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 811-06383
---------------------
Nuveen Michigan Quality Income Municipal Fund, Inc.
------------------------------------------------------------------------------
(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
-------------------
Date of fiscal year end: July 31
------------------
Date of reporting period: January 31, 2006
------------------
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.
----------------------------------
Semiannual Report January 31, 2006
----------------------------------
Nuveen Investments
Municipal Exchange-Traded
Closed-End
Funds
NUVEEN MICHIGAN
QUALITY INCOME
MUNICIPAL FUND, INC.
NUM
NUVEEN MICHIGAN
PREMIUM INCOME
MUNICIPAL FUND, INC.
NMP
NUVEEN MICHIGAN
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NZW
[GRAPHIC OMITTED]
NUVEEN OHIO
QUALITY INCOME
MUNICIPAL FUND, INC.
NUO
NUVEEN OHIO
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXI
NUVEEN OHIO
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NBJ
NUVEEN OHIO
DIVIDEND ADVANTAGE
MUNICIPAL FUND 3
NVJ
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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NUVEEN
Investments
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Timothy R. Schwertfeger
Chairman of the Board
Chairman's
Letter to Shareholders
Once again, I am pleased to report that over the six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments,
the Distribution and Share Price Information, and the Performance Overview
sections of this report.
Municipal bonds can be an important building block in a well balanced
investment portfolio. In addition to providing attractive tax-free monthly
income, a municipal bond investment like your Fund may help you achieve
and benefit from greater portfolio diversification. Portfolio
diversification is a recognized way to try to reduce some of the risk that
comes with investing. I encourage you to contact your personal financial
advisor who can explain the advantages of diversification in more detail.
"Portfolio diversification is a recognized way to try to reduce some of the risk
that comes with investing."
Nuveen Investments is pleased to offer you choices when it comes to
receiving your fund reports. Instead of mailed printed copies, you can
sign up to receive future Fund reports and other Fund information by
e-mail and the Internet. Not only will you be able to receive the
information faster, but this also may help lower your Fund's expenses. The
inside front cover of this report contains information on how you can sign
up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues
to be to assist you and your financial advisor by offering investment
services and products that can help you to secure your financial
objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
March 15, 2006
Nuveen Municipal Exchange-Traded Closed-End Funds
(NUM, NMP, NZW, NUO, NXI, NBJ, NVJ)
Portfolio Manager's
Comments
Portfolio manager Cathryn Steeves reviews key investment strategies and the
semiannual performance of these seven Nuveen Funds. Cathryn, who joined Nuveen
in 1996, has managed the Ohio Funds since August 2004 and the Michigan Funds
since January 2005.
What key strategies were used to manage the Michigan and Ohio Funds during the
six-month reporting period ended January 31, 2006?
During this period, bond valuations generally declined as yields generally rose
and the yield curve flattened, with shorter-term rates rising to approach the
levels of longer-term rates.
In this environment, one of our key strategies continued to be careful duration
management. Duration is a measure of a bond's price sensitivity as interest
rates change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations. Our purchase activity focused mainly
on finding attractively priced bonds maturing in 15 to 25 years. As the yield
curve flattened, we believed that bonds in this maturity range generally offered
the most attractive opportunities and the best values. We also continued to look
for bonds with premium coupons; that is, bonds that at the time of purchase were
trading above their par value because their coupons were higher than current
interest rate levels. Premium bonds have been in demand recently because
historically they have held their value better than current coupon bonds when
market interest rates rise.
To help us maintain the Funds' durations within our preferred range, we also
selectively sold holdings with shorter maturities, including pre-refunded bonds,
and reinvested the proceeds in 15- to 25-year maturities as attractive
opportunities arose. Proceeds from called bonds also were reinvested into longer
maturities.
4
We also kept an opportunistic eye out for all types of issuance that we believed
could add value. Due to the overall high credit quality of new issue supply in
both states, the majority of our new purchases were highly rated and/or insured.
However, we continued to take advantage of opportunities to diversify the credit
profiles of our portfolios by adding lower-rated credits whenever attractive
securities were available.
In NZW, our duration management strategy included the use of forward interest
rate swaps, a type of derivative financial instrument. As discussed in our last
shareholder report, we began using these swaps in late 2004 in an effort to
reduce the interest rate risk of this Fund. This hedging activity was not an
attempt to profit from correctly predicting the timing and direction of interest
rate movements. Instead, our sole objective was to reduce NZW's duration (and
resulting price sensitivity) without having a negative impact on the Fund's
income stream or common share dividends over the short term. During this
reporting period, the hedge performed as expected and had a positive impact on
NZW's performance. As long-term interest rates rose, the value of the hedge
increased while the valuation of the Fund's holdings generally declined. In
February 2006, after the close of this reporting period, we removed NZW's hedge
position.
5
How did the Funds perform?
Individual results for these Funds, as well as for relevant indexes and peer
groups, are presented in the accompanying table.
