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
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Nuveen Michigan Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: July 31, 2003
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Date of reporting period: July 31, 2003
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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.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
ANNUAL REPORT July 31, 2003
MICHIGAN
NUM
NMP
NZW
OHIO
NUO
NXI
NBJ
NVJ
PHOTO OF: WOMAN AND GIRL TALKING.
PHOTO OF: MAN AND GIRL ON COMPUTER.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
- --------------------------------------------------------------------------------
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
- --------------------------------------------------------------------------------
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g.
yourID@providerID.com), and a personal, 4-digit PIN number of your choice.
(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
5 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A
WELL-BALANCED PORTFOLIO ..... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR
LONG-TERM FINANCIAL GOALS."
Dear
SHAREHOLDER
Once again, I am pleased to report that over the most recent reporting
period your Fund continued to provide you with attractive tax-free monthly
income and the opportunity for increased portfolio diversification. For more
specific information about the performance of your Fund, please see the
Portfolio Manager's Comments and Performance Overview sections of this report.
With interest rates at historically low levels, many have begun to wonder
whether interest rates will rise, and whether that possibility should cause them
to adjust their holdings of fixed-income investments. No one knows what the
future will bring, which is why we think a well-balanced portfolio that is
structured and carefully monitored with the help of an investment professional
is an important component in achieving your long-term financial goals. A
well-diversified portfolio may actually help to reduce your overall investment
risk, and we believe that municipal bond investments like your Nuveen Fund can
be important building blocks in a portfolio crafted to perform well through a
variety of market conditions.
I'd also like to direct your attention to the inside front cover of this report,
which explains the quick and easy process to begin receiving Fund reports like
this via e-mail and the internet. Thousands of Nuveen Fund shareholders already
have signed-up, and they are getting their Fund information faster and more
conveniently than ever. I urge you to consider joining them.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
September 15, 2003
1
Nuveen Michigan and Ohio Municipal Closed-End Exchange-Traded Funds
(NUM, NMP, NZW, NUO, NXI, NBJ, NVJ)
Portfolio Manager's
COMMENTS
Portfolio manager Rick Huber discusses economic and market conditions, key
investment strategies and the recent performance of the Funds. With 18 years of
investment experience, Rick has managed NUO, NXI, and NBJ since 2001. He added
NVJ at its inception in March 2002. Rick assumed portfolio management
responsibility for the three Michigan Funds in January 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH PERIOD ENDED JULY 31, 2003?
In June 2003, the Federal Reserve cut the fed funds rate to 1.0%, its lowest
level since 1958. Also in June, the GDP growth rate for the first quarter of
2003 was revised downward to 1.4%. The preliminary second-quarter growth rate
announced in July was 2.4%, which continued to lag the 3% level some economists
consider to be indicative of a recovery.
This was just the latest evidence of the two factors that, in our opinion,
continued to have the greatest influence on the performance of the U.S. economy
and the municipal market over the course of this reporting period - historically
low interest rate levels and the sluggish pace of economic growth. In addition,
inflation remained dormant through the period, while comments by the Fed kept
the topic of potential deflation in the news.
In combination, the slow rate of economic recovery, low interest rates and lack
of inflationary pressures created conditions that helped many municipal bonds
perform well during much of this reporting period. However, in July 2003 some
stronger-than-expected economic data raised the specter of a tighter monetary
policy sooner rather than later. This, along with volatility in the
mortgage-backed securities market, precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted all fixed-income markets. One
barometer of the volatility experienced in the bond markets during the month of
July was the yield on the benchmark 10-year U.S. Treasury, which jumped
approximately 150 basis points from 45-year lows in June to its highest point in
more than a year by July 31, 2003.
During the first seven months of 2003, the municipal market followed up the
record issuance of 2002 with continued strong supply, issuing $230 billion in
new bonds. This represented an increase of 18% over the same period in 2002.
Much of the increase in supply reflected issuance intended to address the fiscal
problems facing many states as the result of slow growth, rising costs
(especially for healthcare and pensions), and sharp declines in the collection
of income and capital gains taxes. Matching the increased supply, demand for
municipal bonds also remained strong from both individual and institutional
investors, particularly insurance companies.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN MICHIGAN AND OHIO?
Because of its heavy dependence on the manufacturing sector, Michigan's
recession has been longer and deeper than some other states. Faced with weaker
vehicle sales in recent months, the state's auto manufacturers and suppliers
continued to struggle to hold onto eroding market shares. Office furniture
manufacturing in western Michigan also remained stalled, reflecting the ongoing
weakness in commercial construction. Job creation in the state's growing biotech
sector provided one of the few bright spots in Michigan's slowly diversifying
industrial and economic base. The state recently approved its $37.9 billion
fiscal 2004 budget, closing a gap of nearly $2 billion through spending cuts,
tax increases and the use of federal receipts. Overall, we think Michigan's debt
position remained well managed, with a relatively low overall debt burden and
fully-funded pension liabilities. While the state's credit rating of Aaa/AAA
with Moody's and Standard & Poor's, respectively, remained intact over this
reporting period, both agencies are keeping a close eye on the state. As of July
31, 2003, Moody's and Standard & Poor's maintained negative outlooks on the
state.
Like neighboring Michigan, Ohio's economy also is heavily reliant on
manufacturing, and several of its major industries--autos, machinery and
steel--all suffered during the national economic slowdown.
2
While the state's recovery continued to be delayed by its dependence on
manufacturing, Ohio's large wholesale and warehousing industry showed some
improvement as businesses began to restock inventories. The state's industrial
base continued to diversify, especially in the major metropolitan areas, and the
below-average cost of doing business in the state as well as the presence of
numerous corporate headquarters helped support a modest level of economic
recovery. Despite the depletion of its reserve funds, Ohio ended fiscal 2003
with a small surplus resulting from federal receipts and tax increases enacted
earlier in 2003. While we think the state's debt levels are moderate relative to
its substantial economic base, pension liabilities were still not fully funded
as of July 31, 2003. In the first seven months of 2003, Ohio issued $5.6 billion
in new municipal paper, an increase of 51% over the same period in 2002. The
state's $7.5 billion of general obligation debt continued to be rated Aa1/AA+,
by Moody's and Standard & Poor's, respectively. In July 2003, S&P revised its
outlook to stable from negative, while Moody's maintained a negative outlook.
HOW DID THE FUNDS PERFORM OVER THE TWELVE-MONTHS ENDED JULY 31, 2003?
Individual results for these Funds, as well as for selected benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
7/31/03 EQUIVALENT3 7/31/03 7/31/03 7/31/03
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NUM 6.06% 8.78% 4.35% 3.60% 4.45%
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NMP 6.22% 9.01% 3.71% 3.60% 4.45%
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NZW 5.92% 8.58% 5.01% 3.60% 4.45%
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NUO 5.88% 8.78% 4.84% 3.60% 4.35%
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NXI 6.61% 9.87% 5.09% 3.60% 4.35%
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NBJ 6.31% 9.42% 4.74% 3.60% 4.35%
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NVJ 6.08% 9.07% 3.81% 3.60% 4.35%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the twelve months ended July 31, 2003, all of the Funds in this report
outperformed the national, unleveraged Lehman Brothers Municipal Bond Index. One
of the factors that benefited the performance of these Funds in comparison with
the Lehman index was their use of leverage, a strategy that can provide the
opportunity for additional income for common shareholders, especially during
periods of low short-term interest rates. Income is an important component of
total return for any bond investment, and additional income can lead to enhanced
total returns. In general over this period, most of the Funds were also helped
by their relatively longer durations.4 During periods of declining interest
rates, such as that we experienced over most of the twelve-month period,
investments with longer durations generally would be expected to perform better
than those with shorter durations, all other factors being equal. As of July 31,
2003, the durations of these Funds ranged from 8.77 for NMP to 15.05 for NZW,
compared with 8.17 for the Lehman index.
In addition to leverage and duration, factors such as call exposure, portfolio
trading activity and the price movement of specific sectors and holdings also
had an impact on the Funds' performances. For example, NMP had a large position
in bonds with short call provisions, which contributed to its modest
underperformance relative to the other funds over this reporting period. NMP
also held $1 million (par value) in bonds issued by the Puerto Rico Ports
Authority and backed by American Airlines. Over the past year, the market value
of most airline-backed bonds fell, due in part to a decline in passenger volume
and in part to the well-documented financial struggles of many carriers. The
depreciation of these bonds over the reporting period had a negative impact on
NMP's total return. In addition, both NMP and NUM held small positions in bonds
issued for Detroit Medical Center, the largest healthcare provider in the
Detroit metropolitan area. These securities underperformed the market during the
last months of the reporting period, reflecting operating
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman Brothers
Municipal Bond Index, an unleveraged, unmanaged national index comprising a
broad range of investment-grade municipal bonds. Results for the Lehman index
do not reflect any expenses.
2 The total returns of the Nuveen Michigan Funds are compared with the average
annualized return of the 6 funds in the Lipper Michigan Municipal Debt Funds
category, while the total returns of the Nuveen Ohio Funds are compared with
the average annualized return of the 36 funds in the Lipper Other States
Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of
dividends. It should be noted that the performance of the Lipper Other States
category represents the overall average of annual returns for funds from 10
different states with a wide variety of economic and municipal market
conditions and investment guidelines, making direct comparisons less
applicable.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 28% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: Michigan 31% and Ohio 33%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a Fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
Fund. References to duration in this commentary are intended to indicate Fund
duration unless otherwise noted.
3
losses at two of the Center's nine hospitals. New management, as well as a
public task force, is currently examining ways to deal with future funding,
including public subsidies.
Among the Ohio Funds, the performance of NVJ, which was assembled in the lower
interest rate environment of March 2002, was affected by the relatively higher
number of lower-yielding securities in its portfolio. As mentioned earlier,
income plays an important part in a bond fund's total return. In addition, this
Fund held a higher percentage of tobacco-backed bonds relative to the other
three Ohio Funds, which cost NVJ approximately 30 basis points in performance
over this reporting period.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As noted earlier, with short-term interest rates at historically low levels, the
dividend-paying capabilities of these Funds benefited from their use of
leverage. The amount of this benefit is tied in part to the short-term rates the
Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable
the Funds to reduce the amount of income paid to MuniPreferred shareholders,
which can potentially leave more earnings to support common share dividends.
During the twelve months ended July 31, 2003, the continued low level of
short-term interest rates enabled us to implement three dividend increases in
NMP, NZW, NUO, NXI and NBJ and two in NUM. As of July 2003, NVJ--the newest Fund
in this report--had paid shareholders stable, attractive dividends for 15
consecutive months.
Although the share prices and net asset values of these Funds performed well
during much of this reporting period, the increased volatility that led to an
overall weakening of bond prices during July 2003 resulted in share prices and
NAVs that were generally lower on July 31, 2003, than they were one year
earlier. NZW was the only Fund to end the period with a higher share price. As
of July 31, 2003, NUM, NZW and NUO were trading at premiums to their common
share NAVs, while NXI, NBJ and NVJ had moved to trading at slight discounts, and
NMP continued to trade at a small discount (see charts on individual Performance
Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE TWELVE-MONTHS
ENDED JULY 31, 2003?
Over this reporting period, we continued to place strong emphasis on
diversifying the portfolios, improving call protection and enhancing each Fund's
dividend-paying capabilities. Strategically, our main focus centered on
systematically controlling the Funds' durations, which we believed would enhance
our ability to mitigate the Funds' interest rate risk and produce more
consistent returns over time. Interest rate risk is the risk that the value of a
Fund's portfolio will decline when market interest rates rise (since bond prices
move in the opposite direction of interest rates). The longer the duration of a
Fund's portfolio, the greater its interest rate risk.
In line with our duration strategy, we concentrated on finding value in the
intermediate part of the yield curve (i.e., bonds that mature in 15 to 20
years), particularly for the newer Funds with generally longer durations. In
many cases, bonds in this part of the curve offered yields similar to those of
longer-term bonds but, in our opinion, had less inherent interest rate risk. In
some of the older Funds (NUM, NMP and NUO), the need to replace shorter duration
bonds that were called from the portfolios with current bonds having longer
durations served to extend the Funds' durations slightly over this period.
4
In general, the relatively heavy issuances in the Michigan and Ohio municipal
markets over the period increased our trading opportunities. In both markets, we
continued to look for bonds that we believed had the potential to perform
relatively well regardless of the future direction of interest rates. We also
watched for opportunities to take losses on selected securities in order to
offset the generation of capital gains. Over the twelve-month period, the
Michigan and Ohio Funds generally had significant holdings of healthcare and
water and sewer bonds, which were among the top performing Lehman revenue
sectors for this reporting period. In Ohio, specifically, we participated in a
number of larger issues, including those for City of Cincinnati Water System.
As of July 31, 2003, each of the Michigan and Ohio Funds, except for NZW, also
had small positions in bonds backed by the 1998 master tobacco settlement
agreement. In recent months, the prices of these bonds weakened as the result of
lawsuits involving the major tobacco companies as well as the increased issuance
of such bonds by states planning to use the proceeds to help close budget gaps.
Although the sector as a whole produced negative returns over the twelve months
ended July 31, 2003, tobacco-backed bonds showed some recovery toward the end of
the period. As of the end of this reporting period, our strategy was to maintain
our tobacco holdings while we continued to regularly evaluate the situation.
Given the current geopolitical and economic climate, we believed that
maintaining strong credit quality remained a vital requirement. As of July 31,
2003, the Michigan and Ohio Funds all offered excellent credit quality, with
allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 64% to 86%.
In general, our weightings in insured and AAA bonds benefited the performance of
these Funds during the past year.
WHAT IS YOUR OUTLOOK FOR THESE FUNDS?
We continue to believe that the U.S. economy is slowly headed for a recovery. We
also think that inflation and interest rates will remain relatively low over the
near term. However, an eventual rise in interest rates remains a distinct risk,
and we plan to keep a careful watch on the Funds' durations and holdings in
order to be as well positioned as possible if and when this happens.
All of these Funds, with the exception of NMP, offer good levels of call
protection, with potential call exposure ranging from zero in NZW and NVJ to 14%
in NUO through the end of 2004. During this recently completed reporting period,
we worked to mitigate the call risk of the three older Funds, especially NMP. As
of July 31, 2003, NMP's potential call exposure through 2003 and 2004 was 18%,
down from 26% one year earlier. The number of actual calls in all of these Funds
will depend largely on market interest rates in coming months.
Looking ahead, we will continue to manage the Funds' durations and seek to
enhance their income-generating capabilities. We also plan to continue closely
monitoring the budgetary situations in both states. We believe that these Nuveen
Funds remain attractive sources of tax-free income, and continue to offer the
potential for considerable portfolio diversification.
5
Nuveen Michigan Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of July 31, 2003
NUM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 81%
AA 3%
A 10%
BBB 4%
NR 1%
BB or lower 1%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $15.45
- --------------------------------------------------
Common Share Net Asset Value $15.14
- --------------------------------------------------
Market Yield 6.06%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.42%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.78%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $176,186
- --------------------------------------------------
Average Effective Maturity (Years) 17.78
- --------------------------------------------------
Leverage-Adjusted Duration 11.85
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 2.40% 4.35%
- --------------------------------------------------
5-Year 4.18% 5.54%
- --------------------------------------------------
10-Year 6.24% 6.20%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 26%
- --------------------------------------------------
U.S. Guaranteed 16%
- --------------------------------------------------
Healthcare 13%
- --------------------------------------------------
Tax Obligation/Limited 11%
- --------------------------------------------------
Water and Sewer 9%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Aug 0.0755
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Jan 0.0765
Feb 0.0765
Mar 0.078
Apr 0.078
May 0.078
Jun 0.078
Jul 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/02 16.1
16
15.86
15.62
15.4
15.74
15.66
15.73
15.78
15.8
15.67
15
14.75
15.19
15.15
14.9
14.9
14.98
15.1
14.7
14.75
15.15
15.5
15.25
15.36
15.44
15.45
15.48
15.57
15.53
15.74
15.9
16.06
15.67
16.05
16.1
15.95
16.2
16.49
16.87
16.85
16.6
16.81
16.84
16.55
16.8
16.8
16.39
15.65
15.53
7/31/02 15.45
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
28%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 31%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.1030 per share.
6
Nuveen Michigan Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of July 31, 2003
NMP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 77%
AA 9%
A 10%
BBB 1%
BB or lower 3%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $14.85
- --------------------------------------------------
Common Share Net Asset Value $15.24
- --------------------------------------------------
Market Yield 6.22%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.64%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.01%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $117,418
- --------------------------------------------------
Average Effective Maturity (Years) 15.89
- --------------------------------------------------
Leverage-Adjusted Duration 8.77
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 2.64% 3.71%
- --------------------------------------------------
5-Year 5.85% 5.69%
- --------------------------------------------------
10-Year 6.04% 6.36%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
U.S. Guaranteed 21%
- --------------------------------------------------
Tax Obligation/Limited 16%
- --------------------------------------------------
Utilities 16%
- --------------------------------------------------
Tax Obligation/General 16%
- --------------------------------------------------
Healthcare 14%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Aug 0.0735
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0755
Jan 0.0755
Feb 0.0755
Mar 0.077
Apr 0.077
May 0.077
Jun 0.077
Jul 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/02 15.41
15.34
15.25
15.1
15.15
15.45
15.32
15.25
15.4
15.54
15.25
14.69
14.69
14.86
14.72
14.53
14.49
14.59
14.7
14.58
14.45
14.78
15.06
14.78
14.72
14.65
14.8
14.72
14.67
14.76
14.83
15.2
15.34
15.1
15.07
15.28
15.45
15.61
15.81
15.85
16.24
16.4
16.6
16.73
16.1
16.31
16.32
16.05
15.35
15.28
7/31/03 14.85
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
28%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 31%.
