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 811-6383
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Nuveen Michigan Quality Income Municipal Fund, Inc.
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(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
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Date of reporting period: January 31
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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 Investments
Municipal Closed-End
Exchange-Traded
Funds
SEMIANNUAL REPORT January 31, 2004
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND
NUM
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND
NMP
NUVEEN MICHIGAN DIVIDEND ADVANTAGE MUNICIPAL FUND
NZW
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND
NUO
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND
NXI
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NBJ
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NVJ
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
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 and follow the simple instructions, using
the address sheet that accompanied this report as a guide.
2 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen and follow the simple instructions.
3 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
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.
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
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND
CAN BE IMPORTANT BUILDING BLOCKS IN A PORTFOLIO DESIGNED TO PERFORM WELL THROUGH
A VARIETY OF MARKET CONDITIONS."
Dear
SHAREHOLDER
I am very pleased to report that for the period ended January 31, 2004, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
Your Fund is managed with a value investing strategy that puts an emphasis on
finding securities that we think are undervalued or underrated. We believe there
are always some municipal bonds that the market is not properly valuing, and
that by using a consistent, research-oriented management approach we have the
opportunity to find them for your Fund.
In the current environment, many have begun to wonder whether interest rates
will soon start to rise, and whether that possibility should cause them to
adjust their holdings of fixed-income investments. We believe that by
constructing a carefully balanced portfolio with the help of a trusted
investment professional you may be able to reduce your overall investment risk
and give yourself a better chance to meet your financial goals. We think that
municipal bond investments like your Nuveen Fund can be important building
blocks in a portfolio designed to perform well through a variety of market
conditions.
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
March 15, 2004
1
Nuveen Michigan and Ohio Municipal Closed-End Exchange-Traded Funds
(NUM, NMP, NZW, NUO, NXI, NBJ, NVJ)
Portfolio Manager's
COMMENTS
Portfolio manager Dan Solender reviews national and state economic and market
conditions, key investment strategies, and the recent performance of the Funds.
Dan, who has eleven years of investment experience, including seven at Nuveen,
assumed portfolio management responsibility for these Funds in November 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE REPORTING
PERIOD ENDED JANUARY 31, 2004?
During this period, the greatest influences on the general economy and the
municipal market continued to be historically low interest rates, a generally
modest rate of inflation and the overall pace of economic improvement. Since its
last credit easing in June 2003, the Federal Reserve has maintained the fed
funds rate at 1.0%, the lowest level since 1958. Inflation remained under
control, with the 1.1% annual change in the core CPI rate for 2003 representing
the smallest gain in more than 40 years. The gross domestic product growth rate
in 2003 was a respectable 3.1%, the fastest pace since 2000.
The combination of low interest rates, the absence of inflationary pressures,
and a slowly improving economy created generally favorable conditions for
municipal bonds. In 2003, municipal bond new issue supply reached $382 billion
nationally, a 7% increase over the previous new issue record set in 2002.
However, the pace of issuance slowed somewhat during the last half of 2003 and
this slow pace continued into the first month of 2004.
HOW WERE CONDITIONS IN MICHIGAN AND OHIO?
Michigan's long-standing reliance on the manufacturing sector continued to
impede the state's recovery. While there were some signs of overall improvement
in the Michigan economy early in 2003, unemployment hit a new cyclical high in
October before showing some modest improvement in recent months. Although the
state's budget stabilization fund was depleted at the end of fiscal 2003,
Michigan's overall debt position remains low, and pension liabilities are fully
funded. At the end of 2003, both Moody's and Standard & Poor's lowered their
ratings on Michigan's general obligation debt to Aa1/AA+, respectively, from
Aaa/AAA based on shortfalls in tax collections, the loss of manufacturing jobs,
and the state's depleted reserves. Both agencies, however, assigned the state a
stable outlook, stating that they expected Michigan to continue to manage its
budget difficulties.
Ohio also continued to be hard-hit by the recession affecting the state's major
manufacturing industries, including autos, heavy machinery and steel. However,
the state has emerged as a major center for the provision of healthcare, and
many expect this sector to become one of Ohio's most rapidly-growing industries.
Despite depletion of reserve funds, Ohio's debt levels remained moderate
relative to the state's substantial economic base. Ohio's general obligation
debt maintained its rating of Aa1 with a negative outlook from Moody's and AA+
from S&P, which revised its outlook for the state to stable from negative in
July 2003.
HOW DID THESE FUNDS PERFORM OVER THE 12-MONTHS ENDED JANUARY 31, 2004?
Individual results for these Funds, as well as
for relevant 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
1/31/04 EQUIVALENT3 1/31/04 1/31/04 1/31/04
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NUM 5.80% 8.41% 9.54% 6.19% 9.60%
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NMP 5.79% 8.39% 8.23% 6.19% 9.60%
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NZW 5.71% 8.28% 9.50% 6.19% 9.60%
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NUO 5.47% 8.16% 8.42% 6.19% 9.57%
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NXI 6.08% 9.07% 10.05% 6.19% 9.57%
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NBJ 5.70% 8.51% 9.58% 6.19% 9.57%
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NVJ 5.57% 8.31% 9.57% 6.19% 9.57%
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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.
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. You cannot invest directly in an index.
2 The total returns of the three Nuveen Michigan Funds are compared with the
average annualized return of the seven funds in the Lipper Michigan Municipal
Debt Funds category, while the total returns of the four Nuveen Ohio Funds are
compared with the average annualized return of the forty-four 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
fully taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current yield
and a federal income tax rate of 28% plus the applicable state income tax
rate. The combined federal and state tax rate used for Michigan is 31%, and
for Ohio is 33%. The yields shown for these Funds highlight the added value of
owning shares that are exempt from state as well as federal income taxes.
2
For the 12 months ended January 31, 2004, the total returns of all seven of the
Funds in this report outperformed the unleveraged Lehman Brothers Municipal Bond
Index. The Funds' use of leverage was a primary factor that influenced their
total return performance relative to the Lehman index. Leveraging can add
volatility to a Fund's net asset value, share price and income. However, during
periods of low short-term interest rates and low or falling long-term interest
rates, such as the environment during much of this 12-month period, this
strategy also can provide opportunities for net asset value appreciation and
enhanced income for common shareholders.
Average duration4 and overall credit quality help explain much of the
performance differences among the Funds themselves. In general, investments with
longer durations generally would be expected to outperform those with shorter
durations, all other factors being equal, during periods of declining interest
rates such as that we experienced over the 12-month period. In addition,
lower-rated bonds generally tended to perform better than higher-rated bonds
over this time frame.
Among the Michigan Funds, NUM and NZW benefited from having longer average
durations than NMP. Comparing the Ohio Funds, the performance of NBJ and NVJ was
helped by the relatively long average durations of these Funds, while NXI
benefited from a greater concentration of lower-rated investment-grade
securities. NUO's shorter average duration and relatively high credit quality
positioned it to lag the performance of its Ohio Fund peers over this period.
In addition, factors such as bond calls and the price movement of specific
sectors and holdings also had an impact on the Funds' relative performances
during this period. For example, NXI benefited from its holdings of bonds backed
by Continental Airlines, as airline-backed bonds rebounded strongly in the last
part of 2003.
WHAT ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates at historically low levels, the dividend-paying
capabilities of all these Funds benefited from their use of leverage. The extent
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 leave
more earnings to support common share dividends. During the 12 months ended
January 2004, continued low short-term rates enabled us to implement three
dividend increases in NBJ, two in NUM, NZW and NXI, and one each in NMP and NUO.
Leverage also helped to support the dividend of NVJ, which as of January 31,
2004, had offered shareholders 21 consecutive months of stable, attractive
dividends.
Each Fund seeks to pay a stable dividend at a rate that reflects the Fund's past
results and projected future performance. The Fund may pay dividends at a rate
that may be more or less than the amount of net investment income actually
earned by the Fund during the period. If the Fund has cumulatively earned more
than it has paid in dividends, it holds the excess in reserve as undistributed
net investment income (UNII) as part of the Fund's net asset value (NAV).
Conversely, if the Fund has cumulatively paid dividends in excess of its
earnings, the excess constitutes negative UNII that is likewise reflected in the
Fund's NAV. Each Fund will, over time, pay all of its net investment income as
dividends to shareholders. As of January 31, 2004, all of the Funds in this
report had positive UNII.
Over this 12-month reporting period, the share prices of these Funds all ended
the period higher than they began. As of January 31, 2004, all seven Funds in
this report traded at premiums to their common share NAVs. (see charts on
individual Performance Overview pages).
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
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE PERIOD ENDED
JANUARY 31, 2004?
Over this reporting period, a major focus continued to be management of the
Funds' durations in an attempt to make the interest rate risk more consistent
across all the Funds. 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. For NZW, NBJ and NVJ, our
efforts were concentrated on moderating risk by shortening the durations of
these Funds. For NXI, we worked to lengthen the Fund's duration as we reinvested
proceeds from bond calls and sales of shorter maturity securities into bonds
with longer maturities. We were comfortable with the durations of NUM, NMP and
NUO, and we didn't seek to make major adjustments in these Funds.
The majority of our purchase activity over the period focused on value
opportunities in the long intermediate part of the yield curve (i.e., bonds that
mature in 15 to 20 years). In many cases, we believed bonds in this part of the
curve offered yields similar to those of longer-term bonds but had better total
return potential.
Although the heavy volume of municipal issuance during 2003 provided some
opportunities to make trades that we thought would benefit the Funds, the pace
of new issuance fell toward the end of the reporting period. This was especially
true in Michigan, where issuance during August 2003-January 2004 declined 27%
from the level of the previous six months. While issuance in the Ohio market was
up 4% over this same period, we had a greater amount of call proceeds to
reinvest for the Ohio Funds. Therefore, it was challenging in both markets to
find issues with the types of structures we prefer to buy and with the potential
to add value. In general, as opportunities arose in the market, our focus was on
purchasing higher quality issues, particularly in the general obligation
category, reflecting the increased issuance in this sector.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JANUARY 31, 2004?
We believe that, given the current geopolitical and economic climate,
maintaining strong credit quality is a vital requirement. As of January 31,
2004, these Nuveen Funds offered excellent credit quality, with allocations of
bonds rated AAA/U.S. guaranteed and AA ranging from 65% to 87%.
As of January 31, 2004, potential call exposure for the 2004 - 2006 period
ranged from zero in NZW to 11% in NUO. The actual number of bond calls these
Funds will face in the coming months will depend largely on current and
anticipated changes in market interest rates.
In general, we believe that these Funds can continue to serve as attractive
sources of tax-free income, while simultaneously offering the potential for
portfolio diversification. In our opinion, they represent a quality component
within a well-balanced core investment portfolio that can continue to benefit
shareholders over time.
4
Nuveen Michigan Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of January 31, 2004
NUM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 73%
AA 12%
A 8%
BBB 5%
NR 1%
BB or Lower 1%
PORTFOLIO STATISTICS
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Share Price $16.34
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Common Share Net Asset Value $15.99
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Premium/(Discount) to NAV 2.19%
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Market Yield 5.80%
--------------------------------------------------
Taxable-Equivalent Yield
Federal Income Tax Rate)1 8.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.41%
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Net Assets Applicable to
Common Shares ($000) $186,447
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Average Effective Maturity (Years) 18.01
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Leverage-Adjusted Duration 9.25
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AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91)
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ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.83% 9.54%
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5-Year 6.56% 6.59%
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10-Year 6.71% 6.39%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 28%
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0765
Mar 0.078
Apr 0.078
May 0.078
Jun 0.078
Jul 0.078
Aug 0.078
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/03 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
15.26
15.21
15.23
15.07
15.18
15.28
15.05
15.43
15.51
15.87
15.77
15.83
15.9
16
16.15
16.15
16.25
15.96
15.92
16.47
16.11
16.38
16.5
1/31/04 16.34
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield 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 shareholder capital gains and net ordinary income
distributions in December 2003 of $0.1083 per share.
