| Robert P. Bremner | |||||||
| For | — | — | |||||
| Withhold | — | — | |||||
| Total | — | — | |||||
| Jack B. Evans | |||||||
| For | — | — | |||||
| Withhold | — | — | |||||
| Total | — | — | |||||
| William C. Hunter | |||||||
| For | — | 951,915 | |||||
| Withhold | — | 60,000 | |||||
| Total | — | 1,011,915 | |||||
| David J. Kundert | |||||||
| For | 2,420,398 | �� | — | ||||
| Withhold | 147,041 | — | |||||
| Total | 2,567,439 | — | |||||
| William J. Schneider | |||||||
| For | — | 971,915 | |||||
| Withhold | — | 40,000 | |||||
| Total | — | 1,011,915 | |||||
| Judith M. Stockdale | |||||||
| For | — | — | |||||
| Withhold | — | — | |||||
| Total | — | — | |||||
| Carole E. Stone | |||||||
| For | — | — | |||||
| Withhold | — | — | |||||
| Total | — | — | |||||
| Virginia L. Stringer | |||||||
| For | — | — | |||||
| Withhold | — | — | |||||
| Total | — | — | |||||
| Terence J. Toth | |||||||
| For | 2,441,412 | — | |||||
| Withhold | 126,027 | — | |||||
| Total | 2,567,439 | — | |||||
| Nuveen Investments | 25 |
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 29, 2012, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the 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 audits 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 29, 2012, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen 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 29, 2012, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
April 25, 2012
| 26 | Nuveen Investments |
| Nuveen Michigan Quality Income Municipal Fund, Inc. | ||
| NUM | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Consumer Staples – 3.8% (2.6% of Total Investments) | |||||||||
| $ | 7,500 | Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 | 6/18 at 100.00 | B2 | $ | 7,025,775 | |||
| Education and Civic Organizations – 3.9% (2.7% of Total Investments) | |||||||||
| 250 | Conner Creek Academy East, Michigan, Public School Revenue Bonds, Series 2007, 5.250%, 11/01/36 | 11/16 at 100.00 | BB– | 192,205 | |||||
| 755 | Detroit Community High School, Michigan, Public School Academy Revenue Bonds, Series 2005, 5.750%, 11/01/30 | 11/15 at 100.00 | B+ | 574,336 | |||||
| 385 | Michigan Finance Authority, Public School Academy Limited Obligation Revenue and Refunding Bonds, Detroit Service Learning Academy Project, Series 2011, 7.000%, 10/01/31 | 10/21 at 100.00 | BBB– | 400,215 | |||||
| 1,685 | Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.500%, 9/01/17 – AMBAC Insured | 9/12 at 100.00 | N/R | 1,686,365 | |||||
| 1,000 | Michigan Higher Education Student Loan Authority, Revenue Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 – AMBAC Insured (Alternative Minimum Tax) | 9/12 at 100.00 | AA | 1,007,350 | |||||
| 2,000 | Michigan State University, General Revenue Bonds, Refunding Series 2010C, 5.000%, 2/15/40 | 2/20 at 100.00 | Aa1 | 2,190,120 | |||||
| 1,115 | Michigan Technological University, General Revenue Bonds, Series 2004A, 5.000%, 10/01/22 – NPFG Insured | 10/13 at 100.00 | Aa3 | 1,187,776 | |||||
| 7,190 | Total Education and Civic Organizations | 7,238,367 | |||||||
| Health Care – 16.5% (11.2% of Total Investments) | |||||||||
| 2,000 | Grand Traverse County Hospital Financial Authority, Michigan, Revenue Bonds, Munson Healthcare, Refunding Series 2011A, 5.000%, 7/01/29 | 7/21 at 100.00 | A1 | 2,132,800 | |||||
| 1,080 | Jackson County Hospital Finance Authority, Michigan, Hospital Revenue Bonds, Allegiance Health, Refunding Series 2010A, 5.000%, 6/01/37 – AGM Insured | 6/20 at 100.00 | AA– | 1,145,480 | |||||
| Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds, Spectrum Health System, Refunding Series 2011C: | |||||||||
| 3,000 | 5.000%, 1/15/31 | 1/22 at 100.00 | AA | 3,308,370 | |||||
| 750 | 5.000%, 1/15/42 | No Opt. Call | AA | 799,628 | |||||
| 4,000 | Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011, 5.000%, 12/01/39 | No Opt. Call | AA | 4,238,920 | |||||
| 4,100 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39 | 11/19 at 100.00 | A1 | 4,470,927 | |||||
| 4,075 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 | 4/13 at 100.00 | A | 4,159,027 | |||||
| 2,500 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds,MidMichigan Obligated Group, Series 2009A, 5.875%, 6/01/39 – AGC Insured | 6/19 at 100.00 | AA– | 2,776,050 | |||||
| 1,000 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Memorial Healthcare Center Obligated Group, Series 1999, 5.875%, 11/15/21 | 5/12 at 100.00 | BBB | 1,001,430 | |||||
| 1,375 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 | 12/12 at 100.00 | AA | 1,392,490 | |||||
| Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: | |||||||||
| 1,500 | 5.000%, 5/15/26 | 5/15 at 100.00 | Baa3 | 1,510,050 | |||||
| 2,080 | 5.000%, 5/15/34 | 5/15 at 100.00 | Baa3 | 2,004,205 | |||||
| 1,150 | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 | 9/18 at 100.00 | A1 | 1,451,220 | |||||
| 28,610 | Total Health Care | 30,390,597 | |||||||
| Housing/Multifamily – 5.6% (3.8% of Total Investments) | |||||||||
| 2,675 | Michigan Housing Development Authority, FNMA Limited Obligation Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative Minimum Tax) | 12/20 at 101.00 | AA+ | 2,913,583 | |||||
| Michigan Housing Development Authority, Multifamily Housing Revenue Bonds, Series 1988A: | |||||||||
| 210 | 3.375%, 11/01/16 (Alternative Minimum Tax) | 11/14 at 101.00 | AA | 213,320 | |||||
| 1,860 | 3.875%, 11/01/17 (Alternative Minimum Tax) | 11/14 at 101.00 | AA | 1,896,437 |
| Nuveen Investments | 27 |
| Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | ||
| NUM | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Housing/Multifamily (continued) | |||||||||
| $ | 140 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 1999A, 5.300%, 10/01/37 – NPFG Insured (Alternative Minimum Tax) | 4/12 at 100.00 | AA | $ | 140,071 | |||
| 1,300 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2006D, 5.125%, 4/01/31 – AGM Insured (Alternative Minimum Tax) | 7/15 at 100.00 | AA | 1,329,991 | |||||
| 200 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2009A, 5.700%, 10/01/39 | 10/18 at 100.00 | AA | 213,544 | |||||
| 1,825 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2010A, 5.000%, 10/01/35 | 10/20 at 100.00 | AA | 1,896,193 | |||||
| 1,725 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2012A-2, 4.625%, 10/01/41 | 4/22 at 100.00 | AA | 1,738,093 | |||||
| 9,935 | Total Housing/Multifamily | 10,341,232 | |||||||
| Housing/Single Family – 1.7% (1.1% of Total Investments) | |||||||||
| 2,000 | Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series 2010C, 5.500%, 12/01/28 (Alternative Minimum Tax) | 6/20 at 100.00 | AA+ | 2,102,000 | |||||
| 950 | Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series 2011A, 4.600%, 12/01/26 | 6/21 at 100.00 | AA+ | 1,018,752 | |||||
| 2,950 | Total Housing/Single Family | 3,120,752 | |||||||
| Tax Obligation/General – 52.2% (35.5% of Total Investments) | |||||||||
| 1,000 | Anchor Bay School District, Macomb and St. Clair Counties, Michigan, General Obligation Refunding Bonds, Series 2002, 5.000%, 5/01/25 | 5/12 at 100.00 | Aa2 | 1,003,290 | |||||
| 1,000 | Ann Arbor, Michigan, General Obligation Bonds, Court & Police Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 | 5/18 at 100.00 | AA+ | 1,085,750 | |||||
| 1,000 | Byron Center Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2012, 4.000%, 5/01/32 | 5/21 at 100.00 | AA– | 1,013,390 | |||||
| 2,110 | Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/20 | 5/13 at 100.00 | Aa2 | 2,220,817 | |||||
| 1,000 | Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/25 – NPFG Insured | 5/15 at 100.00 | Aa2 | 1,061,260 | |||||
| 2,319 | Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.934%, 5/01/32 – NPFG Insured (IF) | 5/17 at 100.00 | Aa2 | 2,542,714 | |||||
| 875 | Charlotte Public School District, Easton County, Michigan, General Obligation Bonds, Refunding Series 2012, 5.000%, 5/01/20 (WI/DD, Settling 3/14/12) | No Opt. Call | AA– | 1,060,369 | |||||
| 1,900 | Comstock Park Public Schools, Kent County, Michigan, General Obligation Bonds, School Building & Site, Series 2011B, 5.500%, 5/01/41 | 5/21 at 100.00 | AA– | 2,133,206 | |||||
| 2,000 | Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2002A, 6.000%, 5/01/19 – FGIC Insured | No Opt. Call | Aa2 | 2,364,540 | |||||
| 700 | Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General Obligation Building Authority Stadium Bonds, Series 1997, 5.500%, 2/01/17 – FGIC Insured | 8/12 at 100.00 | BBB+ | 701,939 | |||||
| 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 | 5,527,434 | |||||
| 3,000 | 0.000%, 12/01/26 | No Opt. Call | AAA | 1,773,330 | |||||
| 100 | 0.000%, 12/01/27 | No Opt. Call | AAA | 56,166 | |||||
| 5,305 | 0.000%, 12/01/29 | No Opt. Call | AAA | 2,655,842 | |||||
| 1,700 | Grand Rapids, Michigan, General Obligation Bonds, Capital Improvement Series 2007, 5.000%, 9/01/27 – NPFG Insured | 9/17 at 100.00 | AA | 1,864,849 | |||||
| 1,400 | Howell Public Schools, Livingston County, Michigan, General Obligation Bonds, Series 2003, 5.000%, 5/01/21 | 11/13 at 100.00 | Aa2 | 1,488,942 | |||||
| 1,065 | Jackson Public Schools, Jackson County, Michigan, General Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 – AGM Insured | 5/14 at 100.00 | Aa2 | 1,160,030 | |||||
| 1,935 | Kalamazoo Public Schools, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 – AGM Insured | 5/16 at 100.00 | Aa2 | 2,124,495 | |||||
| 200 | L’Anse Creuse Public Schools, Macomb County, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/35 – AGM Insured | 5/15 at 100.00 | AA+ | 207,310 |
| 28 | Nuveen Investments |
| 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, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 – NPFG Insured | 5/16 at 100.00 | Aa2 | $ | 2,696,833 | |||
| 2,810 | Livonia Public Schools, Wayne County, Michigan, General Obligation Bonds, Series 2004A, 5.000%, 5/01/21 – NPFG Insured | 5/14 at 100.00 | Aa2 | 3,005,323 | |||||
| 865 | Lowell Area Schools, Kent and Ionia Counties, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/37 – AGM Insured | 5/17 at 100.00 | Aa2 | 912,662 | |||||
| 1,500 | Marshall Public Schools, Calhoun County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/30 – SYNCORA GTY Insured | 5/17 at 100.00 | AA– | 1,610,310 | |||||
| 2,100 | Michigan Municipal Bond Authority, General Obligation Bonds, Detroit City School District, Series 2005, 5.000%, 6/01/18 – AGM Insured | 6/15 at 100.00 | AA– | 2,222,493 | |||||
| 1,000 | Michigan State, General Obligation Bonds, Environmental Program, Refunding Series 2011A, 5.000%, 12/01/22 | 12/21 at 100.00 | Aa2 | 1,216,260 | |||||
| 100 | Michigan State, General Obligation Bonds, Environmental Program, Series 2009A, 5.500%, 11/01/25 | 5/19 at 100.00 | Aa2 | 118,200 | |||||
| 2,500 | Montrose School District, Michigan, School Building and Site Bonds, Series 1997, 6.000%, 5/01/22 – NPFG Insured | No Opt. Call | Aa3 | 3,161,225 | |||||
| 3,950 | Oakland Intermediate School District, Oakland County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 – AGM Insured | 5/17 at 100.00 | Aaa | 4,200,035 | |||||
| 1,595 | Oakridge Public Schools, Muskegon County, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/22 – NPFG Insured | 5/15 at 100.00 | AA– | 1,788,856 | |||||
| Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007: | |||||||||
| 4,330 | 5.000%, 8/01/26 – NPFG Insured (UB) | 8/17 at 100.00 | Aaa | 5,104,464 | |||||
| 1,120 | 5.000%, 8/01/30 – NPFG Insured (UB) | 8/17 at 100.00 | Aaa | 1,215,827 | |||||
| 1,245 | Parchment School District, Kalamazoo County, Michigan, General Obligation Bonds, Tender Option Bond Trust 2836, 11.197%, 5/01/15 – AGM Insured (IF) | No Opt. Call | Aa2 | 1,378,887 | |||||
| 4,340 | Plymouth-Canton Community School District, Wayne and Washtenaw Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/26 – FGIC Insured | 5/14 at 100.00 | Aa2 | 4,671,576 | |||||
| Port Huron, Michigan, General Obligation Bonds, Refunding & Capital Improvement Series 2011: | |||||||||
| 1,585 | 5.000%, 10/01/31 – AGM Insured | 10/21 at 100.00 | AA– | 1,730,614 | |||||
| 640 | 5.250%, 10/01/37 – AGM Insured | 10/21 at 100.00 | AA– | 690,208 | |||||
| Port Huron, Michigan, General Obligation Bonds, Series 2011B: | |||||||||
| 530 | 5.000%, 10/01/31 – AGM Insured | 10/21 at 100.00 | AA– | 578,691 | |||||
| 800 | 5.250%, 10/01/40 – AGM Insured | 10/21 at 100.00 | AA– | 864,072 | |||||
| 300 | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Refunding Series 2012, 5.000%, 5/01/19 | No Opt. Call | AA– | 359,382 | |||||
| 1,000 | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2008, 5.000%, 5/01/33 – AGM Insured | 5/18 at 100.00 | Aa2 | 1,075,380 | |||||
| 200 | South Haven, Van Buren County,Michigan, General Obligation Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 – AGC Insured | 12/19 at 100.00 | AA– | 227,204 | |||||
| 3,175 | South Redford School District, Wayne County, Michigan, General Obligation Bonds, School Building and Site, Series 2005, 5.000%, 5/01/30 – NPFG Insured | 5/15 at 100.00 | Aa2 | 3,322,987 | |||||
| 1,655 | Southfield Library Building Authority, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/26 – NPFG Insured | 5/15 at 100.00 | AA | 1,757,577 | |||||
| 2,200 | Thornapple Kellogg School District, Barry County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/32 – NPFG Insured | 5/17 at 100.00 | Aa2 | 2,342,472 | |||||
| 2,000 | Trenton Public Schools District, Michigan, General Obligation Bonds, Series 2008, 5.000%, 5/01/34 – AGM Insured | 5/18 at 100.00 | Aa2 | 2,143,920 | |||||
| 2,275 | Troy City School District, Oakland County, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/19 – NPFG Insured | 5/16 at 100.00 | Aa1 | 2,581,192 | |||||
| Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building and Site, Series 2008: | |||||||||
| 310 | 5.000%, 5/01/31 – AGM Insured | 5/18 at 100.00 | Aa2 | 334,437 | |||||
| 575 | 5.000%, 5/01/38 – AGM Insured | 5/18 at 100.00 | Aa2 | 611,478 | |||||
| 1,180 | Wayne Charter County, Michigan, General Obligation Bonds, Building Improvements, Series 2009A, 6.750%, 11/01/39 | 12/19 at 100.00 | BBB+ | 1,332,727 |
| Nuveen Investments | 29 |
| Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | ||
| NUM | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Tax Obligation/General (continued) | |||||||||
| $ | 5,000 | Wayne Charter County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/21 – NPFG Insured | 12/12 at 100.00 | BBB+ | $ | 5,051,500 | |||
| 3,350 | Wayne Westland Community Schools, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/17 – AGM Insured | 11/14 at 100.00 | Aa2 | 3,722,621 | |||||
| 1,725 | Williamston Community School District, Michigan, Unlimited Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 – NPFG Insured | No Opt. Call | Aa3 | 2,146,314 | |||||
| 95,969 | Total Tax Obligation/General | 96,221,400 | |||||||
| Tax Obligation/Limited – 19.0% (12.9% of Total Investments) | |||||||||
| 1,305 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 1,417,295 | |||||
| 1,000 | Grand Rapids Building Authority, Kent County, Michigan, Limited Tax General Obligation Bonds, Series 1998, 5.000%, 4/01/16 | No Opt. Call | AA | 1,156,500 | |||||
| 10 | Michigan Municipal Bond Authority, Local Government Loan Program Revenue Sharing Bonds, Series 1992D, 6.650%, 5/01/12 | No Opt. Call | Aa3 | 10,053 | |||||
| 2,135 | Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2005II, 5.000%, 10/15/33 – AMBAC Insured | 10/15 at 100.00 | Aa3 | 2,228,684 | |||||
| Michigan State Building Authority, Revenue Bonds, Refunding Series 2006IA: | |||||||||
| 7,000 | 0.000%, 10/15/27 – AGM Insured | 10/16 at 58.27 | AA– | 3,363,010 | |||||
| 6,200 | 0.000%, 10/15/28 – AGM Insured | 10/16 at 55.35 | AA– | 2,815,296 | |||||
| 4,440 | 5.000%, 10/15/36 – FGIC Insured | 10/16 at 100.00 | Aa3 | 4,655,296 | |||||
| Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: | |||||||||
| 5,100 | 5.000%, 10/15/22 – NPFG Insured | 10/13 at 100.00 | Aa3 | 5,332,815 | |||||
| 5,000 | 5.000%, 10/15/23 – NPFG Insured | 10/13 at 100.00 | Aa3 | 5,222,350 | |||||
| 700 | Michigan State Trunk Line Fund Refunding Bonds, Series 2009, 5.000%, 11/15/36 | 11/21 at 100.00 | AA+ | 789,775 | |||||
| 3,500 | Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 5.250%, 10/01/21 – AGM Insured | 10/12 at 100.00 | AA+ | 3,592,855 | |||||
| 17,000 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/44 – NPFG Insured | No Opt. Call | Aa2 | 2,881,500 | |||||
| 1,000 | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Series 2009B, 5.000%, 10/01/25 | 10/19 at 100.00 | BBB | 1,073,660 | |||||
| 420 | Virgin Islands Public Finance Authority, Revenue Bonds, Senior Lien Matching Fund Loan Notes, Series 2009A-1, 5.000%, 10/01/39 | 10/19 at 100.00 | BBB | 428,618 | |||||
| 54,810 | Total Tax Obligation/Limited | 34,967,707 | |||||||
| Transportation – 2.1% (1.4% of Total Investments) | |||||||||
| 1,000 | Capital Region Airport Authority, Michigan, Revenue Refunding Bonds, Series 2002, 5.250%, 7/01/21 – NPFG Insured (Alternative Minimum Tax) | 7/12 at 100.00 | BBB | 1,006,680 | |||||
| 500 | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport, Refunding Series 2007, 5.000%, 12/01/12 – FGIC Insured | No Opt. Call | A | 514,815 | |||||
| 2,000 | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport, Refunding Series 2011A, 5.000%, 12/01/21 (Alternative Minimum Tax) | No Opt. Call | A | 2,223,480 | |||||
| 3,500 | Total Transportation | 3,744,975 | |||||||
| U.S. Guaranteed – 18.8% (12.7% of Total Investments) (4) | |||||||||
| 1,200 | Birmingham, Michigan, General Obligation Bonds, Series 2002, 5.000%, 10/01/20 (Pre-refunded 10/01/12) | 10/12 at 100.50 | AAA | 1,240,200 | |||||
| 1,320 | Bridgeport Spaulding Community School District, Saginaw County, Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/16 (Pre-refunded 5/01/12) | 5/12 at 100.00 | Aa2 (4) | 1,332,210 | |||||
| 935 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) – AGM Insured | 7/13 at 100.00 | AA– (4) | 992,699 | |||||
| Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A: | |||||||||
| 4,025 | 5.000%, 7/01/24 (Pre-refunded 7/01/13) – NPFG Insured | 7/13 at 100.00 | A+ (4) | 4,280,668 | |||||
| 1,500 | 5.000%, 7/01/25 (Pre-refunded 7/01/13) – NPFG Insured | 7/13 at 100.00 | A+ (4) | 1,595,280 | |||||
| 285 | East Grand Rapids Public Schools, County of Kent, State of Michigan, General Obligation Bonds, Series 2001, Refunding, 5.125%, 5/01/29 (Pre-refunded 5/01/12) | 5/12 at 100.00 | AA (4) | 287,451 | |||||
| 2,000 | Lake Fenton Community Schools, Genesee County, Michigan, General Obligation Bonds, Series 2002, 5.000%, 5/01/24 (Pre-refunded 5/01/12) | 5/12 at 100.00 | Aa2 (4) | 2,016,800 |
| 30 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
U.S. Guaranteed (4) (continued) | |||||||||
| $ | 1,790 | Lansing Building Authority, Michigan, General Obligation Bonds, Series 2003A, 5.000%, 6/01/26 (Pre-refunded 6/01/13) – NPFG Insured | 6/13 at 100.00 | AA (4) | $ | 1,897,257 | |||
| 3,880 | Mayville Community Schools, Tuscola County, Michigan, General Obligation Bonds, School Building and Site Project, Series 2004, 5.000%, 5/01/34 (Pre-refunded 11/01/14) – FGIC Insured | 11/14 at 100.00 | Aa2 (4) | 4,359,219 | |||||
| 1,500 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) | 3/13 at 100.00 | A1 (4) | 1,581,105 | |||||
| 3,460 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, St. John’s Health System, Series 1998A, 5.000%, 5/15/28 – AMBAC Insured (ETM) | 4/12 at 100.00 | Aaa | 3,473,252 | |||||
| 125 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 (Pre-refunded 12/01/12) | 12/12 at 100.00 | N/R (4) | 129,913 | |||||
| Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: | |||||||||
| 1,025 | 5.000%, 5/15/30 (Pre-refunded 5/15/15) | 5/15 at 100.00 | AA+ (4) | 1,170,079 | |||||
| 500 | 5.000%, 5/15/37 (Pre-refunded 5/15/15) | 5/15 at 100.00 | AA+ (4) | 570,770 | |||||
| 3,000 | Michigan State, General Obligation Bonds, Environmental Protection Program, Series 2003A, 5.250%, 5/01/20 (Pre-refunded 5/01/13) | 5/13 at 100.00 | Aa2 (4) | 3,176,850 | |||||
| Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: | |||||||||
| 85 | 6.000%, 8/01/26 (ETM) | No Opt. Call | Baa2 (4) | 122,582 | |||||
| 915 | 6.000%, 8/01/26 (ETM) | No Opt. Call | AA+ (4) | 1,319,558 | |||||
| 4,100 | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) | 7/16 at 100.00 | Aaa | 5,011,389 | |||||
| 31,645 | Total U.S. Guaranteed | 34,557,282 | |||||||
| Utilities – 9.8% (6.7% of Total Investments) | |||||||||
| Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: | |||||||||
| 215 | 5.000%, 7/01/28 | 7/18 at 100.00 | AA– | 236,324 | |||||
| 5,000 | 5.000%, 7/01/32 | 7/18 at 100.00 | AA– | 5,388,950 | |||||
| Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds, Tender Option Bond Trust 4700: | |||||||||
| 900 | 17.710%, 7/01/37 (IF) (5) | 7/21 at 100.00 | AA– | 1,307,124 | |||||
| 500 | 17.864%, 7/01/37 (IF) (5) | 7/21 at 100.00 | AA– | 726,180 | |||||
| 500 | Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 Project, Series 2011, 5.000%, 1/01/26 – AGM Insured | 1/21 at 100.00 | AA– | 561,625 | |||||
| 2,110 | Michigan South Central Power Agency, Power Supply System Revenue Bonds, Series 2000, 6.000%, 5/01/12 | No Opt. Call | BBB+ | 2,123,989 | |||||
| 3,630 | �� | Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 – AMBAC Insured | No Opt. Call | A | 4,743,031 | ||||
| 3,000 | Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 – SYNCORA GTY Insured (Alternative Minimum Tax) | 12/12 at 100.00 | BBB+ | 3,019,620 | |||||
| 15,855 | Total Utilities | 18,106,843 | |||||||
| Water and Sewer – 13.8% (9.4% of Total Investments) | |||||||||
| 5,500 | Detroit Water Supply System, Michigan, Water Supply System Revenue Senior Lien Bonds, Series 2006A, 5.000%, 7/01/34 – AGM Insured | 7/16 at 100.00 | AA– | 5,616,765 | |||||
| 1,500 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2001B, 5.500%, 7/01/29 – FGIC Insured | No Opt. Call | A | 1,694,085 | |||||
| 565 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%, 7/01/17 – AGM Insured | 7/13 at 100.00 | AA– | 587,346 | |||||
| 1,500 | Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A, 5.000%, 7/01/25 – NPFG Insured | 7/13 at 100.00 | A+ | 1,521,735 | |||||
| 425 | Detroit, Michigan, Sewage Disposal System Revenue Bonds, Second Lien Series 2006A, 5.500%, 7/01/36 – BHAC Insured | 7/18 at 100.00 | AA+ | 469,493 | |||||
| 2,915 | Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien Series 2011A, 5.250%, 7/01/41 | 7/21 at 100.00 | A+ | 3,047,224 | |||||
| 675 | Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2008, 5.000%, 1/01/38 | 1/18 at 100.00 | AA+ | 718,659 |
| Nuveen Investments | 31 |
| Nuveen Michigan Quality Income Municipal Fund, Inc. (continued) | ||
| NUM | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Water and Sewer (continued) | |||||||||
| $ | 2,030 | Grand Rapids, Michigan, Water Supply System Revenue Bonds, Series 2009, 5.100%, 1/01/39 – AGC Insured | 1/19 at 100.00 | AA | $ | 2,225,286 | |||
| 4,210 | Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19 | 10/14 at 100.00 | AAA | 4,660,975 | |||||
| 1,150 | Michigan Municipal Bond Authority, Drinking Water Revolving Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23 | 10/14 at 100.00 | AAA | 1,269,439 | |||||
| 1,000 | Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007, 5.000%, 10/01/24 | 10/17 at 100.00 | AAA | 1,147,440 | |||||
| 1,000 | Port Huron, Michigan, Water Supply System Revenue Bonds, Series 2011, 5.625%, 10/01/40 | 10/21 at 100.00 | A | 1,085,580 | |||||
| 1,000 | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/44 | 7/18 at 100.00 | Baa2 | 1,075,299 | |||||
| 300 | Saginaw, Michigan, Water Supply System Revenue Bonds, Series 2008, 5.250%, 7/01/22 – NPFG Insured | 7/18 at 100.00 | A | 331,034 | |||||
| 23,770 | Total Water and Sewer | 25,450,360 | |||||||
| $ | 281,734 | Total Investments (cost $249,582,684) – 147.2% | 271,165,290 | ||||||
| Floating Rate Obligations – (2.0)% | (3,630,000 | ) | |||||||
| Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (47.7)% (6) | (87,900,000 | ) | |||||||
| Other Assets Less Liabilities – 2.5% | 4,634,355 | ||||||||
| Net Assets Applicable to Common Shares – 100% | $ | 184,269,645 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. | |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |
| (6) | Variable Rate MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.4%. | |
| N/R | Not rated. | |
| WI/DD | Purchased on a when-issued or delayed delivery basis. | |
| (ETM) | Escrowed to maturity. | |
| (IF) | Inverse floating rate investment. | |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| 32 | Nuveen Investments |
| Nuveen Michigan Premium Income Municipal Fund, Inc. | ||
| NMP | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Consumer Staples – 3.5% (2.4% of Total Investments) | |||||||||
| $ | 4,420 | Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 | 6/18 at 100.00 | B2 | $ | 4,140,523 | |||
| Education and Civic Organizations – 4.1% (2.8% of Total Investments) | |||||||||
| 500 | Conner Creek Academy East, Michigan, Public School Revenue Bonds, Series 2007, 5.250%, 11/01/36 | 11/16 at 100.00 | BB– | 384,410 | |||||
| 500 | Detroit Community High School, Michigan, Public School Academy Revenue Bonds, Series 2005, 5.750%, 11/01/30 | 11/15 at 100.00 | B+ | 380,355 | |||||
| 335 | Michigan Finance Authority, Public School Academy Limited Obligation Revenue and Refunding Bonds, Detroit Service Learning Academy Project, Series 2011, 7.000%, 10/01/31 | 10/21 at 100.00 | BBB– | 348,239 | |||||
| 2,000 | Michigan Higher Education Student Loan Authority, Revenue Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 – AMBAC Insured (Alternative Minimum Tax) | 9/12 at 100.00 | AA | 2,014,700 | |||||
| 1,500 | Michigan State University, General Revenue Bonds, Refunding Series 2010C, 5.000%, 2/15/40 | 2/20 at 100.00 | Aa1 | 1,642,590 | |||||
| 4,835 | Total Education and Civic Organizations | 4,770,294 | |||||||
| Health Care – 21.2% (14.5% of Total Investments) | |||||||||
| 1,500 | Grand Traverse County Hospital Financial Authority, Michigan, Revenue Bonds, Munson Healthcare, Refunding Series 2011A, 5.000%, 7/01/29 | 7/21 at 100.00 | A1 | 1,599,600 | |||||
| 630 | Jackson County Hospital Finance Authority, Michigan, Hospital Revenue Bonds, Alligiance Health, Refunding Series 2010A, 5.000%, 6/01/37 – AGM Insured | 6/20 at 100.00 | AA– | 668,197 | |||||
| Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds, Spectrum Health System, Refunding Series 2011C: | |||||||||
| 2,000 | 5.000%, 1/15/31 | 1/22 at 100.00 | AA | 2,205,580 | |||||
| 750 | 5.000%, 1/15/42 | No Opt. Call | AA | 799,628 | |||||
| 4,000 | Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011, 5.000%, 12/01/39 | No Opt. Call | AA | 4,238,920 | |||||
| 2,725 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39 | 11/19 at 100.00 | A1 | 2,971,531 | |||||
| 3,050 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 | 4/13 at 100.00 | A | 3,112,891 | |||||
| 1,350 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds,MidMichigan Obligated Group, Series 2009A, 5.875%, 6/01/39 – AGC Insured | 6/19 at 100.00 | AA– | 1,499,067 | |||||
| 915 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 | 12/12 at 100.00 | AA | 926,639 | |||||
| Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: | |||||||||
| 2,435 | 5.000%, 5/15/26 | 5/15 at 100.00 | Baa3 | 2,451,315 | |||||
| 200 | 5.000%, 5/15/34 | 5/15 at 100.00 | Baa3 | 192,712 | |||||
| 3,500 | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue and Refunding Bonds, William Beaumont Hospital Obligated Group, Series 2009W, 6.000%, 8/01/39 | 8/19 at 100.00 | A1 | 3,861,690 | |||||
| 250 | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 | 9/18 at 100.00 | A1 | 315,483 | |||||
| 23,305 | Total Health Care | 24,843,253 | |||||||
| Housing/Multifamily – 6.4% (4.4% of Total Investments) | |||||||||
| 835 | Michigan Housing Development Authority, GNMA Collateralized Limited Obligation Multifamily Housing Revenue Bonds, Burkshire Pointe Apartments, Series 2002A, 5.400%, 10/20/32 (Alternative Minimum Tax) | 4/12 at 102.00 | Aaa | 852,168 | |||||