Total Returns on Net Asset Value*
For periods ended 1/31/06
Michigan Funds 6-Month 1-Year 5-Year 10-Year
--------------------------------------------------------------------------------
NUM 0.82% 2.17% 7.21% 6.33%
--------------------------------------------------------------------------------
NMP 1.00% 2.16% 6.93% 6.42%
--------------------------------------------------------------------------------
NZW 1.43% 3.27% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index(1) 1.33% 2.85% 5.44% 5.67%
--------------------------------------------------------------------------------
Lipper Michigan Municipal
Debt Funds
Average(2) 0.73% 1.63% 4.41% 4.62%
--------------------------------------------------------------------------------
Ohio Funds
--------------------------------------------------------------------------------
NUO 1.20% 2.54% 6.81% 6.24%
--------------------------------------------------------------------------------
NXI 1.37% 2.95% NA NA
--------------------------------------------------------------------------------
NBJ 1.20% 2.39% NA NA
--------------------------------------------------------------------------------
NVJ 1.22% 2.79% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index(1) 1.33% 2.85% 5.44% 5.67%
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds
Average(3) 1.06% 1.90% 4.18% 4.46%
--------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and
ten years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended January 31, 2006, the cumulative return on net asset
value (NAV) for NZW outperformed the return on the Lehman Brothers Municipal
Bond Index. NUO, NXI, NBJ and NVJ performed relatively in line with the Lehman
index, while the returns of NUM and NMP trailed the Lehman index return. All
three of the Michigan Funds exceeded the average return for the Lipper Michigan
peer group, and all of the Ohio Funds outperformed the Lipper Other States
average return.
(1) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
(2) The Lipper Michigan Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 6 months, 7 funds; 1 year, 7 funds; 5 years, 5
funds; and 10 years, 4 funds. Fund and Lipper returns assume reinvestment
of dividends.
(3) The Lipper Other States Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in
this category for each period as follows: 6 months, 44 funds; 1 year, 44
funds; 5 years, 19 funds; and 10 years, 17 funds. Fund and Lipper returns
assume reinvestment of dividends.
6
One of the factors affecting the six-month performance of the Michigan and Ohio
Funds relative to that of the unleveraged Lehman Brothers municipal index was
the Funds' use of financial leverage. While leveraging provides opportunities
for additional income and total returns for common shareholders when interest
rates fall or remain consistently low (as they have over the past several
years), this benefit is reduced when interest rates rise. With the increase in
both short-term and long-term interest rates during this six-month period, the
decline in value of the bonds in these Funds' portfolios was exacerbated by the
effects of leveraging. In addition, the benefits of leveraging are tied in part
to the short-term rates leveraged Funds pay their MuniPreferred(R) shareholders.
During periods of low short-term rates, these Funds generally pay lower
dividends to their MuniPreferred shareholders, which can leave more earnings to
support common share dividends. Conversely, when short-term interest rates rise,
as they did during this reporting period, the Funds' borrowing costs also rise,
impacting the Funds', income streams, and total returns. However, we remain
convinced that, over the long term, leveraging should work to the benefit of the
Funds' performance as the older Funds' 5-year and 10-year absolute and relative
return performance illustrates.
During this reporting period, positive contributors to the Funds' returns
included exposure to the intermediate part of the yield curve, allocations to
lower-rated credits, and pre-refunding activity in all of the Funds. As
mentioned earlier, the hedging strategy we employed in NZW also had a positive
impact on this Fund's performance for the period.
As the yield curve continued to flatten over the course of this period, bonds
with intermediate maturities often outperformed both longer-maturity bonds and
those with short maturities. Yield curve positioning or, more specifically,
greater exposure to the intermediate part of the curve, helped the performances
of all of the Funds. However, NUM had more exposure to the longer end of the
curve than the other six Funds in this report, which hampered its performance.
7
All of the Funds also benefited from their allocations of lower-quality credits,
as bonds rated BBB or lower and non-rated bonds generally outperformed
higher-rated securities. This was largely the result of investor demand for the
higher yields typically associated with lower-quality bonds, which drove up the
prices of these bonds. Among the holdings making positive contributions to the
Funds' returns for this period were those from sectors that tend to have a
greater number of lower-quality credits, including healthcare (especially
hospitals), housing, and bonds backed by the 1998 master tobacco settlement
agreement.
We continued to see a substantial number of refinancings, which benefited the
Funds through price appreciation and enhanced credit quality. With 8% of its
portfolio advance-refunded during this period, NXI in particular was positively
impacted by these refinancings. NUO, NBJ and NVJ also had between 2% and 3% of
their portfolios pre-refunded during the six-month period. Among the three
Michigan Funds, pre-refundings during this period ranged from 3% to 5%.
While these pre-refundings generally enhanced performance for this six-month
period, the rising interest rate environment during this time meant that the
Funds' holdings of older, previously pre-refunded bonds tended to underperform
the general municipal market, due primarily to the shorter effective maturities
of these bonds. In addition, a bond call affecting one of NUM's higher-yielding
multifamily housing holdings also adversely impacted this Fund's performance
over the period.
8
How were the Funds positioned in terms of credit quality and bond calls as of
January 31, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of January 31, 2006, all of these Funds continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 78% in NXI to 80% in NVJ, 81% in NBJ, 83% in NZW, 87% in
NUO, 89% in NMP and 90% in NUM.
As of January 31, 2006, potential call exposure for the period from February
2006 through the end of 2007 ranged from 3% in NZW and NVJ to 4% in NUM, NXI and
NBJ, 11% in NUO and 13% in NMP. The number of actual bond calls in all of these
Funds depends largely on future market interest rates.
9
Dividend and Share Price
Information
All of these Funds use leverage to potentially generate additional income for
common shareholders. During periods of rising short-term interest rates, as was
the case during this reporting period, the Funds' leveraging costs also rise,
reducing the extent of this benefit. This resulted in one monthly dividend
reduction in NUM, NMP, NUO, NBJ and NVJ and two reductions in NXI over the
six-month period ended January 31, 2006. The dividend of NZW remained stable
during this period.