5
Nuveen Michigan Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of January 31, 2004
NMP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 66%
AA 21%
A 9%
BBB 1%
BB or Lower 3%
PORTFOLIO STATISTICS
-------------------------------------------------
Share Price $15.97
-------------------------------------------------
Common Share Net Asset Value $15.61
-------------------------------------------------
Premium/(Discount) to NAV 2.31%
-------------------------------------------------
Market Yield 5.79%
-------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.04%
-------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.39%
-------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $120,625
-------------------------------------------------
Average Effective Maturity (Years) 18.19
-------------------------------------------------
Leverage-Adjusted Duration 8.04
-------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92)
-------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------
1-Year 17.39% 8.23%
-------------------------------------------------
5-Year 8.37% 6.43%
-------------------------------------------------
10-Year 7.72% 6.38%
-------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
-------------------------------------------------
Tax Obligation/General 21%
-------------------------------------------------
Tax Obligation/Limited 19%
-------------------------------------------------
U.S. Guaranteed 17%
-------------------------------------------------
Utilities 13%
-------------------------------------------------
Healthcare 12%
-------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.0755
Mar 0.077
Apr 0.077
May 0.077
Jun 0.077
Jul 0.077
Aug 0.077
Sep 0.077
Oct 0.077
Nov 0.077
Dec 0.077
Jan 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/03 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
14.71
15.05
14.91
14.6
14.55
14.72
14.83
15.03
15.06
15.5
15.5
15.42
15.55
15.9
15.86
15.89
15.88
15.9
15.53
16.02
15.73
16
16.15
1/31/04 15.97
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield 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 capital gains and net ordinary income
distributions in December 2003 of $0.4099 per share.
6
Nuveen Michigan Dividend Advantage Municipal Fund
Performance
OVERVIEW As of January 31, 2004
NZW
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 63%
AA 23%
A 10%
BBB 2%
BB or Lower 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.66
--------------------------------------------------
Common Share Net Asset Value $15.29
--------------------------------------------------
Premium/(Discount) to NAV 2.42%
--------------------------------------------------
Market Yield 5.71%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.93%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.28%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $31,481
--------------------------------------------------
Average Effective Maturity (Years) 21.13
--------------------------------------------------
Leverage-Adjusted Duration 9.80
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.94% 9.50%
--------------------------------------------------
Since Inception 7.67% 8.72%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 37%
--------------------------------------------------
Tax Obligation/Limited 19%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Utilities 8%
--------------------------------------------------
U.S. Guaranteed 7%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Feb 0.0705
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0745
Jul 0.0745
Aug 0.0745
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0745
Jan 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/03 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
15.1
14.98
14.66
14.5
14.45
14.55
14.66
14.8
14.65
15.02
14.98
15.12
15.18
15.06
15.12
15.23
15.25
15.35
15.2
15.6
15.42
15.59
15.84
1/31/04 15.66
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield 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 Ohio Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of January 31, 2004
NUO
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 67%
AA 17%
A 10%
BBB 4%
NR 1%
BB or Lower 1%
PORTFOLIO STATISTICS
-------------------------------------------------
Share Price $18.31
-------------------------------------------------
Common Share Net Asset Value $16.70
-------------------------------------------------
Premium/(Discount) to NAV 9.64%
-------------------------------------------------
Market Yield 5.47%
-------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.60%
-------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.16%
-------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $161,124
-------------------------------------------------
Average Effective Maturity (Years) 18.72
-------------------------------------------------
Leverage-Adjusted Duration 8.14
-------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91)
-------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------
1-Year 16.04% 8.42%
-------------------------------------------------
5-Year 6.23% 6.07%
-------------------------------------------------
10-Year 7.14% 6.52%
-------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
-------------------------------------------------
Tax Obligation/General 29%
-------------------------------------------------
Healthcare 15%
-------------------------------------------------
U.S. Guaranteed 12%
-------------------------------------------------
Water and Sewer 9%
-------------------------------------------------
Housing/Multifamily 8%
-------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.082
Mar 0.0835
Apr 0.0835
May 0.0835
Jun 0.0835
Jul 0.0835
Aug 0.0835
Sep 0.0835
Oct 0.0835
Nov 0.0835
Dec 0.0835
Jan 0.0835
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/03 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
16.84
16.17
16.14
16.36
16.5
16.65
16.72
16.75
16.74
16.65
16.83
16.92
17.27
17.52
17.2
17.36
17.57
17.73
18.35
18.16
18.18
18.45
1/31/04 18.31
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield 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 2003 of $0.2139 per share.
8
Nuveen Ohio Dividend Advantage Municipal Fund
Performance
OVERVIEW As of January 31, 2004
NXI
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 45%
AA 20%
A 15%
BBB 17%
NR 1%
BB or Lower 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.00
--------------------------------------------------
Common Share Net Asset Value $15.44
--------------------------------------------------
Premium/(Discount) to NAV 3.63%
--------------------------------------------------
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) $65,238
--------------------------------------------------
Average Effective Maturity (Years) 18.26
--------------------------------------------------
Leverage-Adjusted Duration 7.82
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.92% 10.05%
--------------------------------------------------
Since Inception 8.34% 8.91%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 22%
--------------------------------------------------
Education and Civic Organizations 16%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.076
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0785
Jul 0.0785
Aug 0.0785
Sep 0.081
Oct 0.081
Nov 0.081
Dec 0.081
Jan 0.081
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/03 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
14.2
14.53
14.36
14.45
14.33
14.51
14.4
14.85
14.64
15.09
14.75
14.87
15.12
15.4
15.38
15.4
15.4
16
15.51
16.15
16.25
16.3
16.5
1/31/04 16
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield 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 and net ordinary income
distribution in December 2003 of $0.0170 per share.
9
Nuveen Ohio Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of January 31, 2004
NBJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 63%
AA 10%
A 12%
BBB 13%
NR 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.21
--------------------------------------------------
Common Share Net Asset Value $15.23
--------------------------------------------------
Premium/(Discount) to NAV 6.43%
--------------------------------------------------
Market Yield 5.70%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.92%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.51%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $47,441
--------------------------------------------------
Average Effective Maturity (Years) 19.42
--------------------------------------------------
Leverage-Adjusted Duration 9.64
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 19.48% 9.58%
--------------------------------------------------
Since Inception 9.28% 8.58%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 35%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
Consumer Staples 7%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Feb 0.072
Mar 0.075
Apr 0.075
May 0.075
Jun 0.075
Jul 0.075
Aug 0.075
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.077
Jan 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/03 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
14.3
14.59
14.37
13.98
13.91
14.07
14.2
14.45
14.65
14.81
14.56
14.7
14.81
15.11
15.2
15.11
15.17
15.09
15.2
15.64
15.75
16.59
16.15
1/31/04 16.21
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield 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%.
10
Nuveen Ohio Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of January 31, 2004
NVJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 56%
AA 22%
A 16%
BBB 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.74
--------------------------------------------------
Common Share Net Asset Value $15.41
--------------------------------------------------
Premium/(Discount) to NAV 2.14%
--------------------------------------------------
Market Yield 5.57%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.74%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.31%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $33,237
--------------------------------------------------
Average Effective Maturity (Years) 18.04
--------------------------------------------------
Leverage-Adjusted Duration 10.43
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.96% 9.57%
--------------------------------------------------
Since Inception 8.89% 10.32%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 30%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/03 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
14.44
14.21
13.99
13.86
13.71
13.95
14.01
14.2
14.1
14.6
14.38
14.41
14.35
14.6
14.5
14.61
14.74
15.2
15.28
15.95
16.01
15.98
15.92
1/31/04 15.74
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield 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 net ordinary income distribution in December
2003 of $0.0677 per share.
11
Shareholder
MEETING REPORT
The Shareholder Meeting was held in Chicago, Illinois, on October 22, 2003.
NUM NMP NZW
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 10,575,105 -- 6,866,320 -- 1,928,971 --
Withhold 120,027 -- 103,562 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
Robert P. Bremner
For 10,575,805 -- 6,866,646 -- 1,928,971 --
Withhold 119,327 -- 103,236 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
Lawrence H. Brown
For 10,574,897 -- 6,861,619 -- 1,928,971 --
Withhold 120,235 -- 108,263 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
Jack B. Evans
For 10,575,805 -- 6,869,757 -- 1,928,971 --
Withhold 119,327 -- 100,125 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
Anne E. Impellizzeri
For 10,575,136 -- 6,857,126 -- 1,928,971 --
Withhold 119,996 -- 112,756 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
William L. Kissick
For 10,575,105 -- 6,856,203 -- 1,928,971 --
Withhold 120,027 -- 113,679 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
Thomas E. Leafstrand
For 10,575,105 -- 6,856,203 -- 1,928,971 --
Withhold 120,027 -- 113,679 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
Peter R. Sawers
For 10,575,105 -- 6,856,203 -- 1,928,971 --
Withhold 120,027 -- 113,679 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
12
NUM NMP NZW
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William J. Schneider
For -- 3,291 -- 2,129 -- 640
Withhold -- 37 -- 25 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,328 -- 2,154 -- 640
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,291 -- 2,129 -- 640
Withhold -- 37 -- 25 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,328 -- 2,154 -- 640
====================================================================================================================================
Judith M. Stockdale
For 10,575,839 -- 6,851,848 -- 1,928,971 --
Withhold 119,293 -- 118,034 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
Sheila W. Wellington
For 10,571,833 -- 6,833,515 -- 1,928,971 --
Withhold 123,299 -- 136,367 -- 7,062 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,695,132 -- 6,969,882 -- 1,936,033 --
====================================================================================================================================
13
Shareholder
MEETING REPORT (continued)
NUO NXI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 8,743,731 -- 3,958,862 --
Withhold 109,007 -- 6,170 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
Robert P. Bremner
For 8,738,170 -- 3,959,462 --
Withhold 114,568 -- 5,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
Lawrence H. Brown
For 8,733,332 -- 3,959,462 --
Withhold 119,406 -- 5,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
Jack B. Evans
For 8,742,876 -- 3,959,462 --
Withhold 109,862 -- 5,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
Anne E. Impellizzeri
For 8,728,179 -- 3,958,462 --
Withhold 124,559 -- 6,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
William L. Kissick
For 8,734,747 -- 3,958,462 --
Withhold 117,991 -- 6,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
Thomas E. Leafstrand
For 8,733,884 -- 3,957,862 --
Withhold 118,854 -- 7,170 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
Peter R. Sawers
For 8,734,134 -- 3,958,462 --
Withhold 118,604 -- 6,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
14
NUO NXI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William J. Schneider
For -- 2,823 -- 1,206
Withhold -- 69 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,892 -- 1,206
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,823 -- 1,206
Withhold -- 69 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,892 -- 1,206
====================================================================================================================================
Judith M. Stockdale
For 8,737,112 -- 3,959,462 --
Withhold 115,626 -- 5,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
Sheila W. Wellington
For 8,729,658 -- 3,957,862 --
Withhold 123,080 -- 7,170 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,852,738 -- 3,965,032 --
====================================================================================================================================
15
Shareholder
MEETING REPORT (continued)
NBJ NVJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
Robert P. Bremner
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
Lawrence H. Brown
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
Jack B. Evans
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
Anne E. Impellizzeri
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
William L. Kissick
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
Thomas E. Leafstrand
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
Peter R. Sawers
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
16