| 1,130 | Michigan Housing Development Authority, Limited Obligation Revenue Bonds, Breton Village Green Project, Series 1993, 5.625%, 10/15/18 – AGM Insured | 4/12 at 100.00 | AA– | 1,132,204 | |||||
| 1,700 | Michigan Housing Development Authority, Limited Obligation Revenue Bonds, Walled Lake Villa Project, Series 1993, 6.000%, 4/15/18 – AGM Insured | 4/12 at 100.00 | Aaa | 1,704,556 | |||||
| 1,260 | Michigan Housing Development Authority, Multifamily Housing Revenue Bonds, Series 1988A, 3.375%, 11/01/16 (Alternative Minimum Tax) | 11/14 at 101.00 | AA | 1,279,921 |
| Nuveen Investments | 33 |
| Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | ||
| NMP | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Housing/Multifamily (continued) | |||||||||
| $ | 800 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2006D, 5.125%, 4/01/31 – AGM Insured (Alternative Minimum Tax) | 7/15 at 100.00 | AA | $ | 818,456 | |||
| 25 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2009A, 5.700%, 10/01/39 | 10/18 at 100.00 | AA | 26,693 | |||||
| Mt. Clemens Housing Corporation, Michigan, FHA-Insured Section 8 Assisted Multifamily Housing Revenue Refunding Bonds, Clinton Place Project, Series 1992A: | |||||||||
| 190 | 6.600%, 6/01/13 | 6/12 at 100.00 | AA+ | 190,916 | |||||
| 1,500 | 6.600%, 6/01/22 | 6/12 at 100.00 | AA+ | 1,503,600 | |||||
| 7,440 | Total Housing/Multifamily | 7,508,514 | |||||||
| Housing/Single Family – 0.9% (0.6% of Total Investments) | |||||||||
| 1,000 | Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series 2010C, 5.500%, 12/01/28 (Alternative Minimum Tax) | 6/20 at 100.00 | AA+ | 1,051,000 | |||||
| Tax Obligation/General – 54.4% (37.3% of Total Investments) | |||||||||
| 1,475 | Anchor Bay School District, Macomb and St. Clair Counties, Michigan, General Obligation Bonds, Series 2003, 5.000%, 5/01/21 | 11/13 at 100.00 | Aa2 | 1,578,663 | |||||
| 1,000 | Ann Arbor, Michigan, General Obligation Bonds, Court & Police Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 | 5/18 at 100.00 | AA+ | 1,085,750 | |||||
| 100 | Battle Creek School District, Calhoun County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/37 – AGM Insured | 5/17 at 100.00 | Aa2 | 105,654 | |||||
| 2,250 | Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/26 – NPFG Insured | 5/15 at 100.00 | Aa2 | 2,379,645 | |||||
| 1,501 | Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.934%, 5/01/32 – NPFG Insured (IF) | 5/17 at 100.00 | Aa2 | 1,645,801 | |||||
| 1,050 | Comstock Park Public Schools, Kent County, Michigan, General Obligation Bonds, School Building & Site, Series 2011B, 5.500%, 5/01/36 | 5/21 at 100.00 | AA– | 1,180,599 | |||||
| Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2002A: | |||||||||
| 1,815 | 6.000%, 5/01/20 – FGIC Insured | No Opt. Call | Aa2 | 2,160,413 | |||||
| 750 | 6.000%, 5/01/21 – FGIC Insured | No Opt. Call | Aa2 | 897,413 | |||||
| 2,500 | Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Series 2003B, 5.000%, 5/01/23 – FGIC Insured | 5/13 at 100.00 | Aa2 | 2,552,475 | |||||
| Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General Obligation Building Authority Stadium Bonds, Series 1997: | |||||||||
| 770 | 5.500%, 2/01/17 – FGIC Insured | 8/12 at 100.00 | BBB+ | 772,133 | |||||
| 6,990 | 5.250%, 2/01/27 – FGIC Insured | 8/12 at 100.00 | BBB+ | 7,000,415 | |||||
| 860 | Grand Rapids, Michigan, General Obligation Bonds, Capital Improvement Series 2007, 5.000%, 9/01/24 – NPFG Insured | 9/17 at 100.00 | AA | 955,537 | |||||
| 1,650 | Holly Area School District, Oakland County, Michigan, General Obligation Bonds, Series 2006, 5.125%, 5/01/32 – NPFG Insured | 5/16 at 100.00 | Aa2 | 1,745,667 | |||||
| 2,000 | Howell Public Schools, Livingston County, Michigan, General Obligation Bonds, Series 2003, 5.000%, 5/01/22 | 11/13 at 100.00 | Aa2 | 2,140,560 | |||||
| 1,250 | Kalamazoo Public Schools, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 – AGM Insured | 5/16 at 100.00 | Aa2 | 1,372,413 | |||||
| 500 | Lansing School District, Ingham County, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/22 | 5/14 at 100.00 | Aa2 | 544,615 | |||||
| 1,000 | Livonia Public Schools, Wayne County, Michigan, General Obligation Bonds, Series 2004A, 5.000%, 5/01/21 – NPFG Insured | 5/14 at 100.00 | Aa2 | 1,069,510 | |||||
| 865 | Lowell Area Schools, Kent and Ionia Counties, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/37 – AGM Insured | 5/17 at 100.00 | Aa2 | 912,662 | |||||
| 425 | Marshall Public Schools, Calhoun County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/30 – SYNCORA GTY Insured | 5/17 at 100.00 | AA– | 456,255 | |||||
| 1,000 | Michigan Municipal Bond Authority, General Obligation Bonds, Detroit City School District, Series 2005, 5.000%, 6/01/18 – AGM Insured | 6/15 at 100.00 | AA– | 1,058,330 | |||||
| 2,500 | Michigan State, General Obligation Bonds, Environmental Program, Refunding Series 2011A, 5.000%, 12/01/22 | 12/21 at 100.00 | Aa2 | 3,040,650 |
| 34 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Tax Obligation/General (continued) | |||||||||
| $ | 800 | Michigan State, General Obligation Bonds, Environmental Program, Series 2009A, 5.500%, 11/01/25 | 5/19 at 100.00 | Aa2 | $ | 945,600 | |||
| 2,450 | Oakland Intermediate School District, Oakland County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 – AGM Insured | 5/17 at 100.00 | Aaa | 2,605,085 | |||||
| 3,500 | Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007, 5.000%, 8/01/30 – NPFG Insured (UB) | 8/17 at 100.00 | Aaa | 3,799,460 | |||||
| 1,100 | Oxford Area Community Schools, Oakland and Lapeer Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 – AGM Insured | 5/14 at 100.00 | Aa2 | 1,145,859 | |||||
| 805 | Parchment School District, Kalamazoo County, Michigan, General Obligation Bonds, Tender Option Bond Trust 2836, 11.197%, 5/01/15 – AGM Insured (IF) | No Opt. Call | Aa2 | 891,570 | |||||
| 1,000 | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/27 – AGM Insured | 5/15 at 100.00 | Aa2 | 1,092,000 | |||||
| 1,000 | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2008, 5.000%, 5/01/33 – AGM Insured | 5/18 at 100.00 | Aa2 | 1,075,380 | |||||
| 125 | South Haven, Van Buren County,Michigan, General Obligation Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 – AGC Insured | 12/19 at 100.00 | AA– | 142,003 | |||||
| 1,100 | Thornapple Kellogg School District, Barry County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/32 – NPFG Insured | 5/17 at 100.00 | Aa2 | 1,171,236 | |||||
| 1,500 | Trenton Public Schools District, Michigan, General Obligation Bonds, Series 2008, 5.000%, 5/01/34 – AGM Insured | 5/18 at 100.00 | Aa2 | 1,607,940 | |||||
| Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building and Site, Series 2008: | |||||||||
| 800 | 5.000%, 5/01/31 – AGM Insured | 5/18 at 100.00 | Aa2 | 863,064 | |||||
| 1,350 | 5.000%, 5/01/38 – AGM Insured | 5/18 at 100.00 | Aa2 | 1,435,644 | |||||
| 2,830 | Warren Consolidated School District, Macomb and Oakland Counties, Michigan, General Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 | 5/13 at 100.00 | AA | 2,926,220 | |||||
| 1,680 | Wayne Charter County, Michigan, General Obligation Bonds, Building Improvements, Series 2009A, 6.750%, 11/01/39 | 12/19 at 100.00 | BBB+ | 1,897,442 | |||||
| Wayne Charter County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A: | |||||||||
| 1,500 | 5.500%, 12/01/18 – NPFG Insured | 12/12 at 100.00 | BBB+ | 1,518,030 | |||||
| 4,435 | 5.000%, 12/01/30 – NPFG Insured | 12/12 at 100.00 | BBB+ | 4,448,837 | |||||
| 1,475 | Willow Run Community Schools, Washtenaw County, Michigan, General Obligation Bonds, Refunding Series 2011, 4.500%, 5/01/31 – AGM Insured | 5/21 at 100.00 | AA– | 1,552,511 | |||||
| 59,701 | Total Tax Obligation/General | 63,773,041 | |||||||
| Tax Obligation/Limited – 12.4% (8.5% of Total Investments) | |||||||||
| 915 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 993,736 | |||||
| 1,600 | Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2005II, 5.000%, 10/15/30 – AMBAC Insured | 10/15 at 100.00 | Aa3 | 1,681,312 | |||||
| 2,880 | Michigan State Building Authority, Revenue Bonds, Refunding Series 2006IA, 5.000%, 10/15/36 – FGIC Insured | 10/16 at 100.00 | Aa3 | 3,019,651 | |||||
| Michigan State Building Authority, Revenue Refunding Bonds, Facilities Program, Series 2003II: | |||||||||
| 5,000 | 5.000%, 10/15/22 – NPFG Insured | 10/13 at 100.00 | Aa3 | 5,228,250 | |||||
| 2,480 | 5.000%, 10/15/23 – NPFG Insured | 10/13 at 100.00 | Aa3 | 2,590,286 | |||||
| 450 | Michigan State Trunk Line Fund Refunding Bonds, Series 2009, 5.000%, 11/15/36 | 11/21 at 100.00 | AA+ | 507,713 | |||||
| 450 | Virgin Islands Public Finance Authority, Revenue Bonds, Senior Lien Matching Fund Loan Notes, Series 2009A-1, 5.000%, 10/01/39 | 10/19 at 100.00 | BBB | 459,234 | |||||
| 13,775 | Total Tax Obligation/Limited | 14,480,182 | |||||||
| Transportation – 2.1% (1.4% of Total Investments) | |||||||||
| 230 | Kent County, Michigan, Airport Revenue Bonds, Gerald R. Ford International Airport, Series 2007, 5.000%, 1/01/32 | 1/17 at 100.00 | AAA | 246,017 | |||||
| 2,000 | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport, Refunding Series 2011A, 5.000%, 12/01/21 (Alternative Minimum Tax) | No Opt. Call | A | 2,223,480 | |||||
| 2,230 | Total Transportation | 2,469,497 |
| Nuveen Investments | 35 |
| Nuveen Michigan Premium Income Municipal Fund, Inc. (continued) | ||
| NMP | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| U.S. Guaranteed – 8.6% (5.9% of Total Investments) (4) | |||||||||
| $ | 915 | Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 (Pre-refunded 7/01/15) – NPFG Insured | 7/15 at 100.00 | A (4) | $ | 1,047,062 | |||
| 500 | Lansing School District, Ingham County, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/22 (Pre-refunded 5/01/14) | 5/14 at 100.00 | Aa2 (4) | 550,935 | |||||
| 1,500 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17 (Pre-refunded 3/01/13) | 3/13 at 100.00 | A1 (4) | 1,581,105 | |||||
| 1,305 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, St. John’s Hospital, Series 1992A, 6.000%, 5/15/13 – AMBAC Insured (ETM) | 4/12 at 100.00 | N/R (4) | 1,347,856 | |||||
| 85 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 (Pre-refunded 12/01/12) | 12/12 at 100.00 | N/R (4) | 88,341 | |||||
| Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: | |||||||||
| 425 | 5.000%, 5/15/25 (Pre-refunded 5/15/15) | 5/15 at 100.00 | AA+ (4) | 485,155 | |||||
| 150 | 5.000%, 5/15/30 (Pre-refunded 5/15/15) | 5/15 at 100.00 | AA+ (4) | 171,231 | |||||
| 2,000 | Michigan State, General Obligation Bonds, Environmental Protection Program, Series 2003A, 5.250%, 5/01/21 (Pre-refunded 5/01/13) | 5/13 at 100.00 | Aa2 (4) | 2,117,900 | |||||
| 1,000 | Otsego Public Schools District, Allegan and Kalamazoo Counties, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/25 (Pre-refunded 5/01/14) – AGM Insured | 5/14 at 100.00 | Aa2 (4) | 1,101,870 | |||||
| 1,425 | Walled Lake Consolidated School District, Oakland County, Michigan, General Obligation Bonds, Series 2004, 5.250%, 5/01/20 (Pre-refunded 5/01/14) – NPFG Insured | 5/14 at 100.00 | AA– (4) | 1,577,874 | |||||
| 9,305 | Total U.S. Guaranteed | 10,069,329 | |||||||
| Utilities – 12.4% (8.5% of Total Investments) | |||||||||
| Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: | |||||||||
| 125 | 5.000%, 7/01/28 | 7/18 at 100.00 | AA– | 137,398 | |||||
| 2,500 | 5.000%, 7/01/32 | 7/18 at 100.00 | AA– | 2,694,475 | |||||
| Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds, Tender Option Bond Trust 4700: | |||||||||
| 700 | 17.710%, 7/01/37 (IF) (5) | 7/21 at 100.00 | AA– | 1,016,652 | |||||
| 360 | 17.864%, 7/01/37 (IF) (5) | 7/21 at 100.00 | AA– | 522,850 | |||||
| Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 Project, Series 2011: | |||||||||
| 1,760 | 5.000%, 1/01/24 – AGM Insured | 1/21 at 100.00 | AA– | 1,998,515 | |||||
| 1,990 | 5.000%, 1/01/25 – AGM Insured | 1/21 at 100.00 | AA– | 2,248,262 | |||||
| 1,180 | 5.000%, 1/01/26 – AGM Insured | 1/21 at 100.00 | AA– | 1,325,435 | |||||
| 605 | Michigan South Central Power Agency, Power Supply System Revenue Bonds, Series 2000, 6.000%, 5/01/12 | No Opt. Call | BBB+ | 609,011 | |||||
| 3,000 | Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 – SYNCORA GTY Insured (Alternative Minimum Tax) | 12/12 at 100.00 | BBB+ | 3,019,620 | |||||
| 990 | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities | 6/12 at 100.00 | Ba1 | 989,881 | |||||
| Financing Authority, Co-Generation Facility Revenue Bonds, Series 2000A, 6.625%, 6/01/26 (Alternative Minimum Tax) | |||||||||
| 13,210 | Total Utilities | 14,562,099 | |||||||
| Water and Sewer – 20.0% (13.7% of Total Investments) | |||||||||
| 3,600 | Detroit Water Supply System, Michigan, Water Supply System Revenue Senior Lien Bonds, Series 2006A, 5.000%, 7/01/34 – AGM Insured | 7/16 at 100.00 | AA– | 3,676,428 | |||||
| 1,085 | Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 – NPFG Insured | 7/15 at 100.00 | A | 1,107,481 | |||||
| 1,500 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2001B, 5.500%, 7/01/29 – FGIC Insured | No Opt. Call | A | 1,694,085 | |||||
| 1,120 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%, 7/01/17 – AGM Insured | 7/13 at 100.00 | AA– | 1,164,296 | |||||
| 1,945 | Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien Series 2011A, 5.250%, 7/01/41 | 7/21 at 100.00 | A+ | 2,033,225 | |||||
| 1,330 | Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2005, 5.000%, 1/01/30 – NPFG Insured | 7/15 at 100.00 | AA+ | 1,402,379 |
| 36 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Water and Sewer (continued) | |||||||||
| Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2008: | |||||||||
| $ | 400 | 5.000%, 1/01/27 | No Opt. Call | AA+ | $ | 442,204 | |||
| 450 | 5.000%, 1/01/38 | 1/18 at 100.00 | AA+ | 479,106 | |||||
| 425 | Grand Rapids, Michigan, Water Supply System Revenue Bonds, Series 2009, 5.100%, 1/01/39 – AGC Insured | 1/19 at 100.00 | AA | 465,885 | |||||
| 1,000 | Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007, 5.000%, 10/01/24 | 10/17 at 100.00 | AAA | 1,147,440 | |||||
| 8,245 | North Kent Sewer Authority, Michigan, Sewer Revenue Bonds, Series 2006, 5.000%, 11/01/31 – NPFG Insured | 11/16 at 100.00 | Aa3 | 8,841,361 | |||||
| 500 | Port Huron, Michigan, Water Supply System Revenue Bonds, Series 2011, 5.625%, 10/01/40 | 10/21 at 100.00 | A | 542,790 | |||||
| 350 | Saginaw, Michigan, Water Supply System Revenue Bonds, Series 2008, 5.250%, 7/01/22 – NPFG Insured | 7/18 at 100.00 | A | 386,201 | |||||
| 21,950 | Total Water and Sewer | 23,382,881 | |||||||
| $ | 161,171 | Total Investments (cost $160,910,760) – 146.0% | 171,050,613 | ||||||
| Floating Rate Obligations – (2.0)% | (2,330,000) | ||||||||
| Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (46.0)% (6) | (53,900,000) | ||||||||
| Other Assets Less Liabilities – 2.0% | 2,334,386 | ||||||||
| Net Assets Applicable to Common Shares – 100% | $ | 117,154,999 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. | |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |
| (6) | Variable Rate MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.5%. | |
| N/R | Not rated. | |
| (ETM) | Escrowed to maturity. | |
| (IF) | Inverse floating rate investment. | |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| Nuveen Investments | 37 |
| Nuveen Michigan Dividend Advantage Municipal Fund | ||
| NZW | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Consumer Staples – 4.0% (2.7% of Total Investments) | |||||||||
| $ | 1,330 | Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 | 6/18 at 100.00 | B2 | $ | 1,245,904 | |||
| Education and Civic Organizations – 10.4% (6.9% of Total Investments) | |||||||||
| 250 | Conner Creek Academy East, Michigan, Public School Revenue Bonds, Series 2007, 5.250%, 11/01/36 | 11/16 at 100.00 | BB– | 192,205 | |||||
| 85 | Michigan Finance Authority, Public School Academy Limited Obligation Revenue and Refunding Bonds, Detroit Service Learning Academy Project, Series 2011, 7.000%, 10/01/31 | 10/21 at 100.00 | BBB– | 88,359 | |||||
| 1,150 | Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds, Kettering University, Series 2001, 5.000%, 9/01/26 – AMBAC Insured | 9/12 at 100.00 | N/R | 1,090,833 | |||||
| 250 | Michigan Public Educational Facilities Authority, Charter School Revenue Bonds, American Montessori Academy, Series 2007, 6.500%, 12/01/37 | 12/17 at 100.00 | N/R | 230,410 | |||||
| 1,500 | Michigan State University, General Revenue Bonds, Refunding Series 2010C, 5.000%, 2/15/40 | 2/20 at 100.00 | Aa1 | 1,642,590 | |||||
| 3,235 | Total Education and Civic Organizations | 3,244,397 | |||||||
| Health Care – 20.6% (13.7% of Total Investments) | |||||||||
| 500 | Grand Traverse County Hospital Financial Authority, Michigan, Revenue Bonds, Munson Healthcare, Refunding Series 2011A, 5.000%, 7/01/29 | 7/21 at 100.00 | A1 | 533,200 | |||||
| 90 | Jackson County Hospital Finance Authority, Michigan, Hospital Revenue Bonds, Alligiance Health, Refunding Series 2010A, 5.000%, 6/01/37 – AGM Insured | 6/20 at 100.00 | AA– | 95,457 | |||||
| Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds, Spectrum Health System, Refunding Series 2011C: | |||||||||
| 500 | 5.000%, 1/15/31 | 1/22 at 100.00 | AA | 551,395 | |||||
| 500 | 5.000%, 1/15/42 | No Opt. Call | AA | 533,085 | |||||
| 1,000 | Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011, 5.000%, 12/01/39 | No Opt. Call | AA | 1,059,730 | |||||
| Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, Refunding Series 2009: | |||||||||
| 150 | 5.000%, 11/15/20 | 11/19 at 100.00 | A1 | 170,543 | |||||
| 475 | 5.750%, 11/15/39 | 11/19 at 100.00 | A1 | 517,973 | |||||
| 775 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Oakwood Obligated Group, Series 2002A, 5.750%, 4/01/32 | 4/13 at 100.00 | A | 790,981 | |||||
| 150 | Michigan State Hospital Finance Authority, Hospital Revenue Bonds,MidMichigan Obligated Group, Series 2009A, 5.875%, 6/01/39 – AGC Insured | 6/19 at 100.00 | AA– | 166,563 | |||||
| 80 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, McLaren Healthcare Corporation, Series 1998A, 5.000%, 6/01/28 | No Opt. Call | Aa3 | 80,054 | |||||
| 915 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 | 12/12 at 100.00 | AA | 926,639 | |||||
| Michigan State Hospital Finance Authority, Revenue Bonds, Marquette General Hospital, Series 2005A: | |||||||||
| 500 | 5.000%, 5/15/26 | 5/15 at 100.00 | Baa3 | 503,350 | |||||
| 400 | 5.000%, 5/15/34 | 5/15 at 100.00 | Baa3 | 385,424 | |||||
| 100 | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 | 9/18 at 100.00 | A1 | 126,193 | |||||
| 6,135 | Total Health Care | 6,440,587 |
| 38 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Housing/Multifamily – 7.8% (5.2% of Total Investments) | |||||||||
| $ | 1,700 | Michigan Housing Development Authority, GNMA Collateralized Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31 (Alternative Minimum Tax) | 8/12 at 102.00 | Aaa | $ | 1,739,950 | |||
| 370 | Michigan Housing Development Authority, Multifamily Housing Revenue Bonds, Series 1988A, 3.375%, 11/01/16 (Alternative Minimum Tax) | 11/14 at 101.00 | AA | 375,850 | |||||
| 200 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2006D, 5.125%, 4/01/31 – AGM Insured (Alternative Minimum Tax) | 7/15 at 100.00 | AA | 204,614 | |||||
| 100 | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2009A, 5.700%, 10/01/39 | 10/18 at 100.00 | AA | 106,772 | |||||
| 2,370 | Total Housing/Multifamily | 2,427,186 | |||||||
| Housing/Single Family – 3.2% (2.2% of Total Investments) | |||||||||
| 500 | Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series 2010C, 5.500%, 12/01/28 (Alternative Minimum Tax) | 6/20 at 100.00 | AA+ | 525,500 | |||||
| 455 | Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series 2011A, 4.600%, 12/01/26 | 6/21 at 100.00 | AA+ | 487,928 | |||||
| 955 | Total Housing/Single Family | 1,013,428 | |||||||
| Industrials – 1.6% (1.1% of Total Investments) | |||||||||
| 500 | Michigan Strategic Fund, Limited Obligation Revenue Bonds, Republic Services Inc., Series 2001, 4.250%, 8/01/31 (Mandatory put 4/01/14) (Alternative Minimum Tax) | No Opt. Call | BBB | 512,705 | |||||
| Tax Obligation/General – 37.6% (25.1% of Total Investments) | |||||||||
| 200 | Ann Arbor, Michigan, General Obligation Bonds, Court & Police Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 | 5/18 at 100.00 | AA+ | 217,150 | |||||
| 500 | Byron Center Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2012, 4.000%, 5/01/33 | 5/21 at 100.00 | AA– | 503,305 | |||||
| 437 | Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, Tender Option Bond Trust 2008-1096, 7.934%, 5/01/32 – NPFG Insured (IF) | 5/17 at 100.00 | Aa2 | 479,157 | |||||
| Comstock Park Public Schools, Kent County, Michigan, General Obligation Bonds, School Building & Site, Series 2011B: | |||||||||
| 150 | 5.500%, 5/01/36 | 5/21 at 100.00 | AA– | 168,657 | |||||
| 290 | 5.500%, 5/01/41 | 5/21 at 100.00 | AA– | 325,595 | |||||
| 50 | Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General Obligation Building Authority Stadium Bonds, Series 1997, 5.500%, 2/01/17 – FGIC Insured | 8/12 at 100.00 | BBB+ | 50,139 | |||||
| 300 | Grand Rapids, Michigan, General Obligation Bonds, Capital Improvement Series 2007, 5.000%, 9/01/27 – NPFG Insured | 9/17 at 100.00 | AA | 329,091 | |||||
| 500 | Jackson Public Schools, Jackson County, Michigan, General Obligation School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 – AGM Insured | 5/14 at 100.00 | Aa2 | 544,615 | |||||
| 430 | Lowell Area Schools, Kent and Ionia Counties, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/37 – AGM Insured | 5/17 at 100.00 | Aa2 | 453,693 | |||||
| 400 | Michigan Municipal Bond Authority, General Obligation Bonds, Detroit City School District, Series 2005, 5.000%, 6/01/18 – AGM Insured | 6/15 at 100.00 | AA– | 423,332 | |||||
| 500 | Michigan State, General Obligation Bonds, Environmental Program, Refunding Series 2011A, 5.000%, 12/01/22 | 12/21 at 100.00 | Aa2 | 608,130 | |||||
| 100 | Michigan State, General Obligation Bonds, Environmental Program, Series 2009A, 5.500%, 11/01/25 | 5/19 at 100.00 | Aa2 | 118,200 | |||||
| 1,410 | New Haven Community Schools, Macomb County, Michigan, General Obligation Bonds, Series 2006, 5.000%, 5/01/25 – AGM Insured | 5/16 at 100.00 | Aa2 | 1,530,076 | |||||
| 420 | Oakland Intermediate School District, Oakland County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 – AGM Insured | 5/17 at 100.00 | Aaa | 446,586 | |||||
| 1,000 | Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007, 5.000%, 8/01/30 – NPFG Insured (UB) | 8/17 at 100.00 | Aaa | 1,085,560 |
| Nuveen Investments | 39 |
| Nuveen Michigan Dividend Advantage Municipal Fund (continued) | ||
| NZW | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Tax Obligation/General (continued) | |||||||||
| $ | 235 | Parchment School District, Kalamazoo County, Michigan, General Obligation Bonds, Tender Option Bond Trust 2836, 11.197%, 5/01/15 – AGM Insured (IF) | No Opt. Call | Aa2 | $ | 260,272 | |||
| 750 | Plainwell Community Schools, Allegan County, Michigan, General Obligation Bonds, School Building & Site, Series 2008, 5.000%, 5/01/28 – AGC Insured | 5/18 at 100.00 | Aa2 | 822,615 | |||||
| 200 | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Refunding Series 2012, 5.000%, 5/01/19 | No Opt. Call | AA– | 239,588 | |||||
| 100 | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2008, 5.000%, 5/01/33 – AGM Insured | 5/18 at 100.00 | Aa2 | 107,538 | |||||
| 25 | South Haven, Van Buren County,Michigan, General Obligation Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 – AGC Insured | 12/19 at 100.00 | AA– | 28,401 | |||||
| 330 | Thornapple Kellogg School District, Barry County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/32 – NPFG Insured | 5/17 at 100.00 | Aa2 | 351,371 | |||||
| 100 | Trenton Public Schools District, Michigan, General Obligation Bonds, Series 2008, 5.000%, 5/01/34 – AGM Insured | 5/18 at 100.00 | Aa2 | 107,196 | |||||
| 225 | Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building and Site, Series 2008, 5.000%, 5/01/38 – AGM Insured | 5/18 at 100.00 | Aa2 | 239,274 | |||||
| 65 | Wayne Charter County, Michigan, General Obligation Bonds, Building Improvements, Series 2009A, 6.750%, 11/01/39 | 12/19 at 100.00 | BBB+ | 73,413 | |||||
| 1,690 | Wayne Charter County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 – NPFG Insured | 12/12 at 100.00 | BBB+ | 1,695,273 | |||||
| 500 | Wayne Westland Community Schools, Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/17 – AGM Insured | 11/14 at 100.00 | Aa2 | 555,615 | |||||
| 10,907 | Total Tax Obligation/General | 11,763,842 | |||||||
| Tax Obligation/Limited – 19.7% (13.1% of Total Investments) | |||||||||
| 110 | Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, Series 2005A, 5.625%, 1/01/16 (Alternative Minimum Tax) | No Opt. Call | A– | 117,622 | |||||
| 265 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 287,803 | |||||
| Grand Rapids Building Authority, Kent County, Michigan, General Obligation Bonds, Refunding Series 2011: | |||||||||
| 560 | 5.000%, 10/01/28 | 10/21 at 100.00 | AA | 624,764 | |||||
| 500 | 5.000%, 10/01/30 | 10/21 at 100.00 | AA | 551,415 | |||||
| 500 | 5.000%, 10/01/31 | 10/21 at 100.00 | AA | 548,455 | |||||
| 485 | Kalkaska County Hospital Authority, Michigan, Hospital Revenue Bonds, Series 2007, 5.125%, 5/01/14 | No Opt. Call | N/R | 500,472 | |||||
| Michigan State Building Authority, Revenue Bonds, Refunding Series 2006IA: | |||||||||
| 1,520 | 0.000%, 10/15/28 – AGM Insured | 10/16 at 55.35 | AA– | 690,202 | |||||
| 720 | 5.000%, 10/15/36 – FGIC Insured | 10/16 at 100.00 | Aa3 | 754,913 | |||||
| Michigan State Trunk Line Fund Refunding Bonds, Series 2009: | |||||||||
| 1,160 | 4.000%, 11/15/32 | 11/21 at 100.00 | AA+ | 1,209,787 | |||||
| 150 | 5.000%, 11/15/36 | 11/21 at 100.00 | AA+ | 169,238 | |||||
| 700 | Virgin Islands Public Finance Authority, Revenue Bonds, Senior Lien Matching Fund Loan Notes,Series 2009A-1, 5.000%, 10/01/39 | 10/19 at 100.00 | BBB | 714,364 | |||||
| 6,670 | Total Tax Obligation/Limited | 6,169,035 | |||||||
| Transportation – 2.6% (1.7% of Total Investments) | |||||||||
| 250 | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport, Refunding Series 2007, 5.000%, 12/01/12 – FGIC Insured | No Opt. Call | A | 257,408 | |||||
| 500 | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport, Refunding Series 2011A, 5.000%, 12/01/21 (Alternative Minimum Tax) | No Opt. Call | A | 555,870 | |||||
| 750 | Total Transportation | 813,278 |
| 40 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| U.S. Guaranteed – 12.0% (8.0% of Total Investments) (4) | |||||||||
| $ | 1,000 | Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/21 (Pre-refunded 5/01/12) – AGM Insured | 5/12 at 100.00 | Aa2 (4) | $ | 1,009,250 | |||
| 720 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%, 7/01/17 (Pre-refunded 7/01/13) – AGM Insured | 7/13 at 100.00 | AA– (4) | 764,431 | |||||
| 85 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health Credit Group, Series 2002C, 5.375%, 12/01/30 (Pre-refunded 12/01/12) | 12/12 at 100.00 | N/R (4) | 88,341 | |||||
| Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea Community Hospital, Series 2005: | |||||||||
| 425 | 5.000%, 5/15/30 (Pre-refunded 5/15/15) | 5/15 at 100.00 | AA+ (4) | 485,155 | |||||
| 335 | 5.000%, 5/15/37 (Pre-refunded 5/15/15) | 5/15 at 100.00 | AA+ (4) | 382,416 | |||||
| Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: | |||||||||
| 85 | 6.000%, 8/01/26 (ETM) | No Opt. Call | Baa2 (4) | 122,582 | |||||
| 615 | 6.000%, 8/01/26 (ETM) | No Opt. Call | AA+ (4) | 886,916 | |||||
| 3,265 | Total U.S. Guaranteed | 3,739,091 | |||||||
| Utilities – 10.9% (7.3% of Total Investments) | |||||||||
| 1,115 | Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 – AGM Insured | 7/13 at 100.00 | AA– | 1,162,042 | |||||
| Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: | |||||||||
| 50 | 5.000%, 7/01/28 | 7/18 at 100.00 | AA– | 54,959 | |||||
| 750 | 5.000%, 7/01/32 | 7/18 at 100.00 | AA– | 808,343 | |||||
| Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds, Tender Option Bond Trust 4700: | |||||||||
| 100 | 17.710%, 7/01/37 (IF) (5) | 7/21 at 100.00 | AA– | 145,236 | |||||