7
Nuveen Michigan Dividend Advantage Municipal Fund
Performance
OVERVIEW As of July 31, 2003
NZW
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 80%
AA 5%
A 10%
BBB 3%
BB or lower 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $15.10
- --------------------------------------------------
Common Share Net Asset Value $14.30
- --------------------------------------------------
Market Yield 5.92%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.22%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.58%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $29,443
- --------------------------------------------------
Average Effective Maturity (Years) 22.33
- --------------------------------------------------
Leverage-Adjusted Duration 15.05
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 9.19% 5.01%
- --------------------------------------------------
Since Inception 6.04% 5.58%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 35%
- --------------------------------------------------
Tax Obligation/Limited 20%
- --------------------------------------------------
Healthcare 12%
- --------------------------------------------------
Utilities 8%
- --------------------------------------------------
Water and Sewer 6%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Aug 0.0695
Sep 0.0695
Oct 0.0695
Nov 0.0695
Dec 0.0705
Jan 0.0705
Feb 0.0705
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0745
Jul 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/02 14.6
14.33
14.28
14.21
14.45
14.6
14.65
14.71
14.71
14.85
14.75
14.85
14.52
15
14.87
14.63
14.35
14.49
14.23
13.9
13.83
13.88
14.15
14.4
14.16
14.38
14.7
14.94
14.57
14.8
14.8
15.06
14.92
14.91
14.77
14.69
14.85
14.83
14.95
15.13
15.18
15.36
15.81
15.99
15.75
15.65
15.93
15.75
15.52
15.3
7/31/03 15.1
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
28%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 31%.
8
Nuveen Ohio Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of July 31, 2003
NUO
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 73%
AA 12%
A 9%
BBB 4%
NR 1%
BB or lower 1%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $17.04
- --------------------------------------------------
Common Share Net Asset Value $16.17
- --------------------------------------------------
Market Yield 5.88%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.17%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.78%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $155,412
- --------------------------------------------------
Average Effective Maturity (Years) 16.50
- --------------------------------------------------
Leverage-Adjusted Duration 9.06
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -3.15% 4.84%
- --------------------------------------------------
5-Year 4.56% 5.47%
- --------------------------------------------------
10-Year 6.87% 6.55%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 22%
- --------------------------------------------------
U.S. Guaranteed 20%
- --------------------------------------------------
Healthcare 14%
- --------------------------------------------------
Water and Sewer 10%
- --------------------------------------------------
Housing/Multifamily 8%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Aug 0.0795
Sep 0.081
Oct 0.081
Nov 0.081
Dec 0.082
Jan 0.082
Feb 0.082
Mar 0.0835
Apr 0.0835
May 0.0835
Jun 0.0835
Jul 0.0835
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/02 18.65
18.32
18.1
17.88
17.74
17.95
17.9
17.8
17.9
17.9
17.95
17.01
16.92
16.6
16.5
16.44
16.49
16.75
16.58
16.33
16.63
16.56
16.92
16.8
16.81
16.95
16.9
16.67
16.79
16.95
17.1
17.1
17.3
17.11
17.43
17.45
17.57
17.63
17.54
17.65
18.2
18.6
19.02
18.41
18.16
18.01
18.25
17.85
17.74
17.38
7/31/03 17.04
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
28%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
9
Nuveen Ohio Dividend Advantage Municipal Fund
Performance
OVERVIEW As of July 31, 2003
NXI
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 44%
AA 20%
A 17%
BBB 16%
NR 1%
BB or lower 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $14.26
- --------------------------------------------------
Common Share Net Asset Value $14.66
- --------------------------------------------------
Market Yield 6.61%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.18%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.87%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $61,924
- --------------------------------------------------
Average Effective Maturity (Years) 18.72
- --------------------------------------------------
Leverage-Adjusted Duration 9.72
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -0.04% 5.09%
- --------------------------------------------------
Since Inception 3.49% 7.00%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 22%
- --------------------------------------------------
Education and Civic Organizations 17%
- --------------------------------------------------
Healthcare 15%
- --------------------------------------------------
Utilities 12%
- --------------------------------------------------
Tax Obligation/Limited 9%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Aug 0.073
Sep 0.074
Oct 0.074
Nov 0.074
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0785
Jul 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/02 15.15
15.24
15.16
15.24
15.3
15.65
15.83
15.96
15.8
16.1
15.92
15.6
15
14.84
14.87
14.85
14.95
14.91
15.25
15.01
15.25
15.55
15.26
15.33
15.3
15.25
15.5
15.65
15.35
15.48
15.45
15.35
15.22
15.35
15.41
15.57
15.49
15.49
15.79
15.93
15.87
16
15.78
15.78
15.53
15.35
15.63
15.42
15.03
14.9
7/31/03 14.26
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
28%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.0103 per share.
10
Nuveen Ohio Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of July 31, 2003
NBJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 61%
AA 10%
A 15%
BBB 11%
NR 3%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $14.26
- --------------------------------------------------
Common Share Net Asset Value $14.31
- --------------------------------------------------
Market Yield 6.31%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.76%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.42%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $44,578
- --------------------------------------------------
Average Effective Maturity (Years) 20.23
- --------------------------------------------------
Leverage-Adjusted Duration 12.26
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 3.17% 4.74%
- --------------------------------------------------
Since Inception 2.76% 5.62%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 34%
- --------------------------------------------------
Healthcare 16%
- --------------------------------------------------
Tax Obligation/Limited 11%
- --------------------------------------------------
Utilities 9%
- --------------------------------------------------
Consumer Staples 7%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Aug 0.069
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.075
Apr 0.075
May 0.075
Jun 0.075
Jul 0.075
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/02 14.7
14.88
14.76
14.95
15
15.15
15.15
15.2
15.39
15.4
15.5
14.7
13.7
13.98
14.26
14.32
14.2
14.09
14.7
14.57
14.5
14.61
15
14.76
14.71
14.9
14.4
14.85
14.95
14.86
14.95
15.07
15
14.46
15.05
14.97
15.38
15.08
15.05
15.14
15.53
16.25
16
15.7
15.22
15.41
15.76
15.11
14.8
14.55
7/31/03 14.26
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
28%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
11
Nuveen Ohio Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of July 31, 2003
NVJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 55%
AA 23%
A 17%
BBB 5%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $14.40
- --------------------------------------------------
Common Share Net Asset Value $14.48
- --------------------------------------------------
Market Yield 6.08%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.44%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.07%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $31,245
- --------------------------------------------------
Average Effective Maturity (Years) 18.55
- --------------------------------------------------
Leverage-Adjusted Duration 11.48
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 0.09% 3.81%
- --------------------------------------------------
Since Inception 2.64% 6.66%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 28%
- --------------------------------------------------
Healthcare 16%
- --------------------------------------------------
Tax Obligation/Limited 14%
- --------------------------------------------------
Education and Civic Organizations 12%
- --------------------------------------------------
Water and Sewer 9%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
8/1/02 15.4
15.4
15.27
15.1
15.5
15.5
15.74
15.4
15.22
16
15.56
15.5
15
14.98
14.95
14.85
14.25
14.35
14.95
14.66
14.45
14.83
15.5
14.9
15.03
15.09
15.1
15.14
14.99
15.06
15.03
14.91
15.22
15.01
15.08
15.21
15.03
15.05
15.2
15.41
15.31
15.8
15.84
16.06
16.02
16.01
15.85
15.77
14.95
14.56
7/31/03 14.4
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
28%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0563 per share.
12
Report of
INDEPENDENT AUDITORS
THE BOARDS 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
as of July 31, 2003, and the related statements of operations, changes in net
assets and the financial highlights for 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 auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of investments owned as of July 31, 2003, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. 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 July 31, 2003, and the results of their
operations, changes in their net assets and the financial highlights for the
periods indicated therein in conformity with accounting principles generally
accepted in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
September 12, 2003
13
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6%
Puerto Rico, The Children's Trust Fund, Tobacco Settlement
Asset-Backed Refunding Bonds, Series 2002:
$ 3,250 5.375%, 5/15/33 5/12 at 100.00 A- $ 2,818,498
2,000 5.500%, 5/15/39 5/12 at 100.00 A- 1,705,080
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2%
1,720 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA 1,717,712
Series 1998, 5.000%, 10/01/23 - AMBAC Insured
1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,803,472
Obligation Revenue Refunding Bonds, Kettering University,
Series 2001, 5.500%, 9/01/17 - AMBAC Insured
1,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 1,593,720
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 (Alternative
Minimum Tax) - AMBAC Insured
1,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 1,004,550
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax) - AMBAC Insured
1,000 Oakland University, Michigan, General Revenue Bonds, 5/05 at 102.00 AAA 1,077,440
Series 1995, 5.750%, 5/15/15 - MBIA Insured
Wayne State University, Michigan, General Revenue Bonds,
Series 1999:
3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AAA 3,536,502
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 998,490
1,000 Western Michigan University, General Revenue Refunding 11/13 at 100.00 AAA 1,011,560
Bonds, Series 2003, 5.000%, 11/15/20 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.1%
2,900 Dearborn Hospital Finance Authority, Michigan, Economic 11/05 at 102.00 AAA 3,006,575
Development Corp., Hospital Revenue Bonds, Oakwood
Obligated Group, Series 1995A, 5.875%, 11/15/25 -
FGIC Insured
1,235 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,237,137
Mortgage Hospital Revenue Bonds, Portage Health System,
Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 3,470,320
Spectrum Health, Series 2001A, 5.250%, 1/15/21
2,702 Michigan State Hospital Finance Authority, Detroit Medical No Opt. Call Baa2 2,708,283
Center Collateralized Loan, Series 2001, 7.360%, 4/01/07
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,533,360
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101.00 A 1,038,400
Bonds, OSF Healthcare System, Series 1999,
6.125%, 11/15/19
1,700 Michigan State Hospital Finance Authority, Revenue Refunding 8/09 at 101.00 AAA 1,769,003
Bonds, Mercy Health Services Obligated Group, Series 1999X,
5.750%, 8/15/19 - MBIA Insured
Michigan State Hospital Finance Authority, Hospital Revenue
Refunding Bonds, Mercy Mount Clemens Corporation Obligated
Group, Series 1999A:
3,385 5.750%, 5/15/17 - MBIA Insured 5/09 at 101.00 AAA 3,570,363
500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 510,930
2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 1,634,310
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/28
1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101.00 BBB 951,420
Bonds, Memorial Healthcare Center Obligated Group,
Series 1999, 5.875%, 11/15/21
5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 5,132,350
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 5,500 Hospital Finance Authority, Royal Oak, Michigan, Hospital 11/11 at 100.00 AAA $ 5,499,560
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
2,195 University of Michigan, Medical Service Plan Revenue No Opt. Call AA 1,641,728
Bonds, Series 1991, 0.000%, 12/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.8%
2,675 Michigan Housing Development Authority, Limited Obligation 12/20 at 101.00 AAA 2,721,732
Multifamily Housing Revenue Bonds, Parkview Place
Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative
Minimum Tax)
1,800 Michigan Housing Development Authority, FNMA Enhanced 9/15 at 100.00 Aaa 1,762,848
Limited Obligation Multifamily Revenue Bonds, Renaissance
Apartments, Series 2002, 5.500%, 8/01/35 (Alternative
Minimum Tax)
5,250 Michigan Housing Development Authority, Limited Obligation 10/03 at 102.00 AAA 5,368,125
Revenue Bonds, Parkway Meadows Project, Series 1991,
6.850%, 10/15/18 - FSA Insured
3,790 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 3,931,329
Revenue Bonds, Series 1995B, 6.150%, 10/01/15 -
MBIA Insured
3,595 Michigan Housing Development Authority, Rental Housing 4/09 at 101.00 AAA 3,515,874
Revenue Bonds, Series 1999A, 5.300%, 10/01/37
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6%
1,000 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,020,090
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6%
1,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 12/03 at 102.00 BBB 1,023,910
WMX Technologies, Inc. Project, Series 1993, 6.000%, 12/01/13
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3%
3,300 Michigan State Hospital Finance Authority, Revenue Bonds, 1/07 at 102.00 N/R 2,886,444
Presbyterian Villages of Michigan Obligated Group,
Series 1997, 6.375%, 1/01/25
1,300 Michigan Strategic Fund, Limited Obligation Revenue Refunding 7/08 at 101.00 A- 1,217,853
Bonds, Porter Hills Presbyterian Village, Series 1998,
5.375%, 7/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 38.7%
Allegan County Public School District, Michigan, General
Obligation Bonds, Series 2000:
1,850 5.600%, 5/01/20 - FSA Insured 5/10 at 100.00 AAA 1,959,687
1,435 5.750%, 5/01/30 - FSA Insured 5/10 at 100.00 AAA 1,515,561
4,200 Anchor Bay School District, Macomb and St. Clair Counties, 5/11 at 100.00 AAA 4,101,594
Michigan, General Obligation Refunding Bonds - Unlimited
Tax, Series 2001, 5.000%, 5/01/29
1,000 Anchor Bay School District, Macomb and St. Clair Counties, 5/12 at 100.00 AAA 986,220
Michigan, General Obligation Refunding Bonds, Series 2002,
5.000%, 5/01/25
1,000 Belding School District, Ionia, Kent and Montcalm Counties, 5/08 at 100.00 AAA 983,240
Michigan, General Obligation Refunding Bonds, Series 1998,
5.000%, 5/01/26 - AMBAC Insured
1,200 Birmingham, Michigan, General Obligation Bonds, 10/12 at 100.50 AAA 1,216,848
Series 2002, 5.000%, 10/01/20
1,320 Bridgeport Spaulding Community School District, Saginaw 5/12 at 100.00 AAA 1,418,960
County, Michigan, General Obligation Bonds, Series 2002,
5.500%, 5/01/16
1,800 Byron Center Public Schools, Kent County, Michigan, General 11/11 at 100.00 AAA 1,912,950
Obligation Bonds, Series 2001, 5.500%, 5/01/18 - FGIC Insured
1,000 Charlotte Public School District, Easton County, Michigan, 5/09 at 100.00 AAA 1,007,810
Unlimited Tax General Obligation School Building and Site
Bonds, Series 1999, 5.250%, 5/01/25 - FGIC Insured
2,000 Clarkston Community Schools, Michigan, General Obligation 5/07 at 100.00 AAA 2,016,060
Bonds, School Bond Loan Fund - QSBLF, Series 1997,
5.250%, 5/01/23 - MBIA Insured
2,000 Detroit School District, Wayne County, Michigan, General No Opt. Call AAA 2,295,340
Obligation Bonds, Series 2002A, 6.000%, 5/01/19 -
FGIC Insured
1,000 East China School District, St. Clair County, Michigan, General 11/11 at 100.00 AAA 1,048,330
Obligation Bonds, Series 2001, 5.500%, 5/01/20
15
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,085 Freeland Community School District, Saginaw, Midland and 5/10 at 100.00 AAA $ 1,115,489
Bay Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 2000,
5.250%, 5/01/19
3,300 Grand Ledge Public Schools, Eaton, Clinton and Ionia 5/05 at 102.00 AAA 3,334,815
Counties, Michigan, General Obligation Refunding Bonds,
Series 1995, 5.375%, 5/01/24 - MBIA Insured
3,000 Grand Rapids and Kent County Joint Building Authority, No Opt. Call AAA 817,560
Michigan, Limited Tax General Obligation Bonds, Devos
Place Project, Series 2001, 0.000%, 12/01/26
1,710 Holland Building Authority, Michigan, General Obligation 10/11 at 100.00 AAA 1,734,504
Bonds, Series 2002, 5.000%, 10/01/19 - AMBAC Insured
1,500 Huron Valley School District, Oakland and Livingston 11/11 at 100.00 AAA 1,603,695
Counties, Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/17
2,000 Lake Fenton Community Schools, Genesee County, Michigan, 5/12 at 100.00 AAA 1,980,740
General Obligation Bonds, Series 2002, 5.000%, 5/01/24
725 Lake Orion Community School District, Oakland County, 5/05 at 101.00 AAA 754,261
Michigan, Unlimited Tax General Obligation Refunding
Bonds, Series 1995, 5.500%, 5/01/20 - AMBAC Insured
1,000 Mancelona Public School District, General Obligation Bonds, 5/06 at 100.00 AAA 1,037,920
Antrim and Kalkaska Counties, Michigan, Series 1997,
5.200%, 5/01/17 - FGIC Insured
4,300 Montcalm County Building Authority, Michigan, Correctional 5/10 at 100.00 AAA 4,336,077
Facility Improvement General Obligation Bonds, Series 2000,
5.250%, 5/01/25 - AMBAC Insured
2,500 Montrose School District, Michigan, School Building and No Opt. Call AAA 2,823,000
Site Bonds, Series 1997, 6.000%, 5/01/22 - MBIA Insured