NBJ NVJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William J. Schneider
For -- 732 -- 652
Withhold -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 732 -- 652
====================================================================================================================================
Timothy R. Schwertfeger
For -- 732 -- 652
Withhold -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 732 -- 652
====================================================================================================================================
Judith M. Stockdale
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
Sheila W. Wellington
For 2,941,434 -- 2,118,129 --
Withhold 7,180 -- 7,028 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,948,614 -- 2,125,157 --
====================================================================================================================================
17
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.7%
Puerto Rico, The Children's Trust Fund, Tobacco Settlement
Asset-Backed Refunding Bonds, Series 2002:
$ 3,230 5.375%, 5/15/33 5/12 at 100.00 BBB $ 3,087,686
2,000 5.500%, 5/15/39 5/12 at 100.00 BBB 1,871,260
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.3%
1,720 Ferris State College, Michigan, General Revenue Bonds, 4/08 at 100.00 AAA 1,771,308
Series 1998, 5.000%, 10/01/23 - AMBAC Insured
1,685 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa 1,891,901
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 1,642,395
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 1,034,090
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax) - AMBAC Insured
Michigan Technological University, General Revenue Bonds,
Series 2004A:
1,060 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 1,118,565
1,170 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,222,393
1,000 Oakland University, Michigan, General Revenue Bonds, 5/05 at 102.00 AAA 1,070,700
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 3,713,935
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,033,620
1,000 Western Michigan University, General Revenue Refunding Bonds, 11/13 at 100.00 AAA 1,063,210
Series 2003, 5.000%, 11/15/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.6%
2,900 Dearborn Hospital Finance Authority, Michigan, Economic 11/05 at 102.00 AAA 3,127,041
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 1,304,580
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 3,626,840
Spectrum Health, Series 2001A, 5.250%, 1/15/21
2,383 Michigan State Hospital Finance Authority, Collateralized No Opt. Call Baa2 2,399,100
Loan, Detroit Medical Center, Series 2001, 7.360%, 4/01/07
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,611,345
Refunding Bonds, Henry Ford Health System, Series 2003A,
5.625%, 3/01/17
1,000 Michigan State Hospital Finance Authority, Revenue 11/09 at 101.00 A 1,069,890
Refunding 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 1,889,091
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 3,780,233
500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 544,855
2,700 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 1,566,081
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 1,016,760
Bonds, Memorial Healthcare Center Obligated Group,
Series 1999, 5.875%, 11/15/21
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 $ 5,266,550
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
5,500 Royal Oak, Michigan, Hospital Finance Authority, Hospital 11/11 at 100.00 AAA 5,695,415
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 1,766,777
Bonds, Series 1991, 0.000%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.4%
2,675 Michigan Housing Development Authority, Limited Obligation 12/20 at 101.00 AAA 2,868,750
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 1,851,012
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 4/04 at 102.00 AAA 5,374,950
Revenue Bonds, Parkway Meadows Project, Series 1991,
6.850%, 10/15/18 - FSA Insured
3,550 Michigan Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 3,695,302
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 3,662,083
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 1,056,570
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3%
3,300 Michigan State Hospital Finance Authority, Revenue Bonds, 1/07 at 102.00 N/R 2,970,033
Presbyterian Villages of Michigan Obligated Group,
Series 1997, 6.375%, 1/01/25
1,300 Michigan Strategic Fund, Limited Obligation Revenue 7/08 at 101.00 A- 1,289,457
Refunding Bonds, Porter Hills Presbyterian Village,
Series 1998, 5.375%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 40.9%
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 2,066,709
1,435 5.750%, 5/01/30 - FSA Insured 5/10 at 100.00 AAA 1,599,738
Anchor Bay School District, Macomb and St. Clair Counties,
Michigan, Unlimited Tax General Obligation Refunding
Bonds, Series 2001:
2,500 5.000%, 5/01/21 5/11 at 100.00 AA+ 2,605,525
4,200 5.000%, 5/01/29 5/11 at 100.00 AA+ 4,311,426
1,000 Anchor Bay School District, Macomb and St. Clair 5/12 at 100.00 AA+ 1,032,340
Counties, Michigan, General Obligation Refunding
Bonds, Series 2002, 5.000%, 5/01/25
1,000 Belding School District, Ionia, Kent and Montcalm 5/08 at 100.00 AAA 1,018,510
Counties, 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 1,276,416
Series 2002, 5.000%, 10/01/20
1,320 Bridgeport-Spaulding Community School District, Saginaw 5/12 at 100.00 AA+ 1,490,372
County, Michigan, General Obligation Bonds,
Series 2002, 5.500%, 5/01/16
2,110 Caledonia Community Schools, Kent, Allegan and Barry 5/13 at 100.00 AA+ 2,285,847
Counties, Michigan, General Obligation Bonds, Series 2003,
5.250%, 5/01/20
1,000 Charlotte Public School District, Easton County, Michigan, 5/09 at 100.00 AAA 1,048,150
General Obligation Unlimited Tax 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 2,121,160
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 2,421,260
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 AA+ 1,101,110
Obligation Bonds, Series 2001, 5.500%, 5/01/20
19
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
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 AA+ $ 1,170,324
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 3,488,067
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 932,280
Michigan, Limited Tax General Obligation Bonds, Devos Place
Project, Series 2001, 0.000%, 12/01/26
1,400 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA+ 1,475,600
General Obligation Bonds, Series 2003, 5.000%, 5/01/21
1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA+ 1,677,660
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 AA+ 2,070,260
General Obligation Bonds, Series 2002, 5.000%, 5/01/24
725 Lake Orion Community School District, Oakland County, 5/05 at 101.00 AAA 760,387
Michigan, Unlimited Tax General Obligation Refunding
Bonds, Series 1995, 5.500%, 5/01/20 - AMBAC Insured
1,790 Lansing Building Authority, Michigan, General Obligation 6/13 at 100.00 AAA 1,855,425
Bonds, Series 2003A, 5.000%, 6/01/26 - MBIA Insured
1,000 Mancelona Public School District, General Obligation Bonds, 5/06 at 100.00 AAA 1,063,890
Antrim and Kalkaska Counties, Michigan, Series 1997,
5.200%, 5/01/17 - FGIC Insured
4,000 Michigan, General Obligation Bonds, Environmental Protection 5/13 at 100.00 AA+ 4,378,400
Program, Series 2003A, 5.250%, 5/01/20
4,300 Montcalm County Building Authority, Michigan, Correctional 5/10 at 100.00 AAA 4,507,647
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 2,985,850
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 1,362,880
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 1,020,980
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 AA+ 1,788,150
Obligation Bonds, Series 2001, 5.375%, 5/01/18
1,000 Oakland County Building Authority, Michigan, General Obligation 9/11 at 100.00 AAA 1,052,290
Bonds, Series 2002, 5.125%, 9/01/22
1,225 Paw Paw Public School District, Van Buren, Michigan, No Opt. Call AAA 1,321,616
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 4,286,600
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 4,883,760
Refunding Bonds, Series 2002A, 5.500%, 7/01/20 -
MBIA Insured
685 Reeths-Puffer Schools, Muskegon County, Michigan, 5/05 at 101.00 AAA 725,723
School Building and Site Refunding Bonds, Series 1995,
5.750%, 5/01/15 - FGIC Insured
2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax 3/10 at 100.00 AAA 2,699,675
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 1,150,779
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 2,171,387
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 AA+ 1,258,245
General Obligation Bonds, Series 2001, 5.500%, 5/01/17
1,725 Williamston Community School District, Michigan, Unlimited No Opt. Call AAA 1,952,942
Tax General Obligation QSBLF Bonds, Series 1996,
5.500%, 5/01/25 - MBIA Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.4%
$ 1,800 Dearborn Heights Tax Increment Financing Authority, Wayne 10/10 at 100.00 AAA $ 1,849,680
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 1,109,310
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 1,189,930
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
255 Michigan Municipal Bond Authority, Local Government 5/04 at 100.00 A 258,239
Loan Program Revenue Sharing Bonds, Series 1992D,
6.650%, 5/01/12
750 Michigan State Building Authority, Revenue Refunding Bonds, 10/09 at 100.00 AA 761,378
Facilities Program, Series 1998-I, 4.750%, 10/15/21
3,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 3,146,820
Facilities Program, Series 2003-II, 5.000%, 10/15/22 -
MBIA Insured
Michigan State, Certificates of Participation, Series 2000:
2,000 5.500%, 6/01/19 - AMBAC Insured 6/10 at 100.00 AAA 2,212,760
2,000 5.500%, 6/01/27 - AMBAC Insured 6/10 at 100.00 AAA 2,159,240
1,000 Michigan State, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,077,710
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 1,032,020
Series 2001A, 5.000%, 11/01/25
3,500 Michigan State Trunk Line, Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,757,950
5.250%, 10/01/21 - FSA Insured
1,100 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,133,275
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 4,404,589
2,000 5.000%, 7/01/36 7/16 at 100.00 A 2,034,760
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,166,300
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
5,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 5,230,400
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 7/12 at 100.00 AAA 1,044,560
Refunding 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 3,025,020
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 1,212,268
Metropolitan Wayne County Airport, Series 1998B,
4.875%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.4%
2,190 Anchor Bay School District, Macomb and St. Clair Counties, 5/09 at 100.00 AAA 2,568,782
Michigan, General Obligation Bonds, 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 307,876
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101.00 AAA 1,181,430
Bonds, Series 1999A, 5.875%, 7/01/27 (Pre-refunded
to 1/01/10) - FGIC Insured
Detroit, Michigan, Sewerage Disposal System Revenue
Bonds, Series 1997A:
950 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,072,103
2,050 5.500%, 7/01/20 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA
2,000 Detroit, Michigan, Water Supply System Senior Lien Revenue 1/10 at 101.00 AAA 2,349,260
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded
to 1/01/10) - FGIC Insured
Detroit, Michigan, Water Supply System Senior Lien Revenue
Bonds, Series 2001A:
3,400 5.750%, 7/01/28 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 101.00 AAA 4,048,720
770 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 885,284
21
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 2,000 East Grand Rapids Public Schools, Kent County, Michigan, 5/09 at 100.00 AAA $ 2,345,920
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-*** 2,305,380
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 1,130,360
Improvement Refunding Bonds, Series 1996,
6.000%, 5/01/22 (Pre-refunded to 5/01/07) -
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 1,198,750
2,500 6.125%, 11/15/26 (Pre-refunded to 11/15/09) 11/09 at 101.00 AAA 2,996,875
3,460 Michigan State Hospital Finance Authority, Revenue 5/08 at 101.00 AAA 3,698,221
Refunding 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 3,371,743
Michigan, General Obligation Bonds, Series 2000A,
5.750%, 5/01/24 (Pre-refunded to 5/01/10) - FGIC Insured
1,125 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 1,358,933
Revenue Bonds, Series 2000B, 6.000%, 7/01/39
(Pre-refunded to 7/01/10)
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,172,780
Counties, Michigan, General Obligation Bonds, Series 2000I,
5.750%, 5/01/19 (Pre-refunded to 5/01/10) - FGIC Insured
2,100 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 2,437,512
Unlimited Tax General Obligation School Building and
Site Bonds, Series 1999, 5.750%, 5/01/25 (Pre-refunded
to 5/01/09) - FGIC Insured
2,600 West Bloomfield School District, Oakland County, Michigan, 5/10 at 100.00 AAA 3,071,510
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 - 13.3%
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 3,157,590
Turbine 1 Project, Series 2001A, 5.250%, 1/01/27 -
AMBAC Insured
4,475 Michigan South Central Power Agency, Power Supply No Opt. Call Baa1 4,870,366
System Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,630 Michigan Strategic Fund, Limited Obligation Refunding No Opt. Call AAA 4,723,392
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 2,228,220
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 9/11 at 100.00 A- 4,141,640
Obligation Revenue Refunding Pollution Control Bonds,
Detroit Edison Company, Series 2001C, 5.450%, 9/01/29
3,000 Michigan Strategic Fund, Limited Obligation Revenue 12/12 at 100.00 AAA 3,143,820
Refunding Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 (Alternative Minimum Tax) - XLCA Insured
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,056,090
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 423,776
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 1,036,090
Series 1995X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.1%
1,500 Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 101.00 AAA 1,573,125
Refunding Bonds, Series 1995B, 5.250%, 7/01/21 -
MBIA Insured
1,730 Detroit, Michigan, Sewerage Disposal System Revenue 7/07 at 101.00 AAA 1,792,349
Bonds, Series 1997A, 5.000%, 7/01/22 - MBIA Insured
1,500 Detroit, Michigan, Sewage Disposal System Revenue Bonds, No Opt. Call AAA 1,707,165
Second Lien, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
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 $ 4,188,979
3,000 5.000%, 7/01/25 - MBIA Insured 7/13 at 100.00 AAA 3,112,860
730 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/11 at 100.00 AAA 763,478
Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
5,000 Detroit, Michigan, Water Supply System Revenue Refunding 7/04 at 102.00 AAA 5,144,800
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 1,138,435
1,160 5.625%, 11/01/30 - MBIA Insured 11/10 at 100.00 Aaa 1,273,100
------------------------------------------------------------------------------------------------------------------------------------
$ 261,678 Total Long-Term Investments (cost $256,220,830) - 148.8% 277,469,567
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 2,977,541
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.4)% (94,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 186,447,108
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: 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.
See accompanying notes to financial statements.