| 250 | 17.864%, 7/01/37 (IF) (5) | 7/21 at 100.00 | AA– | 363,090 | |||||
| Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 Project, Series 2011: | |||||||||
| 500 | 5.000%, 1/01/26 – AGM Insured | 1/21 at 100.00 | AA– | 561,625 | |||||
| 290 | 5.000%, 1/01/27 – AGM Insured | 1/21 at 100.00 | AA– | 324,333 | |||||
| 3,055 | Total Utilities | 3,419,628 | |||||||
| Water and Sewer – 19.5% (13.0% of Total Investments) | |||||||||
| 1,000 | Detroit Water Supply System, Michigan, Water Supply System Revenue Senior Lien Bonds, Series 2006A, 5.000%, 7/01/34 – AGM Insured | 7/16 at 100.00 | AA– | 1,021,230 | |||||
| 1,000 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2001B, 5.500%, 7/01/29 – FGIC Insured | No Opt. Call | A | 1,129,390 | |||||
| 280 | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2003A, 5.000%, 7/01/17 – AGM Insured | 7/13 at 100.00 | AA– | 291,074 | |||||
| 490 | Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien Series 2011A, 5.250%, 7/01/41 | 7/21 at 100.00 | A+ | 512,226 | |||||
| 125 | Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2008, 5.000%, 1/01/38 | 1/18 at 100.00 | AA+ | 133,085 | |||||
| 150 | Grand Rapids, Michigan, Water Supply System Revenue Bonds, Series 2009, 5.100%, 1/01/39 – AGC Insured | 1/19 at 100.00 | AA | 164,430 | |||||
| 1,000 | Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, Series 2005, 5.000%, 10/01/19 | 10/15 at 100.00 | AAA | 1,143,510 | |||||
| 500 | Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007, 5.000%, 10/01/23 | 10/17 at 100.00 | AAA | 575,935 | |||||
| 500 | Port Huron, Michigan, Water Supply System Revenue Bonds, Series 2011, 5.250%, 10/01/31 | 10/21 at 100.00 | A | 541,685 |
| Nuveen Investments | 41 |
| Nuveen Michigan Dividend Advantage Municipal Fund (continued) | ||
| NZW | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Water and Sewer (continued) | |||||||||
| $ | 500 | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/44 | 7/18 at 100.00 | Baa2 | $ | 537,650 | |||
| 50 | Saginaw, Michigan, Water Supply System Revenue Bonds, Series 2008, 5.250%, 7/01/22 – NPFG Insured | 7/18 at 100.00 | A | 55,166 | |||||
| 5,595 | Total Water and Sewer | 6,105,381 | |||||||
| $ | 44,767 | Total Investments (cost $43,647,537) – 149.9% | 46,894,462 | ||||||
| Floating Rate Obligations – (2.1)% | (665,000 | ) | |||||||
| MuniFund Term Preferred Shares, at Liquidation Value – (52.1)% (6) | (16,313,000 | ) | |||||||
| Other Assets Less Liabilities – 4.3% | 1,372,365 | ||||||||
| Net Assets Applicable to Common Shares – 100% | $ | 31,288,827 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. | |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |
| (6) | MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.8%. | |
| N/R | Not rated. | |
| (ETM) | Escrowed to maturity. | |
| (IF) | Inverse floating rate investment. | |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| 42 | Nuveen Investments |
| Nuveen Ohio Quality Income Municipal Fund, Inc. | ||
| NUO | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Consumer Staples – 7.1% (5.1% of Total Investments) | |||||||||
| Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | |||||||||
| $ | 4,000 | 5.125%, 6/01/24 | 6/17 at 100.00 | B– | $ | 3,146,040 | |||
| 1,650 | 5.750%, 6/01/34 | 6/17 at 100.00 | B– | 1,217,865 | |||||
| 10,000 | 5.875%, 6/01/47 | 6/17 at 100.00 | B– | 7,463,897 | |||||
| 115 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 5/12 at 100.00 | BBB | 113,771 | |||||
| 15,765 | Total Consumer Staples | 11,941,573 | |||||||
| Education and Civic Organizations – 13.7% (9.7% of Total Investments) | |||||||||
| 920 | Miami University of Ohio, General Receipts Bonds, Series 2011, 5.000%, 9/01/36 | 9/21 at 100.00 | Aa3 | 1,033,537 | |||||
| 1,650 | Ohio Higher Education Facilities Commission, General Revenue Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 | 7/16 at 100.00 | A+ | 1,715,373 | |||||
| 1,750 | Ohio Higher Education Facilities Commission, General Revenue Bonds, Oberlin College, Series 2003, 5.125%, 10/01/24 | 10/13 at 100.00 | AA | 1,853,915 | |||||
| 1,000 | Ohio Higher Education Facilities Commission, Revenue Bonds, Wittenberg University, Series 2005, 5.000%, 12/01/29 | 12/15 at 100.00 | Ba1 | 873,760 | |||||
| 2,420 | Ohio Higher Educational Facilities Commission, General Revenue Bonds, University of Dayton, 2006 Project, Series 2006, 5.000%, 12/01/30 – AMBAC Insured | 12/16 at 100.00 | A | 2,569,459 | |||||
| 1,415 | Ohio Higher Educational Facilities Commission, Revenue Bonds, Denison University, Series 2004, 5.000%, 11/01/21 | 11/14 at 100.00 | AA | 1,506,225 | |||||
| 1,320 | Ohio Higher Educational Facilities Commission, Revenue Bonds, University of Dayton, Series 2004, 5.000%, 12/01/25 – AMBAC Insured | 12/14 at 100.00 | A | 1,387,294 | |||||
| 1,000 | Ohio Higher Educational Facilities Commission, Revenue Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15 | 6/12 at 100.00 | Ba1 | 1,000,700 | |||||
| 1,500 | Ohio State Higher Education Facilities, Revenue Bonds, Case Western Reserve University, Series 2006, 5.000%, 12/01/44 – NPFG Insured | 12/16 at 100.00 | AA– | 1,585,905 | |||||
| 2,000 | Ohio State Higher Educational Facility Commission, Higher Education Facility Revenue Bonds, Xavier University 2008C, 5.750%, 5/01/28 | 11/18 at 100.00 | A– | 2,284,120 | |||||
| 550 | Ohio State University, General Receipts Bonds, Series 2003B, 5.250%, 6/01/22 | 6/13 at 100.00 | Aa1 | 580,877 | |||||
| 1,510 | University of Akron, Ohio, General Receipts Bonds, Series 2003A, 5.000%, 1/01/21 – AMBAC Insured | 1/13 at 100.00 | A1 | 1,559,211 | |||||
| 850 | University of Cincinnati, Ohio, General Receipts Bonds, Series 2003C, 5.000%, 6/01/22 – FGIC Insured | 6/13 at 100.00 | AA– | 894,192 | |||||
| University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D: | |||||||||
| 1,200 | 5.000%, 6/01/19 – AMBAC Insured | 6/14 at 100.00 | AA– | 1,304,796 | |||||
| 2,605 | 5.000%, 6/01/25 – AMBAC Insured | 6/14 at 100.00 | AA– | 2,819,418 | |||||
| 21,690 | Total Education and Civic Organizations | 22,968,782 | |||||||
| Health Care – 27.3% (19.3% of Total Investments) | |||||||||
| 2,000 | Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/24 | 5/12 at 100.00 | Baa1 | 2,001,620 | |||||
| 1,000 | Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Healthcare Partners, Series 2010A, 5.250%, 6/01/38 | 6/20 at 100.00 | AA– | 1,067,870 | |||||
| 2,500 | Butler County, Ohio, Hospital Facilities Revenue Bonds, UC Health, Series 2010, 5.500%, 11/01/40 | 11/20 at 100.00 | BBB+ | 2,634,550 | |||||
| 3,405 | Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati Children’s Medical Center Project, Series 2006K, 5.000%, 5/15/31 – FGIC Insured | 5/16 at 100.00 | N/R | 3,438,846 |
| Nuveen Investments | 43 |
| Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | ||
| NUO | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Health Care (continued) | |||||||||
| $ | 180 | Franklin County, Ohio, Hospital Revenue Bonds, Holy Cross Health System Corporation, Series 1998, 5.000%, 6/01/28 – NPFG Insured | 5/12 at 100.00 | AA | $ | 180,245 | |||
| Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Improvement Series 2009: | |||||||||
| 250 | 5.000%, 11/01/34 | 11/19 at 100.00 | Aa2 | 267,300 | |||||
| 300 | 5.250%, 11/01/40 | 11/19 at 100.00 | Aa2 | 322,803 | |||||
| 1,200 | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Series 2005, 5.000%, 11/01/40 | 11/18 at 100.00 | Aa2 | 1,259,916 | |||||
| 2,400 | Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Tender Option Bond Trust 11-21B, 9.274%, 11/15/41 (IF) (4) | 11/21 at 100.00 | AA | 2,725,056 | |||||
| Hamilton County, Ohio, Revenue Bonds, Children’s Hospital Medical Center, Series 2004J: | |||||||||
| 2,455 | 5.250%, 5/15/16 – FGIC Insured | 5/14 at 100.00 | BBB | 2,588,282 | |||||
| 1,260 | 5.125%, 5/15/28 – FGIC Insured | 5/14 at 100.00 | BBB | 1,275,385 | |||||
| 1,000 | Hancock County, Ohio, Hospital Revenue Bonds, Blanchard Valley Regional Health Center, Series 2011A, 6.250%, 12/01/34 | 6/21 at 100.00 | A3 | 1,149,580 | |||||
| 1,000 | Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Refunding Series 2002, 5.375%, 10/01/30 | 10/12 at 100.00 | AA– | 1,009,720 | |||||
| 2,500 | Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Series 2001A, 5.250%, 10/01/33 | No Opt. Call | AA– | 2,527,525 | |||||
| Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2008D: | |||||||||
| 90 | 5.000%, 11/15/38 | 11/18 at 100.00 | AA– | 94,355 | |||||
| 40 | 5.125%, 11/15/40 | 11/18 at 100.00 | AA– | 42,178 | |||||
| 2,665 | Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2011A, 6.000%, 11/15/41 | 11/21 at 100.00 | AA– | 3,119,516 | |||||
| 785 | Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 | 5/16 at 100.00 | A2 | 846,191 | |||||
| 430 | Middleburg Heights, Ohio, Hospital Facilities Revenue Bonds, Southwest General Health Center Project, Refunding Series 2011, 5.250%, 8/01/41 | 8/21 at 100.00 | A2 | 455,374 | |||||
| Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A: | |||||||||
| 1,500 | 5.000%, 5/01/30 | 5/14 at 100.00 | AA | 1,545,480 | |||||
| 2,500 | 5.000%, 5/01/32 | No Opt. Call | AA | 2,566,325 | |||||
| 1,350 | Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 2009A, 6.250%, 11/15/39 | 11/14 at 100.00 | Aa3 | 1,436,684 | |||||
| 95 | Ohio Higher Educational Facilities Commission, Revenue Bonds, University Hospitals Health System Inc., Series 2007A, 5.250%, 1/15/46 – BHAC Insured | No Opt. Call | AA+ | 99,931 | |||||
| Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Cleveland Clinic Health System Obligated Group, Series 2008A: | |||||||||
| 1,315 | 5.000%, 1/01/25 | 1/18 at 100.00 | Aa2 | 1,459,689 | |||||
| 50 | 5.250%, 1/01/33 | 1/18 at 100.00 | Aa2 | 53,939 | |||||
| 1,200 | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Summa Health System Project, Series 2010, 5.250%, 11/15/40 – AGM Insured | 5/20 at 100.00 | AA– | 1,278,768 | |||||
| 1,500 | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 | 1/15 at 100.00 | A | 1,597,755 | |||||
| 1,000 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Series 2009A, 5.500%, 1/01/39 | 1/19 at 100.00 | Aa2 | 1,093,610 | |||||
| Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551: | |||||||||
| 375 | 19.956%, 1/01/17 (IF) | No Opt. Call | Aa2 | 493,065 | |||||
| 2,700 | 20.182%, 1/01/33 (IF) | 1/19 at 100.00 | Aa2 | 3,710,988 | |||||
| 1,100 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3591, 20.340%, 1/01/17 (IF) | No Opt. Call | Aa2 | 1,511,884 |
| 44 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Health Care (continued) | |||||||||
| $ | 1,200 | Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health System Group, Series 2006, 5.250%, 11/15/36 | 11/16 at 100.00 | A– | $ | 1,245,732 | |||
| 600 | Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health System Series 2008, 5.750%, 12/01/35 | 12/18 at 100.00 | A | 647,028 | |||||
| 41,945 | Total Health Care | 45,747,190 | |||||||
| Housing/Multifamily – 5.2% (3.7% of Total Investments) | |||||||||
| 1,385 | Clermont County, Ohio, GNMA Collateralized Mortgage Revenue Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 | 8/12 at 100.00 | Aaa | 1,387,258 | |||||
| Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Longwood Phase One Associates LP, Series 2001A: | |||||||||
| 2,245 | 5.350%, 1/20/21 (Alternative Minimum Tax) | 7/12 at 101.00 | Aaa | 2,287,812 | |||||
| 2,250 | 5.450%, 1/20/31 (Alternative Minimum Tax) | 7/12 at 101.00 | Aaa | 2,277,158 | |||||
| 800 | Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) | 10/18 at 101.00 | Aa1 | 849,352 | |||||
| 715 | Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) | 6/16 at 102.00 | Aaa | 727,720 | |||||
| 1,100 | Summit County Port Authority, Ohio, Multifamily Housing Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) | 9/17 at 102.00 | Aaa | 1,144,044 | |||||
| 8,495 | Total Housing/Multifamily | 8,673,344 | |||||||
| Housing/Single Family – 0.5% (0.4% of Total Investments) | |||||||||
| 855 | Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) | 9/15 at 100.00 | Aaa | 870,245 | |||||
| Industrials – 1.0% (0.7% of Total Investments) | |||||||||
| 695 | Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue Bonds, Bond Fund Program – Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) | 11/15 at 100.00 | BBB– | 690,288 | |||||
| 1,040 | Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue Bonds, Jergens Inc., Series 1998A, 5.375%, 5/15/18 (Alternative Minimum Tax) | 5/12 at 100.00 | BBB– | 1,040,759 | |||||
| 1,735 | Total Industrials | 1,731,047 | |||||||
| Long-Term Care – 1.0% (0.8% of Total Investments) | |||||||||
| 490 | Franklin County, Ohio, Healthcare Facilities Revenue Bonds, Ohio Presbyterian Retirement Services, Improvement Series 2010A, 5.625%, 7/01/26 | 7/21 at 100.00 | BBB | 529,891 | |||||
| 1,165 | Montgomery County, Ohio, Health Care and Multifamily Housing Revenue Bonds, Saint Leonard, Refunding & improvement Series 2010, 6.625%, 4/01/40 | 4/20 at 100.00 | BBB– | 1,224,741 | |||||
| 1,655 | Total Long-Term Care | 1,754,632 | |||||||
| Materials – 1.3% (0.9% of Total Investments) | |||||||||
| 2,000 | Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, Cargill Inc., Series 2004B, 4.500%, 12/01/15 | No Opt. Call | A | 2,165,260 | |||||
| Tax Obligation/General – 30.5% (21.6% of Total Investments) | |||||||||
| Butler County, Ohio, General Obligation Bonds, Series 2002: | |||||||||
| 1,345 | 5.000%, 12/01/21 – NPFG Insured | 12/12 at 100.00 | Aa1 | 1,440,374 | |||||
| 1,200 | 5.000%, 12/01/22 – NPFG Insured | 12/12 at 101.00 | Aa1 | 1,286,184 | |||||
| 1,500 | Centerville City School District, Montgomery County, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/30 – AGM Insured | 6/15 at 100.00 | Aa1 | 1,596,405 | |||||
| 1,000 | Central Ohio Solid Waste Authority, General Obligation Bonds, Series 2004A, 5.000%, 12/01/15 – AMBAC Insured | 6/14 at 100.00 | AAA | 1,097,420 | |||||
| 1,000 | Cleveland Municipal School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/22 – AGM Insured | 6/14 at 100.00 | AA | 1,092,510 | |||||
| 3,000 | Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2006, 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA | 1,566,690 |
| Nuveen Investments | 45 |
| Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | ||
| NUO | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Tax Obligation/General (continued) | |||||||||
| $ | 1,200 | Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/21 | 12/14 at 100.00 | AA+ | $ | 1,334,292 | |||
| 1,000 | Dayton, Ohio, General Obligation Bonds, Series 2004, 5.250%, 12/01/19 – AMBAC Insured | 6/14 at 100.00 | Aa2 | 1,099,030 | |||||
| 1,195 | Fairview Park City School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/24 – NPFG Insured | 6/15 at 100.00 | Aa3 | 1,283,502 | |||||
| 1,840 | Franklin County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/28 | 12/17 at 100.00 | AAA | 2,130,941 | |||||
| 1,500 | Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 | 12/15 at 100.00 | AA | 1,610,370 | |||||
| 1,355 | Grove City, Ohio, General Obligation Bonds, Construction & Improvement Series 2009, 5.125%, 12/01/36 | No Opt. Call | Aa1 | 1,536,313 | |||||
| 7,020 | Hamilton City School District, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/34 – AGM Insured | 6/17 at 100.00 | AA– | 7,436,355 | |||||
| 1,850 | Hilliard School District, Franklin County, Ohio, General Obligation Bonds, School Construction, Series 2005, 5.000%, 12/01/26 – NPFG Insured | 12/15 at 100.00 | Aa1 | 2,061,511 | |||||
| 3,000 | Hilliard School District, Franklin County, Ohio, General Obligation Bonds, Series 2006A, 5.000%, 12/01/25 – NPFG Insured | 12/16 at 100.00 | Aa1 | 3,311,370 | |||||
| 2,580 | Indian Lake Local School District, Logan and Auglaize Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, | 6/17 at 100.00 | Aa3 | 2,755,879 | |||||
| 12/01/34 – NPFG Insured | |||||||||
| 660 | Kenston Local School District, Geauga County, Ohio, General Obligation Bonds, Series 2011, 0.000%, 12/01/21 | No Opt. Call | Aa1 | 512,041 | |||||
| 800 | Lakewood City School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/25 – FGIC Insured | 12/17 at 100.00 | Aa2 | 893,328 | |||||
| 1,585 | Lucas County, Ohio, General Obligation Bonds, Various Purpose Series 2010, 5.000%, 10/01/40 | 10/18 at 100.00 | Aa2 | 1,697,281 | |||||
| 505 | Marysville Exempted School District, Union County, Ohio, General Obligation Bonds, Series 2006, 5.000%, 12/01/25 – AGM Insured | 12/15 at 100.00 | AA– | 542,809 | |||||
| 500 | Mason City School District, Counties of Warren and Butler, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 | 6/17 at 100.00 | Aaa | 550,950 | |||||
| 1,500 | Middletown City School District, Butler County, Ohio, General Obligation Bonds, Refunding Series 2007, 5.250%, 12/01/31 – AGM Insured | No Opt. Call | Aa3 | 1,853,715 | |||||
| 1,350 | Milford Exempted Village School District, Ohio, General Obligation Bonds, Series 2008, 5.250%, 12/01/36 | 12/18 at 100.00 | Aa3 | 1,461,821 | |||||
| 640 | New Albany Plain Local School District, Franklin County, Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 – FGIC Insured | 6/12 at 100.00 | Aa1 | 647,296 | |||||
| 1,000 | Newark City School District, Licking County, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/28 – FGIC Insured | 12/15 at 100.00 | A+ | 1,062,630 | |||||
| 1,000 | Northmor Local School District, Morrow County, Ohio, General Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 | 11/18 at 100.00 | Aa2 | 1,075,270 | |||||
| 500 | Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2008, 5.000%, 12/01/36 | 6/18 at 100.00 | AA+ | 542,220 | |||||
| 1,510 | Painesville City School District, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/22 – FGIC Insured | 12/14 at 100.00 | A1 | 1,654,688 | |||||
| 70 | Strongsville, Ohio, Limited Tax General Obligation Various Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21 | 6/12 at 100.00 | Aaa | 70,321 | |||||
| 100 | Sylvania City School District, Ohio, General Obligation School Improvement Bonds, Series 1995, 5.250%, 12/01/36 – AGC Insured | 6/17 at 100.00 | Aa2 | 107,114 | |||||
| 650 | Vandalia Butler City School District, Montgomery County, Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 | No Opt. Call | AA | 709,989 | |||||
| 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 | 2,708,856 | |||||
| 1,170 | 5.000%, 12/01/22 – FGIC Insured | 6/14 at 100.00 | AA | 1,275,206 | |||||
| 1,000 | West Chester Township, Butler County, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/28 – NPFG Insured | 12/13 at 100.00 | Aaa | 1,061,110 | |||||
| 48,640 | Total Tax Obligation/General | 51,065,791 |
| 46 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Tax Obligation/Limited – 19.8% (14.0% of Total Investments) | |||||||||
| $ | 1,380 | Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, Series 2004A, 5.000%, 12/01/25 – AMBAC Insured | 6/14 at 100.00 | BBB+ | $ | 1,434,703 | |||
| 4,000 | Cuyhoga County, Ohio, Economic Development Revenue Bonds, Federally Taxable Recovery Zone Facility Medical Mart- Convention Center Project, Series 2010G, 5.000%, 12/01/27 | 12/20 at 100.00 | AA | 4,557,959 | |||||
| 3,000 | Franklin County Convention Facilities Authority, Ohio, Excise Tax and Lease Revenue Anticipation Bonds, Series 2005, 5.000%, 12/01/27 – AMBAC Insured | 12/15 at 100.00 | Aaa | 3,234,270 | |||||
| 1,305 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 1,417,295 | |||||
| 1,085 | Hamilton County Convention Facilities Authority, Ohio, First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/18 – FGIC Insured | 6/14 at 100.00 | A+ | 1,168,632 | |||||
| 4,000 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006A, 5.000%, 12/01/32 – AMBAC Insured | 12/16 at 100.00 | A1 | 4,299,559 | |||||
| 1,000 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2000B, 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA– | 489,840 | |||||
| 2,000 | Hamilton County, Ohio, Sales Tax Revenue Bonds, Refunding Series 2011A, 5.000%, 12/01/31 | 12/21 at 100.00 | A1 | 2,189,720 | |||||
| 1,000 | Hudson City School District, Ohio, Certificates of Participation, Series 2004, 5.000%, 6/01/26 – NPFG Insured | 6/14 at 100.00 | Aa3 | 1,037,670 | |||||
| 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 | A1 | 1,003,710 | |||||
| 1,000 | 5.500%, 10/01/17 – AMBAC Insured | 4/12 at 100.00 | A1 | 1,003,340 | |||||
| 140 | New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds Series 2012C, 5.000%, 10/01/24 (WI/DD, Settling 3/08/12) | 10/22 at 100.00 | A1 | 162,434 | |||||
| 800 | Ohio State Building Authority, State Facilities Bonds, Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 – AGM Insured | 4/15 at 100.00 | AA | 888,248 | |||||
| 1,000 | Ohio, State Appropriation Lease Bonds, Mental Health Capital Facilities, Series 2003B-II, 5.000%, 6/01/16 | 6/13 at 100.00 | AA | 1,051,340 | |||||
| 23,215 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 | No Opt. Call | A+ | 7,036,698 | |||||
| 7,875 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2010A, 0.000%, 8/01/35 | No Opt. Call | A+ | 2,207,205 | |||||
| 53,800 | Total Tax Obligation/Limited | 33,182,623 | |||||||
| Transportation – 4.0% (2.8% of Total Investments) | |||||||||
| 1,000 | Cleveland, Ohio, Airport System Revenue Bonds, Series 2012A, 5.000%, 1/01/31 – AGM Insured | 1/22 at 100.00 | AA– | 1,073,470 | |||||
| 3,050 | Dayton, Ohio, Airport Revenue Bonds, James M. Cox International Airport, Series 2003C, 5.250%, 12/01/23 – RAAI Insured (Alternative Minimum Tax) | 12/13 at 100.00 | A– | 3,135,736 | |||||
| 2,000 | Ohio Turnpike Commission, Revenue Refunding Bonds, Series 1998A, 5.500%, 2/15/18 – FGIC Insured | No Opt. Call | AA | 2,488,880 | |||||
| 6,050 | Total Transportation | 6,698,086 | |||||||
| U.S. Guaranteed – 18.8% (13.3% of Total Investments) (5) | |||||||||
| 2,030 | Butler County, Ohio, General Obligation Judgment Bonds, Series 2002, 5.250%, 12/01/21 (Pre-refunded 12/01/12) | 12/12 at 101.00 | Aa1 (5) | 2,127,866 | |||||
| 2,600 | Cincinnati City School District, Hamilton County, Ohio, General Obligation Bonds, Series 2002, 5.250%, 6/01/21 (Pre-refunded 12/01/12) – AGM Insured | 12/12 at 100.00 | Aa2 (5) | 2,699,372 | |||||
| Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland Clinic Health System, Series 2003A: | |||||||||
| 1,020 | 6.000%, 1/01/32 (Pre-refunded 7/01/13) | 7/13 at 100.00 | Aa2 (5) | 1,097,979 | |||||
| 980 | 6.000%, 1/01/32 (Pre-refunded 7/01/13) | 7/13 at 100.00 | Aa2 (5) | 1,054,921 | |||||
| 1,000 | Dayton, Ohio, Airport Revenue Bonds, James M. Cox International Airport, Series 2005B, 5.000%, 12/01/14 – SYNCORA GTY Insured (ETM) | No Opt. Call | A– (5) | 1,126,400 |
| Nuveen Investments | 47 |
| Nuveen Ohio Quality Income Municipal Fund, Inc. (continued) | ||
| NUO | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
U.S. Guaranteed (5) (continued) | |||||||||
| $ | 1,000 | Dublin City School District, Franklin, Delaware and Union Counties, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 (Pre-refunded 12/01/13) – AGM Insured | 12/13 at 100.00 | AAA | $ | 1,082,930 | |||
| 1,160 | Kenston Local School District, Geauga County, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 (Pre-refunded 6/01/13) – NPFG Insured | 6/13 at 100.00 | Aa1 (5) | 1,229,252 | |||||
| 1,515 | Massillon City School District, Ohio, General Obligation Bonds, Series 2003, 5.250%, 12/01/21 (Pre-refunded 12/01/12) – NPFG Insured | 12/12 at 100.00 | Baa2 (5) | 1,573,221 | |||||
| 760 | Middletown City School District, Butler County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) – FGIC Insured | 12/13 at 100.00 | N/R (5) | 823,027 | |||||
| 460 | New Albany Plain Local School District, Franklin County, Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17 (Pre-refunded 6/01/12) – FGIC Insured | 6/12 at 100.00 | Aa1 (5) | 466,320 | |||||
| 2,645 | Ohio State Building Authority, State Facilities Bonds, Adult Correctional Building Fund Project, Series 2004A, 5.250%, 4/01/15 (Pre-refunded | 4/14 at 100.00 | AA (5) | 2,918,308 | |||||
| 4/01/14) – NPFG Insured | |||||||||
| 1,200 | Ohio State University, General Receipts Bonds, Series 2002A, 5.125%, 12/01/31 (Pre-refunded 12/01/12) | 12/12 at 100.00 | Aa1 (5) | 1,244,988 | |||||
| 2,450 | Ohio State University, General Receipts Bonds, Series 2003B, 5.250%, 6/01/22 (Pre-refunded 6/01/13) | 6/13 at 100.00 | N/R (5) | 2,602,978 | |||||
| 525 | Ohio Water Development Authority, Revenue Bonds, Drinking Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 (Pre-refunded 6/01/18) – AGM Insured | 6/18 at 100.00 | AAA | 653,179 | |||||
| 1,225 | Ohio Water Development Authority, Water Pollution Control Loan Fund Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25 (Pre-refunded 6/01/15) | 6/15 at 100.00 | AAA | 1,404,793 | |||||
| 3,000 | Ohio, General Obligation Bonds, Infrastructure Improvements, Series 2003F, 5.000%, 2/01/23 (Pre-refunded 2/01/13) | 2/13 at 100.00 | AA+ (5) | 3,132,840 | |||||
| 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+ (5) | 1,460,636 | |||||
| 3,380 | 5.250%, 12/01/24 (Pre-refunded 6/01/14) – FGIC Insured | 6/14 at 100.00 | AA+ (5) | 3,754,335 | |||||
| 1,000 | Princeton City School District, Butler County, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/30 (Pre-refunded 12/01/13) – NPFG Insured | 12/13 at 100.00 | AA (5) | 1,082,930 | |||||
| 29,265 | Total U.S. Guaranteed | 31,536,275 | |||||||
| Utilities – 7.8% (5.6% of Total Investments) | |||||||||
| 2,500 | American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project Series 2008A, 5.250%, 2/15/43 | 2/18 at 100.00 | A1 | 2,693,775 | |||||
| 4,000 | American Municipal Power Ohio Inc., Wadsworth, Electric System Improvement Revenue Bonds, Series 2002, 5.000%, 2/15/22 – NPFG Insured | 8/12 at 100.00 | A1 | 4,008,360 | |||||
| Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B-2: | |||||||||
| 2,000 | 0.000%, 11/15/28 – NPFG Insured | No Opt. Call | A2 | 940,700 | |||||
| 2,105 | 0.000%, 11/15/32 – NPFG Insured | No Opt. Call | A2 | 776,282 | |||||
| 2,155 | 0.000%, 11/15/34 – NPFG Insured | No Opt. Call | A2 | 702,789 | |||||
| 1,465 | Ohio Air Quality Development Authority, Revenue Refunding Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 – AMBAC Insured | 5/12 at 100.00 | Baa1 | 1,466,538 | |||||
| 950 | Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Belleville Hydroelectric Project – Joint Venture 5, Series 2001, 0.000%, 2/15/29 – NPFG Insured | No Opt. Call | A1 | 454,452 | |||||
| 2,000 | Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Belleville Hydroelectric Project – Joint Venture 5, Series 2004, 5.000%, 2/15/20 – AMBAC Insured | 2/14 at 100.00 | A1 | 2,108,520 | |||||
| 17,175 | Total Utilities | 13,151,416 |
| 48 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Water and Sewer – 3.0% (2.1% of Total Investments) | |||||||||
| $ | 430 | City of Marysville, Ohio, Water System Mortgage Revenue Bonds, Series 2007, 5.000%, 12/01/32 – AMBAC Insured | 12/17 at 100.00 | A1 | $ | 459,980 | |||
| 1,025 | Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 – NPFG Insured | No Opt. Call | Aa1 | 1,282,706 | |||||
| 1,220 | Hamilton, Ohio, Wastewater System Revenue Bonds, Series 2005, 5.250%, 10/01/22 – AGM Insured | 10/15 at 100.00 | Aa3 | 1,374,464 | |||||
| 100 | Ironton, Ohio, Sewer System Improvement Revenue Bonds, Series 2011, 5.250%, 12/01/40 – AGM Insured | 12/20 at 100.00 | Aa3 | 110,043 | |||||
| 225 | Marysville, Ohio, Wastewater Treatment System Revenue Bonds, Series 2007, 5.000%, 12/01/37 – SYNCORA GTY Insured | 12/17 at 100.00 | A– | 234,981 | |||||
| 1,170 | Marysville, Ohio, Wastewater Treatment System Revenue Bonds, Series 2006, 5.250%, 12/01/24 – SYNCORA GTY Insured | 12/16 at 100.00 | A– | 1,277,078 | |||||
| 275 | Ohio Water Development Authority, Water Pollution Control Loan Fund Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25 | 6/15 at 100.00 | AAA | 309,851 | |||||
| 4,445 | Total Water and Sewer | 5,049,103 | |||||||
| $ | 253,515 | Total Investments (cost $217,562,564) – 141.0% | 236,535,367 | ||||||
| Variable Rate MuniFund Term Preferred Shares, at Liquidation Value – (43.8)% (6) | (73,500,000 | ) | |||||||
| Other Assets Less Liabilities – 2.8% | 4,674,032 | ||||||||