1,255 Morenci Area Schools, Lenawee County, Michigan, General 5/12 at 100.00 AAA 1,300,770
Obligation Bonds, Series 2002, 5.250%, 5/01/19 -
MBIA Insured
1,000 Muskegon Heights Public Schools, Muskegon County, 5/09 at 100.00 AAA 976,570
Michigan, Unlimited Tax General Obligation School Building
and Site Bonds, Series 1999, 5.000%, 5/01/29 - MBIA Insured
1,625 Northville Public Schools, Wayne County, Michigan, General 11/11 at 100.00 AAA 1,705,746
Obligation Bonds, Series 2001, 5.375%, 5/01/18
Novi Community School District, Oakland County, Michigan,
General Obligation Refunding Bonds, Series 2002:
1,670 5.000%, 5/01/19 5/12 at 100.00 AAA 1,695,301
830 5.000%, 5/01/20 5/12 at 100.00 AAA 838,433
1,000 Oakland County Building Authority, Michigan, General 9/11 at 100.00 AAA 1,015,890
Obligation Bonds, Series 2002, 5.125%, 9/01/22
1,225 Paw Paw Public School District, Van Buren, Michigan, No Opt. Call AAA 1,245,874
General Obligation Refunding Bonds, Series 1998,
5.000%, 5/01/21 - FGIC Insured
4,000 Pinckney Community Schools, Livingston and Washtenaw 5/07 at 100.00 AAA 4,077,120
Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 1997,
5.500%, 5/01/27 - FGIC Insured
4,200 Puerto Rico Public Improvement, General Obligation No Opt. Call AAA 4,601,814
Refunding Bonds, Series 2002A, 5.500%, 7/01/20 -
MBIA Insured
685 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101.00 AAA 730,635
Building and Site Refunding Bonds, Series 1995,
5.750%, 5/01/15 - FGIC Insured
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,082,210
Counties, Michigan, General Obligation Bonds, Series 2000I,
5.750%, 5/01/19 - FGIC Insured
2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,575,875
General Obligation Bonds, Series 2000, 5.125%, 3/01/17 -
AMBAC Insured
1,050 Warren Consolidated School District, Macomb and Oakland 11/11 at 100.00 AAA 1,093,922
Counties, Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/19 - FSA Insured
1,980 Washtenaw County Building Authority, Michigan, Limited 9/07 at 100.00 AAA 2,097,869
Tax General Obligation Bonds, Series 1999, 5.400%, 9/01/17 -
FGIC Insured
1,125 Whitehall District Schools, Muskegon County, Michigan, 11/11 at 100.00 AAA 1,202,771
General Obligation Bonds, Series 2001, 5.500%, 5/01/17
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA $ 1,837,246
Tax General Obligation QSBLF Bonds, Series 1996,
5.500%, 5/01/25 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.9%
1,800 Dearborn Heights Tax Increment Financing Authority, 10/10 at 100.00 AAA 1,769,562
Wayne County, Michigan, Limited Tax General Obligation
Bonds, Police and Courthouse Facility Project, Series 2001A,
5.000%, 10/01/26 - MBIA Insured
1,000 Grand Rapids Building Authority, Kent County, Michigan, No Opt. Call AA 1,056,240
Limited Tax General Obligation Bonds, Series 1998,
5.000%, 4/01/16
1,145 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,147,187
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
255 Michigan Municipal Bond Authority, Local Government Loan 11/03 at 101.00 A 257,976
Program Revenue Sharing Bonds, Series 1992D,
6.650%, 5/01/12
750 Michigan State Building Authority, Facilities Program 10/09 at 100.00 AA+ 727,268
Revenue Refunding Bonds, Series 1998I, 4.750%, 10/15/21
Michigan State, Certificates of Participation, Series 2000:
2,000 5.500%, 6/01/19 - AMBAC Insured 6/10 at 100.00 AAA 2,106,300
2,000 5.500%, 6/01/27 - AMBAC Insured 6/10 at 100.00 AAA 2,045,060
1,000 Michigan State, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,026,650
Development, Inc., Series 2001, 5.375%, 9/01/21 -
MBIA Insured
1,000 Michigan State Trunk Line, Trunk Line Fund Bonds, 11/11 at 100.00 AAA 986,050
Series 2001A, 5.000%, 11/01/25
3,500 Michigan State Trunk Line, Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,588,060
5.250%, 10/01/21 - FSA Insured
1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,081,531
Wastewater Management System 2 Revenue Bonds,
Series 2002, 5.000%, 7/01/26 - FGIC Insured
Puerto Rico Highway and Transportation Authority, Highway
Revenue Bonds, Series 1996Y:
4,100 5.500%, 7/01/36 7/16 at 100.00 A 4,180,401
2,000 5.000%, 7/01/36 7/16 at 100.00 A 1,895,620
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,091,720
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 4,990,750
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/21 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.8%
1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 AAA 999,380
Bonds, Series 2002, 5.250%, 7/01/21 (Alternative Minimum
Tax) - MBIA Insured
3,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 2,841,120
Metropolitan Wayne County Airport, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax) -
MBIA Insured
1,195 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 1,153,067
Metropolitan Wayne County Airport, Series 1998B,
4.875%, 12/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.9%
2,190 Anchor Bay School District, Macomb and St. Clair 5/09 at 100.00 AAA 2,517,668
Counties, Michigan, General Obligation School Building and
Site Bonds - Unlimited Tax, Series 1999-I, 6.000%, 5/01/29
(Pre-refunded to 5/01/09) - FGIC Insured
275 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 306,191
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Detroit, Michigan, Sewage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 1,144,340
Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) -
FGIC Insured
950 Detroit, Michigan, Sewerage Disposal System Revenue 7/07 at 101.00 AAA 1,068,285
Bonds, Series 1997A, 5.500%, 7/01/20 (Pre-refunded
to 7/01/07) - MBIA Insured
2,000 Detroit, Michigan, Water Supply System Revenue Bonds, 1/10 at 101.00 AAA 2,273,180
Senior Lien, Series 1999A, 5.750%, 7/01/26 (Pre-refunded
to 1/01/10) - FGIC Insured
17
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
Detroit, Michigan, Water Supply System Revenue Bonds,
Senior Lien, Series 2001A:
$ 3,400 5.750%, 7/01/28 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 101.00 AAA $ 3,891,062
770 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 849,287
2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA 2,299,240
Unlimited Tax General Obligation School Building and
Site Bonds, Series 2000, 6.000%, 5/01/29 (Pre-refunded
to 5/01/09) - FSA Insured
2,000 Grand Rapids Township Economic Development Corporation, 7/09 at 101.00 A-*** 2,254,460
Michigan, Limited Obligation Revenue Bonds, Porter Hills
Obligated Group, Cook Valley Estate Project, Series 1999,
5.450%, 7/01/29 (Pre-refunded to 7/01/09)
1,000 Grosse Ile Township School District, Michigan, School 5/07 at 100.00 AAA 1,129,820
Improvement Refunding Bonds, Series 1996,
6.000%, 5/01/22 (Pre-refunded to 5/01/07) - FGIC Insured
2,000 Lincoln Park School District, Wayne County, Michigan, General 5/06 at 101.00 AAA 2,232,800
Obligation Bonds, Series 1996, 5.900%, 5/01/26
(Pre-refunded to 5/01/06) - FGIC Insured
Michigan State Hospital Finance Authority, Revenue Bonds,
Ascension Health Credit Group, Series 1999A:
1,000 6.125%, 11/15/23 (Pre-refunded to 11/15/09) - MBIA Insured 11/09 at 101.00 AAA 1,177,630
2,500 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 11/09 at 101.00 AAA 2,944,075
3,460 Michigan State Hospital Finance Authority, Revenue Refunding 5/08 at 101.00 AAA 3,468,650
Bonds, St. John's Health System, Series 1998A,
5.000%, 5/15/28 - AMBAC Insured
2,875 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 3,261,659
Michigan, Unlimited Tax General Obligation School Building
and Site Bonds, Series 2000A, 5.750%, 5/01/24 (Pre-refunded
to 5/01/10) - FGIC Insured
1,045 Nice Community School District, Marquette and Baraga 5/04 at 101.00 AAA 1,089,089
Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 1995,
5.250%, 5/01/20 (Pre-refunded to 5/01/04) - MBIA Insured
1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 1,311,671
Revenue Bonds, Series 2000B, 6.000%, 7/01/39
(Pre-refunded to 7/01/10)
2,100 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 2,386,776
Unlimited Tax General Obligation School Building and
Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded
to 5/01/09) - FGIC Insured
4,845 Saginaw-Midland Municipal Water Supply Corporation, 9/04 at 102.00 A2*** 5,246,263
Michigan, Limited Tax General Obligation Water Supply
Revenue Bonds, Series 1992, 6.875%, 9/01/16
(Pre-refunded to 9/01/04)
2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,974,608
Unlimited Tax General Obligation School Building and
Site Bonds, Series 2000, 5.900%, 5/01/18 (Pre-refunded
to 5/01/10) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.8%
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,031,380
Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 -
AMBAC Insured
4,475 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 4,796,797
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,630 Michigan Strategic Fund, Limited Obligation Refunding No Opt. Call AAA 4,479,747
Revenue Bonds, Detroit Edison Company, Series 1991BB,
7.000%, 5/01/21 - AMBAC Insured
2,000 Michigan Strategic Fund, Limited Obligation Revenue No Opt. Call Aaa 2,105,060
Refunding and Remarketing Bonds, Detroit Edison
Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory
put 9/01/11)
4,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 4,005,760
Revenue Refunding Pollution Control Bonds, Detroit Edison
Company, Series 2001C, 5.450%, 9/01/29
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,018,650
Revenue Refunding Pollution Control Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 405,148
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,000,850
Bonds, Series 1995X, 5.500%, 7/01/25
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.8%
$ 1,500 Detroit, Michigan, Sewage Disposal System Revenue Refunding 7/05 at 101.00 AAA $ 1,517,910
Bonds, Series 1995B, 5.250%, 7/01/21 - MBIA Insured
1,500 Detroit, Michigan, Sewage Disposal System Revenue Bonds, No Opt. Call AAA 1,595,760
Second Lien, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
2,500 Detroit, Michigan, Sewage Disposal System Revenue 7/13 at 100.00 AAA 2,434,650
Refunding Bonds, Senior Lien, Series 2003A,
5.000%, 7/01/32 - FSA Insured
Detroit, Michigan, Sewerage Disposal System Revenue
Bonds, Series 1997A:
2,050 5.500%, 7/01/20 - MBIA Insured 7/07 at 101.00 AAA 2,134,153
1,730 5.000%, 7/01/22 - MBIA Insured 7/07 at 101.00 AAA 1,732,560
Detroit, Michigan, Water Supply System Senior Lien Revenue
Bonds, Series 2003A:
4,025 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 3,986,199
3,000 5.000%, 7/01/25 - MBIA Insured 7/13 at 100.00 AAA 2,958,600
730 Detroit, Michigan, Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 734,898
Senior Lien, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
5,000 Detroit, Michigan, Water Supply System Revenue Refunding 7/04 at 102.00 AAA 4,993,550
Bonds, Series 1993, 5.000%, 7/01/23 - FGIC Insured
Muskegon Heights, Muskegon County, Michigan, Water Supply
System Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 - MBIA Insured 11/10 at 100.00 Aaa 1,082,243
1,160 5.625%, 11/01/30 - MBIA Insured 11/10 at 100.00 Aaa 1,205,110
- ------------------------------------------------------------------------------------------------------------------------------------
$ 259,627 Total Long-Term Investments (cost $253,858,257) - 150.1% 264,487,396
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9%
1,635 Eastern Michigan University, Variable Rate Demand Revenue A-1+ 1,635,000
Refunding Bonds, Series 0.900%, 6/01/27 - FGIC Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,635 Total Short-Term Investments (cost $1,635,000) 1,635,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $255,493,257) - 151.0% 266,122,396
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 4,063,666
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.4)% (94,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $176,186,062
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
19
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.7%
$ 970 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 A- $ 841,213
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.4%
1,000 Eastern Michigan University, General Revenue Bonds, 6/13 at 100.00 AAA 978,630
Series 2003, 5.000%, 6/01/28 - FGIC Insured
2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,009,100
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax) - AMBAC Insured
1,000 Saginaw Valley State University, Michigan, General Revenue 7/09 at 100.00 Aaa 1,033,590
Bonds, Series 1999, 5.625%, 7/01/29 - AMBAC Insured
3,500 Wayne State University, Michigan, General Revenue Bonds, 11/09 at 101.00 AAA 3,494,715
Series 1999, 5.125%, 11/15/29 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.1%
2,050 Dearborn Hospital Finance Authority, Michigan, Economic 11/05 at 102.00 AAA 2,125,338
Development Corp., Hospital Revenue Bonds, Oakwood
Obligated Group, Series 1995A, 5.875%, 11/15/25 -
FGIC Insured
2,200 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 2,203,806
Mortgage Hospital Revenue Bonds, Portage Health
System, Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
2,500 Kalamazoo Hospital Finance Authority, Michigan, Hospital 5/06 at 102.00 AAA 2,652,425
Revenue Refunding and Improvement Bonds, Bronson
Methodist Hospital, Series 1996, 5.750%, 5/15/16 -
MBIA Insured
Michigan State Hospital Finance Authority, Revenue and Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 8/03 at 102.00 Ba3 1,600,640
3,200 6.500%, 8/15/18 8/03 at 102.00 Ba3 2,469,088
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,533,360
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
2,000 Michigan State Hospital Finance Authority, Hospital Revenue 1/05 at 102.00 A+ 2,048,840
and Refunding Bonds, Otsego Memorial Hospital-Gaylord,
Series 1995, 6.250%, 1/01/20
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 4,087,440
Refunding Bonds, Mercy Mount Clemens Corporation
Obligated Group, Series 1999A, 5.750%, 5/15/29 -
MBIA Insured
500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A1 490,925
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 4,413,821
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.0%
1,335 Michigan Housing Development Authority, Multifamily Senior 12/10 at 100.00 AAA 1,355,452
Lien Revenue Bonds, Landings Project, Series 2001A,
5.950%, 12/01/33 (Alternative Minimum Tax) -
AMBAC Insured
1,000 Michigan Housing Development Authority, GNMA Collateralized 4/12 at 102.00 Aaa 1,001,040
Limited Obligation Multifamily Housing Revenue Bonds,
Burkshire Pointe Apartments, Series 2002A, 5.400%, 10/20/32
(Alternative Minimum Tax)
500 Michigan Housing Development Authority, FNMA Enhanced 9/15 at 100.00 Aaa 497,640
Limited Obligation Multifamily Revenue Bonds, Renaissance
Apartments, Series 2002, 5.350%, 8/01/22 (Alternative
Minimum Tax)
2,400 Michigan State Housing Development Authority, Limited 4/04 at 103.00 AAA 2,460,072
Obligation Revenue Bonds, Walled Lake Villa Project,
Series 1993, 6.000%, 4/15/18 - FSA Insured
1,500 Michigan State Housing Development Authority, Limited 10/03 at 103.00 AAA 1,520,895
Obligation Revenue Bonds, Breton Village Green Project,
Series 1993, 5.625%, 10/15/18 - FSA Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
Mount Clemens Housing Corporation, Michigan, FHA-Insured Section
8 Multifamily Housing Revenue Refunding Bonds, Clinton Place
Project, Series 1992A:
$ 1,000 6.600%, 6/01/13 12/03 at 102.00 AAA $ 1,020,810
1,500 6.600%, 6/01/22 12/03 at 102.00 AAA 1,527,990
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.2%
1,370 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 12/03 at 102.00 BBB 1,402,757
WMX Technologies, Inc. Project, Series 1993,
6.000%, 12/01/13 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.8%
3,000 Allen Park Public School District, Wayne County, Michigan, 5/13 at 100.00 AAA 2,929,710
General Obligation Bonds, Series 2003, 5.000%, 5/01/29
2,305 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AAA 2,461,648
Counties, Michigan, General Obligation Bonds,
Series 2003, 5.250%, 5/01/15
1,000 Central Montcalm Public Schools, Montcalm and Ionia 5/09 at 100.00 AAA 1,055,890
Counties, Michigan, Unlimited Tax General Obligation
School Building and Site Bonds, Series 1999,
5.750%, 5/01/24 - MBIA Insured
Detroit School District, Wayne County, Michigan, General
Obligation Bonds, Series 2002A:
1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AAA 2,076,033
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 855,188
2,500 Detroit School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 2,485,850
Obligation Bonds, Series 2003B, 5.000%, 5/01/23 -
FGIC Insured
500 Detroit School District, Wayne County, Michigan, Unlimited 5/12 at 100.00 AAA 523,820
Tax General Obligation School Building and Site
Improvement Bonds, Series 2001A, 5.500%, 5/01/21 -
FSA Insured
1,000 Durand Area Schools, Shiawasee County, Michigan, General 5/07 at 100.00 AAA 1,015,840
Obligation Bonds, Series 1997, 5.375%, 5/01/23 -
FGIC Insured
3,815 East Lansing Building Authority, Ingham and Clinton 4/11 at 100.00 AA 3,901,257
Counties, Michigan, Unlimited Tax General Obligation
Building Authority Bonds, Series 2000, 5.375%, 4/01/25
1,000 Oxford Area Community Schools, Oakland and Lapeer 11/11 at 100.00 AAA 1,069,130
Counties, Michigan, General Obligation Bonds,
Series 2001, 5.500%, 5/01/17
380 Reeths-Puffer Schools, Muskegon County, Michigan, School 5/05 at 101.00 AAA 405,316
Building and Site Refunding Bonds, Series 1995,
5.750%, 5/01/15 - FGIC Insured
1,000 Rochester Community School District, Oakland and 5/10 at 100.00 AAA 1,082,210
Macomb Counties, Michigan, General Obligation Bonds,
Series 2000I, 5.750%, 5/01/19 - FGIC Insured
South Lyon Community Schools, Oakland, Washtenaw, and Livingston
Counties, Michigan, General Obligation Bonds, Series 2003:
2,350 5.250%, 5/01/19 - FGIC Insured 11/12 at 100.00 AAA 2,436,057
1,575 5.250%, 5/01/22 - FGIC Insured 11/12 at 100.00 AAA 1,609,020
2,830 Warren Consolidated School District, Macomb and Oakland 5/13 at 100.00 AAA 2,922,456
Counties, Michigan, General Obligation Refunding Bonds,
Series 2003, 5.250%, 5/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.1%
5,750 Detroit, Michigan, Convention Facility Limited Tax Revenue 9/03 at 102.00 AAA 5,900,708
Refunding Bonds, Cobo Hall Expansion Project, Series 1993,
5.250%, 9/30/12 - FSA Insured
7,000 Detroit-Wayne County Stadium Authority, Michigan, 2/07 at 102.00 AAA 7,043,120
Limited Tax General Obligation Building Authority Stadium
Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured
1,500 Michigan State Building Authority, Facilities Program 10/10 at 100.00 AA+ 1,552,095
Revenue Bonds, Series 2000I, 5.375%, 10/15/20
Michigan State Building Authority, Facilities Program Revenue
Refunding Bonds, Series 2001I:
2,570 5.500%, 10/15/19 10/11 at 100.00 AA+ 2,714,897
6,500 5.000%, 10/15/24 10/11 at 100.00 AA+ 6,444,945