23
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.8%
$ 965 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 922,482
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.0%
Eastern Michigan University, General Revenue Bonds, Series 2003:
1,000 5.000%, 6/01/28 - FGIC Insured 6/13 at 100.00 AAA 1,034,940
2,950 5.000%, 6/01/33 - FGIC Insured 6/13 at 100.00 AAA 3,044,223
2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,068,180
Bonds, Series 2002 XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax) - AMBAC Insured
1,000 Saginaw Valley State University, Michigan, General 7/09 at 100.00 Aaa 1,096,490
Revenue 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 3,617,670
Series 1999, 5.125%, 11/15/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.9%
2,050 Dearborn Hospital Finance Authority, Michigan, Economic 11/05 at 102.00 AAA 2,210,494
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 2,323,948
Mortgage Hospital Revenue Bonds, Portage Health
System, Inc., Series 1998, 5.450%, 8/01/47 -
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 2/04 at 102.00 Ba3 1,549,600
3,200 6.500%, 8/15/18 2/04 at 102.00 Ba3 2,378,368
1,500 Michigan State Hospital Finance Authority, Hospital 3/13 at 100.00 A1 1,611,345
Revenue Refunding Bonds, Henry Ford Health System,
Series 2003A, 5.625%, 3/01/17
2,000 Michigan State Hospital Finance Authority, Hospital 1/05 at 102.00 A+ 2,063,160
Revenue and Refunding Bonds, Otsego Memorial
Hospital, Gaylord, Series 1995, 6.250%, 1/01/20
4,000 Michigan State Hospital Finance Authority, Hospital 5/09 at 101.00 AAA 4,358,840
Revenue Refunding Bonds, Mercy Mount Clemens
Corporation Obligated Group, Series 1999A,
5.750%, 5/15/29 - MBIA Insured
500 Michigan State Hospital Finance Authority, Hospital 11/11 at 101.00 A1 515,335
Revenue 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 4,529,233
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.9%
1,335 Michigan Housing Development Authority, Multifamily 12/10 at 100.00 AAA 1,392,966
Senior Lien Revenue Bonds, Landings Project,
Series 2001A, 5.950%, 12/01/33 (Alternative Minimum
Tax) - AMBAC Insured
1,000 Michigan Housing Development Authority, GNMA 4/12 at 102.00 Aaa 1,037,470
Collateralized 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 520,410
Limited Obligation Multifamily Revenue Bonds,
Renaissance Apartments, Series 2002,
5.350%, 8/01/22 (Alternative Minimum Tax)
2,400 Michigan Housing Development Authority, Limited 4/04 at 103.00 AAA 2,477,664
Obligation Revenue Bonds, Walled Lake Villa
Project, Series 1993, 6.000%, 4/15/18 - FSA Insured
1,500 Michigan Housing Development Authority, Limited 4/04 at 103.00 AAA 1,541,880
Obligation Revenue Bonds, Breton Village Green
Project, Series 1993, 5.625%, 10/15/18 - FSA Insured
Mount Clemens Housing Corporation, Michigan, FHA-Insured Section
8 Multifamily Housing Revenue Refunding Bonds, Clinton Place
Project, Series 1992A:
965 6.600%, 6/01/13 6/04 at 101.00 AAA 981,762
1,500 6.600%, 6/01/22 6/04 at 101.00 AAA 1,523,340
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 30.4%
$ 3,000 Allen Park Public School District, Wayne County, 5/13 at 100.00 AA+ $ 3,097,380
Michigan, General Obligation Bonds, Series 2003,
5.000%, 5/01/29
2,500 Anchor Bay School District, Macomb and St. Clair 5/11 at 100.00 AA+ 2,605,525
Counties, Michigan, Unlimited Tax General Obligation
Refunding Bonds, Series 2001, 5.000%, 5/01/21
1,475 Anchor Bay School District, Macomb and St. Clair 11/13 at 100.00 AA+ 1,554,650
Counties, Michigan, General Obligation Bonds,
Series 2003, 5.000%, 5/01/21
1,000 Central Montcalm Public Schools, Montcalm and Ionia 5/09 at 100.00 AAA 1,112,070
Counties, Michigan, General Obligation Unlimited
Tax School Building and Site Bonds, Series 1999,
5.750%, 5/01/24 - MBIA Insured
1,375 Chippewa Valley Schools, Macomb County, Michigan, 5/11 at 100.00 AA+ 1,414,050
General Obligation Bonds, Series 2001, 5.000%, 5/01/26
Detroit School District, Wayne County, Michigan, General
Obligation Bonds, Series 2002A:
1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AAA 2,195,678
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 903,623
2,500 Detroit School District, Wayne County, Michigan, 5/13 at 100.00 AAA 2,604,150
General Obligation Bonds, Series 2003B,
5.000%, 5/01/23 - FGIC Insured
500 Detroit School District, Wayne County, Michigan, 5/12 at 100.00 AAA 549,475
Unlimited Tax School Building and Site Improvement
General Obligation Bonds, Series 2001A,
5.500%, 5/01/21 - FSA Insured
3,815 East Lansing Building Authority, Ingham and Clinton 4/11 at 100.00 AA 4,042,565
Counties, Michigan, Unlimited Tax General Obligation
Building Authority Bonds, Series 2000, 5.375%, 4/01/25
2,000 Howell Public Schools, Livingston County, Michigan, 11/13 at 100.00 AA+ 2,095,000
General Obligation Bonds, Series 2003, 5.000%, 5/01/22
1,000 Lansing School District, Ingham County, Michigan, General 5/14 at 100.00 AA+ 1,049,440
Obligation Bonds, Series 2004, 5.000%, 5/01/22
(WI, settling 2/10/04)
Michigan, General Obligation Bonds, Environmental
Protection Program, Series 2003A:
1,000 5.250%, 5/01/20 5/13 at 100.00 AA+ 1,094,600
2,000 5.250%, 5/01/21 5/13 at 100.00 AA+ 2,176,300
2,515 Plainwell Community Schools, Allegan County, Michigan, 11/12 at 100.00 AA+ 2,594,876
General Obligation Bonds, Series 2002, 5.000%, 5/01/28
380 Reeths-Puffer Schools, Muskegon County, Michigan, 5/05 at 101.00 AAA 402,591
School Building and Site Refunding Bonds, Series 1995,
5.750%, 5/01/15 - 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 2,553,228
1,575 5.250%, 5/01/22 - FGIC Insured 11/12 at 100.00 AAA 1,683,675
2,830 Warren Consolidated School District, Macomb and 5/13 at 100.00 AA+ 3,065,852
Oakland Counties, Michigan, General Obligation
Refunding Bonds, Series 2003, 5.250%, 5/01/20
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.7%
7,000 Detroit-Wayne County Stadium Authority, Michigan, 2/07 at 102.00 AAA 7,331,310
Limited Tax General Obligation Building Authority
Stadium Bonds, Series 1997, 5.250%, 2/01/27 - FGIC Insured
1,500 Michigan State Building Authority, Revenue Bonds, 10/10 at 100.00 AA 1,641,810
Facilities Program, Series 2000-I, 5.375%, 10/15/20
Michigan State Building Authority, Revenue Refunding
Bonds, Facilities Program, Series 2001-I:
2,570 5.500%, 10/15/19 10/11 at 100.00 AA 2,851,441
6,500 5.000%, 10/15/24 10/11 at 100.00 AA 6,715,670
5,000 Michigan State Building Authority, Revenue Refunding 10/13 at 100.00 AAA 5,244,700
Bonds, Facilities Program, Series 2003-II,
5.000%, 10/15/22 - MBIA Insured
1,000 Michigan State, Certificates of Participation, New 9/11 at 100.00 AAA 1,077,710
Center Development, Inc., Series 2001, 5.375%, 9/01/21 -
MBIA Insured
1,500 Michigan State, Comprehensive Transportation Revenue 11/11 at 100.00 AAA 1,587,675
Refunding Bonds, Series 2001A, 5.000%, 11/01/19 -
FSA Insured
25
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Puerto Rico Highway and Transportation Authority, 7/16 at 100.00 A $ 1,017,380
Highway Revenue Bonds, Series 1996Y, 5.000%, 7/01/36
4,670 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 4,819,487
Airport Hotel Revenue Bonds, Detroit Metropolitan
Wayne County Airport, Series 2001A,
5.000%, 12/01/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.2%
1,000 Puerto Rico Ports Authority, Special Facilities Revenue 6/04 at 101.00 CCC 785,070
Bonds, American Airlines, Inc. Project, Series 1993A,
6.300%, 6/01/23 (Alternative Minimum Tax)
2,000 Wayne County, Michigan, Airport Revenue Bonds, 12/08 at 101.00 AAA 2,016,680
Detroit 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 1,014,450
Metropolitan Wayne County Airport, Series 1998B,
4.875%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.7%
395 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 442,222
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,000 Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101.00 AAA 2,362,860
Bonds, Series 1999A, 5.875%, 7/01/27 (Pre-refunded to
1/01/10) - FGIC Insured
1,370 Detroit, Michigan, Sewerage Disposal System Revenue 7/07 at 101.00 AAA 1,546,086
Bonds, Series 1997A, 5.500%, 7/01/20 (Pre-refunded
to 7/01/07) - MBIA Insured
1,385 Detroit, Michigan, Water Supply System Senior Lien 7/11 at 100.00 AAA 1,592,362
Revenue Bonds, Series 2001A, 5.250%, 7/01/33
(Pre-refunded to 7/01/11) - FGIC Insured
4,000 Detroit, Michigan, Water Supply System Senior Lien 1/10 at 101.00 AAA 4,698,520
Revenue Bonds, Series 1999A, 5.750%, 7/01/26
(Pre-refunded to 1/01/10) - FGIC Insured
2,500 Kalamazoo Hospital Finance Authority, Michigan, Hospital 5/06 at 102.00 AAA 2,781,050
Revenue Refunding and Improvement Bonds, Bronson
Methodist Hospital, Series 1996, 5.750%, 5/15/16
(Pre-refunded to 5/15/06) - MBIA Insured
2,000 Michigan Municipal Bond Authority, Drinking Water Revolving 10/09 at 101.00 AAA 2,329,740
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 5/04 at 101.00 AAA 3,073,140
Refunding Bonds, St. John's Hospital, Series 1993A,
6.000%, 5/15/13 - AMBAC Insured
2,500 Michigan State Hospital Finance Authority, Revenue 11/09 at 101.00 AAA 2,996,875
Bonds, 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 1,445,394
Michigan, General Obligation Bonds, Series 2000A,
5.625%, 5/01/16 (Pre-refunded to 5/01/10) - FGIC Insured
620 Reeths-Puffer Schools, Muskegon County, Michigan, 5/05 at 101.00 AAA 661,546
School Building and Site Refunding Bonds, Series 1995,
5.750%, 5/01/15 (Pre-refunded to 5/01/05) - FGIC Insured
1,000 Rochester Community School District, Oakland and Macomb 5/10 at 100.00 AAA 1,172,780
Counties, Michigan, General Obligation Bonds,
Series 2000I, 5.750%, 5/01/19 (Pre-refunded to
5/01/10) - FGIC Insured
1,500 Romulus Community Schools, Wayne County, Michigan, 5/09 at 100.00 AAA 1,741,080
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 2,939,100
Unlimited Tax General Obligation School Building and
Site Bonds, Series 2000, 5.800%, 5/01/17 (Pre-refunded
to 5/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 18.8%
1,000 Michigan Public Power Agency, Revenue Bonds, 1/12 at 100.00 AAA 1,052,530
Combustion Turbine 1 Project, Series 2001A,
5.250%, 1/01/27 - AMBAC Insured
1,000 Michigan South Central Power Agency, Power Supply No Opt. Call Baa1 1,088,350
System Revenue Bonds, Series 2000, 6.000%, 5/01/12
3,500 Michigan Strategic Fund, Collateralized Limited Obligation 6/04 at 101.00 AAA 3,581,935
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 3,342,330
Refunding and Remarketing Bonds, Detroit Edison
Company, Series 1995CC, 4.850%, 9/01/30 (Mandatory
put 9/01/11)
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 5,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A- $ 5,177,050
Revenue Refunding Pollution Control Bonds, Detroit
Edison Company, Series 2001C, 5.450%, 9/01/29
3,000 Michigan Strategic Fund, Limited Obligation Revenue 12/12 at 100.00 AAA 3,143,820
Refunding Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 (Alternative Minimum Tax) - XLCA Insured
1,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 1,056,090
Revenue Refunding Pollution Control Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
2,500 Monroe County, Michigan, Pollution Control Revenue Bonds, 6/04 at 101.00 AAA 2,565,875
Detroit Edison Company Project, Series 1992CC,
6.550%, 6/01/24 (Alternative Minimum Tax) - MBIA Insured
1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, 10/08 at 101.00 AAA 1,663,395
Series 2002, 5.375%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.7%
1,500 Detroit, Michigan, Sewage Disposal System Revenue No Opt. Call AAA 1,707,165
Bonds, 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 2,577,575
Refunding Bonds, Senior Lien, Series 2003A,
5.000%, 7/01/32 - FSA Insured
1,315 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/11 at 100.00 AAA 1,375,306
Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 164,310 Total Long-Term Investments (cost $163,420,257) - 144.1% 173,812,087
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 2,812,993
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.4)% (56,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 120,625,080
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
27
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2%
$ 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa $ 1,185,443
Obligation Revenue Refunding Bonds, Kettering
University, Series 2001, 5.000%, 9/01/26 -
AMBAC Insured
1,010 Michigan Technological University, General Revenue Bonds, 10/13 at 100.00 AAA 1,073,196
Series 2004A, 5.000%, 10/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.2%
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 1,036,240
Spectrum Health, Series 2001A, 5.250%, 1/15/21
1,200 Michigan State Hospital Finance Authority, Hospital 1/06 at 102.00 Ba3 931,176
Revenue Refunding Bonds, Sinai Hospital, Series 1995,
6.625%, 1/01/16
500 Michigan State Hospital Finance Authority, Hospital Revenue 5/06 at 102.00 A1 507,145
and Refunding Bonds, Henry Ford Health System,
Series 1995A, 5.250%, 11/15/20
750 Michigan State Hospital Finance Authority, Hospital 11/11 at 101.00 A1 773,002