In addition, due to normal portfolio activity, common shareholders of the
following Funds received capital gains and net ordinary income distributions at
the end of December 2005 as follows:
Long-Term Capital Gains Ordinary Income
(per share) (per share)
--------------------------------------------------------------------------------
NUM $0.1125 --
--------------------------------------------------------------------------------
NMP $0.1465 $0.0023
--------------------------------------------------------------------------------
NUO $0.0543 $0.0001
--------------------------------------------------------------------------------
NXI $0.0337 $0.0018
--------------------------------------------------------------------------------
NBJ $0.0480 $0.0001
--------------------------------------------------------------------------------
These distributions, which represented an important part of these Funds' total
returns for this period, were generated by bond calls and the sale of
appreciated securities. This had a slight negative impact on the Funds' earning
power per common share and was a minor factor in the common share dividend
reductions noted above.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of January 31, 2006, all of
the Funds in this report had positive UNII balances for financial statement
purposes and positive UNII balances, based on our best estimates, for tax
purposes.
10
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
1/31/06 6-Month Average
Premium/Discount Premium/Discount
--------------------------------------------------------------------------------
NUM -1.36% -1.19%
--------------------------------------------------------------------------------
NMP -1.72% -2.15%
--------------------------------------------------------------------------------
NZW +2.70% +1.40%
--------------------------------------------------------------------------------
NUO +4.61% +1.23%
--------------------------------------------------------------------------------
NXI +13.55% +7.64%
--------------------------------------------------------------------------------
NBJ +9.01% +1.11%
--------------------------------------------------------------------------------
NVJ +3.19% -0.12%
--------------------------------------------------------------------------------
11
Nuveen Michigan Quality Income Municipal Fund, Inc.
NUM
Performance
Overview As of January 31, 2006
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $15.26
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.47
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.36%
--------------------------------------------------------------------------------
Market Yield 5.39%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.81%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $181,285
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 14.55
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.75
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 10/17/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 0.84% 0.82%
--------------------------------------------------------------------------------
1-Year 0.37% 2.17%
--------------------------------------------------------------------------------
5-Year 6.91% 7.21%
--------------------------------------------------------------------------------
10-Year 5.95% 6.33%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 26.9%
--------------------------------------------------------------------------------
Tax Obligation/General 25.3%
--------------------------------------------------------------------------------
Health Care 10.5%
--------------------------------------------------------------------------------
Water and Sewer 9.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.8%
--------------------------------------------------------------------------------
Utilities 8.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.9%
--------------------------------------------------------------------------------
Other 3.6%
--------------------------------------------------------------------------------
Credit Quality
(as a % of total investments)
----------------------------------------
AAA/U.S. Guaranteed 82%
----------------------------------------
AA 8%
----------------------------------------
A 5% [PIE CHART]
----------------------------------------
BBB 4%
----------------------------------------
BB or Lower 1%
----------------------------------------
2005-2006 Monthly Tax-Free Dividends Per Share(2)
--------------------------------------------------------------------------------
Feb 0.08
Mar 0.08
Apr 0.08
May 0.08
Jun 0.07
Jul 0.07 [BAR GRAPH]
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Share Price Performance
--------------------------------------------------------------------------------
2/01/05 16.28
16.42
16.36
16.71
16.70
16.66
16.88
16.62
16.52 [LINE CHART]
16.52
16.55
16.63
16.51
16.51
16.40
16.51
16.60
16.88
17.08
16.71
16.64
16.60
16.78
17.00
16.85
17.00
16.94
16.45
16.48
16.54
16.45
16.44
16.50
16.18
16.00
15.77
15.42
15.24
15.40
15.35
15.52
15.69
15.74
15.81
15.75
15.90
15.76
15.82
15.78
15.67
15.63
15.65
15.64
15.69
15.69
15.68
15.64
15.65
15.70
15.72
15.81
15.95
15.95
15.92
15.93
15.91
15.99
15.85
15.88
16.11
16.07
15.99
16.11
16.08
16.18
16.04
16.05
16.13
16.08
16.16
16.19
15.91
15.96
16.06
16.19
16.23
16.20
16.07
15.93
15.95
15.88
15.73
15.63
15.75
15.83
15.80
15.76
15.78
15.80
15.84
15.89
15.86
15.94
15.93
16.02
16.10
16.10
16.17
16.10
16.15
16.15
16.13
16.00
15.89
16.00
15.95
15.87
15.95
15.79
15.65
15.65
15.56
15.58
15.55
15.61
15.67
15.67
15.72
15.78
15.80
15.89
15.70
15.68
15.53
15.57
15.55
15.61
15.57
15.69
15.76
15.86
15.78
15.80
15.80
15.70
15.70
15.75
15.76
15.80
15.84
15.99
16.07
16.01
16.16
16.21
16.10
16.15
16.14
15.94
15.91
15.84
15.97
16.00
16.07
15.95
15.82
15.71
15.70
15.80
15.88
16.05
15.95
16.00
16.09
15.95
16.08
16.01
16.10
16.07
15.90
15.96
15.83
15.76
15.63
15.66
15.70
15.79
15.71
15.75
15.61
15.65
15.71
15.66
15.64
15.57
15.59
15.71
15.65
15.80
15.56
15.48
15.59
15.52
15.44
15.53
15.25
15.20
15.14
15.06
15.10
15.06
14.90
15.10
15.08
14.99
14.82
14.83
14.82
14.87
14.91
14.82
14.70
14.64
14.65
14.56
14.56
14.51
14.56
14.64
14.70
14.84
14.87
14.77
14.68
14.68
14.80
14.88
14.87
14.92
14.99
14.94
14.92
14.97
15.06
15.09
15.05
15.13
15.07
15.08
15.16
15.21
15.10
15.12
15.21
1/31/06 15.26
Weekly Closing Price
Past performance is not predictive of future results.