| Net Assets Applicable to Common Shares – 100% | $ | 167,709,399 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. | |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |
| (5) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (6) | Variable Rate MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.1%. | |
| N/R | Not rated. | |
| WI/DD | Purchased on a when-issued or delayed delivery basis. | |
| (ETM) | Escrowed to maturity. | |
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| Nuveen Investments | 49 |
| Nuveen Ohio Dividend Advantage Municipal Fund | ||
| NXI | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Consumer Staples – 5.5% (3.8% of Total Investments) | |||||||||
| Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | |||||||||
| $ | 1,500 | 5.125%, 6/01/24 | 6/17 at 100.00 | B– | $ | 1,179,765 | |||
| 3,300 | 5.875%, 6/01/47 | 6/17 at 100.00 | B– | 2,463,086 | |||||
| 45 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 5/12 at 100.00 | BBB | 44,519 | |||||
| 4,845 | Total Consumer Staples | 3,687,370 | |||||||
| Education and Civic Organizations – 12.3% (8.6% of Total Investments) | |||||||||
| 275 | Miami University of Ohio, General Receipts Bonds, Series 2011, 5.000%, 9/01/36 | 9/21 at 100.00 | Aa3 | 308,938 | |||||
| 700 | Ohio Higher Education Facilities Commission, General Revenue Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 | 7/16 at 100.00 | A+ | 727,734 | |||||
| 2,650 | Ohio Higher Education Facilities Commission, Revenue Bonds, Ohio Northern University, Series 2002, 5.000%, 5/01/22 | 5/12 at 100.00 | Baa2 | 2,653,391 | |||||
| 500 | Ohio Higher Education Facilities Commission, Revenue Bonds, Wittenberg University, Series 2005, 5.000%, 12/01/24 | 12/15 at 100.00 | Ba1 | 456,240 | |||||
| 1,000 | Ohio State Higher Educational Facility Commission, Higher Education Facility Revenue Bonds, Xavier University 2008C, 5.750%, 5/01/28 | 11/18 at 100.00 | A– | 1,142,060 | |||||
| 950 | Ohio State, Higher Educational Facility Revenue Bonds, Otterbein College Project, Series 2008A, 5.500%, 12/01/28 | 12/18 at 100.00 | A3 | 1,068,541 | |||||
| 1,760 | Ohio University at Athens, Subordinate Lien General Receipts Bonds, Series 2004, 5.000%, 12/01/20 – NPFG Insured | 6/14 at 100.00 | Aa3 | 1,899,744 | |||||
| 7,835 | Total Education and Civic Organizations | 8,256,648 | |||||||
| Health Care – 27.5% (19.3% of Total Investments) | |||||||||
| 65 | Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 2004A, 5.500%, 11/15/34 – RAAI Insured | 11/14 at 100.00 | Baa1 | 65,900 | |||||
| 500 | Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Healthcare Partners, Series 2010A, 5.250%, 6/01/38 | 6/20 at 100.00 | AA– | 533,935 | |||||
| 1,385 | Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati Children’s Medical Center Project, Series 2006K, 5.000%, 5/15/31 – FGIC Insured | 5/16 at 100.00 | N/R | 1,398,767 | |||||
| 1,300 | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Improvement Series 2009, 5.250%, 11/01/40 | 11/19 at 100.00 | Aa2 | 1,398,813 | |||||
| 600 | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Series 2005, 5.000%, 11/01/40 | 11/18 at 100.00 | Aa2 | 629,958 | |||||
| 1,280 | Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Tender Option Bond Trust 11-21B, 9.274%, 11/15/41 (IF) (4) | 11/21 at 100.00 | AA | 1,453,363 | |||||
| 2,000 | Hamilton County, Ohio, Revenue Bonds, Children’s Hospital Medical Center, Series 2004J, 5.125%, 5/15/28 – FGIC Insured | 5/14 at 100.00 | BBB | 2,024,420 | |||||
| 1,000 | Hancock County, Ohio, Hospital Revenue Bonds, Blanchard Valley Regional Health Center, Series 2011A, 6.250%, 12/01/34 | 6/21 at 100.00 | A3 | 1,149,580 | |||||
| 500 | Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Refunding Series 2002, 5.375%, 10/01/30 | 10/12 at 100.00 | AA– | 504,860 | |||||
| 1,000 | Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Series 2001A, 5.250%, 10/01/33 | No Opt. Call | AA– | 1,011,010 | |||||
| 290 | Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2011A, 6.000%, 11/15/41 | 11/21 at 100.00 | AA– | 339,460 |
| 50 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Health Care (continued) | |||||||||
| $ | 330 | Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 | 5/16 at 100.00 | A2 | $ | 355,724 | |||
| 170 | Middleburg Heights, Ohio, Hospital Facilities Revenue Bonds, Southwest General Health Center Project, Refunding Series 2011, 5.250%, 8/01/41 | 8/21 at 100.00 | A2 | 180,032 | |||||
| 1,000 | Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A, 5.000%, 5/01/30 | 5/14 at 100.00 | AA | 1,030,320 | |||||
| 375 | Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 2009A, 6.250%, 11/15/39 | 11/14 at 100.00 | Aa3 | 399,079 | |||||
| Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Cleveland Clinic Health System Obligated Group, Series 2008A: | |||||||||
| 1,050 | 5.000%, 1/01/25 | 1/18 at 100.00 | Aa2 | 1,165,532 | |||||
| 90 | 5.250%, 1/01/33 | 1/18 at 100.00 | Aa2 | 97,089 | |||||
| Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Summa Health System Project, Series 2010: | |||||||||
| 1,100 | 5.750%, 11/15/40 – AGM Insured | 5/20 at 100.00 | AA– | 1,204,984 | |||||
| 80 | 5.250%, 11/15/40 – AGM Insured | 5/20 at 100.00 | AA– | 85,251 | |||||
| 250 | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 | 1/15 at 100.00 | A | 266,293 | |||||
| 200 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Series 2009A, 5.500%, 1/01/39 | 1/19 at 100.00 | Aa2 | 218,722 | |||||
| Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551: | |||||||||
| 250 | 19.956%, 1/01/17 (IF) | No Opt. Call | Aa2 | 328,710 | |||||
| 1,225 | 20.182%, 1/01/33 (IF) | 1/19 at 100.00 | Aa2 | 1,683,689 | |||||
| 65 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3591, 20.340%, 1/01/17 (IF) | No Opt. Call | Aa2 | 89,339 | |||||
| 500 | Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health System Group, Series 2006, 5.250%, 11/15/36 | 11/16 at 100.00 | A– | 519,055 | |||||
| 375 | Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health System Series 2008, 5.750%, 12/01/35 | 12/18 at 100.00 | A | 404,393 | |||||
| 16,980 | Total Health Care | 18,538,278 | |||||||
| Housing/Multifamily – 4.0% (2.8% of Total Investments) | |||||||||
| 1,165 | Cleveland-Cuyahoga County Port Authority, Ohio, Lease Revenue Bonds, Euclid Avenue Housing Corporation – Fenn Tower Project, Series 2005, 5.000%, 8/01/23 – AMBAC Insured | 8/15 at 100.00 | N/R | 1,047,300 | |||||
| 350 | Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) | 10/18 at 101.00 | Aa1 | 371,592 | |||||
| 285 | Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) | 6/16 at 102.00 | Aaa | 290,070 | |||||
| 915 | Summit County Port Authority, Ohio, Multifamily Housing Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) | 9/17 at 102.00 | Aaa | 951,637 | |||||
| 2,715 | Total Housing/Multifamily | 2,660,599 | |||||||
| Housing/Single Family – 0.3% (0.2% of Total Investments) | |||||||||
| 215 | Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) | 9/15 at 100.00 | Aaa | 218,833 | |||||
| Industrials – 6.5% (4.6% of Total Investments) | |||||||||
| 1,500 | Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond Fund Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 | 5/12 at 102.00 | BBB– | 1,505,835 | |||||
| 290 | Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue Bonds, Bond Fund Program – Columbia National Group Project, Series 2005D, 5.000%, 5/15/20 (Alternative Minimum Tax) | 11/15 at 100.00 | BBB– | 288,034 |
| Nuveen Investments | 51 |
| Nuveen Ohio Dividend Advantage Municipal Fund (continued) | ||
| NXI | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Industrials (continued) | |||||||||
| $ | 880 | Ohio State Water Development Authority, Solid Waste Revenue Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) | 7/12 at 100.00 | BBB | $ | 891,730 | |||
| 1,300 | Toledo-Lucas County Port Authority, Ohio, Revenue Refunding Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 | No Opt. Call | Baa3 | 1,625,416 | |||||
| 700 | Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) (5) | 7/17 at 102.00 | N/R | 98,028 | |||||
| 4,670 | Total Industrials | 4,409,043 | |||||||
| Long-Term Care – 1.1% (0.8% of Total Investments) | |||||||||
| 215 | Franklin County, Ohio, Healthcare Facilities Revenue Bonds, Ohio Presbyterian Retirement Services, Improvement Series 2010A, 5.625%, 7/01/26 | 7/21 at 100.00 | BBB | 232,503 | |||||
| 470 | Montgomery County, Ohio, Health Care and Multifamily Housing Revenue Bonds, Saint Leonard, Refunding & improvement Series 2010, 6.625%, 4/01/40 | 4/20 at 100.00 | BBB– | 494,102 | |||||
| 685 | Total Long-Term Care | 726,605 | |||||||
| Tax Obligation/General – 26.1% (18.3% of Total Investments) | |||||||||
| 125 | Barberton City School District, Summit County, Ohio, General Obligation Bonds, School Improvement Series 2008, 5.250%, 12/01/31 | 6/18 at 100.00 | AA | 138,409 | |||||
| 1,500 | Centerville City School District, Montgomery County, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/30 – AGM Insured | 6/15 at 100.00 | Aa1 | 1,596,405 | |||||
| Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2006: | |||||||||
| 400 | 0.000%, 12/01/27 – AGM Insured | No Opt. Call | AA | 220,740 | |||||
| 1,735 | 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA | 906,069 | |||||
| 400 | Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/21 | 12/14 at 100.00 | AA+ | 444,764 | |||||
| 1,355 | Franklin County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/27 | 12/17 at 100.00 | AAA | 1,567,654 | |||||
| 470 | Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 | 12/15 at 100.00 | AA | 504,583 | |||||
| 2,550 | Hamilton City School District, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/34 – AGM Insured | 6/17 at 100.00 | AA– | 2,701,240 | |||||
| 2,000 | Indian Lake Local School District, Logan and Auglaize Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, | 6/17 at 100.00 | Aa3 | 2,136,340 | |||||
| 12/01/34 – NPFG Insured | |||||||||
| 500 | Kenston Local School District, Geauga County, Ohio, General Obligation Bonds, Series 2011, 0.000%, 12/01/21 | No Opt. Call | Aa1 | 387,910 | |||||
| 430 | Lakewood City School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/30 – FGIC Insured | 12/17 at 100.00 | Aa2 | 468,365 | |||||
| 400 | Lucas County, Ohio, General Obligation Bonds, Various Purpose Series 2010, 5.000%, 10/01/40 | 10/18 at 100.00 | Aa2 | 428,336 | |||||
| 1,005 | Marysville Exempted School District, Union County, Ohio, General Obligation Bonds, Series 2006, 5.000%, 12/01/25 – AGM Insured | 12/15 at 100.00 | AA– | 1,080,244 | |||||
| 200 | Mason City School District, Counties of Warren and Butler, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 | 6/17 at 100.00 | Aaa | 220,380 | |||||
| 1,000 | Middletown City School District, Butler County, Ohio, General Obligation Bonds, Refunding Series 2007, 5.250%, 12/01/31 – AGM Insured | No Opt. Call | Aa3 | 1,235,810 | |||||
| 50 | Milford Exempted Village School District, Ohio, General Obligation Bonds, Series 2008, 5.250%, 12/01/36 | 12/18 at 100.00 | Aa3 | 54,142 | |||||
| 750 | Northmor Local School District, Morrow County, Ohio, General Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 | 11/18 at 100.00 | Aa2 | 806,453 | |||||
| 50 | Sylvania City School District, Ohio, General Obligation School Improvement Bonds, Series 1995, 5.250%, 12/01/36 – AGC Insured | 6/17 at 100.00 | Aa2 | 53,557 |
| 52 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Tax Obligation/General (continued) | |||||||||
| $ | 2,415 | Troy City School District, Miami County, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/28 – AGM Insured | 12/14 at 100.00 | Aa2 | $ | 2,551,229 | |||
| 50 | Vandalia Butler City School District, Montgomery County, Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 | No Opt. Call | AA | 54,615 | |||||
| 17,385 | Total Tax Obligation/General | 17,557,245 | |||||||
| Tax Obligation/Limited – 26.1% (18.3% of Total Investments) | |||||||||
| 125 | Cincinnati City School District, Ohio, Certificates of Participation, Series 2006, 5.000%, 12/15/32 – AGM Insured | 12/16 at 100.00 | Aa2 | 140,543 | |||||
| 2,000 | Cuyhoga County, Ohio, Economic Development Revenue Bonds, Federally Taxable Recovery Zone Facility Medical Mart- Convention Center Project, Series 2010G, 5.000%, 12/01/27 | 12/20 at 100.00 | AA | 2,278,980 | |||||
| 50 | Delaware County District Library, Delaware, Franklin, Marion, Morrow and Union Counties, Ohio, Library Fund Library Facilities Special Obligation Notes, Series 2009, 5.000%, 12/01/34 | 12/19 at 100.00 | Aa2 | 55,609 | |||||
| 2,000 | Franklin County Convention Facilities Authority, Ohio, Excise Tax and Lease Revenue Anticipation Bonds, Series 2005, 5.000%, 12/01/27 – AMBAC Insured | 12/15 at 100.00 | Aaa | 2,156,180 | |||||
| 525 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 570,176 | |||||
| 1,415 | Hamilton County Convention Facilities Authority, Ohio, First Lien Revenue Bonds, Series 2004, 5.000%, 12/01/21 – FGIC Insured | 6/14 at 100.00 | A+ | 1,520,474 | |||||
| 1,500 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006A, 5.000%, 12/01/32 – AMBAC Insured | 12/16 at 100.00 | A1 | 1,612,335 | |||||
| 2,000 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2000B, 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA– | 979,680 | |||||
| 1,000 | Hamilton County, Ohio, Sales Tax Revenue Bonds, Refunding Series 2011A, 5.000%, 12/01/31 | 12/21 at 100.00 | A1 | 1,094,860 | |||||
| 500 | New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds, Series 2001B, 5.500%, 10/01/15 – AMBAC Insured | 4/12 at 100.00 | A1 | 501,855 | |||||
| 685 | New Albany Community Authority, Ohio, Community Facilities Revenue Refunding bonds, Series 2012C, 5.000%, 10/01/24 (WI/DD, Settling 3/08/12) | 10/22 at 100.00 | A1 | 794,764 | |||||
| 345 | Ohio State Building Authority, State Facilities Bonds, Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 – AGM Insured | 4/15 at 100.00 | AA | 383,057 | |||||
| 1,000 | Ohio State Building Authority, State Facilities Bonds, Adult Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 – AGM Insured | 4/15 at 100.00 | AA | 1,116,660 | |||||
| 5,220 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 | No Opt. Call | A+ | 1,582,234 | |||||
| 5,250 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2010A, 0.000%, 8/01/35 | No Opt. Call | A+ | 1,471,470 | |||||
| 1,280 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 1999A, 6.375%, 10/01/19 | 4/12 at 100.00 | BBB+ | 1,283,469 | |||||
| 24,895 | Total Tax Obligation/Limited | 17,542,346 | |||||||
| Transportation – 0.6% (0.4% of Total Investments) | |||||||||
| 425 | Dayton, Ohio, Airport Revenue Bonds, James M. Cox International Airport, Series 2003C, 5.250%, 12/01/23 – RAAI Insured (Alternative Minimum Tax) | 12/13 at 100.00 | A– | 436,947 |
| Nuveen Investments | 53 |
| Nuveen Ohio Dividend Advantage Municipal Fund (continued) | ||
| NXI | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| U.S. Guaranteed – 17.2% (12.1% of Total Investments) (6) | |||||||||
| $ | 1,000 | Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) – AGM Insured | 12/14 at 100.00 | AA (6) | $ | 1,137,720 | |||
| Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland Clinic Health System, Series 2003A: | |||||||||
| 560 | 6.000%, 1/01/32 (Pre-refunded 7/01/13) | 7/13 at 100.00 | Aa2 (6) | 602,812 | |||||
| 540 | 6.000%, 1/01/32 (Pre-refunded 7/01/13) | 7/13 at 100.00 | Aa2 (6) | 581,283 | |||||
| 1,000 | Lakewood City School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.250%, 12/01/16 (Pre-refunded 12/01/14) – AGM Insured | 12/14 at 100.00 | Aa2 (6) | 1,133,840 | |||||
| 1,000 | Middletown City School District, Butler County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/25 (Pre-refunded 12/01/13) – FGIC Insured | 12/13 at 100.00 | N/R (6) | 1,082,930 | |||||
| 325 | Ohio Water Development Authority, Revenue Bonds, Drinking Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 (Pre-refunded 6/01/18) – AGM Insured | 6/18 at 100.00 | AAA | 404,349 | |||||
| 1,645 | Ohio Water Development Authority, Revenue Bonds, Water Development Community Assistance Program, Series 2003, 5.000%, 12/01/23 (Pre-refunded 12/01/13) – NPFG Insured | 12/13 at 100.00 | Aa1 (6) | 1,781,420 | |||||
| 1,900 | Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/23 (Pre-refunded 6/01/14) – FGIC Insured | 6/14 at 100.00 | AA+ (6) | 2,110,425 | |||||
| 2,735 | University of Cincinnati, Ohio, General Receipts Bonds, Series 2002F, 5.375%, 6/01/19 (Pre-refunded 6/01/12) | 6/12 at 100.00 | AA– (6) | 2,771,701 | |||||
| 10,705 | Total U.S. Guaranteed | 11,606,480 | |||||||
| Utilities – 9.9% (7.0% of Total Investments) | |||||||||
| American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project Series 2008A: | |||||||||
| 50 | 5.000%, 2/15/38 – AGC Insured | 2/18 at 100.00 | AA– | 53,379 | |||||
| 1,000 | 5.250%, 2/15/43 | 2/18 at 100.00 | A1 | 1,077,510 | |||||
| 1,440 | American Municipal Power Ohio Inc., Wadsworth, Electric System Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 – NPFG Insured | 8/12 at 100.00 | A1 | 1,444,867 | |||||
| 2,130 | Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B-2, 0.000%, 11/15/32 – NPFG Insured | No Opt. Call | A2 | 785,501 | |||||
| 2,265 | Ohio Air Quality Development Authority, Revenue Refunding Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 – AMBAC Insured | 5/12 at 100.00 | Baa1 | 2,267,378 | |||||
| 1,000 | Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Belleville Hydroelectric Project – Joint Venture 5, Series 2004, 5.000%, 2/15/21 – AMBAC Insured | 2/14 at 100.00 | A1 | 1,050,610 | |||||
| 7,885 | Total Utilities | 6,679,245 | |||||||
| Water and Sewer – 5.4% (3.8% of Total Investments) | |||||||||
| 175 | City of Marysville, Ohio, Water System Mortgage Revenue Bonds, Series 2007, 5.000%, 12/01/32 – AMBAC Insured | 12/17 at 100.00 | A1 | 187,201 | |||||
| 925 | Ironton, Ohio, Sewer System Improvement Revenue Bonds, Series 2011, 5.250%, 12/01/40 – AGM Insured | 12/20 at 100.00 | Aa3 | 1,017,898 | |||||
| 500 | Marysville, Ohio, Wastewater Treatment System Revenue Bonds, Series 2006, 5.250%, 12/01/24 – SYNCORA GTY Insured | 12/16 at 100.00 | A– | 545,760 |
| 54 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Water and Sewer (continued) | |||||||||
| $ | 730 | Ohio Water Development Authority, Revenue Bonds, Water Development Community Assistance Program, Series 2003, 5.000%, 12/01/23 – NPFG Insured | 12/13 at 100.00 | Aa1 | $ | 777,399 | |||
| 1,000 | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/44 | 7/18 at 100.00 | Baa2 | 1,075,300 | |||||
| 3,330 | Total Water and Sewer | 3,603,558 | |||||||
| $ | 102,570 | Total Investments (cost $88,891,152) – 142.5% | 95,923,197 | ||||||
| MuniFund Term Preferred Shares, at Liquidation Value – (46.2)% (7) | (31,103,400 | ) | |||||||
| Other Assets Less Liabilities – 3.7% | 2,472,335 | ||||||||
| Net Assets Applicable to Common Shares – 100% | $ | 67,292,132 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. | |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |
| (5) | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. | |
| (6) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (7) | MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.4%. | |
| N/R | Not rated. | |
| WI/DD | Purchased on a when-issued or delayed delivery basis. | |
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| Nuveen Investments | 55 |
| Nuveen Ohio Dividend Advantage Municipal Fund 2 | ||
| NBJ | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Consumer Staples – 5.3% (3.6% of Total Investments) | |||||||||
| $ | 400 | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-1, 5.000%, 6/01/16 | No Opt. Call | A3 | $ | 426,904 | |||
| Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | |||||||||
| 1,000 | 5.125%, 6/01/24 | 6/17 at 100.00 | B– | 786,510 | |||||
| 1,750 | 5.875%, 6/01/47 | 6/17 at 100.00 | B– | 1,306,183 | |||||
| 45 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 5/12 at 100.00 | BBB | 44,519 | |||||
| 3,195 | Total Consumer Staples | 2,564,116 | |||||||
| Education and Civic Organizations – 12.1% (8.3% of Total Investments) | |||||||||
| 1,345 | Bowling Green State University, Ohio, General Receipts Bonds, Series 2003, 5.250%, 6/01/18 – AMBAC Insured | 6/13 at 100.00 | A+ | 1,408,713 | |||||
| 490 | Miami University of Ohio, General Receipts Bonds, Series 2011, 5.000%, 9/01/36 | 9/21 at 100.00 | Aa3 | 550,471 | |||||
| 450 | Ohio Higher Education Facilities Commission, General Revenue Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 | 7/16 at 100.00 | A+ | 467,829 | |||||
| 1,050 | Ohio Higher Educational Facilities Commission, Revenue Bonds, Wittenberg University, Series 2001, 5.500%, 12/01/15 | 6/12 at 100.00 | Ba1 | 1,050,735 | |||||
| 1,000 | University of Cincinnati, Ohio, General Receipts Bonds, Series 2003C, 5.000%, 6/01/22 – FGIC Insured | 6/13 at 100.00 | AA– | 1,051,990 | |||||
| 1,245 | University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D, 5.000%, 6/01/19 – AMBAC Insured | 6/14 at 100.00 | AA– | 1,353,726 | |||||
| 5,580 | Total Education and Civic Organizations | 5,883,464 | |||||||
| Health Care – 25.7% (17.7% of Total Investments) | |||||||||
| 250 | Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Healthcare Partners, Series 2010A, 5.250%, 6/01/38 | 6/20 at 100.00 | AA– | 266,968 | |||||
| 1,000 | Butler County, Ohio, Hospital Facilities Revenue Bonds, UC Health, Series 2010, 5.500%, 11/01/40 | 11/20 at 100.00 | BBB+ | 1,053,820 | |||||
| 1,090 | Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati Children’s Medical Center Project, Series 2006K, 5.000%, 5/15/31 – FGIC Insured | 5/16 at 100.00 | N/R | 1,100,835 | |||||
| 300 | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Improvement Series 2009, 5.250%, 11/01/40 | 11/19 at 100.00 | Aa2 | 322,803 | |||||
| 250 | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Series 2005, 5.000%, 11/01/40 | 11/18 at 100.00 | Aa2 | 262,483 | |||||
| 480 | Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Tender Option Bond Trust 11-21B, 9.274%, 11/15/41 (IF) (4) | 11/21 at 100.00 | AA | 545,011 | |||||
| 600 | Hancock County, Ohio, Hospital Revenue Bonds, Blanchard Valley Regional Health Center, Series 2011A, 6.250%, 12/01/34 | 6/21 at 100.00 | A3 | 689,748 | |||||
| 865 | Lake County, Ohio, Hospital Facilities Revenue Bonds, Lake Hospital System, Inc., Refunding Series 2008C, 6.000%, 8/15/43 | 8/18 at 100.00 | Baa1 | 914,435 | |||||
| 200 | Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Refunding Series 2002, 5.375%, 10/01/30 | 10/12 at 100.00 | AA– | 201,944 | |||||
| Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Series 2001A: | |||||||||
| 1,850 | 5.400%, 10/01/21 | 4/12 at 101.00 | AA– | 1,873,847 | |||||
| 100 | 5.250%, 10/01/33 | No Opt. Call | AA– | 101,101 | |||||
| 460 | Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2011A, 6.000%, 11/15/41 | 11/21 at 100.00 | AA– | 538,453 | |||||
| 225 | Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 | 5/16 at 100.00 | A2 | 242,539 |
| 56 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Health Care (continued) | |||||||||
| $ | 120 | Middleburg Heights, Ohio, Hospital Facilities Revenue Bonds, Southwest General Health Center Project, Refunding Series 2011, 5.250%, 8/01/41 | 8/21 at 100.00 | A2 | $ | 127,081 | |||
| 700 | Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A, 5.000%, 5/01/30 | 5/14 at 100.00 | AA | 721,224 | |||||
| 90 | Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 2009A, 6.250%, 11/15/39 | 11/14 at 100.00 | Aa3 | 95,779 | |||||
| 35 | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Cleveland Clinic Health System Obligated Group, Series 2008A, 5.000%, 1/01/25 | 1/18 at 100.00 | Aa2 | 38,851 | |||||
| Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Summa Health System Project, Series 2010: | |||||||||
| 400 | 5.750%, 11/15/40 – AGM Insured | 5/20 at 100.00 | AA– | 438,176 | |||||
| 40 | 5.250%, 11/15/40 – AGM Insured | 5/20 at 100.00 | AA– | 42,626 | |||||
| 100 | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 | 1/15 at 100.00 | A | 106,517 | |||||
| 200 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Series 2009A, 5.500%, 1/01/39 | 1/19 at 100.00 | Aa2 | 218,722 | |||||
| Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551: | |||||||||
| 125 | 19.956%, 1/01/17 (IF) | No Opt. Call | Aa2 | 164,355 | |||||
| 1,000 | 20.182%, 1/01/33 (IF) | 1/19 at 100.00 | Aa2 | 1,374,440 | |||||
| 375 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3591, 20.340%, 1/01/17 (IF) | No Opt. Call | Aa2 | 515,415 | |||||
| 350 | Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health System Group, Series 2006, 5.250%, 11/15/36 | 11/16 at 100.00 | A– | 363,339 | |||||
| 190 | Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health System Series 2008, 5.750%, 12/01/35 | 12/18 at 100.00 | A | 204,892 | |||||
| 11,395 | Total Health Care | 12,525,404 | |||||||
| Housing/Multifamily – 4.6% (3.2% of Total Investments) | |||||||||
| 1,000 | Franklin County, Ohio, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) | 5/12 at 102.00 | Aaa | 1,023,390 | |||||
| 250 | Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) | 10/18 at 101.00 | Aa1 | 265,423 | |||||
| 215 | Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) | 6/16 at 102.00 | Aaa | 218,825 | |||||
| 690 | Summit County Port Authority, Ohio, Multifamily Housing Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) | 9/17 at 102.00 | Aaa | 717,628 | |||||
| 2,155 | Total Housing/Multifamily | 2,225,266 | |||||||
| Housing/Single Family – 0.9% (0.6% of Total Investments) | |||||||||
| 425 | Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) | 9/15 at 100.00 | Aaa | 432,578 | |||||
| Industrials – 10.2% (7.0% of Total Investments) | |||||||||
| 3,000 | Ohio State Sewage and Solid Waste Disposal Facilities, Revenue Bonds, Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative Minimum Tax) | 5/12 at 100.00 | A– | 3,002,968 | |||||
| 640 | Ohio State Water Development Authority, Solid Waste Revenue Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) | 7/12 at 100.00 | BBB | 648,531 | |||||
| 1,000 | Toledo-Lucas County Port Authority, Ohio, Revenue Refunding Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 | No Opt. Call | Baa3 | 1,250,320 | |||||
| 500 | Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) (5) | 7/17 at 102.00 | N/R | 70,020 | |||||
| 5,140 | Total Industrials | 4,971,839 |
| Nuveen Investments | 57 |
| Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued) | ||
| NBJ | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Long-Term Care – 0.9% (0.7% of Total Investments) | |||||||||
| $ | 95 | Franklin County, Ohio, Healthcare Facilities Revenue Bonds, Ohio Presbyterian Retirement Services, Improvement Series 2010A, 5.625%, 7/01/26 | 7/21 at 100.00 | BBB | $ | 102,734 | |||
| 340 | Montgomery County, Ohio, Health Care and Multifamily Housing Revenue Bonds, Saint Leonard, Refunding & improvement Series 2010, 6.625%, 4/01/40 | 4/20 at 100.00 | BBB– | 357,435 | |||||
| 435 | Total Long-Term Care | 460,169 | |||||||
| Tax Obligation/General – 38.6% (26.6% of Total Investments) | |||||||||
| Cleveland Municipal School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2004: | |||||||||
| 1,000 | 5.000%, 12/01/15 – AGM Insured | 6/14 at 100.00 | AA | 1,094,110 | |||||
| 1,000 | 5.000%, 12/01/22 – AGM Insured | 6/14 at 100.00 | AA | 1,092,510 | |||||
| 1,000 | Cleveland, Ohio, General Obligation Bonds, Series 2011, 5.000%, 12/01/29 | 12/19 at 100.00 | AA | 1,103,560 | |||||
| 1,140 | Columbia Local School District, Lorain County, Ohio, General Obligation Bonds, School Facilities Improvement Series 2011, 5.000%, 11/01/39 – AGM Insured | 11/21 at 100.00 | Aa3 | 1,262,949 | |||||
| Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2006: | |||||||||
| 2,095 | 0.000%, 12/01/27 – AGM Insured | No Opt. Call | AA | 1,156,126 | |||||
| 100 | 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA | 52,223 | |||||
| 400 | Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/21 | 12/14 at 100.00 | AA+ | 444,764 | |||||
| 1,000 | Franklin County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/27 | 12/17 at 100.00 | AAA | 1,156,940 | |||||
| 400 | Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 | 12/15 at 100.00 | AA | 429,432 | |||||