1,000 Michigan State, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,026,650
Development, Inc., Series 2001, 5.375%, 9/01/21 -
MBIA Insured
21
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,500 Michigan State, Comprehensive Transportation Revenue 11/11 at 100.00 AAA $ 1,524,210
Refunding Bonds, Series 2001A, 5.000%, 11/01/19 -
FSA Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100.00 A 947,810
Revenue Bonds, Series 1996Y, 5.000%, 7/01/36
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.9%
1,000 Puerto Rico Ports Authority, Special Facilities Revenue 12/03 at 102.00 CCC 539,990
Bonds, American Airlines, Inc. Project, Series 1993A,
6.300%, 6/01/23 (Alternative Minimum Tax)
2,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 1,894,080
Metropolitan Wayne County Airport, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax) - MBIA Insured
1,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 964,910
Metropolitan Wayne County Airport, Series 1998B,
4.875%, 12/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.2%
395 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 439,801
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,000 Detroit, Michigan, Sewage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 2,288,680
Series 1999A, 5.875%, 7/01/27 (Pre-refunded to 1/01/10) -
FGIC Insured
630 Detroit, Michigan, Sewage Disposal System Revenue Bonds, 7/07 at 101.00 AAA 708,441
Series 1997A, 5.500%, 7/01/20 (Pre-refunded to 7/01/07) -
MBIA Insured
1,385 Detroit, Michigan, Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 1,527,613
Senior Lien, Series 2001A, 5.250%, 7/01/33 (Pre-refunded
to 7/01/11) - FGIC Insured
4,000 Detroit, Michigan, Water Supply System Revenue Bonds, 1/10 at 101.00 AAA 4,546,360
Senior Lien, Series 1999A, 5.750%, 7/01/26 (Pre-refunded
to 1/01/10) - FGIC Insured
3,000 Eastern Michigan University, General Revenue Bonds, 12/06 at 101.00 AAA 3,365,040
Series 1997, 5.500%, 6/01/27 (Pre-refunded to 12/01/06) -
FGIC Insured
2,000 Ferris State College, Michigan, General Revenue Bonds, 10/03 at 102.00 AAA 2,057,660
Series 1993, 6.250%, 10/01/19 (Pre-refunded to 10/01/03) -
AMBAC Insured
1,950 Michigan Municipal Bond Authority, State Revolving Fund No Opt. Call AAA 1,969,715
Revenue Bonds, Series 1994, 7.000%, 10/01/03
5,000 Michigan Municipal Bond Authority, Drinking Water Revolving 10/09 at 101.00 AAA 5,702,450
Fund Revenue Bonds, Series 1999, 5.500%, 10/01/21
(Pre-refunded to 10/01/09)
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/03 at 102.00 AAA 3,073,020
Refunding Bonds, St. John's Hospital, Series 1993A,
6.000%, 5/15/13 - AMBAC Insured
2,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/09 at 101.00 AAA 2,944,075
Ascension Health Credit Group, Series 1999A,
6.125%, 11/15/26 (Pre-refunded to 11/15/09)
1,240 Milan Area Schools, Washtenaw and Monroe Counties, 5/10 at 100.00 AAA 1,397,517
Michigan, Unlimited Tax General Obligation School Building
and Site Bonds, Series 2000A, 5.625%, 5/01/16
(Pre-refunded to 5/01/10) - FGIC Insured
1,100 Puerto Rico Public Improvement, General Obligation 7/07 at 101.50 A-*** 1,249,534
Refunding Bonds, Series 1997, 5.750%, 7/01/17
(Pre-refunded to 7/01/07)
620 Reeths-Puffer Schools, Muskegon County, Michigan, 5/05 at 101.00 AAA 672,601
School Building and Site Refunding Bonds, Series 1995,
5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured
1,500 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 1,704,840
Unlimited Tax General Obligation School Building and Site
Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded to
5/01/09) - FGIC Insured
2,500 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 2,845,300
Unlimited Tax General Obligation School Building and Site
Bonds, Series 2000, 5.800%, 5/01/17 (Pre-refunded to
5/01/10) - FGIC Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 22.9%
$ 1,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA $ 1,010,460
Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 -
AMBAC Insured
1,000 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 1,071,910
Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,500 Michigan Strategic Fund, Collateralized Limited Obligation 12/03 at 102.00 AAA 3,582,425
Revenue Refunding Bonds, Consumers Power Company
Project, Series 1993B, 5.800%, 6/15/10 - CAPMAC Insured
3,000 Michigan Strategic Fund, Limited Obligation Revenue No Opt. Call Aaa 3,157,590
Refunding and Remarketing Bonds, Detroit Edison Company,
Series 1995CC, 4.850%, 9/01/30 (Mandatory put 9/01/11)
5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 5,007,200
Revenue Refunding Pollution Control Bonds, Detroit Edison
Company, Series 2001C, 5.450%, 9/01/29
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,018,650
Revenue Refunding Pollution Control Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
Monroe County, Michigan, Pollution Control Revenue Bonds,
Detroit Edison Company Project, Series 1992CC:
2,500 6.550%, 6/01/24 (Alternative Minimum Tax) - MBIA Insured 12/03 at 102.00 AAA 2,587,575
1,500 6.550%, 9/01/24 (Alternative Minimum Tax) - MBIA Insured 9/03 at 102.00 AAA 1,535,625
6,000 Monroe County, Michigan, Pollution Control Revenue Bonds, No Opt. Call AAA 6,388,920
Detroit Edison Company Project, Series 1994A,
6.350%, 12/01/04 (Alternative Minimum Tax) -
AMBAC Insured
1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, 10/08 at 101.00 AAA 1,586,085
Series 2002, 5.375%, 10/01/17 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.8%
1,500 Detroit, Michigan, Sewage Disposal System Revenue Bonds, No Opt. Call AAA 1,595,760
Second Lien, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
2,500 Detroit, Michigan, Sewage Disposal System Revenue 7/13 at 100.00 AAA 2,434,650
Refunding Bonds, Senior Lien, Series 2003A,
5.000%, 7/01/32 - FSA Insured
1,370 Detroit, Michigan, Sewage Disposal System Revenue Bonds, 7/07 at 101.00 AAA 1,426,239
Series 1997A, 5.500%, 7/01/20 - MBIA Insured
1,315 Detroit, Michigan, Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 1,323,821
Senior Lien, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 165,470 Total Long-Term Investments (cost $163,801,871) - 145.1% 170,371,984
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 3,046,395
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.7)% (56,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $117,418,379
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
23
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.8%
$ 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa $ 1,130,623
Obligation Revenue Refunding Bonds, Kettering University,
Series 2001, 5.000%, 9/01/26 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.2%
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 991,520
Spectrum Health, Series 2001A, 5.250%, 1/15/21
1,200 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102.00 Ba3 961,848
Refunding Bonds, Sinai Hospital, Series 1995,
6.625%, 1/01/16
600 Michigan State Hospital Finance Authority, Hospital Revenue 5/06 at 102.00 A1 582,372
and Refunding Bonds, Henry Ford Health System,
Series 1995A, 5.250%, 11/15/20
750 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A1 736,388
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
1,800 Royal Oak, Michigan, Hospital Finance Authority, Hospital 11/11 at 100.00 AAA 1,799,856
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.8%
1,700 Michigan Housing Development Authority, GNMA 8/12 at 102.00 Aaa 1,708,942
Collateralized Limited Obligation Multifamily Housing
Revenue Bonds, Cranbrook Apartments, Series 2001A,
5.400%, 2/20/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3%
1,250 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,275,113
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 52.0%
1,000 Detroit School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 1,029,750
Obligation Bonds, Series 2002A, 5.375%, 5/01/24 -
FGIC Insured
1,000 Detroit School District, Wayne County, Michigan, Unlimited 5/12 at 100.00 AAA 1,047,640
Tax School Building and Site Improvement General Obligation
Bonds, Series 2001A, 5.500%, 5/01/21 - FSA Insured
1,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AAA 983,240
General Obligation Refunding Bonds, Series 2001,
5.000%, 5/01/26
1,300 Harper Creek Community School District, Calhoun County, 5/11 at 100.00 AAA 1,296,074
Michigan, General Obligation Bonds, Series 2001,
5.125%, 5/01/31
2,200 Huron School District, Wayne and Monroe Counties, 5/11 at 100.00 AAA 2,247,322
Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/26 - FSA Insured
1,500 Huron Valley School District, Oakland and Livingston 11/11 at 100.00 AAA 1,472,880
Counties, Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/27
1,050 Lawton Community Schools, Van Buren County, Michigan, 11/11 at 100.00 AAA 1,092,536
General Obligation Bonds, Series 2001, 5.500%, 5/01/21
1,000 Portland Public Schools, Ionia County, Michigan, General 11/11 at 100.00 AAA 976,570
Obligation Bonds, Series 2001, 5.000%, 5/01/29
1,000 Puerto Rico Public Improvement, General Obligation Bonds, 7/11 at 100.00 A- 971,060
Series 2002A, 5.125%, 7/01/31
1,000 Rochester Community School District, Oakland and Macomb 11/11 at 100.00 AAA 1,034,470
Counties, Michigan, General Obligation Bonds, Series 2001II,
5.500%, 5/01/22
500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AAA 505,140
Obligation Bonds, Series 2001, 5.150%, 11/01/22 -
FGIC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Washtenaw County, Michigan, Limited Tax General Obligation
Bonds, Sylvan Township Water and Wastewater System, Series 2001:
$ 500 5.000%, 5/01/19 - MBIA Insured 5/09 at 100.50 AAA $ 508,350
800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 809,552
1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AAA 1,304,459
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.5%
1,300 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,302,483
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
1,205 Michigan State Building Authority, Facilities Program Revenue 10/11 at 100.00 AA+ 1,194,794
Refunding Bonds, Series 2001I, 5.000%, 10/15/24
2,000 Michigan State Trunk Line, Trunk Line Fund Bonds, 11/11 at 100.00 AAA 1,972,100
Series 2001A, 5.000%, 11/01/25
1,450 Muskegon County, Michigan, Limited Tax General 7/11 at 100.00 AAA 1,425,655
Obligation Wastewater Management System 2 Revenue
Bonds, Series 2002, 5.000%, 7/01/26 - FGIC Insured
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,091,720
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
1,750 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,695,400
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.6%
1,750 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 1,657,320
Metropolitan Wayne County Airport, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.6%
515 Detroit, Michigan, Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 568,030
Senior Lien, Series 2001A, 5.250%, 7/01/33 (Pre-refunded
to 7/01/11) - FGIC Insured
1,000 Michigan Municipal Bond Authority, Drinking Water 10/10 at 101.00 AAA 1,158,170
Revolving Fund Revenue Bonds, Series 2000,
5.875%, 10/01/17 (Pre-refunded to 10/01/10)
500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 525,625
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.8%
1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,252,129
Turbine 1 Project, Series 2001A, 5.250%, 1/01/24 -
AMBAC Insured
2,215 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- 2,217,724
Revenue Refunding Pollution Control Bonds, Fixed-Rate
Conversion, Detroit Edison Company, Series 1999C,
5.650%, 9/01/29 (Alternative Minimum Tax)
25
Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.6%
$ 1,000 Detroit, Michigan, Sewage Disposal System Revenue Bonds, No Opt. Call AAA $ 1,063,840
Second Lien, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
Detroit, Michigan, Water Supply System Revenue Bonds,
Senior Lien, Series 2001A:
1,000 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 976,110
485 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 488,252
- ------------------------------------------------------------------------------------------------------------------------------------
$ 43,005 Total Long-Term Investments (cost $42,898,673) - 146.2% 43,055,057
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 8.1% 2,388,431
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $29,443,488
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
26
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.4%
$ 4,320 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 A- $ 3,746,434
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.7%
3,665 Ohio State Education, Student Loan Revenue Bonds, 6/07 at 102.00 AAA 3,795,547
Supplemental Student Loan Program, Series 1997A-1,
5.850%, 12/01/19 (Alternative Minimum Tax) -
AMBAC Insured
1,000 Ohio Higher Education Facilities Commission, Revenue 12/04 at 102.00 AAA 1,068,370
Bonds, University of Dayton Project, Series 1994,
5.800%, 12/01/14 - FGIC Insured
1,200 Ohio Higher Education Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,191,936
Bonds, University of Findlay Project, Series 1996,
6.125%, 9/01/16
1,200 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 1,198,128
Series 2002A, 5.125%, 12/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.9%
2,675 Clermont County, Ohio, Hospital Facilities Revenue Refunding 1/04 at 101.00 AAA 2,736,632
Bonds, Mercy Health System, Series 1993A, 5.875%, 1/01/15 -
MBIA Insured
1,000 Cuyahoga County, Ohio, Hospital Improvement and Revenue 2/07 at 102.00 AAA 1,069,740
Refunding Bonds, The MetroHealth System Project,
Series 1997, 5.625%, 2/15/17 - MBIA Insured
2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, 7/13 at 100.00 A1 2,062,440
Cleveland Clinic Health System, Series 2003A,
6.000%, 1/01/32
2,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 2,489,300
Firelands Regional Medical Center, Series 2002A,
5.625%, 8/15/32
Franklin County, Ohio, Hospital Revenue Refunding and
Improvement Bonds, Children's Hospital Project, Series 1996A:
1,000 5.750%, 11/01/20 11/06 at 101.00 Aa2 1,019,690
1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,526,310
2,500 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+ 2,625,300
Improvement Bonds, The Community Hospital, Series 1996,
6.375%, 5/15/11
2,405 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,456,275
and Improvement Bonds, Upper Valley Medical Center,
Series 1996A, 6.250%, 5/15/16
1,500 Montgomery County, Ohio, Hospital Facilities Revenue 4/06 at 102.00 AAA 1,615,665
Refunding and Improvement Bonds, Kettering Medical
Center, Series 1996, 5.625%, 4/01/16 - MBIA Insured
3,000 Montgomery County, Ohio, Hospital Facilities Revenue 4/10 at 101.00 BBB+ 3,187,020
Bonds, Kettering Medical Center, Series 1999,
6.750%, 4/01/18
6,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 5,775,060
Hospital Revenue Refunding and Improvement Bonds,
Series 1998, 5.375%, 11/01/29
2,500 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,598,400
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 1,569,510
and Improvement Bonds, Trinity Health System,
Series 2000, 6.375%, 10/01/20
1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue 10/11 at 101.00 AA 1,773,405
Bonds, Union Hospital Project, Series 2001,
5.750%, 10/01/21 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.6%
1,385 Clermont County, Ohio, GNMA Collateralized Mortgage 8/03 at 103.00 Aaa 1,388,379
Revenue Bonds, S.E.M. Villa II Project, Series 1994A,
5.950%, 2/20/30
1,000 Cuyahoga County, Ohio, GNMA Collateralized Mortgage 9/10 at 102.00 Aaa 989,080
Revenue Bonds, West Tech Apartments Project,
Series 2002A, 5.350%, 3/20/33 (Alternative Minimum Tax)
27
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,435 Cuyahoga County, Ohio, GNMA Collateralized Loan 6/08 at 105.00 Aaa $ 1,491,769
Multifamily Housing Revenue Bonds, Water Street
Associates Project, Series 1997, 6.150%, 12/20/26
(Alternative Minimum Tax)
Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing
Mortgage Revenue Bonds, Longwood Phase One Associates LP
Project, Series 2001A:
2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,490,147
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,260,598
1,000 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 1,000,430
Housing Revenue Bonds, Livingston Park, Series 2002A,
5.350%, 9/20/27
985 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/05 at 103.00 Aa 986,172
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
4,060 Lucas Northgate Housing Development Corporation, 1/04 at 102.00 Aaa 4,107,421
Ohio, FHA-Insured Mortgage Revenue Refunding Bonds,
Northgate Apartments Section 8 Assisted Project,
Series 1999A, 6.000%, 7/01/24 - MBIA Insured
3,265 Ohio Housing Finance Agency, Multifamily Housing Revenue 12/09 at 100.00 AAA 3,376,565
Bonds, Timber Lake Apartments Project, Series 1999C,
6.150%, 12/01/24 (Alternative Minimum Tax) -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.6%
2,240 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/09 at 100.00 Aaa 2,335,066
Securities Program Residential Mortgage Revenue Bonds,
Series 2000A-1, 6.350%, 9/01/31 (Alternative Minimum Tax)
2,635 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,679,400
Securities Program Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
5,000 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 5,038,400
Securities Program Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum
Tax) - FSA Insured
3,955 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 3,962,633
Securities Program Residential Mortgage Revenue Bonds,
Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax)
905 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 908,901
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7%
1,000 Marion County, Ohio, Healthcare Facilities Revenue 11/03 at 102.00 BBB- 1,012,620
Refunding and Improvement Bonds, United Church Homes,
Inc. Project, Series 1993, 6.300%, 11/15/15
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.8%
1,000 Ansonia Local School District, Darke County, Ohio, 12/10 at 102.00 Aaa 1,041,470
General Obligation Bonds, Series 2000, 5.500%, 12/01/22 -
MBIA Insured
1,000 Bay Village City School District, Ohio, Unlimited Tax General 12/10 at 100.00 Aa2 991,300
Obligation School Improvement Bonds, Series 2001,
5.000%, 12/01/25
270 Berea City School District, Ohio, Unlimited Tax General 12/03 at 102.00 AAA 281,437
Obligation School Improvement Bonds, Series 1993,
7.500%, 12/15/06 - AMBAC Insured
1,750 Brecksville-Broadview Heights City School District, Ohio, 12/06 at 102.00 AAA 2,002,245
Unlimited Tax General Obligation School Improvement
Bonds, Series 1996, 6.500%, 12/01/16 - FGIC Insured
1,000 Cincinnati City School District, Hamilton County, Ohio, 12/11 at 100.00 AAA 1,072,750