Revenue 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 1,863,954
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.6%
1,700 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 1,771,060
Limited Obligation Multifamily Housing Revenue Bonds,
Cranbrook Apartments, Series 2001A, 5.400%, 2/20/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.2%
1,250 Michigan Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,320,713
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 54.2%
1,000 Detroit School District, Wayne County, Michigan, General 5/13 at 100.00 AAA 1,078,510
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 1,098,950
Tax School Building and Site Improvement General
Obligation 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 1,071,110
Obligation Bonds, Series 1997, 5.375%, 5/01/23 - FGIC Insured
1,000 Garden City School District, Wayne County, Michigan, 5/11 at 100.00 AA+ 1,028,400
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 AA+ 1,342,965
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 2,331,098
Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/26 - FSA Insured
1,500 Huron Valley School District, Oakland and Livingston Counties, 11/11 at 100.00 AA+ 1,544,565
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/27
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,050 Lawton Community Schools, Van Buren County, Michigan, 11/11 at 100.00 AA+ $ 1,148,616
General Obligation Bonds, Series 2001, 5.500%, 5/01/21
1,000 Oxford Area Community Schools, Oakland and Lapeer 11/11 at 100.00 AA+ 1,118,440
Counties, Michigan, General Obligation Bonds,
Series 2001, 5.500%, 5/01/17
1,000 Portland Public Schools, Ionia County, Michigan, General 11/11 at 100.00 AA+ 1,028,070
Obligation Bonds, Series 2001, 5.000%, 5/01/29
1,000 Puerto Rico Public Improvement, General Obligation Bonds, 7/11 at 100.00 A- 1,021,610
Series 2002A, 5.125%, 7/01/31
500 Warren Building Authority, Michigan, Limited Tax General 11/10 at 100.00 AAA 523,425
Obligation Bonds, Series 2001, 5.150%, 11/01/22 -
FGIC Insured
Washtenaw County, Michigan, Limited Tax General Obligation
Bonds, Sylvan Township Water and Wastewater System, Series 2001:
500 5.000%, 5/01/19 - MBIA Insured 5/09 at 100.50 AAA 531,255
800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 842,704
1,300 Willow Run Community Schools, Washtenaw County, 5/11 at 100.00 AA+ 1,354,873
Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.0%
1,300 Grand Rapids Building Authority, Kent County, Michigan, 10/11 at 100.00 AAA 1,351,012
Limited Tax General Obligation Bonds, Series 2001,
5.125%, 10/01/26 - MBIA Insured
1,205 Michigan State Building Authority, Revenue Refunding 10/11 at 100.00 AA 1,244,982
Bonds, Facilities Program, Series 2001-I, 5.000%, 10/15/24
2,000 Michigan State Trunk Line, Trunk Line Fund Bonds, 11/11 at 100.00 AAA 2,064,040
Series 2001A, 5.000%, 11/01/25
1,450 Muskegon County, Michigan, Limited Tax General Obligation 7/11 at 100.00 AAA 1,493,863
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+ 1,166,300
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
1,750 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 1,806,017
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.1%
515 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/11 at 100.00 AAA 592,106
Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded to
7/01/11) - FGIC Insured
1,000 Michigan Municipal Bond Authority, Drinking Water Revolving 10/10 at 101.00 AAA 1,196,520
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 548,720
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,000 Rochester Community School District, Oakland and Macomb 11/11 at 100.00 AA+*** 1,170,300
Counties, Michigan, General Obligation Bonds, Series 2001II,
5.500%, 5/01/22 (Pre-refunded to 11/01/11)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5%
1,235 Michigan Public Power Agency, Revenue Bonds, Combustion 1/12 at 100.00 AAA 1,306,630
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- 2,299,901
Revenue Refunding Pollution Control Bonds, Fixed-Rate
Conversion, Detroit Edison Company, Series 1999C,
5.650%, 9/01/29 (Alternative Minimum Tax)
29
Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.5%
$ 1,000 Detroit, Michigan, Sewage Disposal System Revenue Bonds, No Opt. Call AAA $ 1,138,110
Second Lien, Series 2001B, 5.500%, 7/01/29 - FGIC Insured
Detroit, Michigan, Water Supply System Senior Lien Revenue
Bonds, Series 2001A:
1,000 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 1,027,710
485 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 507,241
------------------------------------------------------------------------------------------------------------------------------------
$ 44,165 Total Long-Term Investments (cost $44,316,139) - 147.5% 46,439,972
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.6%
500 Puerto Rico Government Development Bank, Adjustable A-1 500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 0.900%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $44,816,139) - 149.1% 46,939,972
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 541,282
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 31,481,254
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: 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.
+ 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.
30
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.5%
$ 4,295 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 4,105,762
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.7%
3,665 Ohio State Education Student Loan Revenue Bonds, 6/07 at 102.00 AAA 3,852,282
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 Bonds, 12/04 at 102.00 AAA 1,056,300
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 1,209,108
Bonds, University of Findlay Project, Series 1996,
6.125%, 9/01/16
1,750 Ohio Higher Education Facilities Commission, General 10/13 at 100.00 AA 1,837,395
Revenue Bonds, Oberlin College, Series 2003,
5.125%, 10/01/24
1,200 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 1,247,628
Series 2002A, 5.125%, 12/01/31
3,000 Ohio State University, General Receipts Bonds, 6/13 at 100.00 AA 3,208,740
Series 2003B, 5.250%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.5%
1,000 Cuyahoga County, Ohio, Hospital Improvement and Revenue 2/07 at 102.00 AAA 1,112,330
Refunding Bonds, 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 2,130,900
Cleveland Clinic Health System, Series 2003A,
6.000%, 1/01/32
4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 4,582,980
Firelands Regional Medical Center, Series 2002A,
5.625%, 8/15/32
1,700 Franklin County, Ohio, Hospital Revenue Bonds, Ohio 5/13 at 100.00 AAA 1,734,714
Health Corporation, Series 2003C, 5.000%, 5/15/33 -
MBIA Insured
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 1,038,030
1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,549,185
2,500 Marion County, Ohio, Hospital Revenue Refunding and 5/06 at 102.00 BBB+ 2,662,725
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+ 2,517,145
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 1,639,170
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 A3 3,344,070
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- 6,067,140
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- 2,657,875
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 1,611,225
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 1,856,830
Bonds, Union Hospital Project, Series 2001,
5.750%, 10/01/21 - RAAI Insured
31
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.5%
$ 1,385 Clermont County, Ohio, GNMA Collateralized Mortgage 2/04 at 103.00 Aaa $ 1,391,108
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 1,025,510
Revenue Bonds, West Tech Apartments Project,
Series 2002A, 5.350%, 3/20/33 (Alternative Minimum Tax)
1,435 Cuyahoga County, Ohio, GNMA Collateralized Loan 6/08 at 105.00 Aaa 1,545,768
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 2,591,028
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,336,962
1,000 Cuyahoga County, Ohio, GNMA Collateralized Multifamily 9/12 at 102.00 Aaa 1,037,570
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 1,003,882
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
4,060 Lucas Northgate Housing Development Corporation, 7/04 at 102.00 Aaa 4,141,809
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 3,458,876
Bonds, Timber Lake Apartments Project, Series 1999C,
6.150%, 12/01/24 (Alternative Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.1%
190 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/09 at 100.00 Aaa 194,269
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000A-1, 6.350%, 9/01/31 (Alternative Minimum Tax)
2,195 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 2,281,856
Securities Program, Residential Mortgage Revenue Bonds,
Series 1996B-3, 5.750%, 9/01/28 (Alternative Minimum Tax)
4,365 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 4,528,251
Securities Program, Residential Mortgage Revenue Bonds,
Series 1998A-1, 5.300%, 9/01/19 (Alternative Minimum Tax) -
FSA Insured
3,525 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/08 at 102.00 Aaa 3,621,444
Securities Program, Residential Mortgage Revenue Bonds,
Series 1997B, 5.400%, 9/01/29 (Alternative Minimum Tax)
860 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 889,085
Securities Program, Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6%
1,000 Marion County, Ohio, Healthcare Facilities Revenue 5/04 at 102.00 BBB- 1,013,560
Refunding and Improvement Bonds, United Church Homes,
Inc. Project, Series 1993, 6.300%, 11/15/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 42.8%
1,000 Ansonia Local School District, Darke County, Ohio, 12/10 at 102.00 Aaa 1,104,460
General Obligation Bonds, Series 2000, 5.500%, 12/01/22 -
MBIA Insured
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,028,790
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
270 Berea City School District, Ohio, General Obligation 6/04 at 102.00 AAA 276,672
Unlimited Tax School Improvement Bonds, Series 1993,
7.500%, 12/15/06 - AMBAC Insured
2,140 Butler County, Ohio, General Obligation Judgment 12/12 at 101.00 Aa3 2,300,650
Bonds, Series 2002, 5.250%, 12/01/22
Butler County, Ohio, General Obligation Bonds, Series 2002:
1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa 1,423,669
1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,262,304
3,560 Canal Winchester Local School District, Franklin and 12/11 at 100.00 Aaa 3,668,188
Fairfield Counties, Ohio, School Facilities Construction
and Improvement Bonds, Series 2001B, 5.000%, 12/01/28 -
FGIC Insured
1,000 Cincinnati City School District, Hamilton County, Ohio, 12/11 at 100.00 AAA 1,123,040
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 2,806,622
General Obligation Bonds, Series 2002, 5.250%, 6/01/21 -
FSA Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 5,000 Cincinnati City School District, Hamilton County, Ohio, 12/13 at 100.00 AAA $ 5,174,500
General Obligation Bonds, Classroom Facilities Construction
and Improvement, Series 2003, 5.000%, 12/01/31 -
FSA Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement 12/10 at 100.00 Aa1 1,057,340
Bonds, Series 2000A, 5.000%, 12/01/20
1,300 Franklin County, Ohio, Limited Tax General Obligation 12/08 at 102.00 AAA 1,445,821
Refunding Bonds, Series 1993, 5.375%, 12/01/20
2,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 2,063,580
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 1,117,000
Improvement Bonds, Series 2000, 5.750%, 12/01/24 -
FGIC Insured
1,160 Kenston Local School District, Geauga County, Ohio, 6/13 at 100.00 Aaa 1,217,733
General Obligation Bonds, Series 2003,
5.000%, 12/01/22 - MBIA Insured
5,400 Kettering City School District, Montgomery County, Ohio, 12/13 at 100.00 AAA 5,592,834
General Obligation Bonds, Series 2003,
5.000%, 12/01/30 - FGIC Insured
2,000 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 2,076,860
Unlimited 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 1,803,060
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 2,575,800
Bonds, Series 2001, 5.000%, 12/01/29 - FGIC Insured
1,515 Massillon City School District, Ohio, General 12/12 at 100.00 Aaa 1,635,397
Obligation 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 2,425,178
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- 1,429,067
Washington Counties, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 2000,
5.750%, 12/01/22
715 North Canton City School District, Ohio, Unlimited Tax No Opt. Call AAA 765,122
General Obligation School Improvement Bonds, Series 1994,
9.700%, 12/01/04 - AMBAC Insured
3,000 Ohio, General Obligation Bonds, Infrastructure 2/13 at 100.00 AA+ 3,142,830
Improvements, Series 2003F, 5.000%, 2/01/23
2,720 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 2,802,661
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 1,239,425
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 325,245
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 1,489,867
Series 2001, 5.000%, 12/01/27 - FGIC Insured
1,825 Princeton City School District, Butler County, Ohio, 12/13 at 100.00 AAA 1,890,171