| 1,905 | Hamilton City School District, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/34 – AGM Insured | 6/17 at 100.00 | AA– | 2,017,984 | |||||
| 1,000 | Indian Lake Local School District, Logan and Auglaize Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, | 6/17 at 100.00 | Aa3 | 1,068,170 | |||||
| 12/01/34 – NPFG Insured | |||||||||
| 500 | Kenston Local School District, Geauga County, Ohio, General Obligation Bonds, Series 2011, 0.000%, 12/01/21 | No Opt. Call | Aa1 | 387,910 | |||||
| 345 | Lakewood City School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/30 – FGIC Insured | 12/17 at 100.00 | Aa2 | 375,781 | |||||
| 400 | Lucas County, Ohio, General Obligation Bonds, Various Purpose Series 2010, 5.000%, 10/01/40 | 10/18 at 100.00 | Aa2 | 428,336 | |||||
| 1,005 | Marysville Exempted School District, Union County, Ohio, General Obligation Bonds, Series 2006, 5.000%, 12/01/25 – AGM Insured | 12/15 at 100.00 | AA– | 1,080,244 | |||||
| 200 | Mason City School District, Counties of Warren and Butler, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 | 6/17 at 100.00 | Aaa | 220,380 | |||||
| 1,500 | Middletown City School District, Butler County, Ohio, General Obligation Bonds, Refunding Series 2007, 5.250%, 12/01/31 – AGM Insured | No Opt. Call | Aa3 | 1,853,715 | |||||
| 50 | Milford Exempted Village School District, Ohio, General Obligation Bonds, Series 2008, 5.250%, 12/01/36 | 12/18 at 100.00 | Aa3 | 54,142 | |||||
| 2,665 | Newark City School District, Licking County, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/28 – FGIC Insured | 12/15 at 100.00 | A+ | 2,831,907 | |||||
| 400 | Northmor Local School District, Morrow County, Ohio, General Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 | 11/18 at 100.00 | Aa2 | 430,108 | |||||
| 50 | Sylvania City School District, Ohio, General Obligation School Improvement Bonds, Series 1995, 5.250%, 12/01/36 – AGC Insured | 6/17 at 100.00 | Aa2 | 53,557 | |||||
| 200 | Vandalia Butler City School District, Montgomery County, Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 | No Opt. Call | AA | 218,458 | |||||
| 18,355 | Total Tax Obligation/General | 18,813,306 | |||||||
| Tax Obligation/Limited – 21.8% (15.0% of Total Investments) | |||||||||
| 500 | Cuyhoga County, Ohio, Economic Development Revenue Bonds, Federally Taxable Recovery Zone Facility Medical Mart- Convention Center Project, Series 2010G, 5.000%, 12/01/27 | 12/20 at 100.00 | AA | 569,745 | |||||
| 175 | Delaware County District Library, Delaware, Franklin, Marion, Morrow and Union Counties, Ohio, Library Fund Library Facilities Special Obligation Notes, Series 2009, 5.000%, 12/01/34 | 12/19 at 100.00 | Aa2 | 194,632 |
| 58 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Tax Obligation/Limited (continued) | |||||||||
| $ | 395 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | $ | 428,990 | |||
| 1,000 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006A, 5.000%, 12/01/32 – AMBAC Insured | 12/16 at 100.00 | A1 | 1,074,890 | |||||
| 2,500 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2000B, 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA– | 1,224,600 | |||||
| 1,000 | Hamilton County, Ohio, Sales Tax Revenue Bonds, Refunding Series 2011A, 5.000%, 12/01/31 | 12/21 at 100.00 | A1 | 1,094,860 | |||||
| 140 | New Albany Community Authority, Ohio, Community Facilities Refunding Bonds, Series 2012C, 5.000%, 10/01/24 (WI/DD, Settling 3/08/12) | 10/22 at 100.00 | A1 | 162,434 | |||||
| 250 | Ohio State Building Authority, State Facilities Bonds, Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 – AGM Insured | 4/15 at 100.00 | AA | 277,578 | |||||
| 1,000 | Ohio State Building Authority, State Facilities Bonds, Adult Correctional Building Fund Project, Series 2005A, 5.000%, 4/01/23 – AGM Insured | 4/15 at 100.00 | AA | 1,116,660 | |||||
| 1,095 | Ohio, State Appropriation Lease Bonds, Parks and Recreation Capital Facilities, Series 2004A-II, 5.000%, 12/01/18 | 12/13 at 100.00 | AA | 1,169,471 | |||||
| 4,065 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 | No Opt. Call | A+ | 1,232,142 | |||||
| 3,940 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2010A, 0.000%, 8/01/35 | No Opt. Call | A+ | 1,104,303 | |||||
| 1,000 | Summit County Port Authority, Ohio, Revenue Bonds, Civic Theatre Project, Series 2001, 5.500%, 12/01/26 – AMBAC Insured | 6/12 at 100.00 | N/R | 949,330 | |||||
| 17,060 | Total Tax Obligation/Limited | 10,599,635 | |||||||
| Transportation – 1.1% (0.8% of Total Investments) | |||||||||
| 500 | Cleveland, Ohio, Airport System Revenue Bonds, Series 2012A, 5.000%, 1/01/31 – AGM Insured | 1/22 at 100.00 | AA– | 536,735 | |||||
| U.S. Guaranteed – 14.0% (9.7% of Total Investments) (6) | |||||||||
| 605 | Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2004, 5.500%, 12/01/15 (Pre-refunded 12/01/14) – AGM Insured | 12/14 at 100.00 | AA (6) | 688,321 | |||||
| 2,420 | Lorain County, Ohio, Limited Tax General Obligation Justice Center Bonds, Series 2002, 5.500%, 12/01/22 (Pre-refunded 12/01/12) – FGIC Insured | 12/12 at 100.00 | Aa2 (6) | 2,517,572 | |||||
| 1,000 | Marysville Exempted Village School District, Ohio, Certificates of Participation, School Facilities Project, Series 2005, 5.250%, 12/01/21 (Pre-refunded 6/01/15) – NPFG Insured | 6/15 at 100.00 | N/R (6) | 1,154,840 | |||||
| 210 | Ohio Water Development Authority, Revenue Bonds, Drinking Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 (Pre-refunded 6/01/18) – AGM Insured | 6/18 at 100.00 | AAA | 261,272 | |||||
| 1,050 | Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A, 5.500%, 12/01/15 (Pre-refunded 6/01/14) – FGIC Insured | 6/14 at 100.00 | AA+ (6) | 1,172,189 | |||||
| 1,000 | Powell, Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/25 (Pre-refunded 12/01/12) – FGIC Insured | 12/12 at 100.00 | AA+ (6) | 1,040,240 | |||||
| 6,285 | Total U.S. Guaranteed | 6,834,434 | |||||||
| Utilities – 9.4% (6.5% of Total Investments) | |||||||||
| 1,000 | American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project Series 2008A, 5.250%, 2/15/43 | 2/18 at 100.00 | A1 | 1,077,510 | |||||
| 1,065 | Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B-2, 0.000%, 11/15/32 – NPFG Insured | No Opt. Call | A2 | 392,751 | |||||
| 2,500 | Ohio Air Quality Development Authority, Revenue Refunding Bonds, Ohio Power Company Project, Series 1999C, 5.150%, 5/01/26 – AMBAC Insured | 5/12 at 100.00 | Baa1 | 2,502,623 | |||||
| 595 | Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Belleville Hydroelectric Project – Joint Venture 5, Series 2004, 5.000%, 2/15/20 – AMBAC Insured | 2/14 at 100.00 | A1 | 627,285 | |||||
| 5,160 | Total Utilities | 4,600,169 |
| Nuveen Investments | 59 |
| Nuveen Ohio Dividend Advantage Municipal Fund 2 (continued) | ||
| NBJ | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Water and Sewer – 0.4% (0.3% of Total Investments) | |||||||||
| $ | 130 | City of Marysville, Ohio, Water System Mortgage Revenue Bonds, Series 2007, 5.000%, 12/01/32 – AMBAC Insured | 12/17 at 100.00 | A1 | $ | 139,064 | |||
| 50 | Ironton, Ohio, Sewer System Improvement Revenue Bonds, Series 2011, 5.250%, 12/01/40 – AGM Insured | 12/20 at 100.00 | Aa3 | 55,022 | |||||
| 180 | Total Water and Sewer | 194,086 | |||||||
| $ | 75,865 | Total Investments (cost $65,719,031) – 145.0% | 70,641,201 | ||||||
| MuniFund Term Preferred Shares, at Liquidation Value – (49.8)% (7) | (24,244,000 | ) | |||||||
| Other Assets Less Liabilities – 4.8% | 2,310,162 | ||||||||
| Net Assets Applicable to Common Shares – 100% | $ | 48,707,363 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. | |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |
| (5) | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. | |
| (6) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (7) | MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.3%. | |
| N/R | Not rated. | |
| WI/DD | Purchased on a when-issued or delayed delivery basis. | |
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| 60 | Nuveen Investments |
| Nuveen Ohio Dividend Advantage Municipal Fund 3 | ||
| NVJ | Portfolio of Investments | |
| February 29, 2012 |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
| Consumer Staples – 6.7% (4.5% of Total Investments) | |||||||||
| Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | |||||||||
| $ | 1,000 | 5.125%, 6/01/24 | 6/17 at 100.00 | B– | $ | 786,510 | |||
| 2,000 | 5.875%, 6/01/47 | 6/17 at 100.00 | B– | 1,492,780 | |||||
| 20 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 5/12 at 100.00 | BBB | 19,786 | |||||
| 3,020 | Total Consumer Staples | 2,299,076 | |||||||
| Education and Civic Organizations – 7.0% (4.7% of Total Investments) | |||||||||
| 275 | Miami University of Ohio, General Receipts Bonds, Series 2011, 5.000%, 9/01/36 | 9/21 at 100.00 | Aa3 | 308,938 | |||||
| 350 | Ohio Higher Education Facilities Commission, General Revenue Bonds, Kenyon College, Series 2006, 5.000%, 7/01/41 | 7/16 at 100.00 | A+ | 363,867 | |||||
| 1,125 | Ohio Higher Education Facilities Commission, Revenue Bonds, Ohio Northern University, Series 2002, 5.750%, 5/01/16 | 5/12 at 100.00 | Baa2 | 1,130,591 | |||||
| 650 | Ohio Higher Education Facilities Commission, Revenue Bonds, Wittenberg University, Series 2005, 5.000%, 12/01/24 | 12/15 at 100.00 | Ba1 | 593,112 | |||||
| 2,400 | Total Education and Civic Organizations | 2,396,508 | |||||||
| Health Care – 32.3% (21.4% of Total Investments) | |||||||||
| 200 | Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Healthcare Partners, Series 2010A, 5.250%, 6/01/38 | 6/20 at 100.00 | AA– | 213,574 | |||||
| 695 | Butler County, Ohio, Hospital Facilities Revenue Bonds, Cincinnati Children’s Medical Center Project, Series 2006K, 5.000%, 5/15/31 – FGIC Insured | 5/16 at 100.00 | N/R | 701,908 | |||||
| 600 | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Improvement Series 2009, 5.250%, 11/01/40 | 11/19 at 100.00 | Aa2 | 645,606 | |||||
| 420 | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children’s Hospital Project, Series 2005, 5.000%, 11/01/40 | 11/18 at 100.00 | Aa2 | 440,971 | |||||
| 320 | Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Tender Option Bond Trust 11-21B, 9.274%, 11/15/41 (IF) (4) | 11/21 at 100.00 | AA | 363,341 | |||||
| 625 | Hancock County, Ohio, Hospital Revenue Bonds, Blanchard Valley Regional Health Center, Series 2011A, 6.250%, 12/01/34 | 6/21 at 100.00 | A3 | 718,488 | |||||
| 1,000 | Lake County, Ohio, Hospital Facilities Revenue Bonds, Lake Hospital System, Inc., Refunding Series 2008C, 6.000%, 8/15/43 | 8/18 at 100.00 | Baa1 | 1,057,150 | |||||
| 300 | Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Refunding Series 2002, 5.375%, 10/01/30 | 10/12 at 100.00 | AA– | 302,916 | |||||
| 500 | Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, Catholic Healthcare Partners, Series 2001A, 5.250%, 10/01/33 | No Opt. Call | AA– | 505,505 | |||||
| 550 | Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2011A, 6.000%, 11/15/41 | 11/21 at 100.00 | AA– | 643,803 | |||||
| 160 | Miami County, Ohio, Hospital Facilities Revenue Refunding Bonds, Upper Valley Medical Center Inc., Series 2006, 5.250%, 5/15/21 | 5/16 at 100.00 | A2 | 172,472 | |||||
| 100 | Middleburg Heights, Ohio, Hospital Facilities Revenue Bonds, Southwest General Health Center Project, Refunding Series 2011, 5.250%, 8/01/41 | 8/21 at 100.00 | A2 | 105,901 | |||||
| 500 | Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A, 5.000%, 5/01/30 | 5/14 at 100.00 | AA | 515,160 | |||||
| 105 | Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 2009A, 6.250%, 11/15/39 | 11/14 at 100.00 | Aa3 | 111,742 | |||||
| Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Cleveland Clinic Health System Obligated Group, Series 2008A: | |||||||||
| 600 | 5.000%, 1/01/25 | 1/18 at 100.00 | Aa2 | 666,018 | |||||
| 100 | 5.250%, 1/01/33 | 1/18 at 100.00 | Aa2 | 107,877 | |||||
| 200 | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Summa Health System Project, Series 2010, 5.250%, 11/15/40 – AGM Insured | 5/20 at 100.00 | AA– | 213,128 |
| Nuveen Investments | 61 |
| Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued) | ||
| NVJ | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Health Care (continued) | |||||||||
| $ | 2,000 | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University Hospitals Health System, Series 2009, 6.750%, 1/15/39 | 1/15 at 100.00 | A | $ | 2,130,336 | |||
| 100 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Series 2009A, 5.500%, 1/01/39 | 1/19 at 100.00 | Aa2 | 109,361 | |||||
| Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3551: | |||||||||
| 125 | 19.956%, 1/01/17 (IF) | No Opt. Call | Aa2 | 164,355 | |||||
| 425 | 20.182%, 1/01/33 (IF) | 1/19 at 100.00 | Aa2 | 584,137 | |||||
| 100 | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 3591, 20.340%, 1/01/17 (IF) | No Opt. Call | Aa2 | 137,444 | |||||
| 250 | Richland County, Ohio, Hospital Revenue Bonds, MidCentral Health System Group, Series 2006, 5.250%, 11/15/36 | 11/16 at 100.00 | A– | 259,528 | |||||
| 110 | Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health System Series 2008, 5.750%, 12/01/35 | 12/18 at 100.00 | A | 118,622 | |||||
| 10,085 | Total Health Care | 10,989,343 | |||||||
| Housing/Multifamily – 3.2% (2.1% of Total Investments) | |||||||||
| 200 | Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) | 10/18 at 101.00 | Aa1 | 212,338 | |||||
| 165 | Ohio Housing Finance Agency, FHA-Insured Multifamily Housing Mortgage Revenue Bonds, Madonna Homes, Series 2006M, 4.900%, 6/20/48 (Alternative Minimum Tax) | 6/16 at 102.00 | Aaa | 167,935 | |||||
| 685 | Summit County Port Authority, Ohio, Multifamily Housing Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) | 9/17 at 102.00 | Aaa | 712,427 | |||||
| 1,050 | Total Housing/Multifamily | 1,092,700 | |||||||
| Housing/Single Family – 0.6% (0.4% of Total Investments) | |||||||||
| 210 | Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006H, 5.000%, 9/01/31 (Alternative Minimum Tax) | 9/15 at 100.00 | Aaa | 213,744 | |||||
| Industrials – 6.9% (4.6% of Total Investments) | |||||||||
| 555 | Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond Fund Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 | 5/12 at 102.00 | BBB– | 557,159 | |||||
| 480 | Ohio State Water Development Authority, Solid Waste Revenue Bonds, Allied Waste Industries, Inc., Series 2007A, 5.150%, 7/15/15 (Alternative Minimum Tax) | 7/12 at 100.00 | BBB | 486,398 | |||||
| 1,000 | Toledo-Lucas County Port Authority, Ohio, Revenue Refunding Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 | No Opt. Call | Baa3 | 1,250,320 | |||||
| 400 | Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) (5) | 7/17 at 102.00 | N/R | 56,016 | |||||
| 2,435 | Total Industrials | 2,349,893 | |||||||
| Long-Term Care – 1.1% (0.7% of Total Investments) | |||||||||
| 95 | Franklin County, Ohio, Healthcare Facilities Revenue Bonds, Ohio Presbyterian Retirement Services, Improvement Series 2010A, 5.625%, 7/01/26 | 7/21 at 100.00 | BBB | 102,734 | |||||
| 245 | Montgomery County, Ohio, Health Care and Multifamily Housing Revenue Bonds, Saint Leonard, Refunding & improvement Series 2010, 6.625%, 4/01/40 | 4/20 at 100.00 | BBB– | 257,564 | |||||
| 340 | Total Long-Term Care | 360,298 | |||||||
| Tax Obligation/General – 37.5% (25.0% of Total Investments) | |||||||||
| 1,000 | Cleveland, Ohio, General Obligation Bonds, Series 2011, 5.000%, 12/01/29 | 12/19 at 100.00 | AA | 1,103,560 | |||||
| Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2006: | |||||||||
| 1,815 | 0.000%, 12/01/27 – AGM Insured | No Opt. Call | AA | 1,001,608 | |||||
| 1,000 | 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA | 522,230 | |||||
| 300 | Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/01/21 | 12/14 at 100.00 | AA+ | 333,573 | |||||
| 1,000 | Franklin County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/27 | 12/17 at 100.00 | AAA | 1,156,940 | |||||
| 250 | Green, Ohio, General Obligation Bonds, Series 2008, 5.500%, 12/01/32 | 12/15 at 100.00 | AA | 268,395 | |||||
| 1,275 | Hamilton City School District, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/34 – AGM Insured | 6/17 at 100.00 | AA– | 1,350,620 |
| 62 | Nuveen Investments |
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
Tax Obligation/General (continued) | |||||||||
| $ | 1,000 | Indian Lake Local School District, Logan and Auglaize Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, | 6/17 at 100.00 | Aa3 | $ | 1,068,170 | |||
| 12/01/34 – NPFG Insured | |||||||||
| 500 | Kenston Local School District, Geauga County, Ohio, General Obligation Bonds, Series 2011, 0.000%, 12/01/21 | No Opt. Call | Aa1 | 387,910 | |||||
| 210 | Lakewood City School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/25 – FGIC Insured | 12/17 at 100.00 | Aa2 | 234,499 | |||||
| 1,270 | Lorain, Ohio, General Obligation Bonds, Series 2002, 5.125%, 12/01/26 – AMBAC Insured | 12/12 at 100.00 | A3 | 1,282,903 | |||||
| 235 | Lucas County, Ohio, General Obligation Bonds, Various Purpose Series 2010, 5.000%, 10/01/40 | 10/18 at 100.00 | Aa2 | 251,647 | |||||
| 500 | Marysville Exempted School District, Union County, Ohio, General Obligation Bonds, Series 2006, 5.000%, 12/01/25 – AGM Insured | 12/15 at 100.00 | AA– | 537,435 | |||||
| 100 | Mason City School District, Counties of Warren and Butler, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/31 | 6/17 at 100.00 | Aaa | 110,190 | |||||
| 500 | Middletown City School District, Butler County, Ohio, General Obligation Bonds, Refunding Series 2007, 5.250%, 12/01/31 – AGM Insured | No Opt. Call | Aa3 | 617,905 | |||||
| 50 | Milford Exempted Village School District, Ohio, General Obligation Bonds, Series 2008, 5.250%, 12/01/36 | 12/18 at 100.00 | Aa3 | 54,142 | |||||
| 150 | Northmor Local School District, Morrow County, Ohio, General Obligation School Facilities Construction and Improvement Bonds, Series 2008, 5.000%, 11/01/36 | 11/18 at 100.00 | Aa2 | 161,291 | |||||
| 500 | Oak Hills Local School District, Hamilton County, Ohio, General Obligation Bonds, Refunding Series 2005, 5.000%, 12/01/24 – AGM Insured | 12/15 at 100.00 | AA– | 534,125 | |||||
| 1,130 | Solon, Ohio, General Obligation Refunding and Improvement Bonds, Series 2002, 5.000%, 12/01/18 | 12/12 at 100.00 | AAA | 1,168,623 | |||||
| 500 | Sylvania City School District, Ohio, General Obligation School Improvement Bonds, Series 1995, 5.250%, 12/01/36 – AGC Insured | 6/17 at 100.00 | Aa2 | 535,570 | |||||
| 100 | Vandalia Butler City School District, Montgomery County, Ohio, General Obligation Bonds, School Improvement Series 2009, 5.125%, 12/01/37 | No Opt. Call | AA | 109,229 | |||||
| 13,385 | Total Tax Obligation/General | 12,790,565 | |||||||
| Tax Obligation/Limited – 14.6% (9.7% of Total Investments) | |||||||||
| 250 | Cuyhoga County, Ohio, Economic Development Revenue Bonds, Federally Taxable Recovery Zone Facility Medical Mart- Convention Center Project, Series 2010G, 5.000%, 12/01/27 | 12/20 at 100.00 | AA | 284,873 | |||||
| 75 | Delaware County District Library, Delaware, Franklin, Marion, Morrow and Union Counties, Ohio, Library Fund Library Facilities Special Obligation Notes, Series 2009, 5.000%, 12/01/34 | 12/19 at 100.00 | Aa2 | 83,414 | |||||
| 265 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 287,803 | |||||
| 750 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006A, 5.000%, 12/01/32 – AMBAC Insured | 12/16 at 100.00 | A1 | 806,168 | |||||
| 65 | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2000B, 0.000%, 12/01/28 – AGM Insured | No Opt. Call | AA– | 31,840 | |||||
| 1,000 | Hamilton County, Ohio, Sales Tax Revenue Bonds, Refunding Series 2011A, 5.000%, 12/01/31 | 12/21 at 100.00 | A1 | 1,094,860 | |||||
| 1,000 | Midview Local School District, Lorain County, Ohio, Certificates of Participation, Series 2003, 5.000%, 11/01/30 | 5/13 at 100.00 | A1 | 1,015,940 | |||||
| 35 | New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds Series 2012C, 5.000%, 10/01/24 (WI/DD, Settling 3/08/12) | 10/22 at 100.00 | A1 | 40,608 | |||||
| 200 | Ohio State Building Authority, State Facilities Bonds, Administrative Building Fund Projects, Series 2005A, 5.000%, 4/01/25 – AGM Insured | 4/15 at 100.00 | AA | 222,062 | |||||
| 2,000 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/34 | No Opt. Call | A+ | 606,220 | |||||
| 1,835 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2010A, 0.000%, 8/01/35 | No Opt. Call | A+ | 514,314 | |||||
| 7,475 | Total Tax Obligation/Limited | 4,988,102 | |||||||
| Transportation – 5.7% (3.8% of Total Investments) | |||||||||
| 1,550 | Ohio Turnpike Commission, Revenue Refunding Bonds, Series 1998A, 5.500%, 2/15/18 – FGIC Insured | No Opt. Call | AA | 1,928,882 | |||||
| U.S. Guaranteed – 23.5% (15.6% of Total Investments) (6) | |||||||||
| 725 | Eaton City School District, Preble County, Ohio, General Obligation Bonds, Series 2002, 5.750%, 12/01/21 (Pre-refunded 12/01/12) – FGIC Insured | 12/12 at 101.00 | Aa2 (6) | 762,838 | |||||
| 1,000 | Hilliard, Ohio, General Obligation Bonds, Series 2002, 5.375%, 12/01/22 (Pre-refunded 12/01/12) | 12/12 at 100.00 | Aa1 (6) | 1,039,380 |
| Nuveen Investments | 63 |
Nuveen Ohio Dividend Advantage Municipal Fund 3 (continued) | ||
| NVJ | Portfolio of Investments |
February 29, 2012
| Principal | Optional Call | ||||||||
| Amount (000) | Description (1) | Provisions (2) | Ratings (3) | Value | |||||
U.S. Guaranteed (continued) | |||||||||
| $ | 1,000 | Kenston Local School District, Geauga County, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/22 (Pre-refunded 6/01/13) – NPFG Insured | 6/13 at 100.00 | Aa1 (6) | $ | 1,059,700 | |||
| 500 | Miami East Local School District, Miami County, Ohio, General Obligation Bonds, Series 2002, 5.125%, 12/01/29 (Pre-refunded 6/01/12) – AGM Insured | 6/12 at 100.00 | AA– (6) | 506,390 | |||||
| 2,000 | Ohio Higher Education Facilities Commission, Revenue Bonds, Case Western Reserve University, Series 2002B, 5.500%, 10/01/22 (Pre-refunded 10/01/12) | 10/12 at 100.00 | N/R (6) | 2,063,020 | |||||
| 1,250 | Ohio State Building Authority, State Facilities Bonds, Administrative Building Fund Projects, Series 2002A, 5.500%, 4/01/18 (Pre-refunded 4/01/12) – AGM Insured | 4/12 at 100.00 | AA (6) | 1,255,975 | |||||
| 160 | Ohio Water Development Authority, Revenue Bonds, Drinking Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 (Pre-refunded 6/01/18) – AGM Insured | 6/18 at 100.00 | AAA | 199,064 | |||||
| 1,000 | Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2004A, 5.250%, 12/01/21 (Pre-refunded 6/01/14) – FGIC Insured | 6/14 at 100.00 | AA+ (6) | 1,110,750 | |||||
| 7,635 | Total U.S. Guaranteed | 7,997,117 | |||||||
| Utilities – 7.8% (5.2% of Total Investments) | |||||||||
| 500 | American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project Series 2008A, 5.250%, 2/15/43 | 2/18 at 100.00 | A1 | 538,755 | |||||
| 1,500 | American Municipal Power Ohio Inc., Wadsworth, Electric System Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 – NPFG Insured | 8/12 at 100.00 | A1 | 1,505,070 | |||||
| 1,595 | Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B-2, 0.000%, 11/15/32 – NPFG Insured | No Opt. Call | A2 | 588,204 | |||||
| 25 | Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, 5.625%, 10/01/19 | No Opt. Call | BBB– | 28,837 | |||||
| 3,620 | Total Utilities | 2,660,866 | |||||||
| Water and Sewer – 3.5% (2.3% of Total Investments) | |||||||||
| 130 | City of Marysville, Ohio, Water System Mortgage Revenue Bonds, Series 2007, 5.000%, 12/01/32 – AMBAC Insured | 12/17 at 100.00 | A1 | 139,064 | |||||
| 950 | Ironton, Ohio, Sewer System Improvement Revenue Bonds, Series 2011, 5.250%, 12/01/40 – AGM Insured | 12/20 at 100.00 | Aa3 | 1,045,409 | |||||
| 1,080 | Total Water and Sewer | 1,184,473 | |||||||
| $ | 54,285 | Total Investments (cost $47,563,093) – 150.4% | 51,251,567 | ||||||
| MuniFund Term Preferred Shares, at Liquidation Value – (54.2)% (7) | (18,470,150 | ) | |||||||
| Other Assets Less Liabilities – 3.8% | 1,293,827 | ||||||||
| Net Assets Applicable to Common Shares – 100% | $ | 34,075,244 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. | |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations of investments in inverse floating rate transactions. | |
| (5) | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. | |
| (6) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (7) | MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.0%. | |
| N/R | Not rated. | |
| WI/DD | Purchased on a when-issued or delayed delivery basis. | |
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| 64 | Nuveen Investments |
| Statement of | ||
| Assets & Liabilities | ||
| February 29, 2012 |
Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Assets | ||||||||||
| Investments, at value (cost $249,582,684, $160,910,760 and $43,647,537, respectively) | $ | 271,165,290 | $ | 171,050,613 | $ | 46,894,462 | ||||
| Cash | 2,030,514 | 100,651 | 538,166 | |||||||
| Receivables: | ||||||||||
| Interest | 3,641,934 | 2,376,501 | 595,122 | |||||||
| Investments sold | 739,304 | 444,950 | 131,463 | |||||||
| Deferred offering costs | 380,557 | 108,391 | 427,512 | |||||||
| Other assets | 33,355 | 4,678 | 1,821 | |||||||
| Total assets | 277,990,954 | 174,085,784 | 48,588,546 | |||||||
| Liabilities | ||||||||||
| Floating rate obligations | 3,630,000 | 2,330,000 | 665,000 | |||||||
| Payables: | ||||||||||
| Common share dividends | 780,562 | 498,688 | 133,575 | |||||||
| Interest | 82,736 | 50,734 | 32,306 | |||||||
| Investments purchased | 1,063,729 | — | — | |||||||
| Offering costs | 4,202 | — | 98,801 | |||||||
| MuniFund Term Preferred (MTP) Shares, at liquidation value | — | — | 16,313,000 | |||||||
| Variable Rate MuniFund Term Preferred (VMTP) Shares, at liquidation value | 87,900,000 | 53,900,000 | — | |||||||
| Accrued expenses: | ||||||||||
| Management fees | 134,271 | 85,052 | 23,815 | |||||||
| Other | 125,809 | 66,311 | 33,222 | |||||||
| Total liabilities | 93,721,309 | 56,930,785 | 17,299,719 | |||||||
| Net assets applicable to Common shares | $ | 184,269,645 | $ | 117,154,999 | $ | 31,288,827 | ||||
| Common shares outstanding | 11,554,253 | 7,605,648 | 2,053,086 | |||||||
| Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) | $ | 15.95 | $ | 15.40 | $ | 15.24 | ||||
| Net assets applicable to Common shares consist of: | ||||||||||
| Common shares, $.01 par value per share | $ | 115,543 | $ | 76,056 | $ | 20,531 | ||||
| Paid-in surplus | 161,977,722 | 106,706,652 | 28,961,326 | |||||||
| Undistributed (Over-distribution of) net investment income | 3,336,932 | 2,024,198 | 278,497 | |||||||
| Accumulated net realized gain (loss) | (2,743,158 | ) | (1,791,760 | ) | (1,218,452 | ) | ||||
| Net unrealized appreciation (depreciation) | 21,582,606 | 10,139,853 | 3,246,925 | |||||||
| Net assets applicable to Common shares | $ | 184,269,645 | $ | 117,154,999 | $ | 31,288,827 | ||||
| Authorized shares: | ||||||||||
| Common | 200,000,000 | 200,000,000 | Unlimited | |||||||
| Auction Rate Preferred Shares (ARPS) | 1,000,000 | 1,000,000 | Unlimited | |||||||
| MTP | — | — | Unlimited | |||||||
| VMTP | 1,800 | 539 | — |
| See accompanying notes to financial statements. |
| Nuveen Investments | 65 |
| Statement of | ||
Assets & Liabilities (continued) | ||
| February 29, 2012 | ||
Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Assets | |||||||||||||
| Investments, at value (cost $217,562,564, $88,891,152, $65,719,031 and $47,563,093, respectively) | $ | 236,535,367 | $ | 95,923,197 | $ | 70,641,201 | $ | 51,251,567 | |||||
| Cash | 1,711,251 | 1,573,455 | 821,256 | 305,306 | |||||||||
| Receivables: | |||||||||||||
| Interest | 2,863,106 | 1,198,134 | 882,362 | 618,277 | |||||||||
| Investments sold | 903,845 | 354,624 | 779,931 | 354,624 | |||||||||
| Deferred offering costs | 332,987 | 804,956 | 471,145 | 421,979 | |||||||||
| Other assets | 6,002 | 2,573 | 2,358 | 5,186 | |||||||||
| Total assets | 242,352,558 | 99,856,939 | 73,598,253 | 52,956,939 | |||||||||
| Liabilities | |||||||||||||
| Floating rate obligations | — | — | — | — | |||||||||
| Payables: | |||||||||||||
| Common share dividends | 692,067 | 299,839 | 207,541 | 159,951 | |||||||||
| Interest | 69,182 | 68,968 | 49,064 | 37,380 | |||||||||