General Obligation Bonds, Series 2001, 5.375%, 12/01/15 -
MBIA Insured
2,600 Cincinnati City School District, Hamilton County, Ohio, 12/12 at 100.00 AAA 2,668,302
General Obligation Bonds, Series 2002, 5.250%, 6/01/21 -
FSA Insured
1,165 Cleveland, Ohio, General Obligation Bonds, Series 2000, 12/10 at 101.00 AAA 1,200,765
5.125%, 12/01/18 - FGIC Insured
2,765 Dayton City School District, Ohio, General Obligation Bonds, 6/13 at 100.00 AAA 2,714,041
Series 2003A, 5.000%, 12/01/27 - FGIC Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aa1 1,008,180
Bonds, Series 2000A, 5.000%, 12/01/20
1,300 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 1,356,108
Refunding Bonds, Series 1993, 5.375%, 12/01/20
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa $ 1,976,780
Ohio, General Obligation School Improvement Bonds,
Series 2001, 5.000%, 12/15/26 - MBIA Insured
1,000 Hilliard School District, Ohio, General Obligation School 12/10 at 101.00 AAA 1,061,090
Improvement Bonds, Series 2000, 5.750%, 12/01/24 -
FGIC Insured
1,160 Kenston Local School District, Geauga County, Ohio, General 6/13 at 100.00 Aaa 1,159,211
Obligation Bonds, Series 2003, 5.000%, 12/01/22 -
MBIA Insured
2,000 Lakota Local School District, Butler County, Ohio, Unlimited 6/11 at 100.00 Aaa 2,007,540
Tax General Obligation School Improvement and Refunding
Bonds, Series 2001, 5.125%, 12/01/26 - FGIC Insured
1,750 London City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 1,715,980
School Facilities Construction and Improvement Bonds,
Series 2001, 5.000%, 12/01/29 - FGIC Insured
2,500 Louisville City School District, Ohio, General Obligation 12/11 at 100.00 Aaa 2,454,925
Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured
1,515 Massillon City School District, Ohio, General Obligation 12/12 at 100.00 Aaa 1,554,799
Bonds, Series 2003, 5.250%, 12/01/21 - MBIA Insured
2,335 Milford Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 2,336,401
Obligation Bonds, Series 2001, 5.125%, 12/01/30 -
FSA Insured
1,260 Morgan Local School District, Morgan, Muskingum and 12/10 at 101.00 AA- 1,359,817
Washington Counties, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 2000,
5.750%, 12/01/22
North Canton City School District, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 1994:
650 9.750%, 12/01/03 - AMBAC Insured No Opt. Call AAA 668,610
715 9.700%, 12/01/04 - AMBAC Insured No Opt. Call AAA 795,380
Oak Hills Local School District, Hamilton County, Ohio,
General Obligation Bonds, Series 1997B:
1,025 6.900%, 12/01/11 - MBIA Insured No Opt. Call AAA 1,241,101
1,090 6.900%, 12/01/12 - MBIA Insured No Opt. Call AAA 1,328,416
1,315 Ohio State Higher Education, General Obligation Bonds, 5/13 at 100.00 AA+ 1,307,557
Series 2003A, 5.000%, 5/01/23
2,720 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 2,672,645
Counties, Ohio, School Facilities Construction and
Improvement General Obligation Bonds, Series 2001,
5.000%, 12/01/28 - FGIC Insured
1,100 Plain Local School District, Franklin and Licking Counties, 6/12 at 100.00 Aaa 1,183,116
Ohio, General Obligation Bonds, Series 2002,
5.500%, 12/01/17 - FGIC Insured
280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 308,790
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 - FGIC Insured
1,445 Portage County, Ohio, General Obligation Bonds, 12/11 at 100.00 AAA 1,424,293
Series 2001, 5.000%, 12/01/27 - FGIC Insured
1,000 Revere Local School District, Ohio, Unlimited Tax General 12/03 at 102.00 AAA 1,033,120
Obligation School Improvement Bonds, Series 1993,
6.000%, 12/01/16 - AMBAC Insured
2,830 Springfield Township, Hamilton County, Ohio, Various 12/11 at 100.00 Aa3 2,857,734
Purpose Limited Tax General Obligation Bonds, Series 2002,
5.250%, 12/01/27
2,000 Strongsville, Ohio, General Obligation Bonds, 12/11 at 100.00 Aaa 2,005,940
Series 2001, 5.000%, 12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 76,196
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
1,000 Upper Arlington City School District, Ohio, General 12/06 at 101.00 AAA 1,010,720
Obligation Improvement Bonds, Series 1996,
5.250%, 12/01/22 - MBIA Insured
2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 1,971,340
Counties, Ohio, Various Purpose General Obligation
Bonds, Series 2001, 5.000%, 12/01/27 - MBIA Insured
1,000 Westlake, Ohio, Various Purpose General Obligation 12/08 at 101.00 Aaa 1,082,320
Improvement and Refunding Bonds, Series 1997,
5.550%, 12/01/17
29
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 2.5%
$ 1,250 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/09 at 101.00 AAA $ 1,214,388
Project, Series 1999, 4.875%, 12/01/24 - AMBAC Insured
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 AAA 1,080,360
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,070,670
545 Ohio Department of Transportation, Certificates of 10/03 at 100.00 AA 545,529
Participation, Rickenbacker International Airport
Improvements, Series 1996, 6.125%, 4/15/15
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.4%
Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A:
1,780 5.250%, 1/01/16 - FSA Insured 1/10 at 101.00 AAA 1,849,669
2,500 5.000%, 1/01/31 - FSA Insured 1/10 at 101.00 AAA 2,439,750
3,430 Cleveland, Ohio, Parking Facilities Revenue Refunding Bonds, 9/06 at 102.00 AAA 3,535,644
Series 1996, 5.500%, 9/15/22 - MBIA Insured
Columbus Municipal Airport Authority, Ohio, Airport Improvement
Revenue Bonds, Port Columbus International Airport Project,
Series 1994A:
830 5.950%, 1/01/08 (Alternative Minimum Tax) - MBIA Insured 1/04 at 102.00 AAA 859,938
1,000 6.000%, 1/01/14 (Alternative Minimum Tax) - MBIA Insured 1/04 at 102.00 AAA 1,035,420
1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 BB+ 1,129,080
Emery Air Freight Corporation and Emery Worldwide
Airlines, Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18
2,000 Ohio Turnpike Commission, Revenue Bonds, No Opt. Call AAA 2,194,840
Series 1998A, 5.500%, 2/15/18 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 28.7%
Berea City School District, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 1993:
380 7.500%, 12/15/06 (Pre-refunded to 12/15/03) - AMBAC Insured 12/03 at 102.00 AAA 396,845
680 7.450%, 12/15/07 (Pre-refunded to 12/15/03) - AMBAC Insured 12/03 at 102.00 AAA 709,995
2,550 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,839,221
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,000 Cleveland, Ohio, Public Power System First Mortgage 11/04 at 102.00 AAA 2,191,920
Revenue Bonds, Series 1994A, 7.000%, 11/15/24
(Pre-refunded to 11/15/04) - MBIA Insured
3,960 Cleveland, Ohio, Waterworks First Mortgage Revenue 1/06 at 102.00 AAA 4,402,570
Refunding and Improvement Bonds, Series 1996H,
5.750%, 1/01/26 (Pre-refunded to 1/01/06) -
MBIA Insured
1,980 Franklin County, Ohio, First Mortgage Revenue, OCLC, 12/03 at 103.00 AAA 2,279,317
Inc. Project, Series 1979, 7.500%, 6/01/09
1,505 Greater Cleveland Regional Transit Authority, General 12/06 at 101.00 Aaa 1,695,383
Obligation Capital Improvement Bonds, Series 1996,
5.650%, 12/01/16 (Pre-refunded to 12/01/06) -
FGIC Insured
2,100 Lakota Local School District, Butler County, Ohio, Unlimited 12/05 at 100.00 AAA 2,327,892
Tax General Obligation School Improvement Bonds,
Series 1994, 6.250%, 12/01/14 (Pre-refunded to
12/01/05) - AMBAC Insured
1,000 Newark, Ohio, Limited Tax General Obligation Water System 12/03 at 102.00 AAA 1,036,840
Improvement Bonds, Series 1993, 6.000%, 12/01/18
(Pre-refunded to 12/01/03) - AMBAC Insured
4,315 Ohio Capital Corporation for Housing, FHA-Insured 2/09 at 102.00 Aa2*** 4,975,670
Section 8 Mortgage Loan Revenue Refunding Bonds,
Series 1999G, 5.950%, 2/01/24 (Pre-refunded to 2/01/09)
3,000 Ohio State Building Authority, State Facilities Bonds, 10/03 at 102.00 AA*** 3,085,830
Adult Correctional Building Fund Projects, Series 1993A,
6.125%, 10/01/12 (Pre-refunded to 10/01/03)
2,400 Ohio Higher Education Facilities Commission, Revenue 12/03 at 102.00 AAA 2,493,192
Bonds, University of Dayton Project, Series 1992,
6.600%, 12/01/17 (Pre-refunded to 12/01/03) -
FGIC Insured
1,000 Ohio Water Development Authority, Fresh Water 6/05 at 102.00 AAA 1,100,660
Development Revenue Bonds, Series 1995,
5.900%, 12/01/21 (Pre-refunded to 6/01/05) -
AMBAC Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa $ 1,406,099
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 (Pre-refunded to 6/01/11) - FGIC Insured
2,000 Puerto Rico Public Improvement, General Obligation Bonds, 7/06 at 101.50 A-*** 2,228,180
Series 1996, 5.400%, 7/01/25 (Pre-refunded to 7/01/06)
1,300 Puerto Rico Public Improvement, General Obligation Refunding 7/07 at 101.50 A-*** 1,476,722
Bonds, Series 1997, 5.750%, 7/01/17 (Pre-refunded
to 7/01/07)
2,800 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2*** 3,206,364
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
(Pre-refunded to 12/01/06)
1,000 Sylvania City School District, Ohio, Unlimited Tax General 12/05 at 101.00 AAA 1,107,890
Obligation Bonds, Series 1995, 5.800%, 12/01/15
(Pre-refunded to 12/01/05) - FGIC Insured
2,000 Wayne Local School District, Warren County, Ohio, 12/06 at 101.00 AAA 2,283,960
Unlimited Tax General Obligation School Improvement
Bonds, Series 1996, 6.100%, 12/01/24 (Pre-refunded to
12/01/06) - AMBAC Insured
3,000 West Clermont Local School District, Clermont County, 12/05 at 100.00 AAA 3,307,680
Ohio, Unlimited Tax General Obligation School Improvement
Bonds, Series 1995, 6.000%, 12/01/18 (Pre-refunded
to 12/01/05) - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.8%
4,000 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 4,001,280
Bonds, American Municipal Power Ohio, Inc., Series 2002,
5.000%, 2/15/22 - MBIA Insured
Ohio Air Quality Development Authority, Revenue Refunding Bonds,
JMG Funding Limited Partnership Project, Series 1994:
2,000 6.375%, 1/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 2,136,760
4,000 6.375%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 4,273,520
3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 AAA 3,042,540
JMG Funding Limited Partnership Project, Series 1997,
5.625%, 1/01/23 (Alternative Minimum Tax) -
AMBAC Insured
2,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,831,580
Revenue Bonds, Bay Shore Power Project, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.1%
Cincinnati, Ohio, Water System Revenue Bonds,
Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,072,160
6,010 5.000%, 12/01/18 6/11 at 100.00 AA+ 6,138,494
3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,046,440
1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,009,610
2,000 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 1,996,180
Series 2003, 5.000%, 12/01/22
1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 1,075,190
Refunding and Improvement Bonds, Series 1993G,
5.500%, 1/01/21 - MBIA Insured
1,000 Cleveland, Ohio, Waterworks Revenue Refunding and 1/08 at 101.00 AAA 981,290
Improvement Bonds, Series 1998I, 5.000%, 1/01/28 -
FSA Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue 1/06 at 102.00 AAA 42,199
Refunding and Improvement Bonds, Series 1996H,
5.750%, 1/01/26 - MBIA Insured
2,110 Hamilton County, Ohio, Sewer System Improvement Revenue 6/10 at 101.00 AAA 2,230,414
Bonds, Metropolitan Sewer District of Greater Cincinnati,
Series 2000A, 5.750%, 12/01/25 - MBIA Insured
31
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 Northeast Ohio Regional Sewer District, Wastewater 11/05 at 101.00 AAA $ 2,160,560
Improvement Revenue Refunding Bonds, Series 1995,
5.600%, 11/15/16 - AMBAC Insured
2,000 Southwest Regional Ohio Water District , Waterworks 12/05 at 101.00 AAA 2,174,120
System Revenue Bonds, Series 1995, 6.000%, 12/01/20 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 219,555 Total Long-Term Investments (cost $218,993,566) - 146.2% 227,183,017
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6%
1,000 University of Toledo, Ohio, General Receipts Variable Rate A-1+ 1,000,000
Demand Obligations, Series 0.900%, 6/01/32 - FGIC Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $219,993,566) - 146.8% 228,183,017
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 4,228,688
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.5)% (77,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $155,411,705
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
32
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.0%
$ 2,160 Puerto Rico, The Children's Trust Fund, Tobacco 5/12 at 100.00 A- $ 1,873,217
Settlement Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.3%
1,000 Ohio Higher Education Facilities Commission, Revenue 12/10 at 101.00 AAA 1,026,800
Bonds, University of Dayton Project, Series 2000,
5.500%, 12/01/25 - AMBAC Insured
2,000 Ohio Higher Education Facilities Commission, Revenue 11/11 at 101.00 AA 2,016,640
Bonds, Denison University Project, Series 2001,
5.200%, 11/01/26
2,650 Ohio Higher Education Facilities Commission, Revenue 5/12 at 100.00 A2 2,575,959
Bonds, Ohio Northern University Project, Series 2002,
5.000%, 5/01/22
3,150 Student Loan Funding Corporation, Cincinnati, Ohio, 1/04 at 100.00 A 3,157,056
Student Loan Subordinated Revenue Refunding Bonds,
Series 1992D, 6.600%, 7/01/05 (Alternative Minimum Tax)
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,189,260
Series 2001A, 5.750%, 6/01/17 - FGIC Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 AA- 2,855,969
Series 2002F, 5.375%, 6/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.1%
1,300 Akron, Bath and Copley Joint Township Hospital District, 11/03 at 102.00 Baa1 1,259,505
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System Project, Series 1993A, 5.500%, 11/15/13
1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, 7/13 at 100.00 A1 1,134,342
Cleveland Clinic Health System, Series 2003A,
6.000%, 1/01/32
1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 1,967,355
Healthcare Obligated Group, Series 1999,
5.375%, 11/15/29 - AMBAC Insured
2,500 Miami County, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,527,375
and Improvement Bonds, Upper Valley Medical Center,
Series 1996A, 6.375%, 5/15/26
Parma Community General Hospital Association, Ohio, Hospital
Revenue Refunding and Improvement Bonds, Series 1998:
2,250 5.250%, 11/01/13 11/08 at 101.00 A- 2,303,595
2,000 5.375%, 11/01/29 11/08 at 101.00 A- 1,925,020
1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,039,360
Improvement Bonds, MedCentral Health System
Obligated Group, Series 2000B, 6.375%, 11/15/30
1,500 Tuscarawas County, Ohio, Hospital Facilities Revenue 10/03 at 102.00 Baa1 1,514,205
Bonds, Union Hospital Project, Series 1993A,
6.500%, 10/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.6%
1,790 Lucas Northgate Housing Development Corporation, 1/04 at 102.00 Aaa 1,815,848
Ohio, FHA-Insured Mortgage Revenue Refunding Bonds,
Northgate Apartments Section 8 Assisted Project,
Series 1999A, 5.950%, 7/01/19 - MBIA Insured
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage 4/11 at 102.00 Aa2 2,911,311
Revenue Bonds, Asbury Woods Project, Series 2001A,
5.450%, 4/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.1%
1,720 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,773,956
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
1,935 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,996,262
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
1,460 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,526,050
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
33
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 365 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa $ 366,573
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.7%
1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, 7/11 at 101.00 BBB 1,046,300
Ohio Presbyterian Retirement Services, Series 2001A,
7.125%, 7/01/29
1,970 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB+ 1,868,565
Revenue Bonds, Twin Towers, Series 1999A,
5.750%, 10/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.8%
1,000 Bay Village City School District, Ohio, Unlimited Tax General 12/10 at 100.00 Aa2 991,300
Obligation School Improvement Bonds, Series 2001,
5.000%, 12/01/25
1,000 Centerville, Ohio, Limited Tax General Obligation Bonds, 12/11 at 100.00 Aa3 1,002,620
Capital Facilities Improvement, Series 2001,
5.125%, 12/01/26
Jackson City School District, Jackson County, Ohio, Unlimited
Tax General Obligation School Improvement Bonds, Series 2001:
880 5.500%, 12/01/22 - MBIA Insured 6/11 at 100.00 Aaa 928,286
935 5.500%, 12/01/23 - MBIA Insured 6/11 at 100.00 Aaa 981,292
2,000 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 2,007,540
Unlimited Tax General Obligation School Improvement
and Refunding Bonds, Series 2001, 5.125%, 12/01/26 -
FGIC Insured
2,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 2,012,700
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 - FGIC Insured
1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101.00 AAA 1,025,660
Bonds, Series 2000, 5.450%, 12/01/25 - AMBAC Insured
1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101.00 AAA 1,877,824
Obligation Bonds, Series 2001, 5.250%, 12/01/25 -
FGIC Insured
1,275 Sycamore Community School District, Hamilton County, 12/09 at 101.00 AAA 1,267,669
Ohio, Unlimited Tax General Obligation School Improvement
Bonds, Series 1999, 5.000%, 12/01/23 - MBIA Insured
1,485 West Chester Township, Butler County, Ohio, Various 11/11 at 101.00 Aaa 1,601,365
Purpose Limited Tax General Obligation Refunding Bonds,
Series 2001, 5.500%, 12/01/17 - AMBAC Insured
1,000 West Holmes Local School District, Ohio, School Improvement 6/07 at 101.00 AAA 1,020,220
Bonds, Series 1997, 5.375%, 12/01/23 - MBIA Insured
2,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,464,175
Counties, Ohio, Various Purpose General Obligation
Bonds, Series 2001, 5.000%, 12/01/27 - MBIA Insured
2,965 Franklin County, Worthington, Ohio, Various Purpose 12/11 at 100.00 AA+ 3,054,069
Unlimited Tax General Obligation Bonds, Series 2001,
5.375%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.1%
2,000 State of Ohio, Higher Education Capital Facilities 2/11 at 100.00 AA+ 2,031,240
Appropriation Bonds, Series 2001A-II, 5.000%, 2/01/20
4,000 Puerto Rico Municipal Finance Agency, Loan Pool Bonds, 8/09 at 101.00 AAA 4,539,720
Series 1999A, 6.000%, 8/01/16 - FSA Insured
1,400 Virgin Islands Public Finance Authority, Gross Receipts Tax 10/10 at 101.00 BBB- 1,558,886
Loan Note, Series 1999A, 6.375%, 10/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.2%
2,000 Cleveland, Ohio, Airport Special Revenue Refunding Bonds, 12/09 at 101.00 B- 1,379,040
Continental Airlines, Inc., Series 1999, 5.700%, 12/01/19
(Alternative Minimum Tax)
2,000 Ohio Turnpike Commission, Revenue Bonds, 2/11 at 100.00 AA 2,047,000