General Obligation Bonds, Series 2003,
5.000%, 12/01/30 - MBIA Insured
2,830 Springfield Township, Hamilton County, Ohio, Various 12/11 at 100.00 Aa3 2,972,689
Purpose Limited Tax General Obligation Bonds,
Series 2002, 5.250%, 12/01/27
2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 2,096,940
5.000%, 12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various 12/06 at 102.00 Aa2 78,117
Purpose Improvement Bonds, Series 1996, 5.950%, 12/01/21
2,000 Sugarcreek Local School District, Athens County, Ohio, General 12/13 at 100.00 Aaa 2,123,920
Obligation Bonds, Series 2003, 5.250%, 12/01/27 -
MBIA Insured
1,000 Upper Arlington City School District, Ohio, General 12/06 at 101.00 AAA 1,070,030
Obligation Improvement Bonds, Series 1996,
5.250%, 12/01/22 - MBIA Insured
1,000 West Chester Township, Butler County, Ohio, General 12/13 at 100.00 Aaa 1,036,590
Obligation Bonds, Series 2003, 5.000%, 12/01/28 -
MBIA Insured
2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,058,760
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27 - MBIA Insured
33
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Westlake, Ohio, Various Purpose General Obligation 12/08 at 101.00 Aaa $ 1,138,270
Improvement and Refunding Bonds, Series 1997,
5.550%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 3.1%
1,250 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/09 at 101.00 AAA 1,268,287
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 1,134,220
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,125,630
475 Ohio Department of Transportation, Certificates 4/04 at 100.00 AA 475,641
of Participation, Rickenbacker International Airport
Improvements, Series 1996, 6.125%, 4/15/15
(Alternative Minimum Tax)
1,000 Puerto Rico Highway and Transportation Authority, 7/16 at 100.00 A 1,017,380
Highway Revenue Bonds, Series 1996Y, 5.000%, 7/01/36
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.2%
Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A:
1,780 5.250%, 1/01/16 - FSA Insured 1/10 at 101.00 AAA 1,929,662
2,500 5.000%, 1/01/31 - FSA Insured 1/10 at 101.00 AAA 2,563,800
3,430 Cleveland, Ohio, Parking Facilities Revenue Refunding 9/06 at 102.00 AAA 3,740,141
Bonds, Series 1996, 5.500%, 9/15/22 - MBIA Insured
3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox 12/13 at 100.00 AA 3,072,720
International Airport, Series 2003C, 5.250%, 12/01/23
(Alternative Minimum Tax) - RAAI Insured
1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 BB+ 1,252,350
Emery Air Freight Corporation and Emery Worldwide
Airlines, Inc. - Guarantors, Series 1998A, 5.625%, 2/01/18
2,000 Ohio Turnpike Commission, Revenue Bonds, Series 1998A, No Opt. Call AAA 2,311,720
5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.0%
2,550 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,854,853
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 Revenue 11/04 at 102.00 AAA 2,133,780
Bonds, Series 1994A, 7.000%, 11/15/24 (Pre-refunded
to 11/15/04) - MBIA Insured
1,980 Franklin County, Ohio, First Mortgage Revenue, OCLC, Inc. 6/04 at 103.00 AAA 2,251,102
Project, Series 1979, 7.500%, 6/01/09
2,100 Lakota Local School District, Butler County, Ohio, Unlimited 12/05 at 100.00 AAA 2,289,609
Tax General Obligation School Improvement Bonds,
Series 1994, 6.250%, 12/01/14 (Pre-refunded to
12/01/05) - AMBAC Insured
4,315 Ohio Capital Corporation for Housing, FHA-Insured 2/09 at 102.00 Aa2*** 5,081,603
Section 8 Mortgage Loan Revenue Refunding Bonds,
Series 1999G, 5.950%, 2/01/24 (Pre-refunded
to 2/01/09)
1,000 Ohio Water Development Authority, Fresh Water 6/05 at 102.00 AAA 1,082,350
Development Revenue Bonds, Series 1995, 5.900%, 12/01/21
(Pre-refunded to 6/01/05) - AMBAC Insured
1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 1,461,475
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 (Pre-refunded to 6/01/11) - FGIC Insured
1,300 Puerto Rico Public Improvement, General Obligation 7/07 at 101.50 A-*** 1,478,776
Refunding Bonds, Series 1997, 5.750%, 7/01/17
(Pre-refunded to 7/01/07)
2,000 Southwest Regional Ohio Water District, Waterworks 12/05 at 101.00 AAA 2,191,080
System Revenue Bonds, Series 1995, 6.000%, 12/01/20
(Pre-refunded to 12/01/05) - MBIA Insured
1,000 Sylvania City School District, Ohio, Unlimited Tax General 12/05 at 101.00 AAA 1,091,920
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, Unlimited 12/06 at 101.00 AAA 2,265,720
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, Ohio, 12/05 at 100.00 AAA 3,257,280
Unlimited Tax General Obligation School Improvement
Bonds, Series 1995, 6.000%, 12/01/18 (Pre-refunded
to 12/01/05) - AMBAC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.6%
$ 4,000 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa $ 4,176,160
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 2,100,580
4,000 6.375%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 4,201,160
3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 AAA 3,199,020
JMG Funding Limited Partnership Project, Series 1997,
5.625%, 1/01/23 (Alternative Minimum Tax) -
AMBAC Insured
1,900 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,800,497
Revenue Bonds, Bay Shore Power Project, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.4%
Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,124,370
6,010 5.000%, 12/01/18 6/11 at 100.00 AA+ 6,414,112
3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,175,830
1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,050,130
2,000 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 2,080,140
Series 2003, 5.000%, 12/01/22
1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue No Opt. Call AAA 1,137,330
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 1,023,870
Improvement Bonds, Series 1998I, 5.000%, 1/01/28 -
FSA Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue 1/06 at 102.00 AAA 43,389
Refunding and Improvement Bonds, Series 1996H,
5.750%, 1/01/26 - MBIA Insured
2,110 Hamilton County, Ohio, Sewer System Improvement 6/10 at 101.00 AAA 2,351,214
Revenue Bonds, Metropolitan Sewer District of Greater
Cincinnati, Series 2000A, 5.750%, 12/01/25 - MBIA Insured
3,000 Ohio Water Development Authority, Water Pollution 6/14 at 100.00 AAA 3,131,550
Control Loan Fund Revenue Bonds, Water Quality,
Series 2004, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
$ 222,690 Total Long-Term Investments (cost $222,099,988) - 146.0% 235,262,165
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 2,861,809
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.8)% (77,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 161,123,974
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: 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.
See accompanying notes to financial statements.
35
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7%
$ 1,150 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,099,331
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 21.9%
1,000 Ohio Higher Education Facilities Commission, Revenue 12/10 at 101.00 AAA 1,082,470
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 2,102,000
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 2,706,392
Bonds, Ohio Northern University Project, Series 2002,
5.000%, 5/01/22
3,150 Student Loan Funding Corporation, Cincinnati, Ohio, 7/04 at 100.00 A 3,157,276
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 2,264,780
Series 2001A, 5.750%, 6/01/17 - FGIC Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 AA- 2,979,974
Series 2002F, 5.375%, 6/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.6%
1,300 Akron, Bath and Copley Joint Township Hospital District, 5/04 at 102.00 Baa1 1,312,519
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 1,171,995
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 2,051,381
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+ 2,580,925
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- 2,379,623
2,000 5.375%, 11/01/29 11/08 at 101.00 A- 2,022,380
1,000 Richland County, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,063,150
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
1,500 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, 4/04 at 102.00 Baa1 1,525,500
Union Hospital Project, Series 1993A, 6.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.4%
1,790 Lucas Northgate Housing Development Corporation, 7/04 at 102.00 Aaa 1,827,232
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 3,011,911
Revenue Bonds, Asbury Woods Project, Series 2001A,
5.450%, 4/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.6%
1,335 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,412,911
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
1,670 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,700,611
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
1,365 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,472,275
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 350 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa $ 361,837
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 1,071,410
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+ 1,975,772
Revenue Bonds, Twin Towers, Series 1999A, 5.750%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.4%
1,000 Bay Village City School District, Ohio, General Obligation 12/10 at 100.00 Aa2 1,028,790
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
1,000 Centerville, Ohio, General Obligation Limited Tax Bonds, 12/11 at 100.00 Aa3 1,038,620
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 962,685
935 5.500%, 12/01/23 - MBIA Insured 6/11 at 100.00 Aaa
2,000 Lakota Local School District, Butler County, Ohio, 6/11 at 100.00 Aaa 2,076,860
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, 12/09 at 100.00 AAA 2,101,880
Unlimited 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 12/10 at 101.00 AAA 1,076,380
Improvement 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 1,959,113
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 1,317,088
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 1,662,561
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 6/07 at 101.00 AAA 1,078,970
Improvement 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 2,573,450
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+ 3,212,489
Unlimited Tax General Obligation Bonds, Series 2001,
5.375%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.8%
2,000 Ohio, Higher Education Capital Facilities, Appropriation 2/11 at 100.00 AA+ 2,097,060
Bonds, 2001A-II, 5.000%, 2/01/20
4,000 Puerto Rico Municipal Finance Agency, Loan Pool Bonds, 8/09 at 101.00 AAA 4,682,240
Series 1999A, 6.000%, 8/01/16 - FSA Insured
1,400 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,584,730
Tax Loan Notes, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.5%
2,000 Cleveland, Ohio, Airport Special Revenue Refunding 12/09 at 101.00 B- 1,662,860
Bonds, 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 2,141,300
Series 2001A, 5.500%, 2/15/26
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue No Opt. Call Baa2 1,114,450
Refunding Bonds, CSX Transportation, Inc. Project,
Series 1992, 6.450%, 12/15/21
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.2%
1,440 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,575,662
Bonds, American Municipal Power Ohio, Inc., Series 2002,
5.250%, 2/15/17 - MBIA Insured
37
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA $ 1,017,216
Series 2001, 5.500%, 12/01/18 - AMBAC Insured
2,000 Ohio Air Quality Development Authority, Pollution Control 6/04 at 101.00 A3 2,043,860
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 2,051,200
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 2,075,620
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 1,541,850
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 947,630
Revenue Bonds, Bay Shore Power Project, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.9%
2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,203,900
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,700 Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 1,790,728
Series 2001, 5.125%, 12/01/21
2,375 Ohio Water Development Authority, Water Development 12/13 at 100.00 Aaa 2,488,620
Community Assistance Program Revenue Bonds,
Series 2003, 5.000%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 89,865 Total Long-Term Investments (cost $89,868,421) - 144.7% 94,459,486
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1%
685 University of Toledo, Ohio, General Receipts Variable Rate A-1+ 685,000
Demand Obligations, Series 2002, 0.980%, 6/01/32 -
FGIC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 685 Total Short-Term Investments (cost $685,000) 685,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $90,553,421) - 145.8% 95,144,486
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 1,093,344
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.5)% (31,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 65,237,830
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: 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.