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund also paid shareholders a capital gains distribution in December
2005 of $0.1125 per share.
12
Nuveen Michigan Premium Income Municipal Fund, Inc.
NMP
Performance
Overview As of January 31, 2006
Credit Quality
(as a % of total investments)
----------------------------------------
AAA/U.S. Guaranteed 73%
----------------------------------------
AA 16%
----------------------------------------
A 8% [PIE CHART]
----------------------------------------
BBB 1%
----------------------------------------
BB or Lower 2%
----------------------------------------
2005-2006 Monthly Tax-Free Dividends Per Share(2)
--------------------------------------------------------------------------------
Feb 0.08
Mar 0.07
Apr 0.07
May 0.07
Jun 0.07
Jul 0.07 [BAR GRAPH]
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Share Price Performance
--------------------------------------------------------------------------------
2/01/05 15.65
15.67
15.70
15.72
15.87
15.83
15.88 [LINE CHART]
15.87
15.88
15.83
15.60
15.61
15.59
15.60
15.64
15.80
16.01
16.01
16.02
16.09
16.06
16.14
16.16
16.25
16.09
16.03
15.80
15.85
15.90
15.72
15.72
15.64
15.43
14.89
14.89
14.73
14.61
14.55
14.48
14.52
14.66
14.80
14.85
14.80
14.89
14.91
14.98
15.25
15.20
15.20
15.26
15.25
15.24
15.39
15.14
15.00
15.00
14.90
14.85
14.99
15.30
15.12
15.12
15.15
15.28
15.26
15.30
15.05
15.10
15.20
15.28
15.30
15.28
15.29
15.28
15.40
15.41
15.40
15.30
15.48
15.65
15.57
15.49
15.61
15.60
15.66
15.63
15.65
15.60
15.64
15.65
15.70
15.55
15.40
15.38
15.36
15.62
15.50
15.42
15.42
15.42
15.44
15.45
15.31
15.38
15.40
15.55
15.60
15.65
15.70
15.60
15.60
15.72
15.75
15.62
15.80
15.75
15.76
15.75
15.57
15.65
15.42
15.57
15.56
15.66
15.68
15.68
15.67
15.68
15.70
15.70
15.71
15.70
15.75
15.55
15.50
15.80
15.98
15.76
15.60
15.63
15.66
15.56
15.51
15.62
15.60
15.59
15.60
15.59
15.60
15.60
15.59
15.57
15.58
15.59
15.59
15.60
15.60
15.50
15.51
15.35
15.30
15.35
15.49
15.30
15.16
15.06
14.86
14.97
14.89
14.96
14.95
14.92
14.92
15.00
14.92
14.81
14.81
14.65
14.56
14.80
14.80
14.66
14.56
14.59
14.85
14.75
14.73
14.53
14.71
14.81
14.90
14.91
15.01
14.85
14.81
14.90
14.87
14.74
14.54
14.44
14.39
14.38
14.29
14.25
14.24
14.27
14.27
14.31
14.37
14.54
14.54
14.53
14.53
14.52
14.36
14.31
14.30
14.32
14.34
14.31
14.18
14.48
14.35
14.40
14.45
14.50
14.49
14.40
14.52
14.50
14.58
14.74
14.75
14.75
14.81
14.88
15.06
15.33
15.31
15.44
15.44
15.50
15.55
15.34
15.19
15.03
14.90
15.01
14.91
14.90
14.93
15.35
15.00
1/31/06 14.88
Weekly Closing Price
Past performance is not predictive of future results.
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $14.88
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.14
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.72%
--------------------------------------------------------------------------------
Market Yield 5.36%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.77%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $117,323
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.24
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.40
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 12/17/92)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -1.50% 1.00%
--------------------------------------------------------------------------------
1-Year 1.64% 2.16%
--------------------------------------------------------------------------------
5-Year 7.98% 6.93%
--------------------------------------------------------------------------------
10-Year 7.68% 6.42%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 32.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 12.1%
--------------------------------------------------------------------------------
Health Care 10.8%
--------------------------------------------------------------------------------
Utilities 9.4%
--------------------------------------------------------------------------------
Water and Sewer 8.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.1%
--------------------------------------------------------------------------------
Other 5.7%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.1488 per share.