| Investments purchased | 162,434 | 794,764 | 162,434 | 40,608 | |||||||||
| Offering costs | 8,381 | 200,678 | 147,229 | 116,712 | |||||||||
| MuniFund Term Preferred (MTP) Shares, at liquidation value | — | 31,103,400 | 24,244,000 | 18,470,150 | |||||||||
| Variable Rate MuniFund Term Preferred (VMTP) Shares, at liquidation value | 73,500,000 | — | — | — | |||||||||
| Accrued expenses: | |||||||||||||
| Management fees | 119,777 | 49,547 | 36,735 | 24,302 | |||||||||
| Other | 91,318 | 47,611 | 43,887 | 32,592 | |||||||||
| Total liabilities | 74,643,159 | 32,564,807 | 24,890,890 | 18,881,695 | |||||||||
| Net assets applicable to Common shares | $ | 167,709,399 | $ | 67,292,132 | $ | 48,707,363 | $ | 34,075,244 | |||||
| Common shares outstanding | 9,765,029 | 4,246,722 | 3,122,403 | 2,158,437 | |||||||||
| Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) | $ | 17.17 | $ | 15.85 | $ | 15.60 | $ | 15.79 | |||||
| Net assets applicable to Common shares consist of: | |||||||||||||
| Common shares, $.01 par value per share | $ | 97,650 | $ | 42,467 | $ | 31,224 | $ | 21,584 | |||||
| Paid-in surplus | 148,087,012 | 60,152,612 | 44,094,755 | 30,384,308 | |||||||||
| Undistributed (Over-distribution of) net investment income | 3,309,669 | 685,848 | 673,179 | 523,705 | |||||||||
| Accumulated net realized gain (loss) | (2,757,735 | ) | (620,840 | ) | (1,013,965 | ) | (542,827 | ) | |||||
| Net unrealized appreciation (depreciation) | 18,972,803 | 7,032,045 | 4,922,170 | 3,688,474 | |||||||||
| Net assets applicable to Common shares | $ | 167,709,399 | $ | 67,292,132 | $ | 48,707,363 | $ | 34,075,244 | |||||
| Authorized shares: | |||||||||||||
| Common | 200,000,000 | Unlimited | Unlimited | Unlimited | |||||||||
| Auction Rate Preferred Shares (ARPS) | 1,000,000 | Unlimited | Unlimited | Unlimited | |||||||||
| MTP | — | Unlimited | Unlimited | Unlimited | |||||||||
| VMTP | 1,500 | — | — | — |
| See accompanying notes to financial statements. |
| 66 | Nuveen Investments |
| Statement of | ||
| Operations | ||
| Year Ended February 29, 2012 |
Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Investment Income | $ | 13,040,223 | $ | 8,390,381 | $ | 2,293,461 | ||||
| Expenses | ||||||||||
| Management fees | 1,639,481 | 1,044,234 | 290,583 | |||||||
| Auction fees | 38,001 | 23,648 | — | |||||||
| Dividend disbursing agent fees | 23,342 | 5,041 | — | |||||||
| Shareholders’ servicing agent fees and expenses | 27,662 | 23,150 | 20,893 | |||||||
| Interest expense and amortization of offering costs | 787,697 | 426,405 | 496,226 | |||||||
| Custodian’s fees and expenses | 49,348 | 34,337 | 14,986 | |||||||
| Directors’/Trustees’ fees and expenses | 7,634 | 4,832 | 1,502 | |||||||
| Professional fees | 25,888 | 27,405 | 28,482 | |||||||
| Shareholders’ reports – printing and mailing expenses | 41,050 | 29,913 | 16,344 | |||||||
| Stock exchange listing fees | 8,911 | 8,911 | 269 | |||||||
| Investor relations expense | 19,682 | 13,148 | 4,305 | |||||||
| Other expenses | 32,630 | 27,459 | 26,328 | |||||||
| Total expenses before custodian fee credit and expense reimbursement | 2,701,326 | 1,668,483 | 899,918 | |||||||
| Custodian fee credit | (1,629 | ) | (756 | ) | (469 | ) | ||||
| Expense reimbursement | — | — | (13,341 | ) | ||||||
| Net expenses | 2,699,697 | 1,667,727 | 886,108 | |||||||
| Net investment income (loss) | 10,340,526 | 6,722,654 | 1,407,353 | |||||||
| Realized and Unrealized Gain (Loss) | ||||||||||
| Net realized gain (loss) from investments | 449,974 | 255,959 | 125,358 | |||||||
| Change in net unrealized appreciation (depreciation) of investments | 19,743,434 | 10,670,879 | 3,697,158 | |||||||
| Net realized and unrealized gain (loss) | 20,193,408 | 10,926,838 | 3,822,516 | |||||||
| Distributions to Auction Rate Preferred Shareholders | ||||||||||
| From net investment income | (111,599 | ) | (74,304 | ) | — | |||||
| Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders | (111,599 | ) | (74,304 | ) | — | |||||
| Net increase (decrease) in net assets applicable to Common shares from operations | $ | 30,422,335 | $ | 17,575,188 | $ | 5,229,869 |
| See accompanying notes to financial statements. |
| Nuveen Investments | 67 |
| Statement of | ||
Operations (continued) | ||
| Year Ended February 29, 2012 |
Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Investment Income | $ | 12,007,995 | $ | 4,936,763 | $ | 3,607,165 | $ | 2,654,827 | |||||
| Expenses | |||||||||||||
| Management fees | 1,462,198 | 605,541 | 446,847 | 321,313 | |||||||||
| Auction fees | 37,018 | — | 1,263 | 1,791 | |||||||||
| Dividend disbursing agent fees | 30,849 | 1,671 | 6,712 | 2,505 | |||||||||
| Shareholders’ servicing agent fees and expenses | 29,536 | 22,789 | 17,281 | 17,133 | |||||||||
| Interest expense and amortization of offering costs | 635,808 | 987,589 | 710,867 | 543,653 | |||||||||
| Custodian’s fees and expenses | 47,029 | 22,317 | 18,558 | 15,419 | |||||||||
| Directors’/Trustees’ fees and expenses | 6,803 | 3,135 | 2,366 | 1,808 | |||||||||
| Professional fees | 26,621 | 27,247 | 27,677 | 27,977 | |||||||||
| Shareholders’ reports – printing and mailing expenses | 39,505 | 24,551 | 18,433 | 15,688 | |||||||||
| Stock exchange listing fees | 8,941 | 18,632 | 410 | 283 | |||||||||
| Investor relations expense | 18,253 | 8,200 | 5,663 | 4,220 | |||||||||
| Other expenses | 29,434 | 14,732 | 20,555 | 27,427 | |||||||||
| Total expenses before custodian fee credit and expense reimbursement | 2,371,995 | 1,736,404 | 1,276,632 | 979,217 | |||||||||
| Custodian fee credit | (918 | ) | (639 | ) | (673 | ) | (375 | ) | |||||
| Expense reimbursement | — | (3,973 | ) | (20,491 | ) | (27,603 | ) | ||||||
| Net expenses | 2,371,077 | 1,731,792 | 1,255,468 | 951,239 | |||||||||
| Net investment income (loss) | 9,636,918 | 3,204,971 | 2,351,697 | 1,703,588 | |||||||||
| Realized and Unrealized Gain (Loss) | |||||||||||||
| Net realized gain (loss) from investments | 292,727 | 109,129 | 40,580 | 22,930 | |||||||||
| Change in net unrealized appreciation (depreciation) of investments | 16,197,758 | 7,168,857 | 5,041,870 | 3,344,614 | |||||||||
| Net realized and unrealized gain (loss) | 16,490,485 | 7,277,986 | 5,082,450 | 3,367,544 | |||||||||
| Distributions to Auction Rate Preferred Shareholders | |||||||||||||
| From net investment income | (93,231 | ) | (5,183 | ) | (13,173 | ) | (12,346 | ) | |||||
| Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders | (93,231 | ) | (5,183 | ) | (13,173 | ) | (12,346 | ) | |||||
| Net increase (decrease) in net assets applicable to Common shares from operations | $ | 26,034,172 | $ | 10,477,774 | $ | 7,420,974 | $ | 5,058,786 | |||||
| See accompanying notes to financial statements. |
| 68 | Nuveen Investments |
| Statement of | ||
| Changes in Net Assets |
Michigan Quality Income (NUM) | Michigan Premium Income (NMP) | Michigan Dividend Advantage (NZW) | |||||||||||||||||
Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||||
| Operations | |||||||||||||||||||
| Net investment income (loss) | $ | 10,340,526 | $ | 10,879,743 | $ | 6,722,654 | $ | 7,025,371 | $ | 1,407,353 | $ | 1,732,620 | |||||||
| Net realized gain (loss) from investments | 449,974 | 248,011 | 255,959 | 92,219 | 125,358 | 7,965 | |||||||||||||
| Change in net unrealized appreciation (depreciation) of investments | 19,743,434 | (8,256,526 | ) | 10,670,879 | (4,081,282 | ) | 3,697,158 | (1,457,657 | ) | ||||||||||
Distributions to Auction Rate Preferred Shareholders from net investment income | (111,599 | ) | (363,829 | ) | (74,304 | ) | (224,505 | ) | — | (46,443 | ) | ||||||||
| Net increase (decrease) in net assets applicable to Common shares from operations | 30,422,335 | 2,507,399 | 17,575,188 | 2,811,803 | 5,229,869 | 236,485 | |||||||||||||
| Distributions to Common Shareholders | |||||||||||||||||||
| From net investment income | (9,984,065 | ) | (9,571,838 | ) | (6,502,830 | ) | (6,243,504 | ) | (1,650,681 | ) | (1,633,328 | ) | |||||||
| Decrease in net assets applicable to Common shares from distributions to Common shareholders | (9,984,065 | ) | (9,571,838 | ) | (6,502,830 | ) | (6,243,504 | ) | (1,650,681 | ) | (1,633,328 | ) | |||||||
| Capital Share Transactions | |||||||||||||||||||
| Common shares: | |||||||||||||||||||
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | — | — | — | — | — | — | |||||||||||||
| Repurchased and retired | (44,268 | ) | (43,408 | ) | — | (105,018 | ) | — | (20,395 | ) | |||||||||
| Net increase (decrease) in net assets applicable to Common shares from capital share transactions | (44,268 | ) | (43,408 | ) | — | (105,018 | ) | — | (20,395 | ) | |||||||||
| Net increase (decrease) in net assets applicable to Common shares | 20,394,002 | (7,107,847 | ) | 11,072,358 | (3,536,719 | ) | 3,579,188 | (1,417,238 | ) | ||||||||||
| Net assets applicable to Common shares at the beginning of period | 163,875,643 | 170,983,490 | 106,082,641 | 109,619,360 | 27,709,639 | 29,126,877 | |||||||||||||
| Net assets applicable to Common shares at the end of period | $ | 184,269,645 | $ | 163,875,643 | $ | 117,154,999 | $ | 106,082,641 | $ | 31,288,827 | $ | 27,709,639 | |||||||
| Undistributed (Over-distribution of) net investment income at the end of period | $ | 3,336,932 | $ | 2,994,016 | $ | 2,024,198 | $ | 1,865,189 | $ | 278,497 | $ | 409,933 | |||||||
| See accompanying notes to financial statements. |
| Nuveen Investments | 69 |
| Statement of | ||
Changes in Net Assets (continued) |
Ohio Quality Income (NUO) | Ohio Dividend Advantage (NXI) | Ohio Dividend Advantage 2 (NBJ) | |||||||||||||||||
Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||||
| Operations | |||||||||||||||||||
| Net investment income (loss) | $ | 9,636,918 | $ | 9,896,422 | $ | 3,204,971 | $ | 3,972,782 | $ | 2,351,697 | $ | 2,931,225 | |||||||
| Net realized gain (loss) from investments | 292,727 | (1,695,269 | ) | 109,129 | (759,748 | ) | 40,580 | (317,234 | ) | ||||||||||
| Change in net unrealized appreciation (depreciation) of investments | 16,197,758 | (6,159,347 | ) | 7,168,857 | (3,186,614 | ) | 5,041,870 | (2,015,524 | ) | ||||||||||
| Distributions to Auction Rate Preferred Shareholders from net investment income | (93,231 | ) | (304,704 | ) | (5,183 | ) | (107,603 | ) | (13,173 | ) | (90,237 | ) | |||||||
| Net increase (decrease) in net assets applicable to Common shares from operations | 26,034,172 | 1,737,102 | 10,477,774 | (81,183 | ) | 7,420,974 | 508,230 | ||||||||||||
| Distributions to Common Shareholders | |||||||||||||||||||
| From net investment income | (9,072,612 | ) | (8,744,701 | ) | (3,745,126 | ) | (3,699,495 | ) | (2,622,819 | ) | (2,613,100 | ) | |||||||
| Decrease in net assets applicable to Common shares from distributions to Common shareholders | (9,072,612 | ) | (8,744,701 | ) | (3,745,126 | ) | (3,699,495 | ) | (2,622,819 | ) | (2,613,100 | ) | |||||||
| Capital Share Transactions | |||||||||||||||||||
| Common shares: | |||||||||||||||||||
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | 193,317 | 123,278 | 9,522 | 40,145 | — | 13,809 | |||||||||||||
| Repurchased and retired | — | — | — | — | — | — | |||||||||||||
| Net increase (decrease) in net assets applicable to Common shares from capital share transactions | 193,317 | 123,278 | 9,522 | 40,145 | — | 13,809 | |||||||||||||
| Net increase (decrease) in net assets applicable to Common shares | 17,154,877 | (6,884,321 | ) | 6,742,170 | (3,740,533 | ) | 4,798,155 | (2,091,061 | ) | ||||||||||
| Net assets applicable to Common shares at the beginning of period | 150,554,522 | 157,438,843 | 60,549,962 | 64,290,495 | 43,909,208 | 46,000,269 | |||||||||||||
| Net assets applicable to Common shares at the end of period | $ | 167,709,399 | $ | 150,554,522 | $ | 67,292,132 | $ | 60,549,962 | $ | 48,707,363 | $ | 43,909,208 | |||||||
| Undistributed (Over-distribution of)net investment income at the end of period | $ | 3,309,669 | $ | 2,761,677 | $ | 685,848 | $ | 1,034,310 | $ | 673,179 | $ | 766,971 | |||||||
| See accompanying notes to financial statements. |
| 70 | Nuveen Investments |
Ohio Dividend Advantage 3 (NVJ) | |||||||
Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||
| Operations | |||||||
| Net investment income (loss) | $ | 1,703,588 | $ | 2,177,014 | |||
| Net realized gain (loss) from investments | 22,930 | (343,731 | ) | ||||
| Change in net unrealized appreciation (depreciation) of investments | 3,344,614 | (1,945,414 | ) | ||||
| Distributions to Auction Rate Preferred Shareholders from net investment income | (12,346 | ) | (65,024 | ) | |||
| Net increase (decrease) in net assets applicable to Common shares from operations | 5,058,786 | (177,155 | ) | ||||
| Distributions to Common Shareholders | |||||||
| From net investment income | (1,955,351 | ) | (1,938,643 | ) | |||
| Decrease in net assets applicable to Common shares from distributions to Common shareholders | (1,955,351 | ) | (1,938,643 | ) | |||
| Capital Share Transactions | |||||||
| Common shares: | |||||||
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | 3,834 | 22,090 | |||||
| Repurchased and retired | — | — | |||||
| Net increase (decrease) in net assets applicable to Common shares from capital share transactions | 3,834 | 22,090 | |||||
| Net increase (decrease) in net assets applicable to Common shares | 3,107,269 | (2,093,708 | ) | ||||
| Net assets applicable to Common shares at the beginning of period | 30,967,975 | 33,061,683 | |||||
| Net assets applicable to Common shares at the end of period | $ | 34,075,244 | $ | 30,967,975 | |||
| Undistributed (Over-distribution of) net investment income at the end of period | $ | 523,705 | $ | 624,640 | |||
| See accompanying notes to financial statements. |
| Nuveen Investments | 71 |
| Statement of | ||
| Cash Flows | ||
| Year Ended February 29, 2012 |
Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Cash Flows from Operating Activities: | ||||||||||
| Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations | $ | 30,422,335 | $ | 17,575,188 | $ | 5,229,869 | ||||
| Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: | ||||||||||
| Purchases of investments | (35,320,208 | ) | (29,620,564 | ) | (12,679,189 | ) | ||||
| Proceeds from sales and maturities of investments | 37,633,805 | 29,895,095 | 13,623,033 | |||||||
| Amortization (Accretion) of premiums and discounts, net | (479,622 | ) | 270,939 | 11,751 | ||||||
| (Increase) Decrease in: | ||||||||||
| Receivable for interest | 181,529 | 221,467 | 56,236 | |||||||
| Receivable for investments sold | (739,304 | ) | (444,950 | ) | (131,463 | ) | ||||
| Other assets | 25,303 | 44,399 | 3,667 | |||||||
| Increase (Decrease) in: | ||||||||||
| Payable for Auction Rate Preferred Share dividends | (2,714 | ) | (2,814 | ) | (1,085 | ) | ||||
| Payable for interest | 82,736 | 50,734 | 1,039 | |||||||
| Payable for investments purchased | (1,069,147 | ) | (839,820 | ) | (324,375 | ) | ||||
| Accrued management fees | 13,697 | 7,917 | 4,151 | |||||||
| Accrued other expenses | 19,285 | 5,117 | 18,191 | |||||||
| Net realized (gain) loss from investments | (449,974 | ) | (255,959 | ) | (125,358 | ) | ||||
| Change in net unrealized (appreciation) depreciation of investments | (19,743,434 | ) | (10,670,879 | ) | (3,697,158 | ) | ||||
| Taxes paid on undistributed capital gains | — | — | — | |||||||
| Net cash provided by (used in) operating activities | 10,574,287 | 6,235,870 | 1,989,309 | |||||||
| Cash Flows from Financing Activities: | ||||||||||
| (Increase) Decrease in deferred offering costs | (380,557 | ) | (108,391 | ) | 114,129 | |||||
| Increase (Decrease) in: | ||||||||||
| Payable for offering costs | 4,202 | — | (76,668 | ) | ||||||
| MTP Shares, at liquidation value | — | — | — | |||||||
| VMTP Shares, at liquidation value | 87,900,000 | 53,900,000 | — | |||||||
| ARPS, at liquidation value | (87,325,000 | ) | (53,700,000 | ) | — | |||||
| Cash distributions paid to Common shareholders | (9,934,926 | ) | (6,471,033 | ) | (1,651,581 | ) | ||||
| Cost of Common shares repurchased and retired | (44,268 | ) | — | — | ||||||
| Net cash provided by (used in) financing activities | (9,780,549 | ) | (6,379,424 | ) | (1,614,120 | ) | ||||
| Net Increase (Decrease) in Cash | 793,738 | (143,554 | ) | 375,189 | ||||||
| Cash at the beginning of period | 1,236,776 | 244,205 | 162,977 | |||||||
| Cash at the End of Period | $ | 2,030,514 | $ | 100,651 | $ | 538,166 | ||||
| Supplemental Disclosure of Cash Flow Information | ||||||||||
Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows: | ||||||||||
Michigan Quality Income (NUM) | Michigan Premium Income (NMP) | Michigan Dividend Advantage (NZW) | ||||||||
| $ | — | $ | — | $ | — | |||||
Cash paid for interest (excluding amortization of offering costs) was as follows: | ||||||||||
Michigan Quality Income (NUM) | Michigan Premium Income (NMP) | Michigan Dividend Advantage (NZW) | ||||||||
| $ | 605,518 | $ | 349,062 | $ | 381,057 | |||||
| See accompanying notes to financial statements. |
| 72 | Nuveen Investments |
Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Cash Flows from Operating Activities: | |||||||||||||
| Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations | $ | 26,034,172 | $ | 10,477,774 | $ | 7,420,974 | $ | 5,058,786 | |||||
| Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: | |||||||||||||
| Purchases of investments | (23,701,486 | ) | (14,602,411 | ) | (12,663,283 | ) | (9,094,558 | ) | |||||
| Proceeds from sales and maturities of investments | 24,616,571 | 16,321,160 | 11,621,846 | 7,087,284 | |||||||||
| Amortization (Accretion) of premiums and discounts, net | (196,298 | ) | (46,154 | ) | 3,225 | (63,870 | ) | ||||||
| (Increase) Decrease in: | |||||||||||||
| Receivable for interest | (32,127 | ) | 83,232 | 96,260 | 28,277 | ||||||||
| Receivable for investments sold | (708,845 | ) | (304,624 | ) | (684,931 | ) | (304,624 | ) | |||||
| Other assets | 20,647 | 9,655 | 20,608 | 30,444 | |||||||||
| Increase (Decrease) in: | |||||||||||||
| Payable for Auction Rate Preferred Share dividends | (3,405 | ) | (1,072 | ) | (288 | ) | (1,090 | ) | |||||
| Payable for interest | 69,182 | 30,878 | 49,064 | 37,380 | |||||||||
| Payable for investments purchased | 162,434 | 794,764 | 162,434 | 40,608 | |||||||||
| Accrued management fees | 11,877 | 7,920 | 7,228 | 5,180 | |||||||||
| Accrued other expenses | 14,677 | 8,061 | 20,437 | 13,849 | |||||||||
| Net realized (gain) loss from investments | (292,727 | ) | (109,129 | ) | (40,580 | ) | (22,930 | ) | |||||
| Change in net unrealized (appreciation) depreciation of investments | (16,197,758 | ) | (7,168,857 | ) | (5,041,870 | ) | (3,344,614 | ) | |||||
| Taxes paid on undistributed capital gains | (924 | ) | (906 | ) | (187 | ) | — | ||||||
| Net cash provided by (used in) operating activities | 9,795,990 | 5,500,291 | 970,937 | (529,878 | ) | ||||||||
| Cash Flows from Financing Activities: | |||||||||||||
| (Increase) Decrease in deferred offering costs | (332,987 | ) | (282,957 | ) | (471,145 | ) | (421,979 | ) | |||||
| Increase (Decrease) in: | |||||||||||||
| Payable for offering costs | 8,381 | 69,521 | 147,229 | 116,712 | |||||||||
| MTP Shares, at liquidation value | — | 11,653,400 | 24,244,000 | 18,470,150 | |||||||||
| VMTP Shares, at liquidation value | 73,500,000 | — | — | — | |||||||||
| ARPS, at liquidation value | (73,000,000 | ) | (12,500,000 | ) | (21,600,000 | ) | (15,500,000 | ) | |||||
| Cash distributions paid to Common shareholders | (8,828,795 | ) | (3,730,553 | ) | (2,621,598 | ) | (1,950,372 | ) | |||||
| Cost of Common shares repurchased and retired | — | — | — | — | |||||||||
| Net cash provided by (used in) financing activities | (8,653,401 | ) | (4,790,589 | ) | (301,514 | ) | 714,511 | ||||||
| Net Increase (Decrease) in Cash | 1,142,589 | 709,702 | 669,423 | 184,633 | |||||||||
| Cash at the beginning of period | 568,662 | 863,753 | 151,833 | 120,673 | |||||||||
| Cash at the End of Period | $ | 1,711,251 | $ | 1,573,455 | $ | 821,256 | $ | 305,306 | |||||
| Supplemental Disclosure of Cash Flow Information | |||||||||||||
Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows: | |||||||||||||
| Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| $ | 193,317 | $ | 9,522 | $ | — | $ | 3,834 | ||||||
Cash paid for interest (excluding amortization of offering costs) was as follows: | |||||||||||||
Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| $ | 479,613 | $ | 755,349 | $ | 466,615 | $ | 338,585 | ||||||
| See accompanying notes to financial statements. |
| Nuveen Investments | 73 |
| Financial | ||
| Highlights | ||
| Selected data for a Common share outstanding throughout each period: | ||
| Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||||||
Beginning Common Share Net Asset Value | Net Investment Income (Loss | ) | Net Realized/ Unrealized Gain (Loss | ) | Distributions from Net Investment Income to Auction Rate Preferred Share- holders | (a) | Distributions from Capital Gains to Auction Rate Preferred Share- holders | (a) | Total | Net Investment Income to Common Share- holders | Capital Gains to Common Share- holders | Total | Discount from Common Shares Repurchased and Retired | Ending Common Share Net Asset Value | Ending Market Value | ||||||||||||||||||||||
| Michigan Quality Income (NUM) | |||||||||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||||||||
| 2012 | $ | 14.18 | $ | .89 | $ | 1.75 | $ | (.01 | ) | $ | — | $ | 2.63 | $ | (.86 | ) | $ | — | $ | (.86 | ) | $ | — | ** | $ | 15.95 | $ | 15.40 | |||||||||
| 2011 | 14.79 | .94 | (.69 | ) | (.03 | ) | — | .22 | (.83 | ) | — | (.83 | ) | — | ** | 14.18 | 12.75 | ||||||||||||||||||||
| 2010 | 13.55 | .93 | 1.06 | (.04 | ) | — | 1.95 | (.73 | ) | — | (.73 | ) | .02 | 14.79 | 12.94 | ||||||||||||||||||||||
| 2009(f) | 14.13 | .54 | (.60 | ) | (.13 | ) | — | (.19 | ) | (.39 | ) | — | (.39 | ) | — | 13.55 | 10.61 | ||||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||||||||
| 2008 | 14.96 | .93 | (.71 | ) | (.24 | ) | (.04 | ) | (.06 | ) | (.67 | ) | (.10 | ) | (.77 | ) | — | 14.13 | 12.32 | ||||||||||||||||||
| 2007 | 15.17 | .94 | (.10 | ) | (.25 | ) | (.02 | ) | .57 | (.71 | ) | (.07 | ) | (.78 | ) | — | 14.96 | 14.16 | |||||||||||||||||||
| Michigan Premium Income (NMP) | |||||||||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||||||||
| 2012 | 13.95 | .88 | 1.44 | (.01 | ) | — | 2.31 | (.86 | ) | — | (.86 | ) | — | 15.40 | 14.95 | ||||||||||||||||||||||
| 2011 | 14.40 | .92 | (.52 | ) | (.03 | ) | — | .37 | (.82 | ) | — | (.82 | ) | — | ** | 13.95 | 12.66 | ||||||||||||||||||||
| 2010 | 13.26 | .90 | .97 | (.04 | ) | — | 1.83 | (.71 | ) | — | (.71 | ) | .02 | 14.40 | 12.50 | ||||||||||||||||||||||
| 2009(f) | 13.87 | .52 | (.63 | ) | (.12 | ) | — | (.23 | ) | (.38 | ) | — | (.38 | ) | — | ** | 13.26 | 10.44 | |||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||||||||
| 2008 | 14.65 | .89 | (.69 | ) | (.23 | ) | (.02 | ) | (.05 | ) | (.66 | ) | (.07 | ) | (.73 | ) | — | 13.87 | 12.38 | ||||||||||||||||||
| 2007 | 14.92 | .90 | (.12 | ) | (.23 | ) | (.02 | ) | .53 | (.71 | ) | (.09 | ) | (.80 | ) | — | 14.65 | 13.80 | |||||||||||||||||||
| (a) | The amounts shown are based on Common share equivalents. |
| (b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| 74 | Nuveen Investments |
| Ratios/Supplemental Data | |||||||||||||||||
| Total Returns | Ratios to Average Net Assets Applicable to Common Shares(c)(d) | ||||||||||||||||
Based on Market Value | (b) | Based on Common Share Net Asset Value | (b) | Ending Net Assets Applicable to Common Shares (000) | Expenses | (e) | Net Investment Income (Loss | ) | Portfolio Turnover Rate | ||||||||
| 28.44 | % | 19.11 | % | $ | 184,270 | 1.56 | % | 5.97 | % | 14 | % | ||||||
| 4.69 | 1.39 | 163,876 | 1.18 | 6.37 | 6 | ||||||||||||
| 29.40 | 14.83 | 170,983 | 1.24 | 6.50 | 9 | ||||||||||||
| (10.68 | ) | (1.27 | ) | 158,717 | 1.33 | * | 6.93 | * | 3 | ||||||||
| (7.77 | ) | (.43 | ) | 165,525 | 1.29 | 6.28 | 18 | ||||||||||
| 3.64 | 3.77 | 175,244 | 1.26 | 6.12 | 13 | ||||||||||||
| 25.65 | 17.00 | 117,155 | 1.50 | 6.05 | 18 | ||||||||||||
| 7.72 | 2.55 | 106,083 | 1.20 | 6.42 | 4 | ||||||||||||
| 27.06 | 14.22 | 109,619 | 1.25 | 6.51 | 12 | ||||||||||||
| (12.57 | ) | (1.62 | ) | 102,434 | 1.32 | * | 6.83 | * | 3 | ||||||||
| (5.09 | ) | (.36 | ) | 107,488 | 1.38 | 6.16 | 20 | ||||||||||
| 2.16 | 3.59 | 113,558 | 1.38 | 5.97 | 15 | ||||||||||||
| (c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or VMTP Shares, where applicable. |
| (d) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | The expense ratios reflect, among other things, all interest expense and other costs related to VMTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively, as follows: |
| Michigan Quality Income (NUM) | ||||
| Year Ended 2/28–2/29: | ||||
| 2012 | .46 | % | ||
| 2011 | .02 | |||
| 2010 | .02 | |||
| 2009(f) | — | |||
| Year Ended 7/31: | ||||
| 2008 | .04 | |||
| 2007 | .04 | |||
| Michigan Premium Income (NMP) | ||||
| Year Ended 2/28–2/29: | ||||
| 2012 | .38 | |||
| 2011 | .02 | |||
| 2010 | .02 | |||
| 2009(f) | — | |||
| Year Ended 7/31: | ||||
| 2008 | .15 | |||
| 2007 | .16 |
| (f) | For the seven months ended February 28, 2009. |
| * | Annualized. |
| ** | Rounds to less than $.01 per share. |
| See accompanying notes to financial statements. |
| Nuveen Investments | 75 |
| Financial | ||
Highlights (continued) | ||
| Selected data for a Common share outstanding throughout each period: | ||
| Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||||||
Beginning Common Share Net Asset Value | Net Investment Income (Loss | ) | Net Realized/ Unrealized Gain (Loss | ) | Distributions from Net Investment Income to Auction Rate Preferred Share- holders | (a) | Distributions from Capital Gains to Auction Rate Preferred Share- holders | (a) | Total | Net Investment Income to Common Share- holders | Capital Gains to Common Share- holders | Total | Discount from Common Shares Repurchased and Retired | Ending Common Share Net Asset Value | Ending Market Value | ||||||||||||||||||||||
| Michigan Dividend Advantage (NZW) | |||||||||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||||||||
| 2012 | $ | 13.50 | $ | .69 | $ | 1.85 | $ | — | $ | — | $ | 2.54 | $ | (.80 | ) | $ | — | $ | (.80 | ) | $ | — | $ | 15.24 | $ | 14.31 | |||||||||||
| 2011 | 14.18 | .84 | (.70 | ) | (.02 | ) | — | .12 | (.80 | ) | — | (.80 | ) | — | ** | 13.50 | 12.13 | ||||||||||||||||||||
| 2010 | 12.69 | .91 | 1.32 | (.03 | ) | — | 2.20 | (.72 | ) | — | (.72 | ) | .01 | 14.18 | 12.43 | ||||||||||||||||||||||
| 2009(f) | 13.68 | .54 | (1.00 | ) | (.13 | ) | — | ** | (.59 | ) | (.39 | ) | (.01 | ) | (.40 | ) | — | 12.69 | 10.77 | ||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||||||||
| 2008 | 14.73 | .94 | (.95 | ) | (.24 | ) | (.02 | ) | (.27 | ) | (.71 | ) | (.07 | ) | (.78 | ) | — | 13.68 | 13.10 | ||||||||||||||||||
| 2007 | 14.94 | .95 | (.14 | ) | (.24 | ) | — | ** | .57 | (.77 | ) | (.01 | ) | (.78 | ) | — | 14.73 | 15.10 | |||||||||||||||||||
| (a) | The amounts shown are based on Common share equivalents. |
| (b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| 76 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Total Returns | Ratios to Average Net Assets Applicable to Common Shares Before Reimbursement(c) | Ratios to Average Net Assets Applicable to Common Shares After Reimbursement(c)(d) | ||||||||||||||||||||
Based on Market Value | (b) | Based on Common Share Net Asset Value | (b) | Ending Net Assets Applicable to Common Shares (000) | Expenses | (e) | Net Investment Income (Loss | ) | Expenses | (e) | Net Investment Income (Loss | ) | Portfolio Turnover Rate | |||||||||
| 25.34 | % | 19.38 | % | $ | 31,289 | 3.07 | % | 4.75 | % | 3.02 | % | 4.79 | % | 28 | % | |||||||
| 3.72 | .70 | 27,710 | 1.81 | 5.85 | 1.69 | 5.97 | 6 | |||||||||||||||
| 22.58 | 17.70 | 29,127 | 1.35 | 6.48 | 1.15 | 6.68 | 6 | |||||||||||||||
| (14.48 | ) | (4.20 | ) | 26,236 | 1.48 | * | 7.03 | * | 1.22 | * | 7.29 | * | 4 | |||||||||
| (8.10 | ) | (1.95 | ) | 28,285 | 1.39 | 6.23 | 1.07 | 6.55 | 18 | |||||||||||||
| .46 | 3.79 | 30,439 | 1.38 | 5.89 | .99 | 6.28 | 19 | |||||||||||||||
| (c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or MTP Shares, where applicable. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of September 30, 2011, the Adviser is no longer reimbursing Michigan Dividend Advantage (NZW) for any fees and expenses. |