Series 2001A, 5.500%, 2/15/26
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,059,940
Bonds, CSX Transportation, Inc. Project, Series 1992,
6.450%, 12/15/21
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.8%
$ 1,440 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa $ 1,509,077
Bonds, American Municipal Power Ohio, Inc., Series 2002,
5.250%, 2/15/17 - MBIA Insured
910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 969,605
Series 2001, 5.500%, 12/01/18 - AMBAC Insured
2,000 Ohio Air Quality Development Authority, Pollution Control 12/03 at 102.00 A3 2,029,120
Revenue Bonds, Columbus Southern Power Company Project,
Series 1985A, 6.250%, 12/01/20
2,000 Ohio Air Quality Development Authority, Revenue 9/05 at 102.00 Baa2 2,046,900
Refunding Bonds, Dayton Power and Light Company
Project, Series 1995, 6.100%, 9/01/30
2,000 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,004,280
Bonds, Ohio Power Company Project, Series 1999C,
5.150%, 5/01/26 - AMBAC Insured
1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 1,560,540
Revenue Refunding Bonds, Ohio Edison Company Project,
Series 1999C, 5.800%, 6/01/16 (Mandatory put 12/01/04)
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 915,790
Revenue Bonds, Bay Shore Power Project, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.3%
2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,166,100
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,700 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 1,721,215
Series 2001, 5.125%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
$ 89,260 Total Long-Term Investments (cost $89,227,588) - 146.0% 90,443,696
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.3%
400 Ohio Higher Education Facilities Authority, General Revenue A-1+ 400,000
Bonds, Case Western Reserve Project, Variable Rate
Demand Obligations, Series 2002A, 0.900%, 10/01/31+
1,000 University of Toledo, Ohio, General Receipts Variable Rate A-1+ 1,000,000
Demand Obligations, Series 0.900%, 6/01/32 - FGIC Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,400 Total Short-Term Investments (cost $1,400,000) 1,400,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $90,627,588) - 148.3% 91,843,696
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 1,079,890
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (31,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $61,923,586
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
* Optional Call Provisions (not covered by the report of
independent auditors): 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.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
35
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 10.9%
$ 2,160 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 A- $ 1,873,217
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
3,000 Ohio State Sewage and Solid Waste Disposal Facilities, 11/11 at 100.00 A+ 2,971,980
Revenue Bonds, Anheuser-Busch Project, Series 2001,
5.500%, 11/01/35 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.8%
2,050 Ohio Higher Education Facilities Commission, Revenue 12/11 at 100.00 Baa1 2,132,472
Bonds, Wittenberg University Project, Series 2001,
5.500%, 12/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.7%
1,860 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 1,882,525
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System Project, Series 1998A, 5.000%, 11/15/08
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 984,330
Firelands Regional Medical Center, Series 2002A,
5.500%, 8/15/22
1,850 Lorain County, Ohio, Hospital Revenue Refunding and 10/11 at 101.00 AA- 1,847,096
Improvement Bonds, Catholic Healthcare Partners,
Series 2001A, 5.400%, 10/01/21
2,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,078,720
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 3,782,229
Union Hospital Project, Series 2001, 5.750%, 10/01/26 -
RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.3%
1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,018,130
Housing Mortgage Revenue Bonds, Agler Project,
Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.0%
2,815 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 2,829,610
Securities Program Residential Mortgage Revenue Bonds,
Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax)
305 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 306,315
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.2%
2,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB+ 1,871,800
Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 50.5%
1,750 Fairfield City School District, Ohio, General Obligation 12/11 at 100.00 AAA 1,827,000
Refunding Bonds, Series 2001, 5.375%, 12/01/19 -
FGIC Insured
1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aaa 1,012,170
Obligation Capital Improvement Bonds, Series 2001A,
5.125%, 12/01/21 - MBIA Insured
1,500 Hamilton Local School District, Franklin County, Ohio, 12/11 at 100.00 AAA 1,473,885
Unlimited Tax General Obligation School Facilities
Construction and Improvement Bonds, Series 2001,
5.000%, 12/01/28 - FGIC Insured
Lebanon City School District, Warren County, Ohio, General
Obligation Bonds, Series 2001:
4,000 5.500%, 12/01/21 - FSA Insured 12/11 at 100.00 AAA 4,170,080
2,000 5.000%, 12/01/29 - FSA Insured 12/11 at 100.00 AAA 1,963,940
2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aaa 2,547,002
Center Bonds, Series 2002, 5.500%, 12/01/22 - FGIC Insured
1,000 Medina City School District, Medina County, Ohio, Unlimited 12/09 at 100.00 AAA 1,006,350
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 - FGIC Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,000 Milford Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa $ 3,001,800
Obligation Bonds, Series 2001, 5.125%, 12/01/30 -
FSA Insured
1,000 State of Ohio, Common Schools Capital Facilities, General 9/11 at 100.00 AA+ 1,011,260
Obligation Bonds, Series 2001B, 5.000%, 9/15/21
1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AAA 1,942,948
5.000%, 12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,045,580
5.500%, 12/01/25 - FGIC Insured
1,500 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 1,504,455
5.000%, 12/01/21 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.8%
1,700 Hamilton, Butler County, Ohio, Limited Tax General Obligation 11/11 at 101.00 Aaa 1,680,297
Bonds, One Renaissance Center Acquisition, Series 2001,
5.000%, 11/01/26 - AMBAC Insured
1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 927,740
Certificates of Participation, Series 2003,
5.000%, 11/01/30
2,500 Ohio State Higher Education Capital Facilities, Appropriation No Opt. Call AAA 2,821,050
Bonds, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 1,046,420
Revenue Refunding Bonds, Series 2002E, 5.750%, 7/01/24
1,000 Summit County Port Authority, Ohio, Revenue Bonds, Civic 12/11 at 100.00 AAA 1,025,440
Theatre Project, Series 2001, 5.500%, 12/01/26 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.1%
3,495 Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 3,589,819
Series 2000A, 5.250%, 1/01/18 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.2%
2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,505,350
Bonds, Ohio Power Company Project, Series 1999C,
5.150%, 5/01/26 - AMBAC Insured
1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 1,560,540
Revenue Refunding Bonds, Ohio Edison Company Project,
Series 1999C, 5.800%, 6/01/16 (Mandatory put 12/01/04)
2,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,831,580
Revenue Bonds, Bay Shore Power Project, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.2%
2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,166,100
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,500 Ohio Water Development Authority, Fresh Water Development 12/11 at 100.00 AAA 1,507,002
Revenue Bonds, Series 2001A, 5.000%, 12/01/21 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 66,035 Total Long-Term Investments (cost $66,714,279) - 149.7% 66,746,232
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 1,831,406
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.8)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $44,577,638
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
37
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ)
Portfolio of
INVESTMENTS July 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0%
$ 2,160 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 A- $ 1,873,217
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.2%
1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 1,205,933
Ohio Northern University Project, Series 2002,
5.750%, 5/01/16
2,000 Ohio Higher Education Facilities Commission, Revenue Bonds, 10/12 at 100.00 AA 2,103,460
Case Western Reserve University Project, Series 2002B,
5.500%, 10/01/22
1,000 Ohio State University, General Receipts Bonds, 12/09 at 101.00 AA 1,062,740
Series 1999A, 5.800%, 12/01/29
1,000 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 998,440
Series 2002A, 5.125%, 12/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.2%
930 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 941,262
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System Project, Series 1998A, 5.000%, 11/15/08
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 1,722,578
Firelands Regional Medical Center, Series 2002A,
5.500%, 8/15/22
1,425 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, 4/10 at 101.00 BBB+ 1,513,835
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic 9/11 at 100.00 AA 1,067,450
Health Initiatives, Series 2001, 5.500%, 9/01/12
1,000 Parma Community General Hospital Association, Ohio, Hospital 11/08 at 101.00 A- 962,510
Revenue Refunding and Improvement Bonds, Series 1998,
5.375%, 11/01/29
1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,039,360
Improvement Bonds, MedCentral Health System
Obligated Group, Series 2000B, 6.375%, 11/15/30
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.4%
835 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 861,194
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
1,185 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,222,517
Securities Program Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
1,410 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,473,788
Securities Program Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 41.5%
2,000 Canal Winchester Local School District, Franklin and 12/08 at 102.00 AAA 2,025,300
Fairfield Counties, Ohio, Unlimited Tax General Obligation
School Improvement Bonds, Series 1998,
5.300%, 12/01/25 - FGIC Insured
1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,607,971
Obligation Bonds, Series 2002, 5.750%, 12/01/21 -
FGIC Insured
2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa3 2,061,420
Obligation Bonds, Series 2001, 5.500%, 12/01/28
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- 1,036,310
5.375%, 12/01/22
1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aaa 1,278,344
5.125%, 12/01/26 - AMBAC Insured
1,190 Miami East Local School District, Miami County, Ohio, 12/12 at 100.00 AAA 1,196,938
General Obligation Bonds, Series 2002, 5.125%, 12/01/29 -
FSA Insured
1,000 State of Ohio, Common Schools Capital Facilities, General 9/11 at 100.00 AA+ 1,016,630
Obligation Bonds, Series 2001B, 5.000%, 9/15/20
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA $ 1,576,568
Counties, Ohio, School Facilities Construction and Improvement
General Obligation Bonds, Series 2001, 5.250%, 12/01/20 -
FGIC Insured
1,130 Solon, Ohio, General Obligation Refunding and Improvement 12/12 at 100.00 AA+ 1,158,307
Bonds, Series 2002, 5.000%, 12/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.4%
1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 927,740
Certificates of Participation, Series 2003, 5.000%, 11/01/30
2,000 Ohio State Higher Education, Capital Facilities Appropriation No Opt. Call AAA 2,256,840
Bonds, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured
1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,333,725
Administrative Building Fund Projects, Series 2002A,
5.500%, 4/01/18 - FSA Insured
2,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 2,180,780
Government Facilities Revenue Bonds, Series 1993L,
5.500%, 7/01/21 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.3%
1,140 Columbus Municipal Airport Authority, Ohio, Airport No Opt. Call AAA 1,212,208
Improvement Revenue Bonds, Port Columbus International
Airport Project, Series 1998B, 5.250%, 1/01/11 -
AMBAC Insured
1,550 Ohio Turnpike Commission, Revenue Bonds, Series 1998A, No Opt. Call AAA 1,701,001
5.500%, 2/15/18 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.0%
1,500 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,571,955
Bonds, American Municipal Power Ohio, Inc., Series 2002,
5.250%, 2/15/17 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.3%
1,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 1,083,050
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,500 Hamilton County, Ohio, Sewer System Revenue Refunding 12/11 at 100.00 AAA 1,559,385
and Improvement Bonds, Metropolitan Sewer District of
Greater Cincinnati, Series 2001A, 5.250%, 12/01/18 -
MBIA Insured
1,500 Ohio Water Development Authority, Fresh Water Development 12/11 at 100.00 AAA 1,507,003
Revenue Bonds, Series 2001A, 5.000%, 12/01/21 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 44,860 Total Long-Term Investments (cost $45,873,387) - 148.3% 46,339,759
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 1,405,427
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.8)% (16,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $31,245,186
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
39
Statement of
ASSETS AND LIABILITIES July 31, 2003
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $255,493,257, $163,801,871
and $42,898,673, respectively) $266,122,396 $170,371,984 $43,055,057
Cash 78,970 767,382 1,893,495
Receivables:
Interest 3,257,167 2,471,601 538,652
Investments sold 962,304 -- --
Other assets 16,537 6,533 938
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 270,437,374 173,617,500 45,488,142
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Accrued expenses:
Management fees 152,162 97,754 17,709
Other 87,784 97,306 26,698
Preferred share dividends payable 11,366 4,061 247
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 251,312 199,121 44,654
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $176,186,062 $117,418,379 $29,443,488
====================================================================================================================================
Common shares outstanding 11,634,006 7,705,914 2,058,760
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.14 $ 15.24 $ 14.30
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 116,340 $ 77,059 $ 20,588
Paid-in surplus 162,629,383 107,684,852 29,132,590
Undistributed net investment income 1,925,191 1,483,435 269,088
Accumulated net realized gain (loss) from investments 886,009 1,602,920 (135,162)
Net unrealized appreciation of investments 10,629,139 6,570,113 156,384
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $176,186,062 $117,418,379 $29,443,488
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
40
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $219,993,566, $90,627,588,
$66,714,279 and $45,873,387, respectively) $228,183,017 $91,843,696 $66,746,232 $46,339,759
Cash 1,748,818 -- 1,087,390 817,088
Receivables:
Interest 2,756,705 1,232,396 799,373 615,102
Investments sold -- -- -- --
Other assets 20,055 8,787 1,001 9,011
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 232,708,595 93,084,879 68,633,996 47,780,960
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 98,841 -- --
Accrued expenses:
Management fees 130,275 30,616 24,775 19,361
Other 156,762 31,156 29,477 15,689
Preferred share dividends payable 9,853 680 2,106 724
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 296,890 161,293 56,358 35,774
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $155,411,705 $61,923,586 $44,577,638 $31,245,186
====================================================================================================================================
Common shares outstanding 9,612,951 4,223,803 3,114,060 2,157,265
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.17 $ 14.66 $ 14.31 $ 14.48
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 96,130 $ 42,238 $ 31,141 $ 21,573
Paid-in surplus 145,508,219 59,930,121 44,121,226 30,523,920
Undistributed net investment income 1,508,224 658,025 425,175 76,532
Accumulated net realized gain (loss) from investments 109,681 77,094 (31,857) 156,789
Net unrealized appreciation of investments 8,189,451 1,216,108 31,953 466,372
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $155,411,705 $61,923,586 $44,577,638 $31,245,186
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
OPERATIONS Year Ended July 31, 2003
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $14,364,958 $ 9,395,746 $2,295,399
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,785,354 1,150,800 304,722
Preferred shares - auction fees 228,077 140,035 39,419
Preferred shares - dividend disbursing agent fees 20,000 20,000 10,000
Shareholders' servicing agent fees and expenses 40,043 29,578 2,057
Custodian's fees and expenses 74,625 47,134 16,689
Directors'/Trustees' fees and expenses 3,866 2,554 818
Professional fees 15,543 12,059 10,317
Shareholders' reports - printing and mailing expenses 42,144 27,660 4,114
Stock exchange listing fees 16,198 11,510 117
Investor relations expense 33,985 22,473 2,996
Other expenses 25,995 15,650 6,067
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 2,285,830 1,479,453 397,316
Custodian fee credit (11,307) (16,594) (6,858)
Expense reimbursement -- -- (136,932)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,274,523 1,462,859 253,526
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 12,090,435 7,932,887 2,041,873
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain from investments 1,537,864 1,797,104 43,512
Change in net unrealized appreciation (depreciation)
of investments (4,630,793) (4,692,253) (463,571)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (3,092,929) (2,895,149) (420,059)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (882,566) (551,440) (141,482)
From accumulated net realized gains from investments (128,818) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,011,384) (551,440) (141,482)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $ 7,986,122 $ 4,486,298 $1,480,332
====================================================================================================================================
See accompanying notes to financial statements.