13
Nuveen Michigan Dividend Advantage Municipal Fund
NZW
Performance
Overview As of January 31, 2006
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $15.62
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.21
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 2.70%
--------------------------------------------------------------------------------
Market Yield 5.72%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.29%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $31,367
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 15.90
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.13
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 9/25/01)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -4.24% 1.43%
--------------------------------------------------------------------------------
1-Year 2.35% 3.27%
--------------------------------------------------------------------------------
Since
Inception 6.82% 7.34%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 28.3%
--------------------------------------------------------------------------------
Tax Obligation/General 20.0%
--------------------------------------------------------------------------------
Health Care 10.8%
--------------------------------------------------------------------------------
Utilities 10.4%
--------------------------------------------------------------------------------
Water and Sewer 9.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 6.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.4%
--------------------------------------------------------------------------------
Other 9.3%
--------------------------------------------------------------------------------
Credit Quality
(as a % of total investments)
----------------------------------------
AAA/U.S. Guaranteed 72%
----------------------------------------
AA 11%
----------------------------------------
A 8%
---------------------------------------- [PIE CHART]
BBB 6%
----------------------------------------
BB or Lower 1%
----------------------------------------
N/R 2%
----------------------------------------
2005-2006 Monthly Tax-Free Dividends Per Share
--------------------------------------------------------------------------------
Feb 0.07
Mar 0.07
Apr 0.07
May 0.07
Jun 0.07
Jul 0.07 [BAR GRAPH]
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Share Price Performance
--------------------------------------------------------------------------------
2/01/05 16.16
16.32
16.20
16.26
16.35
16.37
16.50 [LINE CHART]
16.37
16.50
16.35
16.42
16.20
16.04
15.77
15.70
15.79
15.84
15.79
15.80
15.76
15.79
15.95
16.30
16.30
16.00
16.18
16.10
15.76
15.83
15.74
15.68
15.47
15.57
15.46
15.28
15.28
15.15
15.15
14.88
14.89
14.90
14.96
14.96
14.95
14.95
15.04
15.00
14.90
14.99
15.00
15.45
15.50
15.63
15.63
15.48
15.45
15.45
15.27
15.27
15.50
15.46
15.49
15.49
15.48
15.51
15.60
15.65
15.70
15.70
15.74
15.66
15.61
15.61
15.56
15.48
15.51
15.58
15.64
15.73
15.74
15.64
15.55
15.47
15.43
15.55
15.68
15.74
15.73
15.60
15.72
15.69
15.74
15.74
15.55
15.65
15.65
15.58
15.60
15.55
15.61
15.58
15.57
15.63
15.75
15.75
16.25
16.25
16.24
16.45
16.45
16.46
16.50
16.53
16.70
16.60
16.55
16.49
16.50
16.43
16.45
16.57
16.40
16.65
16.60
16.60
16.79
16.79
16.79
16.45
16.45
16.43
16.35
16.08
16.07
16.03
16.00
16.00
15.92
15.94
15.92
15.92
15.92
15.90
15.88
15.92
15.96
15.90
15.88
15.89
15.90
15.87
15.94
15.94
15.94
15.95
15.95
16.04
15.94
15.94
15.84
15.74
15.83
15.83
16.05
15.82
15.78
15.78
15.53
15.56
15.59
15.65
15.75
15.77
15.77
15.78
15.71
15.73
15.77
15.62
15.70
15.70
15.70
15.60
15.60
15.45
15.42
15.39
15.34
15.34
15.34
15.23
15.40
15.42
15.55
15.80
15.90
15.75
15.85
15.62
15.15
15.05
15.07
15.07
14.80
14.84
14.91
14.91
14.79
14.80
14.80
14.71
14.65
14.74
14.79
14.80
14.70
14.74
14.76
14.84
14.57
14.64
14.51
14.67
14.73
14.80
14.99
14.99
15.05
14.95
14.87
14.80
14.92
15.00
15.12
15.12
15.01
15.14
15.13
15.20
15.40
15.41
15.26
15.32
15.32
15.70
15.42
15.32
15.38
15.50
15.75
15.89
15.76
15.80
15.65
1/31/06 15.62
Weekly Closing Price
Past performance is not predictive of future results.
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14
Nuveen Ohio Quality Income Municipal Fund, Inc.
NUO
Performance
Overview As of January 31, 2006
Credit Quality
(as a % of total investments)
----------------------------------------
AAA/U.S. Guaranteed 63%
----------------------------------------
AA 24%
----------------------------------------
A 7%
---------------------------------------- [PIE CHART]
BBB 4%
----------------------------------------
BB or Lower 1%
----------------------------------------
N/R 1%
----------------------------------------
2005-2006 Monthly Tax-Free Dividends Per Share(2)
--------------------------------------------------------------------------------
Feb 0.08
Mar 0.08
Apr 0.08
May 0.08
Jun 0.08
Jul 0.08 [BAR CHART]
Aug 0.08
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Share Price Performance
--------------------------------------------------------------------------------
2/01/05 18.76
18.90
18.60
18.64
18.68
18.60
18.70 [LINE GRAPH]
18.56
18.43
18.50
18.47
18.44
18.27
18.13
17.95
18.05
17.79
17.65
17.68
17.55
17.36
17.39
17.36
17.38
17.38
17.30
17.34
17.29
17.17
16.89
16.62
16.58
16.72
16.55
16.37
16.21
16.12
16.11
16.18
16.25
16.50
16.84
16.81
16.90
16.94
16.92
16.80
16.71
16.90
16.87
16.87
16.87
16.86
16.90
16.66
16.59
16.50
16.46
16.51
16.53
16.62
16.71
16.71
16.80
16.87
16.86
16.93
16.80
16.64
16.70
16.74
16.76
16.79
16.80
16.80
16.97
16.88
17.01
17.10
17.16
17.00
16.96
17.00
17.16
17.22
17.20
17.28
17.25
17.21
17.22
17.21
17.20
17.25
17.13
17.12
17.00
17.00
16.87
17.07
17.11
17.20
17.14
17.26
17.34
17.22
17.18
17.28
17.22
17.15
17.20
17.22
17.22
17.13
17.14
17.07
17.10
17.06
17.14
17.14
17.12
17.00
16.87
16.94
17.02
16.99
16.96
16.96
16.98
17.02
17.05
17.00
16.96
17.02
16.89
16.82
16.84
16.78
16.73
16.81
16.80
16.85
16.75
16.73
16.70
16.83
16.83
16.99
16.90
16.88
16.83
16.86
16.80
16.80
16.81
16.80
16.79
16.78
16.92
16.90
16.75
16.77
16.88
16.80
16.82
16.80
16.75
16.66
16.62
16.70
16.64
16.74
16.75
16.70
16.74
16.65
16.74
16.74
16.80
16.60
16.53
16.55
16.40
16.40
16.33
16.45
16.44
16.49
16.47
16.47
16.65
16.49
16.66
16.49
16.65
16.60
16.49
16.47
16.47
16.40
16.31
16.23
16.12
16.05
16.01
16.05
16.01
16.07
16.15
16.09
16.16
16.20
16.21
16.21
16.41
16.39
16.30
16.35
16.32
16.43
16.20
16.11
16.01
16.06
16.07
16.01
16.00
16.03
16.02
16.12
16.21
16.31
16.28
16.21
16.25
16.25
16.35
16.40
16.46
16.49
16.50
16.53
16.65
16.79
17.00
16.85
16.99
17.00
16.95
17.18
17.19
17.20
17.05
17.01
16.95
1/31/06 17.03
Weekly Closing Price
Past performance is not predictive of future results.