| (e) | The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively, as follows: |
| Michigan Dividend Advantage (NZW) | ||||
| Year Ended 2/28–2/29: | ||||
| 2012 | 1.69 | % | ||
| 2011 | .52 | |||
| 2010 | .02 | |||
| 2009(f) | — | |||
| Year Ended 7/31: | ||||
| 2008 | .05 | |||
| 2007 | .03 |
| (f) | For the seven months ended February 28, 2009. |
| * | Annualized. |
| ** | Rounds to less than $.01 per share. |
| See accompanying notes to financial statements. |
| Nuveen Investments | 77 |
| Financial | ||
Highlights (continued) | ||
| Selected data for a Common share outstanding throughout each period: | ||
| Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||||||
Beginning Common Share Net Asset Value | Net Investment Income (Loss | ) | Net Realized/ Unrealized Gain (Loss | ) | Distributions from Net Investment Income to Auction Rate Preferred Share- holders | (a) | Distributions from Capital Gains to Auction Rate Preferred Share- holders | (a) | Total | Net Investment Income to Common Share- holders | Capital Gains to Common Share- holders | Total | Discount from Common Shares Repurchased and Retired | Ending Common Share Net Asset Value | Ending Market Value | ||||||||||||||||||||||
| Ohio Quality Income (NUO) | �� | ||||||||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||||||||
| 2012 | $ | 15.44 | $ | .99 | $ | 1.68 | $ | (.01 | ) | $ | — | $ | 2.66 | $ | (.93 | ) | $ | — | $ | (.93 | ) | $ | — | $ | 17.17 | $ | 16.88 | ||||||||||
| 2011 | 16.15 | 1.01 | (.79 | ) | (.03 | ) | — | .19 | (.90 | ) | — | (.90 | ) | — | 15.44 | 14.85 | |||||||||||||||||||||
| 2010 | 14.56 | 1.01 | 1.42 | (.04 | ) | — | 2.39 | (.80 | ) | — | (.80 | ) | — | 16.15 | 15.58 | ||||||||||||||||||||||
| 2009(f) | 15.04 | .56 | (.52 | ) | (.13 | ) | — | (.09 | ) | (.39 | ) | — | (.39 | ) | — | 14.56 | 12.90 | ||||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||||||||
| 2008 | 15.81 | .95 | (.71 | ) | (.25 | ) | (.02 | ) | (.03 | ) | (.67 | ) | (.07 | ) | (.74 | ) | — | 15.04 | 13.40 | ||||||||||||||||||
| 2007 | 16.01 | .96 | (.12 | ) | (.26 | ) | (.01 | ) | .57 | (.73 | ) | (.04 | ) | (.77 | ) | — | 15.81 | 14.43 | |||||||||||||||||||
| Ohio Dividend Advantage (NXI) | |||||||||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||||||||
| 2012 | 14.26 | .75 | 1.72 | — | ** | — | 2.47 | (.88 | ) | — | (.88 | ) | — | 15.85 | 15.52 | ||||||||||||||||||||||
| 2011 | 15.15 | .94 | (.93 | ) | (.03 | ) | — | (.02 | ) | (.87 | ) | — | (.87 | ) | — | 14.26 | 13.30 | ||||||||||||||||||||
| 2010 | 13.83 | .96 | 1.17 | (.04 | ) | — | 2.09 | (.77 | ) | — | (.77 | ) | — | ** | 15.15 | 14.48 | |||||||||||||||||||||
| 2009(f) | 14.25 | .54 | (.46 | ) | (.12 | ) | — | (.04 | ) | (.38 | ) | — | (.38 | ) | — | 13.83 | 12.10 | ||||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||||||||
| 2008 | 14.87 | .93 | (.55 | ) | (.23 | ) | (.03 | ) | .12 | (.65 | ) | (.09 | ) | (.74 | ) | — | 14.25 | 12.77 | |||||||||||||||||||
| 2007 | 15.02 | .94 | (.09 | ) | (.24 | ) | (.01 | ) | .60 | (.72 | ) | (.03 | ) | (.75 | ) | — | 14.87 | 14.39 | |||||||||||||||||||
| (a) | The amounts shown are based on Common share equivalents. |
| (b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| 78 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Total Returns | Ratios to Average Net Assets Applicable to Common Shares Before Reimbursement(c) | Ratios to Average Net Assets Applicable to Common Shares After Reimbursement(c)(d) | ||||||||||||||||||||
Based on Market Value | (b) | Based on Common Share Net Asset Value | (b) | Ending Net Assets Applicable to Common Shares (000) | Expenses | (e) | Net Investment Income (Loss | ) | Expenses | (e) | Net Investment Income (Loss | ) | Portfolio Turnover Rate | |||||||||
| 20.55 | % | 17.73 | % | $ | 167,709 | 1.50 | % | 6.10 | % | N/A | N/A | 10 | % | |||||||||
| .91 | 1.09 | 150,555 | 1.14 | 6.32 | N/A | N/A | 14 | |||||||||||||||
| 27.57 | 16.76 | 157,439 | 1.20 | 6.51 | N/A | N/A | 6 | |||||||||||||||
| (0.71 | ) | (0.49 | ) | 141,883 | 1.35 | * | 6.77 | * | N/A | N/A | 10 | |||||||||||
| (2.18 | ) | (.26 | ) | 146,617 | 1.42 | 6.08 | N/A | N/A | 14 | |||||||||||||
| (4.25 | ) | 3.56 | 154,052 | 1.29 | 5.94 | N/A | N/A | 15 | ||||||||||||||
| 24.11 | 17.88 | 67,292 | 2.74 | 5.05 | 2.73 | % | 5.06 | % | 16 | |||||||||||||
| (2.52 | ) | (.23 | ) | 60,550 | 1.41 | 6.18 | 1.33 | 6.26 | 14 | |||||||||||||
| 26.70 | 15.46 | 64,290 | 1.21 | 6.47 | 1.06 | 6.62 | 7 | |||||||||||||||
| (2.08 | ) | (0.15 | ) | 58,692 | 1.35 | * | 6.64 | * | 1.12 | * | 6.87 | * | 10 | |||||||||
| (6.21 | ) | .83 | 60,475 | 1.39 | 6.06 | 1.12 | 6.33 | 17 | ||||||||||||||
| .52 | 4.02 | 63,114 | 1.32 | 5.85 | .97 | 6.20 | 14 | |||||||||||||||
| (c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, MTP Shares and/or VMTP Shares, where applicable. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of March 31, 2011, the Adviser is no longer reimbursing Ohio Dividend Advantage (NXI) for any fees and expenses. |
| (e) | The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares, VMTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Footnote 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares, Variable Rate MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively, as follows: |
| Ohio Quality Income (NUO) | ||||
| Year Ended 2/28–2/29: | ||||
| 2012 | .40 | % | ||
| 2011 | — | |||
| 2010 | — | |||
| 2009(f) | .04 | * | ||
| Year Ended 7/31: | — | |||
| 2008 | .16 | |||
| 2007 | .10 | |||
| Ohio Dividend Advantage (NXI) | ||||
| Year Ended 2/28–2/29: | ||||
| 2012 | 1.56 | |||
| 2011 | .24 | |||
| 2010 | — | |||
| 2009(f) | .04 | * | ||
| Year Ended 7/31: | ||||
| 2008 | .15 | |||
| 2007 | .10 |
| (f) | For the seven months ended February 28, 2009. |
| * | Annualized. |
| ** | Rounds to less than $.01 per share. |
| N/A | Fund did not have, or no longer has, a contractual reimbursement agreement with the Adviser. |
| See accompanying notes to financial statements. |
| Nuveen Investments | 79 |
| Financial | ||
Highlights (continued) | ||
| Selected data for a Common share outstanding throughout each period: | ||
| Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||||||
Beginning Common Share Net Asset Value | Net Investment Income (Loss | ) | Net Realized/ Unrealized Gain (Loss | ) | Distributions from Net Investment Income to Auction Rate Preferred Share- holders | (a) | Distributions from Capital Gains to Auction Rate Preferred Share- holders | (a) | Total | Net Investment Income to Common Share- holders | Capital Gains to Common Share- holders | Total | Discount from Common Shares Repurchased and Retired | Ending Common Share Net Asset Value | Ending Market Value | ||||||||||||||||||||||
| Ohio Dividend Advantage 2 (NBJ) | |||||||||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||||||||
| 2012 | $ | 14.06 | $ | .75 | $ | 1.63 | $ | — | ** | $ | — | $ | 2.38 | $ | (.84 | ) | $ | — | $ | (.84 | ) | $ | — | $ | 15.60 | $ | 14.95 | ||||||||||
| 2011 | 14.74 | .94 | (.75 | ) | (.03 | ) | — | .16 | (.84 | ) | — | (.84 | ) | — | 14.06 | 13.01 | |||||||||||||||||||||
| 2010 | 13.06 | .93 | 1.53 | (.04 | ) | — | 2.42 | (.74 | ) | — | (.74 | ) | — | 14.74 | 13.85 | ||||||||||||||||||||||
| 2009(f) | 13.87 | .54 | (.84 | ) | (.13 | ) | — | (.43 | ) | (.38 | ) | — | (.38 | ) | — | 13.06 | 11.58 | ||||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||||||||
| 2008 | 14.64 | .93 | (.73 | ) | (.25 | ) | (.02 | ) | (.07 | ) | (.64 | ) | (.06 | ) | (.70 | ) | — | 13.87 | 12.37 | ||||||||||||||||||
| 2007 | 14.81 | .92 | (.10 | ) | (.25 | ) | (.01 | ) | .56 | (.69 | ) | (.04 | ) | (.73 | ) | — | 14.64 | 13.80 | |||||||||||||||||||
| Ohio Dividend Advantage 3 (NVJ) | |||||||||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||||||||
| 2012 | 14.35 | .79 | 1.57 | (.01 | ) | — | 2.35 | (.91 | ) | — | (.91 | ) | — | 15.79 | 16.20 | ||||||||||||||||||||||
| 2011 | 15.33 | 1.01 | (1.06 | ) | (.03 | ) | — | (.08 | ) | (.90 | ) | — | (.90 | ) | — | 14.35 | 13.72 | ||||||||||||||||||||
| 2010 | 13.97 | 1.00 | 1.19 | (.04 | ) | — | 2.15 | (.79 | ) | — | (.79 | ) | — | ** | 15.33 | 15.20 | |||||||||||||||||||||
| 2009(f) | 14.33 | .55 | (.39 | ) | (.12 | ) | — | .04 | (.40 | ) | — | (.40 | ) | — | 13.97 | 11.95 | |||||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||||||||
| 2008 | 14.92 | .95 | (.56 | ) | (.23 | ) | (.02 | ) | .14 | (.67 | ) | (.06 | ) | (.73 | ) | — | 14.33 | 12.91 | |||||||||||||||||||
| 2007 | 15.06 | .96 | (.08 | ) | (.25 | ) | (.01 | ) | .62 | (.72 | ) | (.04 | ) | (.76 | ) | — | 14.92 | 14.35 | |||||||||||||||||||
| (a) | The amounts shown are based on Common share equivalents. |
| (b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| 80 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Total Returns | Ratios to Average Net Assets Applicable to Common Shares Before Reimbursement(c) | Ratios to Average Net Assets Applicable to Common Shares After Reimbursement(c)(d) | ||||||||||||||||||||
Based on Market Value | (b) | Based on Common Share Net Asset Value | (b) | Ending Net Assets Applicable to Common Shares (000) | Expenses | (e) | Net Investment Income (Loss | ) | Expenses | (e) | Net Investment Income (Loss | ) | Portfolio Turnover Rate | |||||||||
| 22.12 | % | 17.44 | % | $ | 48,707 | 2.78 | % | 5.08 | % | 2.74 | % | 5.13 | % | 17 | % | |||||||
| (.37 | ) | 1.00 | 43,909 | 1.22 | 6.31 | 1.10 | 6.43 | 9 | ||||||||||||||
| 26.62 | 18.91 | 46,000 | 1.27 | 6.49 | 1.07 | 6.69 | 8 | |||||||||||||||
| (3.09 | ) | (3.01 | ) | 40,755 | 1.46 | * | 6.91 | * | 1.20 | * | 7.17 | * | 5 | |||||||||
| (5.46 | ) | (.51 | ) | 43,286 | 1.46 | 6.10 | 1.14 | 6.41 | 16 | |||||||||||||
| (1.26 | ) | 3.80 | 45,694 | 1.41 | 5.76 | 1.02 | 6.15 | 14 | ||||||||||||||
| 25.66 | 16.88 | 34,075 | 3.04 | 5.20 | 2.95 | 5.29 | 15 | |||||||||||||||
| (4.13 | ) | (.66 | ) | 30,968 | 1.26 | 6.53 | 1.10 | 6.69 | 12 | |||||||||||||
| 34.62 | 15.73 | 33,062 | 1.30 | 6.56 | 1.07 | 6.80 | 14 | |||||||||||||||
| (4.29 | ) | .36 | 30,127 | 1.46 | * | 6.63 | * | 1.15 | * | 6.93 | * | 9 | ||||||||||
| (5.13 | ) | .95 | 30,941 | 1.47 | 6.05 | 1.12 | 6.41 | 19 | ||||||||||||||
| 2.32 | 4.06 | 32,194 | 1.41 | 5.85 | .99 | 6.27 | 19 | |||||||||||||||
| (c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or MTP Shares, where applicable. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of September 30, 2011, the Adviser is no longer reimbursing Ohio Dividend Advantage 2 (NBJ) for any fees and expenses. |
| (e) | The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively, as follows: |
| Ohio Dividend Advantage 2 (NBJ) | ||||
| Year Ended 2/28–2/29: | ||||
| 2012 | 1.55 | % | ||
| 2011 | — | |||
| 2010 | — | |||
| 2009(f) | .04 | * | ||
| Year Ended 7/31: | ||||
| 2008 | .16 | |||
| 2007 | .10 | |||
| Ohio Dividend Advantage 3 (NVJ) | ||||
| Year Ended 2/28–2/29: | ||||
| 2012 | 1.69 | |||
| 2011 | — | |||
| 2010 | — | |||
| 2009(f) | .04 | * | ||
| Year Ended 7/31: | ||||
| 2008 | .15 | |||
| 2007 | .10 |
| (f) | For the seven months ended February 28, 2009. |
| * | Annualized. |
| ** | Rounds to less than $.01 per share. |
| See accompanying notes to financial statements. |
| Nuveen Investments | 81 |
| Financial | ||
Highlights (continued) |
| ARPS at the End of Period | VMTP Shares at the End of Period | ||||||||||||||||||
Aggregate Amount Outstanding (000) | Liquidation Value Per Share | Asset Coverage Per Share | Aggregate Amount Outstanding (000) | Liquidation Value Per Share | Asset Coverage Per Share | ||||||||||||||
| Michigan Quality Income (NUM) | |||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||
| 2012 | $ | — | $ | — | $ | — | $ | 87,900 | $ | 100,000 | $ | 309,636 | |||||||
| 2011 | 87,325 | 25,000 | 71,915 | — | — | — | |||||||||||||
| 2010 | 87,325 | 25,000 | 73,950 | — | — | — | |||||||||||||
| 2009(f) | 90,900 | 25,000 | 68,651 | — | — | — | |||||||||||||
| Year Ended 7/31: | |||||||||||||||||||
| 2008 | 94,000 | 25,000 | 69,023 | — | — | — | |||||||||||||
| 2007 | 94,000 | 25,000 | 71,607 | — | — | — | |||||||||||||
| Michigan Premium Income (NMP) | |||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||
| 2012 | — | — | — | 53,900 | 100,000 | 317,356 | |||||||||||||
| 2011 | 53,700 | 25,000 | 74,387 | — | — | — | |||||||||||||
| 2010 | 53,700 | 25,000 | 76,033 | — | — | — | |||||||||||||
| 2009(f) | 56,000 | 25,000 | 70,730 | — | — | — | |||||||||||||
| Year Ended 7/31: | |||||||||||||||||||
| 2008 | 56,000 | 25,000 | 72,986 | — | — | — | |||||||||||||
| 2007 | 56,000 | 25,000 | 75,695 | — | — | — | |||||||||||||
| (f) | For the seven months ended February 28, 2009. |
| 82 | Nuveen Investments |
| ARPS at the End of Period | MTP Shares at the End of Period (g) | ||||||||||||||||||
Aggregate Amount Outstanding (000) | Liquidation Value Per Share | Asset Coverage Per Share | Aggregate Amount Outstanding (000) | Liquidation Value Per Share | Asset Coverage Per Share | ||||||||||||||
| Michigan Dividend Advantage (NZW) | |||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||
| 2012 | $ | — | $ | — | $ | — | $ | 16,313 | $ | 10 | $ | 29.18 | |||||||
| 2011 | — | — | — | 16,313 | 10 | 26.99 | |||||||||||||
| 2010 | 14,275 | 25,000 | 76,010 | — | — | — | |||||||||||||
| 2009(f) | 14,925 | 25,000 | 68,946 | — | — | — | |||||||||||||
| Year Ended 7/31: | |||||||||||||||||||
| 2008 | 16,000 | 25,000 | 69,195 | — | — | — | |||||||||||||
| 2007 | 16,000 | 25,000 | 72,561 | — | — | — | |||||||||||||
| (f) | For the seven months ended February 28, 2009. |
| (g) | The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows: |
| Series | Ending Market Value Per Share | Average Market Value Per Share | ||||||||
| Michigan Dividend Advantage (NZW) | ||||||||||
| Year Ended 2/28–2/29: | ||||||||||
| 2012 | 2015 | $ | 10.08 | $ | 9.95 | |||||
| 2011 | 2015 | 9.73 | 9.82 | ^ | ||||||
| 2010 | — | — | — | |||||||
| 2009(f) | — | — | — | |||||||
| Year Ended 7/31: | ||||||||||
| 2008 | — | — | — | |||||||
| 2007 | — | — | — |
| ^ | For the period November 15, 2010 (first issuance date of shares) through February 28, 2011. |
| See accompanying notes to financial statements. |
| Nuveen Investments | 83 |
| Financial | ||
Highlights (continued) |
| ARPS at the End of Period | MTP Shares at the End of Period (g) | VMTP Shares at the End of Period | ARPS and MTP Shares at the End of Period | ||||||||||||||||||||||||||||
Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | Asset Coverage Per Share | Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | Asset Coverage Per Share | Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | Asset Coverage Per Share | Asset Coverage Per $1 Liquidation Preference | |||||||||||||||||||
| Ohio Quality Income (NUO) | |||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||
| 2012 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 73,500 | $ | 100,000 | $ | 328,176 | $ | — | |||||||||||
| 2011 | 73,000 | 25,000 | 76,560 | — | — | — | — | — | — | — | |||||||||||||||||||||
| 2010 | 73,000 | 25,000 | 78,917 | — | — | — | — | — | — | — | |||||||||||||||||||||
| 2009(f) | 77,000 | 25,000 | 71,066 | — | — | — | — | — | — | — | |||||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||
| 2008 | 77,000 | 25,000 | 72,603 | — | — | — | — | — | — | — | |||||||||||||||||||||
| 2007 | 77,000 | 25,000 | 75,017 | — | — | — | — | — | — | — | |||||||||||||||||||||
| Ohio Dividend Advantage (NXI) | |||||||||||||||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||||||||||||||
| 2012 | — | — | — | 31,103 | 10 | 31.63 | — | — | — | — | |||||||||||||||||||||
| 2011 | 12,500 | 25,000 | 72,379 | 19,450 | 10 | 28.95 | — | — | — | 2.90 | |||||||||||||||||||||
| 2010 | 29,000 | 25,000 | 80,423 | — | — | — | — | — | — | — | |||||||||||||||||||||
| 2009(f) | 31,000 | 25,000 | 72,332 | — | — | — | — | — | — | — | |||||||||||||||||||||
| Year Ended 7/31: | |||||||||||||||||||||||||||||||
| 2008 | 31,000 | 25,000 | 73,770 | — | — | — | — | — | — | — | |||||||||||||||||||||
| 2007 | 31,000 | 25,000 | 75,898 | — | — | — | — | — | — | — | |||||||||||||||||||||
| (f) | For the seven months ended February 28, 2009. |
| (g) | The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows: |
| Series | Ending Market Value Per Share | Average Market Value Per Share | Series | Ending Market Value Per Share | Average Market Value Per Share | ||||||||||||||
| Ohio Dividend Advantage (NXI) | |||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||
| 2012 | 2015 | $ | 10.08 | $ | 10.01 | 2016 | $ | 10.18 | $ | 10.12 | ^^ | ||||||||
| 2011 | 2015 | 9.78 | 9.85 | ^ | — | — | — | ||||||||||||
| 2010 | — | — | — | — | — | — | |||||||||||||
| 2009(f) | — | — | — | — | — | — | |||||||||||||
| Year Ended 7/31: | |||||||||||||||||||
| 2008 | — | — | — | — | — | — | |||||||||||||
| 2007 | — | — | — | — | — | — | |||||||||||||
| ^ | For the period November 22, 2010 (first issuance date of shares) through February 28, 2011. |
| ^^ | For the period March 18, 2011 (first issuance of shares) through February 29, 2012. |
| 84 | Nuveen Investments |
| ARPS at the End of Period | MTP Shares at the End of Period (g) | ||||||||||||||||||
Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | Asset Coverage Per Share | Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | Asset Coverage Per Share | ||||||||||||
| Ohio Dividend Advantage 2 (NBJ) | |||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||
| 2012 | $ | — | $ | — | $ | — | $ | 24,244 | $ | 10 | $ | 30.09 | |||||||
| 2011 | 21,600 | 25,000 | 75,821 | — | — | — | |||||||||||||
| 2010 | 21,600 | 25,000 | 78,241 | — | — | — | |||||||||||||
| 2009(f) | 23,100 | 25,000 | 69,107 | — | — | — | |||||||||||||
| Year Ended 7/31: | |||||||||||||||||||
| 2008 | 24,000 | 25,000 | 70,090 | — | — | — | |||||||||||||
| 2007 | 24,000 | 25,000 | 72,598 | — | — | — | |||||||||||||
| Ohio Dividend Advantage 3 (NVJ) | |||||||||||||||||||
| Year Ended 2/28–2/29: | |||||||||||||||||||
| 2012 | — | — | — | 18,470 | $ | 10 | 28.45 | ||||||||||||
| 2011 | 15,500 | 25,000 | 74,948 | — | — | — | |||||||||||||
| 2010 | 15,500 | 25,000 | 78,325 | — | — | — | |||||||||||||
| 2009(f) | 16,500 | 25,000 | 70,647 | — | — | — | |||||||||||||
| Year Ended 7/31: | |||||||||||||||||||
| 2008 | 16,500 | 25,000 | 71,881 | — | — | — | |||||||||||||
| 2007 | 16,500 | 25,000 | 73,778 | — | — | — | |||||||||||||
| (f) | For the seven months ended February 28, 2009. |
| (g) | The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows: |
| Series | Ending Market Value Per Share | Average Market Value Per Share | ||||||||
| Ohio Dividend Advantage 2 (NBJ) | ||||||||||
| Year Ended 2/28–2/29: | ||||||||||
| 2012 | 2014 | $ | 10.07 | $ | 10.09 | ^ | ||||
| 2011 | — | — | — | |||||||
| 2010 | — | — | — | |||||||
| 2009(f) | — | — | — | |||||||
| Year Ended 7/31: | ||||||||||
| 2008 | — | — | — | |||||||
| 2007 | — | — | — | |||||||
| Ohio Dividend Advantage 3 (NVJ) | ||||||||||
| Year Ended 2/28–2/29: | ||||||||||
| 2012 | 2014 | 10.10 | 10.20 | ^^ | ||||||
| 2011 | — | — | — | |||||||
| 2010 | — | — | — | |||||||
| 2009(f) | — | — | — | |||||||
| Year Ended 7/31: | ||||||||||
| 2008 | — | — | — | |||||||
| 2007 | — | — | — | |||||||
| ^ | For the period April 5, 2011 (first issuance date of shares) through February 29, 2012. |
| ^^ | For the period April 19, 2011 (first issuance date of shares) through February 29, 2012. |
| See accompanying notes to financial statements. |
| Nuveen Investments | 85 |
| Notes to | ||
| Financial Statements |
1. General Information and Significant Accounting Policies
General Information
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) (each a “Fund” and 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 (“NYSE”) 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 Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end registered investment companies.
Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Prices of municipal bonds are provided by a pricing service approved by the Funds’ Board of Directors/Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. When price quotes are not readily available (which is usually the case for municipal bonds) the pricing service establishes a security’s fair value using methods that may include consideration of the following: 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. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by Nuveen Fund Advisors, Inc. (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors/Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: 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. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors/Trustees or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
| 86 | Nuveen Investments |
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. 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 29, 2012, Michigan Quality Income (NUM), Ohio Quality Income (NUO), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ), and Ohio Dividend Advantage 3 (NVJ) had outstanding when-issued/delayed delivery purchase commitments of $1,063,729, $162,434, $794,764, $162,434 and $40,608, respectively. There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects 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 (“RICs”). Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from 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 net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Auction Rate Preferred Shares
Each Fund is authorized to issue Auction Rate Preferred Shares (“ARPS”). As of February 28, 2011, Michigan Dividend Advantage (NZW) redeemed all of its outstanding ARPS at liquidation value. During the fiscal year ended February 29, 2012, each Fund, with the exception of Michigan Dividend Advantage (NZW), had issued and outstanding ARPS, $25,000 stated value per share, which approximates market value, as a means of effecting financial leverage. Each Fund’s ARPS were issued in one or more Series. The dividend rate paid by the Funds on each Series was determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and was payable at the end of each rate period.
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions “failed to clear,’’ and that many ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. ARPS shareholders unable to sell their shares received distributions at the “maximum rate’’ applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of February 29, 2012, each Fund redeemed all of their outstanding ARPS, at liquidation value, as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| ARPS redeemed, at liquidation value | $ | 94,000,000 | $ | 56,000,000 | $ | 16,000,000 | ||||
| Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| ARPS redeemed, at liquidation value | $ | 77,000,000 | $ | 31,000,000 | $ | 24,000,000 | $ | 16,500,000 | |||||
| Nuveen Investments | 87 |
| Notes to | ||
Financial Statements (continued) |
MuniFund Term Preferred Shares
The following Funds have issued and outstanding MuniFund Term Preferred (“MTP”) Shares, with a $10 stated (“par”) value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem all, or a portion of, each Fund’s outstanding ARPS. Each Fund’s MTP Shares are issued in one or more Series. Dividends on MTP Shares, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of February 29, 2012, the number of MTP Shares outstanding, annual interest rate and NYSE “ticker” symbol for each Fund’s series of MTP Shares are as follows:
| Michigan Dividend Advantage (NZW) | Ohio Dividend Advantage (NXI) | ||||||||||||||||||
| Shares Outstanding | Annual Interest Rate | NYSE Ticker | Shares Outstanding | Annual Interest Rate | NYSE Ticker | ||||||||||||||
| Series 2015 | 1,631,300 | 2.30 | % | NZW Pr C | 1,945,000 | 2.35 | % | NXI Pr C | |||||||||||
| Series 2016 | — | — | — | 1,165,340 | 2.95 | NXI Pr D | |||||||||||||
| Ohio Dividend Advantage 2 (NBJ) | Ohio Dividend Advantage 3 (NVJ) | ||||||||||||||||||
| Shares Outstanding | Annual Interest Rate | NYSE Ticker | Shares Outstanding | Annual Interest Rate | NYSE Ticker | ||||||||||||||
| Series 2014 | 2,424,400 | 2.35 | % | NBJ Pr A | 1,847,015 | 2.35 | % | NVJ Pr A | |||||||||||
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to a payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s series of MTP Shares are as follows:
| Michigan Dividend Advantage (NZW) Series 2015 | Ohio Dividend Advantage (NXI) Series 2015 | Ohio Dividend Advantage (NXI) Series 2016 | Ohio Dividend Advantage 2 (NBJ) Series 2014 | Ohio Dividend Advantage 3 (NVJ) Series 2014 | ||||||||||||
| Term Redemption Date | December 1, 2015 | December 1, 2015 | April 1, 2016 | May 1, 2014 | May 1, 2014 | |||||||||||
| Optional Redemption Date | December 1, 2011 | December 1, 2011 | April 1, 2012 | April 1, 2012 | May 1, 2012 | |||||||||||
| Premium Expiration Date | November 30, 2012 | November 30, 2012 | March 31, 2013 | March 31, 2013 | April 30, 2013 | |||||||||||
The average liquidation value of all MTP Shares outstanding for each Fund during the fiscal year ended February 29, 2012, was as follows:
| Michigan Dividend Advantage (NZW | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | )* | Ohio Dividend Advantage 3 (NVJ | )** | ||||||
| Average liquidation value of MTP Shares outstanding | $ | 16,313,000 | $ | 30,541,860 | $ | 24,082,806 | $ | 18,401,751 | |||||
| * | For the period April 5, 2011 (first issuance date of shares) through February 29, 2012. |
| ** | For the period April 19, 2011 (first issuance date of shares) through February 29, 2012. |
For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
Nuveen has agreed that net amounts earned by Nuveen as underwriter of each Fund’s MTP Share offerings would be credited to the Funds, and would be recorded as reductions of offering costs recognized by the Funds. During the fiscal year ended February 29, 2012, the net amounts earned by Nuveen for each Fund were as follows:
Michigan Dividend Advantage (NZW | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Net amounts earned by Nuveen | $ | — | $ | 482 | $ | 1,717 | $ | 1,209 | |||||
| 88 | Nuveen Investments |
Variable Rate MuniFund Term Preferred Shares
The following Funds have issued and outstanding Variable Rate MuniFund Term Preferred (“VMTP”) Shares, with a $100,000 liquidation value per share. Michigan Quality Income (NUM), Michigan Premium Income (NMP) and Ohio Quality Income (NUO) each issued its VMTP Shares in a privately negotiated offering in July 2011. Proceeds from the issuance of VMTP Shares, net of offering expenses, were used to redeem each Fund’s outstanding ARPS. Each Fund’s VMTP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. As of February 29, 2012, the number of VMTP Shares outstanding, at liquidation value, for each Fund are as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Ohio Quality Income (NUO | ) | |||||
| Series 2014 | $ | 87,900,000 | $ | 53,900,000 | $ | 73,500,000 | ||||
Each Fund is obligated to redeem its VMTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The VMTP Shares are subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. Each Fund may be obligated to redeem certain of the VMTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s VMTP Shares are as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Ohio Quality Income (NUO | ) | |||||
| Term Redemption Date | August 1, 2014 | August 1, 2014 | August 1, 2014 | |||||||
| Optional Redemption Date | August 1, 2012 | August 1, 2012 | August 1, 2012 | |||||||
| Premium Expiration Date | July 31, 2012 | July 31, 2012 | July 31, 2012 | |||||||
The average liquidation value of VMTP Shares outstanding and annualized dividend rate of VMTP Shares for each Fund during the fiscal year ended February 29, 2012, were as follows:
| Michigan Quality Income (NUM | )* | Michigan Premium Income (NMP | )** | Ohio Quality Income (NUO | )* | |||||
| Average liquidation value of VMTP Shares outstanding | $ | 87,900,000 | $ | 53,900,000 | $ | 73,500,000 | ||||
| Annualized dividend rate | 1.18 | % | 1.19 | % | 1.18 | % | ||||
| * | For the period July 14, 2011 (issuance date of shares) through February 29, 2012. |
| ** | For the period July 28, 2011 (issuance date of shares) through February 29, 2012. |
Dividends on VMTP shares (which are treated as interest payments for financial reporting purposes) are set weekly.