38
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 10.9%
$ 2,150 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,055,271
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+ 3,100,230
Revenue Bonds, Anheuser-Busch Project, Series 2001,
5.500%, 11/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.7%
2,050 Ohio Higher Education Facilities Commission, Revenue 12/11 at 100.00 Baa1 2,234,110
Bonds, Wittenberg University Project, Series 2001,
5.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.8%
1,685 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 1,772,957
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 1,024,960
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- 1,933,861
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- 2,126,300
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 3,967,013
Union Hospital Project, Series 2001, 5.750%, 10/01/26 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.2%
1,000 Franklin County, Ohio, GNMA Collateralized Multifamily 5/12 at 102.00 Aaa 1,060,170
Housing Mortgage Revenue Bonds, Agler Project,
Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.1%
2,035 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/10 at 100.00 Aaa 2,097,149
Securities Program Residential Mortgage Revenue Bonds,
Series 2001A, 5.500%, 9/01/34 (Alternative Minimum Tax)
290 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/12 at 100.00 Aaa 299,808
Securities Program Residential Mortgage Revenue Bonds,
Series 2002D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.1%
2,000 Hamilton County, Ohio, Healthcare Facilities Improvement 10/08 at 102.00 BBB+ 1,951,500
Revenue Bonds, Twin Towers, Series 1999A, 5.800%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 51.8%
1,000 Cleveland, Ohio, General Obligation Bonds, Series 2003, 8/13 at 100.00 AAA 1,103,420
5.250%, 8/01/18 - FGIC Insured
1,750 Fairfield City School District, Ohio, General Obligation 12/11 at 100.00 AAA 1,922,375
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 1,053,450
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 1,545,585
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 4,394,040
2,000 5.000%, 12/01/29 - FSA Insured 12/11 at 100.00 AAA 2,060,640
39
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) (continued)
Portfolio of INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,420 Lorain County, Ohio, Limited Tax General Obligation Justice 12/12 at 100.00 Aaa $ 2,647,843
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 1,050,940
Tax General Obligation School Building Construction Bonds,
Series 1999, 5.250%, 12/01/28 - FGIC Insured
3,000 Milford Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 3,115,860
Obligation Bonds, Series 2001, 5.125%, 12/01/30 -
FSA Insured
1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,049,360
Bonds, Series 2001B, 5.000%, 9/15/21
1,960 Portage County, Ohio, General Obligation Bonds, 12/11 at 100.00 AAA 2,024,641
Series 2001, 5.000%, 12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,087,000
5.500%, 12/01/25 - FGIC Insured
1,500 Strongsville, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 Aaa 1,572,705
5.000%, 12/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.5%
1,700 Hamilton, Butler County, Ohio, Limited Tax General 11/11 at 101.00 Aaa 1,758,956
Obligation 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 996,270
Certificates of Participation, Series 2003, 5.000%, 11/01/30
2,500 Ohio State Higher Education Capital Facilities, No Opt. Call AAA 2,883,550
Appropriation Bonds, Series II 2002A, 5.500%, 12/01/09 -
MBIA Insured
1,000 Puerto Rico Highway and Transportation Authority, 7/12 at 100.00 A 1,093,720
Highway Revenue Refunding Bonds, Series 2002E,
5.750%, 7/01/24
1,000 Summit County Port Authority, Ohio, Revenue Bonds, 12/11 at 100.00 AAA 1,077,330
Civic Theatre Project, Series 2001, 5.500%, 12/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.9%
3,495 Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 3,745,242
Series 2000A, 5.250%, 1/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.9%
2,000 Ohio Municipal Electric Generation Agency, Beneficial 2/14 at 100.00 AAA 2,095,700
Interest Certificates, Joint Venture 5, Belleville
Hydroelectric Project, American Municipal Power, Inc.,
Series 2004, 5.000%, 2/15/22 (WI, settling 2/17/04) -
AMBAC Insured
2,500 Ohio Air Quality Development Authority, Revenue Refunding 5/09 at 101.00 AAA 2,594,525
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 1,541,850
Revenue Refunding Bonds, Ohio Edison Company Project,
Series 1999C, 5.800%, 6/01/16 (Mandatory put 12/01/04)
1,900 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,800,497
Revenue Bonds, Bay Shore Power Project, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.0%
2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 2,203,900
Bonds, Series 1997, 5.550%, 12/01/16 - MBIA Insured
1,500 Ohio Water Development Authority, Water Development 12/11 at 100.00 AAA 1,572,704
Revenue Bonds, Fresh Water Series 2001A,
5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 67,955 Total Long-Term Investments (cost $68,770,039) - 150.9% 71,615,432
=============-----------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1%
$ 500 Puerto Rico Government Development Bank, Adjustable A-1 $ 500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 0.900%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $69,270,039) - 152.0% 72,115,432
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.4)% (674,201)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.6)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 47,441,231
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ 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
41
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ)
Portfolio of
INVESTMENTS January 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.2%
$ 2,150 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,055,271
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.9%
1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, 5/12 at 100.00 A2 1,260,889
Ohio Northern University Project, Series 2002,
5.750%, 5/01/16
2,000 Ohio Higher Education Facilities Commission, Revenue 10/12 at 100.00 AA 2,187,180
Bonds, 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 1,125,810
Series 1999A, 5.800%, 12/01/29
1,000 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 1,039,690
Series 2002A, 5.125%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.4%
845 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 889,109
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 1,793,680
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 A3 1,588,433
Kettering Medical Center, Series 1999, 6.750%, 4/01/18
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic 9/11 at 100.00 AA 1,114,020
Health Initiatives, Series 2001, 5.500%, 9/01/12
1,000 Parma Community General Hospital Association, Ohio, 11/08 at 101.00 A- 1,011,190
Hospital 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- 1,063,150
Improvement Bonds, MedCentral Health System Obligated
Group, Series 2000B, 6.375%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.5%
650 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 687,934
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
1,020 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,038,697
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax)
1,320 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,423,739
Securities Program, Residential Mortgage Revenue Bonds,
Series 2000F, 5.625%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 43.8%
2,000 Canal Winchester Local School District, Franklin and 12/08 at 102.00 AAA 2,116,040
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 1,678,801
Obligation Bonds, Series 2002, 5.750%, 12/01/21 -
FGIC Insured
2,000 Granville Exempt Village School District, Ohio, 12/11 at 100.00 Aa3 2,143,800
General Obligation Bonds, Series 2001, 5.500%, 12/01/28
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- 1,086,320
5.375%, 12/01/22
1,000 Kenston Local School District, Geauga County, Ohio, 6/13 at 100.00 Aaa 1,049,770
General Obligation Bonds, Series 2003, 5.000%, 12/01/22 -
MBIA Insured
1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aaa 1,326,985
5.125%, 12/01/26 - AMBAC Insured
1,190 Miami East Local School District, Miami County, Ohio, 12/12 at 100.00 AAA 1,231,531
General Obligation Bonds, Series 2002, 5.125%, 12/01/29 -
FSA Insured
1,000 Ohio, Common Schools Capital Facilities, General Obligation 9/11 at 100.00 AA+ 1,049,760
Bonds, Series 2001B, 5.000%, 9/15/20
42
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 $ 1,653,057
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+ 1,213,790
Bonds, Series 2002, 5.000%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.1%
1,000 Midview Local School District, Lorain County, Ohio, 5/13 at 100.00 A 996,270
Certificates of Participation, Series 2003, 5.000%, 11/01/30
2,000 Ohio State Higher Education Capital Facilities, No Opt. Call AAA 2,306,840
Appropriation Bonds, Series II 2002A, 5.500%, 12/01/09 -
MBIA Insured
1,250 Ohio State Building Authority, State Facilities Bonds, 4/12 at 100.00 AAA 1,397,038
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 2,314,820
Government Facilities Revenue Bonds, Series 1993L,
5.500%, 7/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.2%
1,140 Columbus Municipal Airport Authority, Ohio, Airport No Opt. Call AAA 1,275,364
Improvement Revenue Bonds, Port Columbus International
Airport Project, Series 1998B, 5.250%, 1/01/11 -
AMBAC Insured
1,550 Ohio Turnpike Commission, Revenue Bonds, No Opt. Call AAA 1,791,583
Series 1998A, 5.500%, 2/15/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9%
1,500 Wadsworth, Ohio, Electric System Improvement Revenue 2/12 at 100.00 Aaa 1,641,315
Bonds, American Municipal Power Ohio, Inc., Series 2002,
5.250%, 2/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.0%
1,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding 12/06 at 101.00 AAA 1,101,950
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 1,638,165
and Improvement Bonds, Metropolitan Sewer District of
Greater Cincinnati, Series 2001A, 5.250%, 12/01/18 -
MBIA Insured
1,500 Ohio Water Development Authority, Water Development 12/11 at 100.00 AAA 1,572,703
Revenue Bonds, Fresh Water Series 2001A,
5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 45,325 Total Long-Term Investments (cost $46,278,752) - 147.0% 48,864,694
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 872,090
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (16,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,236,784
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
43
Statement of
ASSETS AND LIABILITIES January 31, 2004 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $256,220,830, $163,420,257
and $44,816,139, respectively) $277,469,567 $173,812,087 $46,939,972
Cash 19,422 1,783,705 30,772
Interest receivable 3,167,618 2,255,435 552,755
Other assets 7,810 638 695
------------------------------------------------------------------------------------------------------------------------------------
Total assets 280,664,417 177,851,865 47,524,194
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Payable for investments purchased -- 1,050,590 --
Accrued expenses:
Management fees 153,098 96,990 14,102
Other 58,522 79,205 27,719
Preferred share dividends payable 5,689 -- 1,119
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 217,309 1,226,785 42,940
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $186,447,108 $120,625,080 $31,481,254
====================================================================================================================================
Common shares outstanding 11,658,865 7,727,146 2,059,297
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.99 $ 15.61 $ 15.29
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 116,589 $ 77,271 $ 20,593
Paid-in surplus 163,031,554 108,021,163 29,142,656
Undistributed net investment income 1,986,592 1,441,086 303,814
Accumulated net realized gain (loss) from investments 63,636 693,730 (109,642)
Net unrealized appreciation of investments 21,248,737 10,391,830 2,123,833
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $186,447,108 $120,625,080 $31,481,254
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
44
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $222,099,988, $90,553,421,
$69,270,039 and $46,278,752, respectively) $235,262,165 $95,144,486 $72,115,432 $48,864,694
Cash 345,393 -- 699,914 287,355
Interest receivable 2,778,241 1,219,445 788,018 609,683
Other assets 638 3,458 782 3,582
------------------------------------------------------------------------------------------------------------------------------------
Total assets 238,386,437 96,367,389 73,604,146 49,765,314
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 77,877 -- --
Payable for investments purchased -- -- 2,117,760 --
Accrued expenses:
Management fees 130,330 28,618 21,282 14,830
Other 128,596 20,896 21,504 12,794
Preferred share dividends payable 3,537 2,168 2,369 906
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 262,463 129,559 2,162,915 28,530
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $161,123,974 $65,237,830 $47,441,231 $33,236,784
====================================================================================================================================
Common shares outstanding 9,650,135 4,225,278 3,114,557 2,157,383
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.70 $ 15.44 $ 15.23 $ 15.41
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 96,501 $ 42,253 $ 31,146 $ 21,574
Paid-in surplus 146,157,039 59,955,000 44,130,563 30,524,360
Undistributed net investment income 1,627,602 701,488 458,289 107,571
Accumulated net realized gain (loss) from investments 80,655 (51,976) (24,160) (2,663)
Net unrealized appreciation of investments 13,162,177 4,591,065 2,845,393 2,585,942
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $161,123,974 $65,237,830 $47,441,231 $33,236,784
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
45
Statement of
OPERATIONS Six Months Ended January 31, 2004 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 7,041,272 $4,518,497 $1,131,153
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 893,589 572,508 152,287
Preferred shares - auction fees 118,579 70,643 20,278
Preferred shares - dividend disbursing agent fees 10,081 10,081 5,042
Shareholders' servicing agent fees and expenses 15,991 11,852 391
Custodian's fees and expenses 34,024 25,589 7,026
Directors'/Trustees' fees and expenses 3,347 2,237 298
Professional fees 9,546 8,142 4,995
Shareholders' reports - printing and mailing expenses 15,057 8,362 1,224
Stock exchange listing fees 7,897 5,591 95
Investor relations expense 2,978 992 1,869
Other expenses 16,584 6,969 4,389
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,127,673 722,966 197,894
Custodian fee credit (7,732) (9,409) (4,280)
Expense reimbursement -- -- (70,286)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,119,941 713,557 123,328
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,921,331 3,804,940 1,007,825
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 505,848 2,218,700 25,514
Change in net unrealized appreciation (depreciation)
of investments 10,619,598 3,821,717 1,967,450
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 11,125,446 6,040,417 1,992,964
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (325,239) (135,433) (52,712)
From accumulated net realized gains from investments (95,441) (120,071) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (420,680) (255,504) (52,712)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $16,626,097 $9,589,853 $2,948,077
====================================================================================================================================
See accompanying notes to financial statements.