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $17.03
--------------------------------------------------------------------------------
Common Share
Net Asset Value $16.28
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 4.61%
--------------------------------------------------------------------------------
Market Yield 5.14%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.61%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $158,321
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.15
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.33
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 10/17/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 3.45% 1.20%
--------------------------------------------------------------------------------
1-Year -4.49% 2.54%
--------------------------------------------------------------------------------
5-Year 6.19% 6.81%
--------------------------------------------------------------------------------
10-Year 6.40% 6.24%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 32.7%
--------------------------------------------------------------------------------
Health Care 15.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 7.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.0%
--------------------------------------------------------------------------------
Water and Sewer 6.8%
--------------------------------------------------------------------------------
Transportation 5.3%
--------------------------------------------------------------------------------
Other 13.2%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0544 per share.
15
Nuveen Ohio Dividend Advantage Municipal Fund
NXI
Performance
Overview As of January 31, 2006
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $17.35
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.28
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 13.55%
--------------------------------------------------------------------------------
Market Yield 4.91%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.27%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $64,802
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.01
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.41
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/27/01)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 5.02% 1.37%
--------------------------------------------------------------------------------
1-Year 13.39% 2.95%
--------------------------------------------------------------------------------
Since
Inception 9.22% 7.64%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 28.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 13.1%
--------------------------------------------------------------------------------
Health Care 12.0%
--------------------------------------------------------------------------------
Utilities 7.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 6.9%
--------------------------------------------------------------------------------
Water and Sewer 4.5%
--------------------------------------------------------------------------------
Other 13.3%
--------------------------------------------------------------------------------
Credit Quality
(as a % of total investments)
----------------------------------------
AAA/U.S. Guaranteed 57%
----------------------------------------
AA 21%
----------------------------------------
A 12% [PIE CHART]
----------------------------------------
BBB 9%
----------------------------------------
N/R 1%
----------------------------------------
2005-2006 Monthly Tax-Free Dividends Per Share(2)
--------------------------------------------------------------------------------
Feb 0.08
Mar 0.08
Apr 0.08
May 0.08
Jun 0.08
Jul 0.08 [BAR GRAPH]
Aug 0.08
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Share Price Performance
--------------------------------------------------------------------------------
2/01/05 16.36
16.36
16.46
16.58
16.65
16.53
16.53 [LINE CHART]
16.62
16.66
16.95
16.64
16.68
17.00
16.50
16.52
16.38
16.13
16.12
16.09
16.15
16.31
16.42
16.40
16.39
16.20
16.11
16.02
16.14
16.10
16.15
15.93
15.67
15.68
15.63
15.46
15.30
15.08
14.93
14.80
15.01
15.19
15.28
15.24
15.28
15.35
15.12
15.02
15.07
15.27
15.34
15.55
15.70
16.03
16.20
16.15
16.11
16.10
16.05
16.00
16.21
16.30
16.42
16.42
16.29
15.84
15.82
15.70
15.46
15.40
15.38
15.30
15.27
15.37
15.37
15.28
15.35
15.35
15.52
15.58
15.51
15.59
15.66
15.76
15.99
16.09
16.20
16.35
16.27
16.30
16.16
16.10
16.03
15.86
15.90
15.80
15.65
15.76
15.91
15.93
16.10
16.20
16.24
16.25
16.32
16.21
16.18
16.31
16.14
16.10
16.03
16.10
16.43
16.68
16.62
16.70
16.83
16.69
16.66
16.34
16.78
16.73
16.41
16.49
16.74
16.81
17.00
17.00
16.93
16.96
17.30
16.92
16.52
16.45
16.35
16.11
16.12
16.12
16.15
16.18
16.13
16.15
16.20
16.18
16.19
16.28
16.41
16.30
16.66
16.40
16.41
16.32
16.32
16.33
16.27
16.28
16.30
16.28
16.32
16.25
16.25
16.32
16.60
16.58
16.80
16.55
16.72
17.15
16.90
16.96
16.85
16.87
16.80
16.80
17.03
16.99
16.80
16.81
16.99
16.80
16.61
16.71
17.00
16.74
16.60
16.53
16.59
16.25
16.25
16.35
16.35
16.25
16.37
16.41
16.55
16.32
16.15
16.15
16.33
16.15
16.32
16.32
16.30
16.31
16.60
16.42
16.50
16.35
16.34
16.32
16.32
16.27
16.32
16.36
16.50
16.52
16.55
16.77
16.35
16.47
16.47
16.47
16.19
16.10
16.42
16.34
16.33
16.21
16.46
16.85
16.85
16.98
17.05
16.70
16.85
16.85
17.05
17.05
16.98
16.63
16.58
16.28
16.28
16.15
16.08
16.50
16.50
16.25
16.75
16.88
17.20
17.14
17.35
17.50
17.15
1/31/06 17.35
Weekly Closing Price
Past performance is not predictive of future results.