For financial reporting purposes only, the liquidation value of VMTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on VMTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on VMTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
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.
| Nuveen Investments | 89 |
| Notes to | ||
Financial Statements (continued) |
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
During the fiscal year ended February 29, 2012, 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 29, 2012, each Fund’s maximum exposure to externally-deposited Recourse Trusts was as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | |||||||||
| Maximum exposure to Recourse Trusts | $ | 4,200,000 | $ | 3,180,000 | $ | 1,050,000 | $ | 2,400,000 | $ | 1,280,000 | $ | 480,000 | $ | 320,000 | ||||||||
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended February 29, 2012, were as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Average floating rate obligations outstanding | $ | 3,630,000 | $ | 2,330,000 | $ | 665,000 | ||||
| Average annual interest rate and fees | 0.88 | % | 0.88 | % | 0.88 | % | ||||
Derivative Financial Instruments
Each Fund is authorized to invest in certain derivative instruments, including foreign currency forwards, futures, options and swap contracts. Although each Fund is authorized to invest in such derivative instruments, and may do so in the future, they did not make any such investments during the fiscal year ended February 29, 2012.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
| 90 | Nuveen Investments |
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Offering Costs
Costs incurred by the Funds in connection with their offerings of MTP Shares or VMTP Shares were recorded as a deferred charge, which are being amortized over the life of the shares. Each Fund’s amortized deferred charges are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Each Fund’s offering costs incurred were as follows:
| Michigan Dividend Advantage (NZW | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage3 (NVJ | ) | ||||||
| MTP Shares offering costs | $ | 574,695 | $ | 1,036,551 | $ | 668,050 | $ | 590,877 | |||||
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Ohio Quality Income (NUO | ) | |||||
| VMTP Shares offering costs | $ | 480,000 | $ | 135,000 | $ | 420,000 | ||||
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 U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| Level 1 – | Quoted prices in active markets for identical securities. | |
| Level 2 – | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
| Nuveen Investments | 91 |
| Notes to | ||
Financial Statements (continued) |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of February 29, 2012:
| Michigan Quality Income (NUM) | Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments: | |||||||||||||
| Municipal Bonds | $ | — | $ | 271,165,290 | $ | — | $ | 271,165,290 | |||||
| Michigan Premium Income (NMP) | Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments: | |||||||||||||
| Municipal Bonds | $ | — | $ | 171,050,613 | $ | — | $ | 171,050,613 | |||||
| Michigan Dividend Advantage (NZW) | Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments: | |||||||||||||
| Municipal Bonds | $ | — | $ | 48,894,462 | $ | — | $ | 48,894,462 | |||||
| Ohio Quality Income (NUO) | Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments: | |||||||||||||
| Municipal Bonds | $ | — | $ | 236,535,367 | $ | — | $ | 236,535,367 | |||||
| Ohio Dividend Advantage (NXI) | Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments: | |||||||||||||
| Municipal Bonds | $ | — | $ | 95,923,197 | $ | — | $ | 95,923,197 | |||||
| Ohio Dividend Advantage 2 (NBJ) | Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments: | |||||||||||||
| Municipal Bonds | $ | — | $ | 70,641,201 | $ | — | $ | 70,641,201 | |||||
| Ohio Dividend Advantage 3 (NVJ) | Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments: | |||||||||||||
| Municipal Bonds | $ | — | $ | 51,251,567 | $ | — | $ | 51,251,567 |
The following is a reconciliation of the following Fund’s Level 3 investments held at the beginning and end of the measurement period:
| Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | |||||
| Level 3 Municipal Bonds | Level 3 Municipal Bonds | Level 3 Municipal Bonds | ||||||||
| Balance at the beginning of period | $ | 127,750 | $ | 91,250 | $ | 73,000 | ||||
| Gains (losses): | ||||||||||
| Net realized gains (losses) | — | — | — | |||||||
| Net change in unrealized appreciation (depreciation) | 2,048 | 1,463 | 1,170 | |||||||
| Purchases at cost | — | — | — | |||||||
| Sales at proceeds | (31,770 | ) | (22,693 | ) | (18,154 | ) | ||||
| Net discounts (premiums) | — | — | — | |||||||
| Transfers in to | — | — | — | |||||||
| Transfers out of | (98,028 | ) | (70,020 | ) | (56,016 | ) | ||||
| Balance at the end of period | $ | — | $ | — | $ | — | ||||
| Change in net unrealized appreciation (depreciation) during the period of Level 3 securities held at the end of period | $ | — | $ | — | $ | — | ||||
During the fiscal year ended February 29, 2012, the Funds recognized no significant transfers to or from Level 1 or Level 2. Transfers in and/or out of Level 3 are shown using end of period values.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended February 29, 2012.
| 92 | Nuveen Investments |
4. Fund Shares
Common Shares
Transactions in Common shares were as follows:
| Michigan Quality Income (NUM) | Michigan Premium Income (NMP) | Michigan Dividend Advantage (NZW) | |||||||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||||
| Common shares: | |||||||||||||||||||
| Issued to shareholders due to | |||||||||||||||||||
| reinvestment of distributions | — | — | — | — | — | — | |||||||||||||
| Repurchased and retired | (3,400 | ) | (3,400 | ) | — | (8,300 | ) | — | (1,700 | ) | |||||||||
| Weighted average Common share: | |||||||||||||||||||
| Price per share repurchased and retired | $ | 13.00 | $ | 12.75 | $ | — | $ | 12.63 | $ | — | $ | 11.98 | |||||||
| Discount per share repurchased and retired | 14.30 | % | 13.81 | % | — | % | 12.55 | % | — | % | 11.21 | % | |||||||
| Ohio Quality Income (NUO) | Ohio Dividend Advantage (NXI) | ||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||
| Common shares: | |||||||||||||
| Issued to shareholders due to | |||||||||||||
| reinvestment of distributions | 11,572 | 7,425 | 598 | 2,631 | |||||||||
| Repurchased and retired | — | — | — | — | |||||||||
| Weighted average Common share: | |||||||||||||
| Price per share repurchased and retired | $ | — | $ | — | $ | — | $ | — | |||||
| Discount per share repurchased and retired | — | % | — | % | — | % | — | % | |||||
| Ohio Dividend Advantage 2 (NBJ) | Ohio Dividend Advantage 3 (NVJ) | ||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||
| Common shares: | |||||||||||||
| Issued to shareholders due to | |||||||||||||
| reinvestment of distributions | — | 926 | 248 | 1,431 | |||||||||
| Repurchased and retired | — | — | — | — | |||||||||
| Weighted average Common share: | |||||||||||||
| Price per share repurchased and retired | $ | — | $ | — | $ | — | $ | — | |||||
| Discount per share repurchased and retired | — | % | — | % | — | % | — | % | |||||
Preferred Shares
Transactions in ARPS were as follows:
| Michigan Quality Income (NUM) | |||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| ARPS redeemed and/or noticed for redemption: | |||||||||||||
| Series TH | 2,972 | $ | 74,300,000 | — | $ | — | |||||||
| Series F | 521 | 13,025,000 | — | — | |||||||||
| Total | 3,493 | $ | 87,325,000 | — | $ | — | |||||||
| Nuveen Investments | 93 |
| Notes to | ||
Financial Statements (continued) |
| Michigan Premium Income (NMP) | |||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| ARPS redeemed and/or noticed for redemption: | |||||||||||||
| Series M | 805 | $ | 20,125,000 | — | $ | — | |||||||
| Series TH | 1,343 | 33,575,000 | — | — | |||||||||
| Total | 2,148 | $ | 53,700,000 | — | $ | — | |||||||
| Michigan Dividend Advantage (NZW) | |||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| ARPS redeemed and/or noticed for redemption: | |||||||||||||
| Series W | N/A | N/A | 571 | $ | 14,275,000 | ||||||||
| Ohio Quality Income (NUO) | |||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| ARPS redeemed and/or noticed for redemption: | |||||||||||||
| Series M | 645 | $ | 16,125,000 | — | $ | — | |||||||
| Series TH | 1,327 | 33,175,000 | — | — | |||||||||
| Series TH2 | 948 | 23,700,000 | — | — | |||||||||
| Total | 2,920 | $ | 73,000,000 | — | $ | — | |||||||
| Ohio Dividend Advantage (NXI) | |||||||||||||
Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| ARPS redeemed and/or noticed for redemption: | |||||||||||||
| Series W | 500 | $ | 12,500,000 | 660 | $ | 16,500,000 | |||||||
| Ohio Dividend Advantage 2 (NBJ) | |||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| ARPS redeemed and/or noticed for redemption: | |||||||||||||
| Series F | 864 | $ | 21,600,000 | — | $ | — | |||||||
| Ohio Dividend Advantage 3 (NVJ) | |||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| ARPS redeemed and/or noticed for redemption: | |||||||||||||
| Series T | 620 | $ | 15,500,000 | — | $ | — | |||||||
N/A – As of February 28, 2011, Michigan Dividend Advantage (NZW) redeemed all of its outstanding ARPS at liquidation value.
| 94 | Nuveen Investments |
Transactions in MTP Shares were as follows:
| Michigan Dividend Advantage (NZW) | Ohio Dividend Advantage (NXI) | ||||||||||||||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
| MTP Shares issued: | |||||||||||||||||||||||||
| Series 2015 | — | $ | — | 1,631,300 | $ | 16,313,000 | — | $ | — | 1,945,000 | $ | 19,450,000 | |||||||||||||
| Series 2016 | — | — | — | — | 1,165,340 | 11,653,400 | — | — | |||||||||||||||||
| Total | — | $ | — | 1,631,300 | $ | 16,313,000 | 1,165,340 | $ | 11,653,400 | 1,945,000 | $ | 19,450,000 | |||||||||||||
| Ohio Dividend Advantage 2 (NBJ) | Ohio Dividend Advantage 3 (NVJ) | ||||||||||||||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
| MTP Shares issued: | |||||||||||||||||||||||||
| Series 2014 | 2,424,400 | $ | 24,244,000 | — | $ | — | 1,847,015 | $ | 18,470,150 | — | $ | — | |||||||||||||
Transactions in VMTP Shares were as follows:
| Michigan Quality Income (NUM) | Michigan Premium Income (NMP) | ||||||||||||||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
| VMTP Shares issued: | |||||||||||||||||||||||||
| Series 2014 | 879 | $ | 87,900,000 | — | $ | — | 539 | $ | 53,900,000 | — | $ | — | |||||||||||||
| Ohio Quality Income (NUO) | |||||||||||||
| Year Ended 2/29/12 | Year Ended 2/28/11 | ||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||
| VMTP Shares issued: | |||||||||||||
| Series 2014 | 735 | $ | 73,500,000 | — | $ | — | |||||||
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments, where applicable) during the fiscal year ended February 29, 2012, were as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Purchases | $ | 35,320,208 | $ | 29,620,564 | $ | 12,679,189 | ||||
| Sales and maturities | 37,633,805 | 29,895,095 | 13,623,033 | |||||||
| Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Purchases | $ | 23,701,486 | $ | 14,602,411 | $ | 12,663,283 | $ | 9,094,558 | |||||
| Sales and maturities | 24,616,571 | 16,321,160 | 11,621,846 | 7,087,284 | |||||||||
| Nuveen Investments | 95 |
| Notes to | ||
Financial Statements (continued) |
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At February 29, 2012, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Cost of investments | $ | 246,115,232 | $ | 158,728,479 | $ | 43,009,061 | ||||
| Gross unrealized: | ||||||||||
| Appreciation | $ | 21,840,431 | $ | 10,188,458 | $ | 3,326,617 | ||||
| Depreciation | (420,292 | ) | (196,545 | ) | (106,096 | ) | ||||
| Net unrealized appreciation (depreciation) of investments | $ | 21,420,139 | $ | 9,991,913 | $ | 3,220,521 | ||||
| Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Cost of investments | $ | 217,334,913 | $ | 88,790,493 | $ | 65,690,114 | $ | 47,507,043 | |||||
| Gross unrealized: | |||||||||||||
| Appreciation | $ | 19,328,282 | $ | 7,840,155 | $ | 5,374,533 | $ | 4,087,124 | |||||
| Depreciation | (127,828 | ) | (707,451 | ) | (423,446 | ) | (342,600 | ) | |||||
| Net unrealized appreciation (depreciation) of investments | $ | 19,200,454 | $ | 7,132,704 | $ | 4,951,087 | $ | 3,744,524 | |||||
Permanent differences, primarily due to federal taxes paid, taxable market discount and nondeductible offering costs, resulted in reclassifications among the Funds’ components of Common share net assets at February 29, 2012, the Funds’ tax year end, as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Paid-in surplus | $ | (99,443 | ) | $ | (26,609 | ) | $ | (114,130 | ) | |
| Undistributed (Over-distribution of) net investment income | 98,054 | 13,489 | 111,892 | |||||||
| Accumulated net realized gain (loss) | 1,389 | 13,120 | 2,238 | |||||||
| Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Paid-in surplus | $ | (85,277 | ) | $ | (201,901 | ) | $ | (195,375 | ) | $ | (167,688 | ) | |
| Undistributed (Over-distribution of) net investment income | 76,917 | 196,876 | 190,503 | 163,174 | |||||||||
| Accumulated net realized gain (loss) | 8,360 | 5,025 | 4,872 | 4,514 | |||||||||
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at February 29, 2012, the Funds’ tax year end, were as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | |||||
| Undistributed net tax-exempt income* | $ | 4,019,416 | $ | 2,582,010 | $ | 418,798 | ||||
| Undistributed net ordinary income** | 1,802 | 201 | — | |||||||
| Undistributed net long-term capital gains | — | — | — | |||||||
| 96 | Nuveen Investments |
| Ohio Quality Income (NUO | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||||
| Undistributed net tax-exempt income* | $ | 3,865,603 | $ | 946,850 | $ | 907,200 | $ | 652,975 | |||||
| Undistributed net ordinary income** | 66,795 | 19,446 | 4,694 | 15,019 | |||||||||
| 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 1, 2012, paid on March 1, 2012. |
| ** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended February 29, 2012 and February 28, 2011, was designated for purposes of the dividends paid deduction as follows:
| 2012 | Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | ||||
| Distributions from net tax-exempt income*** | $ | 10,625,977 | $ | 6,881,890 | $ | 2,025,887 | ||||
| Distributions from net ordinary income** | — | — | — | |||||||
| Distributions from net long-term capital gains | — | — | — | |||||||
| 2012 | Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | |||||
| Distributions from net tax-exempt income*** | $ | 9,599,169 | $ | 4,506,686 | $ | 3,102,895 | $ | 2,307,353 | |||||
| Distributions from net ordinary income** | — | — | — | — | |||||||||
| Distributions from net long-term capital gains | — | — | — | — | |||||||||
| 2011 | Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | ||||
| Distributions from net tax-exempt income | $ | 9,890,005 | $ | 6,426,137 | $ | 1,756,176 | ||||
| Distributions from net ordinary income** | — | — | — | |||||||
| Distributions from net long-term capital gains | — | — | — | |||||||
| 2011 | Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | |||||
| Distributions from net tax-exempt income | $ | 9,038,269 | $ | 3,877,989 | $ | 2,701,429 | $ | 1,997,821 | |||||
| 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 fiscal year ended February 29, 2012, as Exempt Interest Dividends. |
At February 29, 2012, 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 Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | Ohio Quality Income (NUO | ) | Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 2 (NBJ | ) | Ohio Dividend Advantage 3 (NVJ | ) | |||||||||
| Expiration: | ||||||||||||||||||||||
| February 28, 2017 | $ | — | $ | 9,738 | $ | 327,197 | $ | 1,211,421 | $ | — | $ | 491,565 | $ | 52,532 | ||||||||
| February 28, 2018 | 2,327,226 | 1,586,140 | 834,359 | 78,027 | — | 211,828 | 177,836 | |||||||||||||||
| February 28, 2019 | — | — | — | 1,468,286 | 596,403 | 310,572 | 275,067 | |||||||||||||||
| Total | $ | 2,327,226 | $ | 1,595,878 | $ | 1,161,556 | $ | 2,757,734 | $ | 596,403 | $ | 1,013,965 | $ | 505,435 | ||||||||
| Nuveen Investments | 97 |
| Notes to | ||
Financial Statements (continued) |
During the Funds’ tax year ended February 29, 2012, the following Funds utilized capital loss carryforwards as follows:
| Michigan Quality Income (NUM | ) | Michigan Premium Income (NMP | ) | Michigan Dividend Advantage (NZW | ) | Ohio Quality Income (NUO | ) | Ohio Dividend Advantage 2 (NBJ | ) | |||||||
| Utilized capital loss carryforwards | $ | 451,364 | $ | 269,079 | $ | 114,555 | $ | 97,638 | $ | 45,452 | ||||||
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of RICs. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
The Act also contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
Capital losses incurred that will be carried forward under the provisions of the Act are as follows:
| Ohio Dividend Advantage (NXI | ) | Ohio Dividend Advantage 3 (NVJ | ) | ||||
| Post-enactment losses | |||||||
| Short-term | $ | 24,438 | $ | 37,394 | |||
| Long-term | — | — | |||||
The Funds have elected to defer losses incurred from November 1, 2011 through February 29, 2012, the Funds’ tax year end, in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the following fiscal year. The following Fund has elected to defer losses as follows:
Michigan Dividend Advantage (NZW | ) | |||
| Post-October capital losses | $ | 928 | ||
| Late-year ordinary losses | — | |||
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Managed Assets* | Michigan Quality Income (NUM) Michigan Premium Income (NMP) Ohio Quality Income (NUO) 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 managed assets over $5 billion | .3750 | |||
| 98 | Nuveen Investments |
| Average Daily Managed Assets* | Michigan Dividend Advantage (NZW) Ohio Dividend Advantage (NXI) Ohio Dividend Advantage 2 (NBJ) Ohio Dividend Advantage 3 (NVJ) 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 managed assets over $2 billion | .3750 | |||
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Complex-Level Managed Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
| $55 billion | .2000 | % | ||
| $56 billion | .1996 | |||
| $57 billion | .1989 | |||
| $60 billion | .1961 | |||
| $63 billion | .1931 | |||
| $66 billion | .1900 | |||
| $71 billion | .1851 | |||
| $76 billion | .1806 | |||
| $80 billion | .1773 | |||
| $91 billion | .1691 | |||
| $125 billion | .1599 | |||
| $200 billion | .1505 | |||
| $250 billion | .1469 | |||
| $300 billion | .1445 | |||
| * | For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of February 29, 2012, the complex-level fee rate for each of these Funds was .1724%. |
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser is responsible for each Fund’s overall strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a wholly-owned subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
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.
| Nuveen Investments | 99 |
| Notes to | ||
Financial Statements (continued) |
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 managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending March 31, | Year Ending 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 managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending September 30, | Year Ending 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 managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending March 31, | Year Ending 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.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2 and the reasons for the transfers and ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
| 100 | Nuveen Investments |
9. Subsequent Event
Approved Fund Reorganizations
On April 18, 2012, the Funds’ Board of Directors/Trustees approved a series of reorganizations for all the Michigan and Ohio Funds included in this report. The reorganizations are intended to create a single larger state Fund, which would potentially offer shareholders the following benefits:
• | Lower Fund expense ratios (excluding the effects of leverage), as fixed costs are spread over a larger asset base; |
• | Enhanced secondary market trading, as larger Funds potentially make it easier for investors to buy and sell Fund shares; |
• | Lower per share trading costs through reduced bid/ask spreads due to a larger common share float; and |
• | Increased Fund flexibility in managing the structure and cost of leverage over time. |
The approved reorganizations are as follows:
| Acquired Funds | Acquiring Fund | ||
• | Michigan Premium Income (NMP) | • | Michigan Quality Income (NUM) |
• | Michigan Dividend Advantage (NZW) | ||
• | Ohio Dividend Advantage (NXI) | ||
• | Ohio Dividend Advantage 2 (NBJ) | • | Ohio Quality Income (NUO) |
• | Ohio Dividend Advantage 3 (NVJ) | ||
If shareholders approve the reorganizations, and upon the closing of the reorganizations, the Acquired Funds will transfer substantially all of their assets to the Acquiring Funds in exchange for common and preferred shares of the Acquiring Funds, and the assumption by the Acquiring Funds of the liabilities of the Acquired Funds. The Acquired Funds will then be liquidated, dissolved and terminated in accordance with their Declaration of Trust.
| Nuveen Investments | 101 |
Board Members & Officers (Unaudited)
| 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 Funds is currently set at ten. 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. |
Name, Birthdate & Address | Position(s) Held with the Funds | Year First Elected or Appointed and Term(1) | Principal Occupation(s) including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | |||||
| Independent Board Members: | |||||||||
| ■ | ROBERT P. BREMNER 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Board Member | 1996 Class III | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 235 | ||||
| ■ | JACK B. EVANS 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1999 Class III | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 235 | ||||
| ■ | WILLIAM C. HUNTER 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2004 Class I | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 235 | ||||
| ■ | DAVID J. KUNDERT 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2005 Class II | Director, Northwestern Mutual Wealth Management Company; retired (since 2004) as Chairman, JPMorgan Fleming 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 Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation. | 235 | ||||
| ■ | WILLIAM J. SCHNEIDER 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1996 Class III | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer(retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council;member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 235 | ||||
| 102 | Nuveen Investments |
Name, Birthdate & Address | Position(s) Held with the Funds | Year First Elected or Appointed and Term(1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | |||||
| Independent Board Members: | |||||||||
| ■ | JUDITH M. STOCKDALE 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1997 Class I | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 235 | ||||
| ■ | CAROLE E. STONE 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2007 Class I | Director, Chicago Board Options Exchange (since 2006); Director,C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 235 | ||||
| ■ | VIRGINIA L. STRINGER 8/16/44 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2011 | Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 235 | ||||
| ■ | TERENCE J. TOTH 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2008 Class II | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008);formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007),Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 235 | ||||
| Interested Board Member: | |||||||||
| ■ | JOHN P. AMBOIAN(2) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2008 Class II | Chief Executive Officer and Chairman (since 2007) and Director (since1999) of Nuveen Investments, Inc., formerly, President (1999-2007);Chief Executive Officer (since 2007) of Nuveen Investments Advisers, Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010)of Nuveen Fund Advisors, Inc. | 235 | ||||
| Nuveen Investments | 103 |
Board Members & Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | |||||
| Officers of the Funds: | |||||||||
| ■ | GIFFORD R. ZIMMERMAN 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011);Managing Director, Associate General Counsel and Assistant Secretary, of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002),Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management Inc. (since 2010) Chief Administrative Officer and Chief Compliance Officer (since 2010) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 235 | ||||
| ■ | WILLIAM ADAMS IV 6/9/55 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2007 | Senior Executive Vice President, Global Structured Products (since 2010),formerly, Executive Vice President (1999-2010) of Nuveen Securities, LLC; Co-President of Nuveen Fund Advisors, Inc. (since 2011); formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC. | 133 | ||||
| ■ | CEDRIC H. ANTOSIEWICZ 1/11/62 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2007 | Managing Director of Nuveen Securities, LLC. | 133 | ||||
| ■ | MARGO L. COOK 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director-Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 235 | ||||
| ■ | LORNA C. FERGUSON 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004). | 235 | ||||
| ■ | STEPHEN D. FOY 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC; (since 2010) Certified Public Accountant. | 235 | ||||
| 104 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | |||||
| Officers of the Funds: | |||||||||
| ■ | SCOTT S. GRACE 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 235 | ||||
■ | WALTER M. KELLY 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc. | 235 | ||||
| ■ | TINA M. LAZAR 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 235 | ||||
| ■ | KEVIN J. MCCARTHY 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011)of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 235 | ||||
| Nuveen Investments | 105 |
Board Members & Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | |||||
| Officers of the Funds: | |||||||||
| ■ | KATHLEEN L. PRUDHOMME 3/30/53 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011)of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 235 | ||||
| (1) | For Michigan Dividend Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ), 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. For Michigan Quality Income (NUM), Michigan Premium Income (NMP) and Ohio Quality Income (NUO), the Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. The year first 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) | Officers serve one year terms through August 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. |
| 106 | Nuveen Investments |
Reinvest Automatically,
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Automatic Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.
By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you’ll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may
| Nuveen Investments | 107 |
Reinvest Automatically,
Easily and Conveniently (continued)
exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your 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 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.
| 108 | Nuveen Investments |
Glossary of Terms
Used in this Report
| ■ | 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. |
| ■ | Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
| ■ | Average Effective Maturity: The market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security. |
| ■ | Effective Leverage: Effective leverage is a Fund’s effective economic leverage, and includes both regulatory leverage (see leverage) and the leverage effects of certain derivative investments in the Fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. |
| ■ | Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), 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. |
| Nuveen Investments | 109 |
Glossary of Terms
Used in this Report (continued)
| ■ | Leverage: Using borrowed money to invest in securities or other assets, seeking to increase the return of an investment or portfolio. |
| ■ | 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. |
| ■ | Lipper Michigan Municipal Debt Funds Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 7 funds; 5-year, 7 funds; and 10-year, 4 funds. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. |
| ■ | Lipper Other States Municipal Debt Funds Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 27 funds. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. |
| ■ | Market Yield (also known as Dividend Yield or Current Yield): An investment’s current annualized dividend divided by its current market price. |
| ■ | Net Asset Value (NAV): The net market value of all securities held in a portfolio. |
| ■ | Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding. |
| ■ | Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value. |
| ■ | Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a Fund. Both of these are part of a Fund’s capital structure. Regulatory leverage is sometimes referred to as “‘40 Act Leverage” and is subject to asset coverage limits set in the Investment Company Act of 1940. |
| ■ | Standard & Poor’s (S&P) Municipal Bond Indexes for Michigan and Ohio: Unleveraged, market value-weighted indexes designed to measure the performance of the tax-exempt, investment-grade Michigan and Ohio municipal bond markets, respectively. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. It is not possible to invest directly in an index. |
| 110 | Nuveen Investments |
| ■ | Standard & Poor’s (S&P) National Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment- grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. It is not possible to invest directly in an index. |
| ■ | Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. |
| ■ | Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. |
| Nuveen Investments | 111 |
Notes
| 112 | Nuveen Investments |
Notes
| Nuveen Investments | 113 |
Notes
| 114 | Nuveen Investments |
Additional Fund Information
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
Virginia L. Stringer
Terence J. Toth
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank
& Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank &
Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Quarterly Portfolio of Investments and Proxy Voting Information
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that each Fund 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 (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common and Preferred Share Information
Each Fund intends to repurchase and/or redeem shares of its own common and/or auction rate preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or auction rate preferred stock as shown in the accompanying table.
| Fund | Common Shares Repurchased | Preferred Shares Redeemed | |||||
| NUM | 3,400 | 3,493 | |||||
| NMP | — | 2,148 | |||||
| NZW | — | — | |||||
| NUO | — | 2,920 | |||||
| NXI | — | 500 | |||||
| NBJ | — | 864 | |||||
| NVJ | — | 620 | |||||
Any future repurchases will be reported to shareholders in the next annual or semiannual report.
| Nuveen Investments | 115 |
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates-Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management and Gresham Investment Management. In total, Nuveen Investments managed $220 billion as of December 31, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: www.nuveen.com/cef
Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
EAN-C-0212D
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/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 Carole E. Stone, who is “independent” for purposes of Item 3 of Form N-CSR.
Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State's operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State's bond-related disclosure documents and certifying that they fairly presented the State's financial position; reviewing audits of various State and local agencies and programs; and coordinating the State's system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone's position on the boards of these entities and as a member of both CBOE Holdings' Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Michigan Dividend Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
| Audit Fees Billed | Audit-Related Fees | Tax Fees | All Other Fees | ||||||||||||
| Fiscal Year Ended | to Fund 1 | Billed to Fund 2 | Billed to Fund 3 | Billed to Fund 4 | |||||||||||
| February 29, 2012 | $ | 21,200 | $ | 0 | $ | 0 | $ | 0 | |||||||
| Percentage approved | 0 | % | 0 | % | 0 | % | 0 | % | |||||||
| pursuant to | |||||||||||||||
| pre-approval | |||||||||||||||
| exception | |||||||||||||||
| February 28, 2011 | $ | 18,200 | $ | 12,500 | $ | 0 | $ | 850 | |||||||
| Percentage approved | 0 | % | 0 | % | 0 | % | 0 | % | |||||||
| pursuant to | |||||||||||||||
| pre-approval | |||||||||||||||
| exception | |||||||||||||||
1 "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services | |||||||||||||||
| provided in connection with statutory and regulatory filings or engagements. | |||||||||||||||
2 "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the | |||||||||||||||
| audit or review of financial statements and are not reported under "Audit Fees". | |||||||||||||||
3 "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. | |||||||||||||||
4 "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. | |||||||||||||||
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Fund Advisors, Inc. (formerly Nuveen Asset Management) (the “Adviser” or “NFA”), and any entity controlling, controlled by or under common control with the Adviser 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 29, 2012 | $ 0 | $ 0 | $ 0 |
| Percentage approved | 0% | 0% | 0% |
| pursuant to | |||
| pre-approval | |||
| exception | |||
| February 28, 2011 | $ 0 | $ 0 | $ 0 |
| Percentage approved | 0% | 0% | 0% |
| pursuant to | |||
| pre-approval | |||
| exception |
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
| Fiscal Year Ended | Total Non-Audit Fees | |||
| billed to Adviser and | ||||
| Affiliated Fund Service | Total Non-Audit Fees | |||
| Providers (engagements | billed to Adviser and | |||
| related directly to the | Affiliated Fund Service | |||
| Total Non-Audit Fees | operations and financial | Providers (all other | ||
| Billed to Fund | reporting of the Fund) | engagements) | Total | |
| February 29, 2012 | $ 0 | $ 0 | $ 0 | $ 0 |
| February 28, 2011 | $ 850 | $ 0 | $ 0 | $ 850 |
| "Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective | ||||
| amounts from the previous table. | ||||
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Terence J. Toth, William J. Schneider, Carole E. Stone and David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, Inc. (“Adviser”) is the registrant’s investment adviser. The Adviser is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in the registrant’s portfolio and related duties in accordance with the Sub-Adviser's policy and procedures. The Adviser periodically monitors the Sub-Adviser's voting to ensure that it is carrying out its duties. The Sub-Adviser’s proxy voting policies and procedures are attached to this filing as an exhibit and incorporated herein by reference.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, Inc. is the registrant’s investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“NAM” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio manager at the Sub-Adviser:
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 Dividend Advantage Municipal Fund |
Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts:
| Portfolio Manager | Type of Account Managed | Number of Accounts | Assets* |
| Daniel J. Close | Registered Investment Company | 26 | $ 4.67 billion |
| Other Pooled Investment Vehicles | 0 | $0 | |
| Other Accounts | 10 | $71.95 million |
| * | Assets are as of February 29, 2012. None of the assets in these accounts are subject to an advisory fee based on performance. |
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented a number of potential conflicts, including, among others, those discussed below.
The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. NAM seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.
If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, NAM has adopted procedures for allocating limited opportunities across multiple accounts.
With respect to many of its clients’ accounts, NAM determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, NAM may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, NAM may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.
Some clients are subject to different regulations. As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques or transactions or to engage in these transactions to the same extent as the other accounts managed by the portfolio manager. Finally, the appearance of a conflict of interest may arise where NAM has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.
NAM has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
| Item 8(a)(3). | FUND MANAGER COMPENSATION |
Portfolio manager compensation consists primarily of base pay, an annual cash bonus and long term incentive payments.
Base pay. Base pay is determined based upon an analysis of the portfolio manager’s general performance, experience, and market levels of base pay for such position.
Annual cash bonus. The Fund’s portfolio managers are eligible for an annual cash bonus based on investment performance, qualitative evaluation and financial performance of NAM.
A portion of each portfolio manager’s annual cash bonus is based on the Fund’s investment performance, generally measured over the past one- and three or five-year periods unless the portfolio manager’s tenure is shorter. Investment performance for the Fund generally is determined by evaluating the Fund’s performance relative to its benchmark(s) and/or Lipper industry peer group.
A portion of the cash bonus is based on a qualitative evaluation made by each portfolio manager’s supervisor taking into consideration a number of factors, including the portfolio manager’s team collaboration, expense management, support of personnel responsible for asset growth, and his or her compliance with NAM’s policies and procedures.
The final factor influencing a portfolio manager’s cash bonus is the financial performance of NAM based on its operating earnings.
Long-term incentive compensation. Certain key employees of Nuveen Investments and its affiliates, including certain portfolio managers, have received equity interests in the parent company of Nuveen Investments. In addition, certain key employees of NAM, including certain portfolio managers, have received profits interests in NAM which entitle their holders to participate in the firm’s growth over time.
There are generally no differences between the methods used to determine compensation with respect to the Fund and the Other Accounts shown in the table above.
Beneficial Ownership of Securities. As of February 29, 2012 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.
| Name of Portfolio Manager | Fund | Dollar range of equity securities beneficially owned in Fund | Dollar range of equity securities beneficially owned in the remainder of Nuveen funds managed by NAM’s municipal investment team |
| Daniel J. Close | Nuveen Michigan Dividend Advantage Municipal Fund | $0 | $0 |
PORTFOLIO MANAGER BIO:
Daniel J. Close, CFA, is a Senior Vice President of Nuveen Investments. He joined Nuveen Investments in 2000 as a member of Nuveen’s product management and development team. He then served as a research analyst for Nuveen’s municipal investing team, covering corporate-backed, energy, transportation and utility credits. He received his BS in Business from Miami University and his MBA from Northwestern University’s Kellogg School of Management. Mr. Close has earned the Chartered Financial Analyst designation. Mr. Close also serves as a portfolio manager for various Nuveen Build America Bond strategies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
| (a) | The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
| (a)(1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/CEF/Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) |
| (a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. |
| (a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. |
| (b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Michigan Dividend Advantage Municipal Fund
By (Signature and Title) /s/ Kevin J. McCarthy
Kevin J. McCarthy
Vice President and Secretary
Date: May 7, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: May 7, 2012
By (Signature and Title) /s/ Stephen D. Foy
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: May 7, 2012