42
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $12,517,224 $ 4,939,671 $ 3,503,822 $2,352,278
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,526,999 616,036 458,464 320,370
Preferred shares - auction fees 192,719 88,098 59,624 40,741
Preferred shares - dividend disbursing agent fees 30,000 10,000 10,000 10,000
Shareholders' servicing agent fees and expenses 42,255 2,094 2,194 1,540
Custodian's fees and expenses 61,107 28,043 24,570 18,054
Directors'/Trustees' fees and expenses 3,481 1,609 1,018 874
Professional fees 13,091 10,227 10,113 11,230
Shareholders' reports - printing and mailing expenses 31,646 7,311 9,400 5,384
Stock exchange listing fees 11,602 482 323 115
Investor relations expense 29,812 11,059 5,672 5,021
Other expenses 18,067 9,271 10,188 6,316
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,960,779 784,230 591,566 419,645
Custodian fee credit (11,694) (6,625) (7,282) (7,633)
Expense reimbursement -- (282,087) (207,890) (143,188)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,949,085 495,518 376,394 268,824
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 10,568,139 4,444,153 3,127,428 2,083,454
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain from investments 742,663 156,618 393,224 305,202
Change in net unrealized appreciation (depreciation)
of investments (3,005,456) (1,154,603) (1,127,584) (942,414)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (2,262,793) (997,985) (734,360) (637,212)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (735,656) (307,940) (236,527) (149,564)
From accumulated net realized gains from investments -- (5,459) -- (15,641)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (735,656) (313,399) (236,527) (165,205)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $ 7,569,690 $ 3,132,769 $ 2,156,541 $1,281,037
====================================================================================================================================
See accompanying notes to financial statements.
43
Statement of
CHANGES IN NET ASSETS
MICHIGAN MICHIGAN MICHIGAN
QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW)
----------------------------- ------------------------------ ----------------------------
FOR THE
PERIOD 9/25/01
(COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS)
7/31/03 7/31/02 7/31/03 7/31/02 7/31/03 THROUGH 7/31/02
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 12,090,435 $ 12,842,247 $ 7,932,887 $ 8,069,853 $ 2,041,873 $ 1,563,572
Net realized gain (loss)
from investments 1,537,864 1,255,918 1,797,104 509,493 43,512 (179,018)
Change in net unrealized
appreciation (depreciation)
of investments (4,630,793) 580,210 (4,692,253) 764,121 (463,571) 620,710
Distributions to Preferred
Shareholders:
From net investment income (882,566) (1,264,782) (551,440) (820,275) (141,482) (139,482)
From accumulated net realized
gains from investments (128,818) (279,535) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 7,986,122 13,134,058 4,486,298 8,523,192 1,480,332 1,865,782
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (10,738,262) (10,352,127) (6,995,623) (6,545,391) (1,770,278) (1,287,427)
From accumulated net realized
gains from investments (1,195,839) (863,646) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (11,934,101) (11,215,773) (6,995,623) (6,545,391) (1,770,278) (1,287,427)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- 29,319,045
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 503,555 1,048,301 108,017 57,829 3,344 7,758
Preferred shares offering costs -- -- -- -- 50,657 (326,000)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 503,555 1,048,301 108,017 57,829 54,001 29,000,803
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets applicable
to Common shares (3,444,424) 2,966,586 (2,401,308) 2,035,630 (235,945) 29,579,158
Net assets applicable to Common
shares at the beginning of year 179,630,486 176,663,900 119,819,687 117,784,057 29,679,433 100,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $176,186,062 $179,630,486 $117,418,379 $119,819,687 $29,443,488 $29,679,433
====================================================================================================================================
Undistributed net investment
income at the end of year $ 1,925,191 $ 1,500,913 $ 1,483,435 $ 1,187,234 $ 269,088 $ 136,663
====================================================================================================================================
See accompanying notes to financial statements.
44
OHIO OHIO OHIO
QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------ ------------------------------ -----------------------------
FOR THE
PERIOD 9/26/01
(COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS)
7/31/03 7/31/02 7/31/03 7/31/02 7/31/03 THROUGH 7/31/02
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 10,568,139 $ 10,914,004 $ 4,444,153 $ 4,448,330 $ 3,127,428 $ 2,414,558
Net realized gain (loss)
from investments 742,663 1,127,600 156,618 (10,990) 393,224 (425,114)
Change in net unrealized
appreciation (depreciation)
of investments (3,005,456) 387,460 (1,154,603) 836,808 (1,127,584) 1,158,572
Distributions to Preferred
Shareholders:
From net investment income (735,656) (1,205,443) (307,940) (508,862) (236,527) (237,497)
From accumulated net realized
gains from investments -- -- (5,459) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 7,569,690 11,223,621 3,132,769 4,765,286 2,156,541 2,910,519
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,454,399) (8,853,521) (3,865,874) (3,662,910) (2,710,843) (1,932,880)
From accumulated net realized
gains from investments -- -- (43,462) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (9,454,399) (8,853,521) (3,909,336) (3,662,910) (2,710,843) (1,932,880)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- 44,385,975
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 945,060 817,099 115,397 21,725 13,374 17,220
Preferred shares offering costs -- -- 36,823 -- 45,457 (408,000)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 945,060 817,099 152,220 21,725 58,831 43,995,195
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets applicable
to Common shares (939,649) 3,187,199 (624,347) 1,124,101 (495,471) 44,972,834
Net assets applicable to
Common shares at the
beginning of year 156,351,354 153,164,155 62,547,933 61,423,832 45,073,109 100,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $155,411,705 $156,351,354 $61,923,586 $62,547,933 $44,577,638 $45,073,109
====================================================================================================================================
Undistributed net investment
income at the end of year $ 1,508,224 $ 1,162,184 $ 658,025 $ 410,424 $ 425,175 $ 244,181
====================================================================================================================================
See accompanying notes to financial statements.
45
Statement of
CHANGES IN NET ASSETS (continued)
OHIO
DIVIDEND ADVANTAGE 3 (NVJ)
----------------------------
FOR THE
PERIOD 3/27/02
(COMMENCEMENT
YEAR ENDED OF OPERATIONS)
7/31/03 THROUGH 7/31/02
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,083,454 $ 544,899
Net realized gain (loss) from investments 305,202 (11,350)
Change in net unrealized appreciation
(depreciation) of investments (942,414) 1,409,668
Distributions to Preferred Shareholders:
From net investment income (149,564) (41,042)
From accumulated net realized gains
from investments (15,641) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 1,281,037 1,902,175
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,889,785) (472,386)
From accumulated net realized gains
from investments (121,348) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,011,133) (472,386)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 30,734,250
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 3,539 536
Preferred shares offering costs (23,189) (269,918)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (19,650) 30,464,868
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (749,746) 31,894,657
Net assets applicable to Common
shares at the beginning of year 31,994,932 100,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $31,245,186 $31,994,932
====================================================================================================================================
Undistributed net investment
income at the end of year $ 76,532 $ 31,471
====================================================================================================================================
See accompanying notes to financial statements.
46
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (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). Common shares of Michigan Quality
Income (NUM), Michigan Premium Income (NMP), and Ohio Quality Income (NUO) are
traded on the New York Stock Exchange while Common shares of Michigan Dividend
Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ),
and Ohio Dividend Advantage 3 (NVJ) are traded on the American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940, as amended,
as closed-end management investment companies.
Prior to the commencement of operations of Michigan Dividend Advantage (NZW),
Ohio Dividend Advantage 2 (NBJ), and Ohio Dividend Advantage 3 (NVJ), each Fund
had no operations other than those related to organizational matters, the
initial capital contribution of $100,275 per Fund by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.(formerly, The
John Nuveen Company), and the recording of the organization expenses ($11,500
per Fund) and their reimbursement by Nuveen Investments, LLC(formerly, Nuveen
Investments), also a wholly owned subsidiary of Nuveen Investments, Inc.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or
its designee, may establish a fair value for the security. Temporary investments
in securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities 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 and delayed delivery purchase commitments. At July 31, 2003, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
47
Notes to
FINANCIAL STATEMENTS (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its share holders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Funds. All monthly tax-exempt income dividends paid
during the fiscal year ended July 31, 2003, have been designated Exempt Interest
Dividends.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- --------------------------------------------------------------------------------
Number of shares:
Series M -- 840 --
Series W -- -- 640
Series TH 3,200 1,400 --
Series F 560 -- --
- --------------------------------------------------------------------------------
Total 3,760 2,240 640
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- --------------------------------------------------------------------------------
Number of shares:
Series M 680 -- -- --
Series T -- -- -- 660
Series W -- 1,240 -- --
Series TH 1,400 -- -- --
Series TH2 1,000 -- -- --
Series F -- -- 960 --
- --------------------------------------------------------------------------------
Total 3,080 1,240 960 660
================================================================================
48
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended July 31, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all common share offering costs (other
than the sales load) that exceed $.03 per Common share for Michigan Dividend
Advantage (NZW), Ohio Dividend Advantage 2 (NBJ), and Ohio Dividend Advantage 3
(NVJ). Michigan Dividend Advantage's (NZW), Ohio Dividend Advantage 2's (NBJ),
and Ohio Dividend Advantage 3's (NVJ) share of common share offering costs
($61,530, $93,150, and $64,500, respectively) were recorded as a reduction of
the proceeds from the sale of common shares.
Costs incurred by Michigan Dividend Advantage (NZW), Ohio Dividend Advantage 2
(NBJ), and Ohio Dividend Advantage 3 (NVJ) in connection with their offering of
Preferred shares ($275,343, $362,543, and $293,107, respectively) were recorded
as a reduction to paid-in surplus.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM MICHIGAN DIVIDEND
INCOME (NUM) INCOME (NMP) ADVANTAGE (NZW)
----------------------- ------------------------ -------------------------
FOR THE
PERIOD 9/25/01
(COMMENCE-
MENT OF
OPERATIONS)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
7/31/03 7/31/02 7/31/03 7/31/02 7/31/03 7/31/02
- --------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 2,051,000
Shares issued to shareholders
due to reinvestment of
distributions 30,579 68,086 6,562 3,743 217 543
- --------------------------------------------------------------------------------------------------------------
30,579 68,086 6,562 3,743 217 2,051,543
==============================================================================================================
Preferred shares sold -- -- -- -- -- 640
==============================================================================================================
OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND
INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ)
----------------------- ------------------------ -------------------------
FOR THE
PERIOD 9/26/01
(COMMENCE-
MENT OF
OPERATIONS)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
7/31/03 7/31/02 7/31/03 7/31/02 7/31/03 7/31/02
- --------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 3,105,000
Shares issued to shareholders
due to reinvestment of
distributions 54,111 47,904 7,470 1,425 872 1,188
- --------------------------------------------------------------------------------------------------------------
54,111 47,904 7,470 1,425 872 3,106,188
==============================================================================================================
Preferred shares sold -- -- -- -- -- 960
==============================================================================================================
49
Notes to
FINANCIAL STATEMENTS (continued)
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
--------------------------
FOR THE
PERIOD 3/27/02
(COMMENCE-
MENT OF
OPERATIONS)
YEAR ENDED THROUGH
7/31/03 7/31/02
- --------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 2,150,000
Shares issued to shareholders
due to reinvestment of
distributions 230 35
- --------------------------------------------------------------------------------------------------------------
230 2,150,035
==============================================================================================================
Preferred shares sold -- 660
==============================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended July 31, 2003, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- --------------------------------------------------------------------------------
Purchases $39,603,997 $30,681,435 $1,020,510
Sales and maturities 43,143,602 31,135,094 2,593,628
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- --------------------------------------------------------------------------------
Purchases $27,564,253 $5,472,997 $10,219,549 $7,774,032
Sales and maturities 30,047,977 6,549,659 10,981,480 8,460,014
================================================================================
50
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At July 31, 2003, the cost of investments were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- -----------------------------------------------------------------------------------------------------------
Cost of investments $255,523,287 $163,593,571 $42,897,408
===========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- -----------------------------------------------------------------------------------------------------------
Cost of investments $219,944,693 $90,568,004 $66,705,176 $45,869,886
===========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at July 31, 2003, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- ----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $13,497,666 $ 9,319,221 $ 471,407
Depreciation (2,898,557) (2,540,808) (313,758)
- ----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $10,599,109 $ 6,778,413 $ 157,649
==========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- ----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 9,779,844 $1,978,403 $ 541,499 $ 798,762
Depreciation (1,541,520) (702,711) (500,443) (328,889)
- ----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $ 8,238,324 $1,275,692 $ 41,056 $ 469,873
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at July 31, 2003, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- ----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,666,458 $1,800,842 $421,408
Undistributed net ordinary income * 30,661 71,709 40
Undistributed net long-term capital gains 1,062,929 1,602,921 --
==========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- ----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,254,018 $930,678 $650,895 $231,236
Undistributed net ordinary income * 17,867 1,707 838 156,789
Undistributed net long-term capital gains 109,681 75,401 -- --
==========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
51
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the fiscal years ended July 31,
2003, and July 31, 2002, was designated for purposes of the dividends paid
deduction as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
2003 (NUM) (NMP) (NZW)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,597,039 $7,524,815 $1,902,369
Distributions from net ordinary income * -- -- --
Distributions from net long-term capital gains 1,324,657 -- --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,147,481 $4,155,416 $2,926,588 $2,038,899
Distributions from net ordinary income * -- -- -- 137,104
Distributions from net long-term capital gains -- 48,921 -- --
=========================================================================================================
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
2002 (NUM) (NMP) (NZW)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,598,566 $7,324,052 $1,280,774
Distributions from net ordinary income * -- -- --
Distributions from net long-term capital gains 1,143,181 -- --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,020,828 $4,172,472 $1,953,596 $355,558
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.
52
At July 31, 2003, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
MICHIGAN OHIO
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2
(NZW) (NBJ)
- --------------------------------------------------------------------------------
Expiration year:
2011 $135,162 $21,436
- --------------------------------------------------------------------------------
Total $135,162 $21,436
================================================================================
Ohio Dividend Advantage 2 (NBJ) has elected to defer net realized losses from
investments incurred from November 1, 2002 through July 31, 2003 ("post-October
losses") in accordance with Federal income tax regulations. Ohio Dividend
Advantage 2 (NBJ) has $10,421 of post-October losses that are treated as having
arisen in the following fiscal year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Michigan Quality Income's (NUM), Michigan Premium Income's (NMP), and Ohio
Quality Income's (NUO) investment management agreements with the Adviser, each
Fund pays an annual management fee, payable monthly, at the rates set forth
below, which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TOPREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Michigan Dividend Advantage's (NZW), Ohio Dividend Advantage's (NXI), Ohio
Dividend Advantage 2's (NBJ), and Ohio Dividend Advantage 3's (NVJ) investment
management agreements with the Adviser, each Fund pays an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets (including net assets attributable to Preferred shares) of each
Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TOPREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
53
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 net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
- --------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Ohio Dividend Advantage (NXI) for any
portion of its fees and expenses beyond March 31, 2011.
For the first ten years of Michigan Dividend Advantage's (NZW), and Ohio
Dividend Advantage 2's (NBJ) operations, the Adviser has agreed to reimburse the
Funds, as a percentage of average daily net assets (including net assets
attributable to Preferred shares), for fees and expenses in the amounts, and for
the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
- --------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Michigan Dividend Advantage (NZW), and
Ohio Dividend Advantage 2 (NBJ) for any portion of their fees and expenses
beyond September 30, 2011.
For the first ten years of Ohio Dividend Advantage 3's (NVJ) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
- --------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Ohio Dividend Advantage 3 (NVJ) for any
portion of its fees and expenses beyond March 31, 2012.