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0355 per share.
16
Nuveen Ohio Dividend Advantage Municipal Fund 2
NBJ
Performance
Overview As of January 31, 2006
Credit Quality
(as a % of total investments)
----------------------------------------
AAA/U.S. Guaranteed 69%
----------------------------------------
AA 12%
----------------------------------------
A 9%
---------------------------------------- [PIE CHART]
BBB 9%
----------------------------------------
N/R 1%
----------------------------------------
2005-2006 Monthly Tax-Free Dividends Per Share(2)
--------------------------------------------------------------------------------
Feb 0.08
Mar 0.07
Apr 0.07
May 0.07
Jun 0.07
Jul 0.07 [BAR GRAPH]
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Share Price Performance
--------------------------------------------------------------------------------
2/01/05 16.05
16.00
16.19
16.19
16.06
16.05
16.01
16.09 [LINE CHART]
15.95
16.00
16.05
15.95
15.89
15.89
15.88
15.90
15.97
15.97
15.89
15.80
15.72
15.90
15.97
15.89
15.85
15.83
15.78
15.69
15.60
15.61
15.55
15.45
15.45
15.48
15.48
15.35
15.45
15.18
15.20
15.24
15.37
15.45
15.30
15.30
15.20
15.44
15.36
15.20
15.25
15.12
14.96
15.01
15.30
15.45
15.45
15.59
15.59
15.41
15.61
15.50
15.50
15.60
15.60
15.62
15.72
15.51
15.57
15.14
15.26
15.23
15.16
15.05
15.13
15.00
15.04
15.18
15.14
15.15
15.12
15.14
15.16
15.16
15.15
15.29
15.45
15.50
15.61
15.59
15.51
15.52
15.63
15.66
15.70
15.58
15.45
15.44
15.35
15.43
15.70
15.74
15.80
16.06
16.13
15.98
15.70
15.54
15.48
15.46
15.47
15.50
15.49
15.66
15.56
15.65
15.75
15.53
15.51
15.53
15.58
15.55
15.51
15.50
15.50
15.60
15.51
15.48
15.48
15.41
15.39
15.39
15.43
15.12
15.12
14.97
15.02
14.95
14.98
15.14
15.16
14.98
15.13
15.10
15.09
15.15
15.12
15.01
15.17
15.41
15.20
15.25
15.22
15.38
15.44
15.51
15.60
15.67
15.55
15.65
15.62
15.65
15.18
15.37
15.28
15.28
15.25
15.37
15.79
15.74
15.31
15.31
15.25
15.28
15.34
15.34
15.18
15.08
15.03
15.00
14.85
14.79
14.79
15.16
15.05
14.91
14.82
14.85
14.98
14.99
14.99
14.95
14.82
14.94
14.99
15.22
15.23
15.08
14.85
14.79
15.08
14.80
14.80
14.94
14.93
14.93
15.50
15.45
15.45
15.45
15.37
15.37
15.32
15.42
15.42
15.75
15.75
15.57
15.70
15.80
15.81
15.84
15.84
15.75
15.44
15.44
15.75
15.82
15.50
15.28
15.29
15.35
15.65
15.65
15.80
15.68
15.68
15.70
15.53
15.30
15.30
15.50
15.50
15.82
15.90
15.60
15.30
15.40
15.50
15.50
15.60
16.45
16.22
16.25
16.40
16.20
1/31/06 16.45
Weekly Closing Price
Past performance is not predictive of future results.
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $16.45
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.09
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 9.01%
--------------------------------------------------------------------------------
Market Yield 4.85%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.19%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $47,089
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 15.22
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.77
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 9/25/01)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 9.45% 1.20%
--------------------------------------------------------------------------------
1-Year 8.30% 2.39%
--------------------------------------------------------------------------------
Since
Inception 8.17% 7.26%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 29.9%
--------------------------------------------------------------------------------
Health Care 16.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.0%
--------------------------------------------------------------------------------
Utilities 6.0%
--------------------------------------------------------------------------------
Consumer Staples 5.8%
--------------------------------------------------------------------------------
Transportation 5.2%
--------------------------------------------------------------------------------
Other 5.5%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0481 per share.