46
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,123,960 $2,445,174 $1,725,145 $1,166,296
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 765,612 310,180 229,930 160,223
Preferred shares - auction fees 97,134 39,288 30,275 20,814
Preferred shares - dividend disbursing agent fees 15,123 5,042 5,042 5,042
Shareholders' servicing agent fees and expenses 17,523 803 480 625
Custodian's fees and expenses 34,145 9,892 6,444 4,021
Directors'/Trustees' fees and expenses 3,130 932 754 648
Professional fees 7,198 5,905 5,383 4,708
Shareholders' reports - printing and mailing expenses 2,662 2,764 2,842 5,307
Stock exchange listing fees 5,669 195 144 99
Investor relations expense 3,770 2,991 3,520 2,609
Other expenses 10,930 4,976 4,220 4,634
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 962,896 382,968 289,034 208,730
Custodian fee credit (10,582) (2,349) (3,834) (2,457)
Expense reimbursement -- (143,160) (106,121) (73,949)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 952,314 237,459 179,079 132,324
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,171,646 2,207,715 1,546,066 1,033,972
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 2,156,277 (51,960) 7,571 (2,587)
Change in net unrealized appreciation (depreciation)
of investments 4,972,725 3,374,958 2,813,440 2,119,569
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 7,129,002 3,322,998 2,821,011 2,116,982
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (210,338) (121,858) (89,754) (58,042)
From accumulated net realized gains from investments (143,145) (5,304) -- (10,818)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (353,483) (127,162) (89,754) (68,860)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $11,947,165 $5,403,551 $4,277,323 $3,082,094
====================================================================================================================================
See accompanying notes to financial statements.
47
Statement of
CHANGES IN NET ASSETS (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/04 7/31/03 1/31/04 7/31/03 1/31/04 7/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,921,331 $ 12,090,435 $ 3,804,940 $ 7,932,887 $ 1,007,825 $ 2,041,873
Net realized gain (loss)
from investments 505,848 1,537,864 2,218,700 1,797,104 25,514 43,512
Change in net unrealized
appreciation (depreciation)
of investments 10,619,598 (4,630,793) 3,821,717 (4,692,253) 1,967,450 (463,571)
Distributions to Preferred
Shareholders:
From net investment income (325,239) (882,566) (135,433) (551,440) (52,712) (141,482)
From accumulated net realized
gains from investments (95,441) (128,818) (120,071) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares from operations 16,626,097 7,986,122 9,589,853 4,486,298 2,948,077 1,480,332
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,534,691) (10,738,262) (3,711,856) (6,995,623) (920,387) (1,770,278)
From accumulated net realized
gains from investments (1,232,780) (1,195,839) (3,007,819) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (6,767,471) (11,934,101) (6,719,675) (6,995,623) (920,387) (1,770,278)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- 3,771 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 402,420 503,555 336,523 108,017 8,175 3,344
Preferred shares offering costs -- -- -- -- (1,870) 50,657
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 402,420 503,555 336,523 108,017 10,076 54,001
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 10,261,046 (3,444,424) 3,206,701 (2,401,308) 2,037,776 (235,945)
Net assets applicable to Common
shares at the beginning
of period 176,186,062 179,630,486 117,418,379 119,819,687 29,443,488 29,679,433
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $186,447,108 $176,186,062 $120,625,080 $117,418,379 $31,481,254 $29,443,488
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,986,592 $ 1,925,191 $ 1,441,086 $ 1,483,435 $ 303,814 $ 269,088
====================================================================================================================================
See accompanying notes to financial statements.
48
OHIO OHIO OHIO
QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/04 7/31/03 1/31/04 7/31/03 1/31/04 7/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,171,646 $ 10,568,139 $ 2,207,715 $ 4,444,153 $ 1,546,066 $ 3,127,428
Net realized gain (loss)
from investments 2,156,277 742,663 (51,960) 156,618 7,571 393,224
Change in net unrealized
appreciation (depreciation)
of investments 4,972,725 (3,005,456) 3,374,958 (1,154,603) 2,813,440 (1,127,584)
Distributions to Preferred
Shareholders:
From net investment income (210,338) (735,656) (121,858) (307,940) (89,754) (236,527)
From accumulated net
realized gains
from investments (143,145) -- (5,304) (5,459) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares from operations 11,947,165 7,569,690 5,403,551 3,132,769 4,277,323 2,156,541
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,841,930) (9,454,399) (2,042,394) (3,865,874) (1,423,198) (2,710,843)
From accumulated net
realized gains
from investments (2,042,158) -- (71,806) (43,462) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (6,884,088) (9,454,399) (2,114,200) (3,909,336) (1,423,198) (2,710,843)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 3,328 -- 3,771 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 649,192 945,060 23,229 115,397 7,567 13,374
Preferred shares offering costs -- -- (1,664) 36,823 (1,870) 45,457
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 649,192 945,060 24,893 152,220 9,468 58,831
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 5,712,269 (939,649) 3,314,244 (624,347) 2,863,593 (495,471)
Net assets applicable to Common
shares at the beginning
of period1 55,411,705 156,351,354 61,923,586 62,547,933 44,577,638 45,073,109
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $161,123,974 $155,411,705 $65,237,830 $61,923,586 $47,441,231 $44,577,638
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,627,602 $ 1,508,224 $ 701,488 $ 658,025 $ 458,289 $ 425,175
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
OHIO
DIVIDEND ADVANTAGE 3 (NVJ)
---------------------------
SIX MONTHS
ENDED YEAR ENDED
1/31/04 7/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,033,972 $ 2,083,454
Net realized gain (loss) from investments (2,587) 305,202
Change in net unrealized appreciation
(depreciation) of investments 2,119,569 (942,414)
Distributions to Preferred Shareholders:
From net investment income (58,042) (149,564)
From accumulated net realized gains
from investments (10,818) (15,641)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 3,082,094 1,281,037
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (944,891) (1,889,785)
From accumulated net realized gains
from investments (146,047) (121,348)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,090,938) (2,011,133)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 1,842 3,539
Preferred shares offering costs (1,400) (23,189)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 442 (19,650)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,991,598 (749,746)
Net assets applicable to Common
shares at the beginning of period 31,245,186 31,994,932
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $33,236,784 $31,245,186
====================================================================================================================================
Undistributed net investment
income at the end of period $ 107,571 $ 76,532
====================================================================================================================================
See accompanying notes to financial statements.
50
Notes to
FINANCIAL STATEMENTS (Unaudited)
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.
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, evaluations
of anticipated cash flows or collateral 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 January 31, 2004,
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.
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.
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.
51
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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
================================================================================
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 six months ended January 31, 2004.
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.
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.
52
2. FUND SHARES
Transactions in Common shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM MICHIGAN DIVIDEND
INCOME (NUM) INCOME (NMP) ADVANTAGE (NZW)
------------------------ ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/04 7/31/03 1/31/04 7/31/03 1/31/04 7/31/03
----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 24,859 30,579 21,232 6,562 537 217
======================================================================================================================
OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND
INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ)
------------------------ ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
1/31/04 7/31/03 1/31/04 7/31/03 1/31/04 7/31/03
----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 37,184 54,111 1,475 7,470 497 872
======================================================================================================================
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------
SIX MONTHS
ENDED YEAR ENDED
1/31/04 7/31/03
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 118 230
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended January 31, 2004, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Purchases $20,604,319 $32,929,485 $3,197,669
Sales and maturities 18,763,879 35,484,492 1,788,065
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Purchases $43,954,962 $2,463,775 $3,192,490 $1,007,580
Sales and maturities 42,936,261 1,715,680 1,080,000 535,000
================================================================================
53
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 January 31, 2004, the cost of investments were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Cost of investments $256,249,126 $163,343,605 $44,814,602
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Cost of investments $222,055,629 $90,479,273 $69,258,559 $46,273,867
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at January 31, 2004, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $22,737,841 $11,981,234 $2,424,194
Depreciation (1,517,400) (1,512,752) (298,824)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $21,220,441 $10,468,482 $2,125,370
==========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $13,577,219 $4,815,446 $3,000,614 $2,630,088
Depreciation (370,683) (150,233) (143,741) (39,261)
-----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $13,206,536 $4,665,213 $2,856,873 $2,590,827
===========================================================================================================
54
The tax components of undistributed net investment income and net realized gains
at July 31, 2003, the Funds' last fiscal year end, 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.
The tax character of distributions paid during the fiscal year ended July 31,
2003, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(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 -- --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At July 31, 2003, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
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) 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) had $10,421 of post-October losses that were treated as having
arisen on the first day of the current 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 Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.,
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 TO PREFERRED 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 TO PREFERRED 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 or its affiliates.
56
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.
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 March 1, 2004, to shareholders of record on
February 15, 2004, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Dividend per share $.0790 $.0770 $.0745
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Dividend per share $.0835 $.0810 $.0770 $.0730
================================================================================
58
Financial
HIGHLIGHTS (Unaudited)
59
Financial
HIGHLIGHTS (Unaudited)
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:
2004(b) $15.14 $ .51 $.97 $(.03) $(.01) $1.44 $(.48) $(.11) $ (.59)
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:
2004(b) 15.24 .49 .79 (.02) (.02) 1.24 (.48) (.39) (.87)
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:
2004(b) 14.30 .49 .98 (.03) -- 1.44 (.45) -- (.45)
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:
2004(b) $ -- $15.99 $16.3400 9.65% 9.55%
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:
2004(b) -- 15.61 15.9700 13.63 8.25
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:
2004(b) -- 15.29 15.6600 6.81 10.16
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:
2004(b) $186,447 1.22%* 6.41%* 1.21%* 6.42%* 7%
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:
2004(b) 120,625 1.19* 6.26* 1.18* 6.28* 19
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:
2004(b) 31,481 1.28* 6.05* .80* 6.53* 4
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:
2004(b) $94,000 $25,000 $74,587
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:
2004(b) 56,000 25,000 78,850
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:
2004(b) 16,000 25,000 74,189
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 at net asset value,
reinvested capital gains distributions at net asset value, 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.
(b) For the six months ended January 31, 2004.
See accompanying notes to financial statements.
60-61 SPREAD
Financial HIGHLIGHTS (Unaudited) (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:
2004(d) $16.17 $ .54 $ .73 $(.02) $(.01) $1.24 $(.50) $(.21) $(.71)
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:
2004(d) 14.66 .52 .79 (.03) -- 1.28 (.48) (.02) (.50)
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:
2004(d) 14.31 .50 .91 (.03) -- 1.38 (.46) -- (.46)
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:
2004(d) 14.48 .48 1.00 (.03) (.01) 1.44 (.44) (.07) (.51)
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:
2004(d) $-- $16.70 $18.3100 11.88% 7.79%
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:
2004(d) -- 15.44 16.0000 15.92 8.83
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:
2004(d) -- 15.23 16.2100 17.16 9.72
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:
2004(d) -- 15.41 15.7400 13.07 10.01
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:
2004(d) $161,124 1.20%* 6.42%* 1.18%* 6.43%* 19%
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:
2004(d) 65,238 1.19* 6.40* .74* 6.85* 2
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:
2004(d) 47,441 1.24* 6.14* .77* 6.61* 2
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:
2004(d) 33,237 1.27* 5.84* .81* 6.30* 1
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:
2004(d) $77,000 $25,000 $77,313
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:
2004(d) 31,000 25,000 77,611
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:
2004(d) 24,000 25,000 74,418
2003 24,000 25,000 71,435
2002(b) 24,000 25,000 71,951
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------------------------------------------------
Year Ended 7/31:
2004(d) 16,500 25,000 75,359
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 at net asset value,
reinvested capital gains distributions at net asset value, 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 27, 2001 (commencement of operations) through July 31,
2001.
(b) For the period September 25, 2001 (commencement of operations) through July
31, 2002.
(c) For the period March 25, 2002 (commencement of operations) through July 31,
2002.
(d) For the six months ended January 31, 2004.
See accompanying notes to financial statements.
62-63 SPREAD
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
Jack B. Evans
William C. Hunter*
Anne E. Impellizzeri
William L. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington
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 February 25, 2004, the Board approved policies that would allow each Fund, at
the discretion of the Adviser, to engage in certain types of derivative
transactions for the purpose of hedging interest rate risk. There is no
guarantee that the Adviser will cause a Fund to enter into such transactions. If
a Fund were to engage in hedging, there is no guarantee that such hedging will
be successful or that it will not reduce the Fund's total return.
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
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 period ended January 31, 2004. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
* Director for certain of the Funds.
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
ESA-B-0104D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no material changes by which shareholders may recommend nominees to
the registrant's Board of Trustees implemented after the registrant last
provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of
Schedule 14A (17 CFR 240.14a-101) or this Item.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the 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 11. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Michigan Quality Income Municipal Fund, Inc.
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: April 8, 2004
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: April 8, 2004
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: April 8, 2004
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* Print the name and title of each signing officer under his or her signature.