54
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on September 2, 2003, to shareholders of
record on August 15, 2003, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
- --------------------------------------------------------------------------------
Dividend per share $.0780 $.0770 $.0745
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
- --------------------------------------------------------------------------------
Dividend per share $.0835 $.0785 $.0750 $.0730
================================================================================
55
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
MICHIGAN QUALITY
INCOME (NUM)
- -------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 $15.48 $1.04 $ (.27) $(.08) $(.01) $ .68 $(.92) $(.10) $(1.02)
2002 15.32 1.11 .15 (.11) (.02) 1.13 (.90) (.07) (.97)
2001 14.54 1.16 .82 (.29) (.01) 1.68 (.88) (.02) (.90)
2000 15.20 1.19 (.53) (.30) (.02) .34 (.92) (.08) (1.00)
1999 15.91 1.15 (.63) (.21) (.02) .29 (.92) (.06) (.98)
MICHIGAN PREMIUM
INCOME (NMP)
- -------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 15.56 1.03 (.37) (.07) -- .59 (.91) -- (.91)
2002 15.31 1.05 .16 (.11) -- 1.10 (.85) -- (.85)
2001 14.24 1.07 1.07 (.25) -- 1.89 (.82) -- (.82)
2000 14.68 1.07 (.41) (.27) -- .39 (.83) -- (.83)
1999 15.30 1.05 (.64) (.21) -- .20 (.82) -- (.82)
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
- -------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 14.42 .99 (.20) (.07) -- .72 (.86) -- (.86)
2002(a) 14.33 .76 .22 (.07) -- .91 (.63) -- (.63)
===============================================================================================================================
Total Returns
-----------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===================================================================================
MICHIGAN QUALITY
INCOME (NUM)
- -----------------------------------------------------------------------------------
Year Ended 7/31:
2003 $ -- $15.14 $15.4500 2.40% 4.35%
2002 -- 15.48 16.1000 11.18 7.68
2001 -- 15.32 15.4200 17.11 11.90
2000 -- 14.54 14.0000 (9.92) 2.51
1999 (.02) 15.20 16.6875 2.18 1.62
MICHIGAN PREMIUM
INCOME (NMP)
- -----------------------------------------------------------------------------------
Year Ended 7/31:
2003 -- 15.24 14.8500 2.64 3.71
2002 -- 15.56 15.3500 10.52 7.40
2001 -- 15.31 14.7100 17.81 13.61
2000 -- 14.24 13.2500 (6.16) 2.95
1999 -- 14.68 15.0625 5.95 1.23
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
- -----------------------------------------------------------------------------------
Year Ended 7/31:
2003 .02 14.30 15.1000 9.19 5.01
2002(a) (.19) 14.42 14.6500 2.00 5.21
===================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===============================================================================================================
MICHIGAN QUALITY
INCOME (NUM)
- ---------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 $176,186 1.24% 6.56% 1.24% 6.57% 15%
2002 179,630 1.28 7.29 1.27 7.29 19
2001 176,664 1.30 7.79 1.29 7.80 20
2000 167,429 1.29 8.29 1.27 8.31 25
1999 174,591 1.19 7.28 1.19 7.28 21
MICHIGAN PREMIUM
INCOME (NMP)
- ---------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 117,418 1.21 6.49 1.20 6.50 18
2002 119,820 1.25 6.82 1.24 6.83 9
2001 117,784 1.24 7.24 1.23 7.25 15
2000 109,565 1.29 7.73 1.28 7.74 34
1999 112,851 1.29 6.82 1.28 6.83 9
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
- ---------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 29,443 1.29 6.15 .82 6.61 2
2002(a) 29,679 1.35* 6.00* .90* 6.45* 21
===============================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
==============================================================
MICHIGAN QUALITY
INCOME (NUM)
- --------------------------------------------------------------
Year Ended 7/31:
2003 $94,000 $25,000 $71,858
2002 94,000 25,000 72,774
2001 94,000 25,000 71,985
2000 94,000 25,000 69,529
1999 94,000 25,000 71,434
MICHIGAN PREMIUM
INCOME (NMP)
- --------------------------------------------------------------
Year Ended 7/31:
2003 56,000 25,000 77,419
2002 56,000 25,000 78,491
2001 56,000 25,000 77,582
2000 56,000 25,000 73,913
1999 56,000 25,000 75,380
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
- --------------------------------------------------------------
Year Ended 7/31:
2003 16,000 25,000 71,005
2002(a) 16,000 25,000 71,374
==============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period September 25, 2001 (commencement of operations) through July
31, 2002.
See accompanying notes to financial statements.
56-57 SPREAD
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
==============================================================================================================================
OHIO QUALITY
INCOME (NUO)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 $16.36 $1.10 $(.22) $(.08) $-- $ .80 $(.99) $-- $(.99)
2002 16.10 1.14 .18 (.13) -- 1.19 (.93) -- (.93)
2001 15.52 1.20 .56 (.27) -- 1.49 (.91) -- (.91)
2000 16.13 1.21 (.56) (.29) -- .36 (.97) -- (.97)
1999 16.65 1.21 (.51) (.24) -- .46 (.98) -- (.98)
OHIO DIVIDEND
ADVANTAGE (NXI)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 14.83 1.05 (.23) (.07) -- .75 (.92) (.01) (.93)
2002 14.57 1.06 .19 (.12) -- 1.13 (.87) -- (.87)
2001(a) 14.33 .29 .35 (.04) -- .60 (.22) -- (.22)
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 14.48 1.00 (.23) (.08) -- .69 (.87) -- (.87)
2002(b) 14.33 .78 .23 (.08) -- .93 (.62) -- (.62)
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 14.83 .97 (.29) (.07) (.01) .60 (.88) (.06) (.94)
2002(c) 14.33 .25 .65 (.02) -- .88 (.22) -- (.22)
==============================================================================================================================
Total Returns
-----------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
====================================================================================
OHIO QUALITY
INCOME (NUO)
- ------------------------------------------------------------------------------------
Year Ended 7/31:
2003 $-- $16.17 $17.0400 (3.15)% 4.84%
2002 -- 16.36 18.6200 17.00 7.63
2001 -- 16.10 16.8000 6.86 9.85
2000 -- 15.52 16.6250 (1.80) 2.50
1999 -- 16.13 18.0000 5.09 2.74
OHIO DIVIDEND
ADVANTAGE (NXI)
- ------------------------------------------------------------------------------------
Year Ended 7/31:
2003 .01 14.66 14.2600 (.04)% 5.09
2002 -- 14.83 15.1500 4.48 8.02
2001(a) (.14) 14.57 15.3500 3.77 3.21
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
- ------------------------------------------------------------------------------------
Year Ended 7/31:
2003 .01 14.31 14.2600 3.17 4.74
2002(b) (.16) 14.48 14.6500 1.91 5.58
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
- ------------------------------------------------------------------------------------
Year Ended 7/31:
2003 (.01) 14.48 14.4000 .09 3.81
2002(c) (.16) 14.83 15.3000 3.47 5.05
====================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
================================================================================================================
OHIO QUALITY
INCOME (NUO)
- ----------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 $155,412 1.22% 6.59% 1.22% 6.60% 12%
2002 156,351 1.26 7.10 1.24 7.12 26
2001 153,164 1.32 7.58 1.30 7.60 15
2000 147,045 1.31 7.88 1.29 7.89 11
1999 151,961 1.26 7.26 1.25 7.27 3
OHIO DIVIDEND
ADVANTAGE (NXI)
- ----------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 61,924 1.23 6.52 .78 6.97 6
2002 62,548 1.24 6.79 .78 7.25 18
2001(a) 61,424 1.15* 5.58* .71* 6.02* 4
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
- ----------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 44,578 1.27 6.26 .81 6.72 15
2002(b) 45,073 1.25* 6.12* .80* 6.57* 39
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
- ----------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003 31,245 1.28 5.89 .82 6.35 16
2002(c) 31,995 1.22* 4.72* .80* 5.15* 7
================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===============================================================
OHIO QUALITY
INCOME (NUO)
- ---------------------------------------------------------------
Year Ended 7/31:
2003 $77,000 $25,000 $75,458
2002 77,000 25,000 75,763
2001 77,000 25,000 74,729
2000 77,000 25,000 72,742
1999 77,000 25,000 74,338
OHIO DIVIDEND
ADVANTAGE (NXI)
- ---------------------------------------------------------------
Year Ended 7/31:
2003 31,000 25,000 74,938
2002 31,000 25,000 75,442
2001(a) 31,000 25,000 74,535
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
- ---------------------------------------------------------------
Year Ended 7/31:
2003 24,000 25,000 71,435
2002(b) 24,000 25,000 71,951
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
- ---------------------------------------------------------------
Year Ended 7/31:
2003 16,500 25,000 72,341
2002(c) 16,500 25,000 73,477
===============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 28, 2001 (commencement of operations) through July 31,
2001.
(b) For the period September 26, 2001 (commencement of operations) through July
31, 2002.
(c) For the period March 27, 2002 (commencement of operations) through July 31,
2002.
See accompanying notes to financial statements.
58-59 SPREAD
Directors/Trustees
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board of
Directors/ Trustees of the Funds. The number of directors/trustees of the Funds
is currently set at eight. None of the directors/trustees who are not
"interested" persons of the Funds has ever been a director or employee of, or
consultant to, Nuveen or its affiliates. The names and business addresses of the
directors/trustees and officers of the Funds, their principal occupations and
other affiliations during the past five years, the number of portfolios each
oversees and other directorships they hold are set forth below.
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX
YEAR FIRST PRINCIPAL OCCUPATION(S) OVERSEEN
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS BY DIRECTOR/
AND ADDRESS WITH THE FUNDS APPOINTED(2) DURING PAST 5 YEARS TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR/TRUSTEE WHO IS AN INTERESTED PERSON OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 140
3/28/49 Board and Investments, Inc. and Nuveen Investments, LLC;
333 W. Wacker Drive Director/Trustee Director (since 1992) and Chairman (since 1996) of
Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.; Chairman and Director (since 1997)
of Nuveen Asset Management, Inc.; Director (since 1996)
of Institutional Capital Corporation; Chairman and
Director (since 1999) of Rittenhouse Asset Management,
Inc.; Chairman of Nuveen Investments Advisers Inc.
(since 2002).
DIRECTORS/TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
William E. Bennett Director/Trustee 2001 Private Investor; previously, President and 140
10/16/46 Chief Executive Officer, Draper & Kramer, Inc., a
333 W. Wacker Drive private company that handles mortgage banking, real
Chicago, IL 60606 estate development, pension advisory and real estate
management (1995-1998). Prior thereto, Executive
Vice President and Chief Credit Officer of First
Chicago Corporation and its principal subsidiary,
The First National Bank of Chicago.
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Director/Trustee 1997 Private Investor and Management Consultant. 134
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Director/Trustee 1993 Retired (since 1989) as Senior Vice President of The 134
7/29/34 Northern Trust Company; Director of the United Way of
333 W. Wacker Drive Highland Park-Highwood (since 2002).
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri Director/Trustee 1994 Retired, formerly, Executive Director (since 1998) 134
1/26/33 of Manitoga/The Russel Wright Design Center; prior
333 W. Wacker Drive thereto, President and Chief Executive Officer of
Chicago, IL 60606 Blanton-Peale Institute (since 1990); prior thereto,
Vice President, Metropolitan Life Insurance Co.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers Director/Trustee 1991 Adjunct Professor of Business and Economics, 134
4/3/33 University of Dubuque, Iowa; formerly (1991-2000)
333 W. Wacker Drive Adjunct Professor, Lake Forest Graduate School of
Chicago, IL 60606 Management, Lake Forest, Illinois; prior thereto,
Executive Director, Towers Perrin Australia, a
management consulting firm; Chartered Financial
Analyst; Certified Management Consultant; Director,
Executive Service Corps of Chicago, a not-for-profit
organization.
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Director/Trustee 1997 Senior Partner and Chief Operating Officer, 134
9/24/44 Miller-Valentine Group, Vice President, Miller-
333 W. Wacker Drive Valentine Realty, a development and contract company;
Chicago, IL 60606 Chair, MiamiValley Hospital; Chair, Miami Valley
Economic Development Coalition; formerly, Member,
Community Advisory Board, National City Bank,
Dayton, Ohio and Business Advisory Council, Cleveland
Federal Reserve Bank.
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Director/Trustee 1997 Executive Director, Gaylord and Dorothy Donnelley 134
12/29/47 Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive Director, Great Lakes Protection Fund (from 1990
Chicago, IL 60606 to 1994).
60
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN
AND ADDRESS WITH THE FUNDS APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 140
9/9/56 Administrative and Associate General Counsel, formerly, Vice
333 W. Wacker Drive Officer President and Assistant General Counsel of Nuveen
Chicago, IL 60606 Investments, LLC; Managing Director (since 2002),
General Counsel and Assistant Secretary, formerly,
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.; Managing Director
(since 2002), Assistant Secretary and Associate
General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management, Inc.; Assistant
Secretary of Nuveen Investments, Inc. (since 1994);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General
Counsel and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since May 2003); Chartered
Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant 140
2/3/66 and Assistant Vice President (since 2000), previously, Associate of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, Assistant 122
11/10/66 Vice President (since 1997), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager of Flagship Financial
Chicago, IL 60606 Inc.; Chartered Financial Analyst and Certified
Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 140
11/28/67 and Treasurer 1999), prior thereto, Assistant Vice President (since
333 W. Wacker Drive 1997); Vice President and Treasurer of Nuveen
Chicago, IL 60606 Investments, Inc. (since 1999); Vice President and
Treasurer of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp. (since 1999); Vice
President and Treasurer of Nuveen Asset Management,
Inc. (since 2002) and of Nuveen Investments
Advisers Inc. (since 2002); Assistant Treasurer
of NWQ Investment Management Company, LLC (since
2002); Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. (since 2001); 140
9/8/54 previously, Vice President of Van Kampen Investment
333 W. Wacker Drive Advisory Corp. (since 1998); Vice President of Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 2002); prior
thereto, Assistant Vice President of Van Kampen
Investment Advisory Corp. (since 1994).
- ------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General 140
9/24/64 and Secretary Counsel (since 1998); formerly, Assistant Vice
333 W. Wacker Drive President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (since 2002) and Assistant Secretary
(since 1998), formerly Assistant Vice President of
Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.
61
Trustees
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN
AND ADDRESS WITH THE FUNDS APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; Vice 140
10/24/45 President (since 1998) of Nuveen Advisory Corp. and
333 W. Wacker Drive Nuveen Institutional Advisory Corp.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 140
3/2/64 LLC; Managing Director (since 2001), formerly Vice
333 W. Wacker Drive President of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc. (since 2001);
Vice President of Nuveen Investment Advisers Inc.
(since 2002); Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller 140
5/31/54 and Controller (since 1998) of Nuveen Investments, LLC and Vice
333 W. Wacker Drive President and Funds Controller (since 1998) of
Chicago, IL 60606 Nuveen Investments, Inc.; Certified Public
Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 122
7/5/55 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Richard A. Huber Vice President 1997 Vice President of Nuveen Institutional Advisory Corp. 122
3/26/63 (since 1998) and Nuveen Advisory Corp. (since 1997);
333 W. Wacker Drive prior thereto, Vice President and Portfolio Manager
Chicago, IL 60606 of Flagship Financial, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 122
8/21/57
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 140
3/22/63 LLC, previously Assistant Vice President (since
333 W. Wacker Drive 1999); prior thereto, Associate of Nuveen Investments,
Chicago, IL 60606 LLC; Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant 140
8/27/61 Vice President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant 140
7/27/51 and Assistant General Counsel of Nuveen Investments, LLC; Vice
333 W. Wacker Drive Secretary President and Assistant Secretary of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.;
Assistant Secretary of Nuveen Investments, Inc.
and (since 1997) Nuveen Asset Management,
Inc.; Vice President (since 2000), Assistant
Secretary and Assistant General Counsel (since
1998) of Rittenhouse Asset Management, Inc.;
Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002).
62
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN
AND ADDRESS WITH THE FUNDS APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
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OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, 140
7/7/65 LLC; Managing Director (since 1997), formerly Vice
333 W. Wacker Drive President (since 1996) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.; Managing
Director of Nuveen Asset Management, Inc.
(since 1999). Chartered Financial Analyst.
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Thomas J. O'Shaughnessy Vice President 1999 Vice President (since 2002), formerly, Assistant 122
9/4/60 Vice President (since 1998), of Nuveen Advisory
333 W. Wacker Drive Corp.; prior thereto, portfolio manager.
Chicago, IL 60606
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Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and Nuveen 122
7/31/51 Institutional Advisory Corp.; Chartered Financial
333 W. Wacker Drive Analyst.
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of the
Adviser.
(2) Directors/Trustees serve a one-year term until his/her successor is
elected. The year first elected or appointed represents the year in which
the Directors/Trustee was first elected or appointed to any fund in the
Nuveen Complex.
(3) Officers serve a one-year term through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
63
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
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.
64
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
- ---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the fiscal year ended July 31, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
65
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $80 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
EAN-B-0703D
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. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors has 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 William E. Bennett, who is "independent" for purposes of
Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
Nuveen Advisory Corp. (the "Adviser") would either engage an independent third
party to determine how the proxy should be voted or vote the proxy with the
consent, or based on the instructions, of the Fund's Board of Directors or
Trustees or its representative. A member of the Adviser's legal department would
oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the Board of Directors or Trustees and
made available to shareholders as required by applicable rules.
ITEM 8. [RESERVED]
ITEM 9. 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 these
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
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 registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. 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 posted on registrant's website.
(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 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certification required by Rule 30a-2(b) under the 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/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: October 8, 2003
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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: October 8, 2003
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: October 8, 2003
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.