17
Nuveen Ohio Dividend Advantage Municipal Fund 3
NVJ
Performance
Overview As of January 31, 2006
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $15.84
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.35
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 3.19%
--------------------------------------------------------------------------------
Market Yield 4.96%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.35%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $33,130
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 14.54
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.64
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/25/02)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 2.28% 1.22%
--------------------------------------------------------------------------------
1-Year 5.81% 2.79%
--------------------------------------------------------------------------------
Since
Inception 7.43% 7.82%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 31.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.2%
--------------------------------------------------------------------------------
Health Care 12.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 8.0%
--------------------------------------------------------------------------------
Transportation 6.1%
--------------------------------------------------------------------------------
Other 14.5%
--------------------------------------------------------------------------------
Credit Quality
(as a % of total investments)
----------------------------------------
AAA/U.S. Guaranteed 63%
----------------------------------------
AA 17%
---------------------------------------- [PIE CHART]
A 13%
----------------------------------------
BBB 7%
----------------------------------------
2005-2006 Monthly Tax-Free Dividends Per Share
--------------------------------------------------------------------------------
Feb 0.07
Mar 0.07
Apr 0.07
May 0.07
Jun 0.07
Jul 0.07 [BAR GRAPH]
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Share Price Performance
--------------------------------------------------------------------------------
2/01/05 15.90
15.94
15.80
15.95
16.00
16.05
16.01 [LINE CHART]
16.11
15.95
16.08
16.43
16.39
16.43
16.42
16.38
16.25
16.20
16.20
16.20
16.13
16.16
16.32
16.34
16.34
16.58
16.50
16.60
16.47
16.42
16.40
16.05
16.05
16.07
15.79
15.66
15.74
15.59
15.40
15.31
15.27
15.33
15.58
15.40
15.40
15.44
15.52
15.52
15.16
15.37
15.40
15.40
15.58
15.39
15.44
15.32
15.35
15.31
15.37
15.37
15.38
15.38
15.64
15.64
16.00
15.85
15.95
15.90
15.66
15.66
15.66
15.72
15.55
15.55
15.60
15.65
15.62
15.67
15.67
15.73
15.67
15.66
15.66
15.70
15.75
16.20
16.30
16.25
16.21
16.21
16.23
15.97
15.88
15.74
15.74
15.67
15.71
15.71
15.58
15.70
15.71
15.71
15.71
15.77
15.68
15.77
15.72
15.76
15.70
15.93
16.20
16.10
16.15
16.15
16.18
16.11
16.06
16.09
16.02
15.93
15.93
15.93
16.05
16.05
16.05
16.10
15.90
15.90
15.70
15.84
15.84
16.07
16.07
16.03
16.00
16.00
15.93
15.93
16.08
16.08
16.08
16.08
15.98
15.98
15.69
15.69
15.69
15.72
15.72
15.73
15.74
15.74
15.79
15.79
15.79
15.79
15.78
15.76
15.56
15.56
15.63
15.48
15.43
15.56
15.50
15.44
15.32
15.08
15.18
15.06
15.01
15.10
15.17
15.20
15.20
15.24
15.38
15.38
15.50
15.50
15.23
15.07
15.01
14.94
14.94
15.03
15.10
14.90
14.91
14.90
15.03
15.20
15.30
15.35
15.45
15.45
15.75
15.75
15.61
15.51
15.36
15.70
15.51
15.76
15.75
15.45
15.13
15.19
15.17
15.10
15.10
15.10
15.16
15.26
15.26
15.16
15.05
15.36
15.26
15.26
15.38
15.38
15.45
15.40
15.13
15.12
15.12
15.15
15.00
15.07
14.98
15.01
15.27
15.10
15.10
15.10
15.05
15.03
15.01
15.09
15.12
15.09
15.06
15.13
15.18
15.35
15.50
15.40
15.35
15.44
15.64
15.72
15.62
15.82
15.82
1/31/06 15.84
Weekly Closing Price
Past performance is not predictive of future results.
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
18
Special Shareholder
Meeting Report
The Shareholder Meeting was held at the offices of Nuveen Investments on
November 15, 2005.
NUM NMP NZW
-----------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares shares shares shares shares shares
voting together voting together voting together voting together voting together voting together
as a class as a class as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------------
Approval of the Board Members
was reached as follows:
Robert P. Bremner
For 10,706,460 -- 7,061,193 -- 2,020,827 --
Withhold 165,499 -- 88,967 -- 27,054 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 10,871,959 -- 7,150,160 -- 2,047,881 --
===================================================================================================================================
Lawrence H. Brown
For 10,701,808 -- 7,063,871 -- 2,015,227 --
Withhold 170,151 -- 86,289 -- 32,654 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 10,871,959 -- 7,150,160 -- 2,047,881 --
===================================================================================================================================
Jack B. Evans
For 10,708,106 -- 7,070,251 -- 2,023,827 --
Withhold 163,853 -- 79,909 -- 24,054 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 10,871,959 -- 7,150,160 -- 2,047,881 --
===================================================================================================================================
William C. Hunter
For 10,709,563 -- 7,073,599 -- 2,023,827 --
Withhold 162,396 -- 76,561 -- 24,054 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 10,871,959 -- 7,150,160 -- 2,047,881 --
===================================================================================================================================
David J. Kundert
For 10,703,556 -- 7,073,130 -- 2,023,827 --
Withhold 168,403 -- 77,030 -- 24,054 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 10,871,959 -- 7,150,160 -- 2,047,881 --
===================================================================================================================================
William J. Schneider
For -- 3,562 -- 2,173 -- 632
Withhold -- 21 -- 7 -- 1
-----------------------------------------------------------------------------------------------------------------------------------
Total -- 3,583 -- 2,180 -- 633
===================================================================================================================================
Timothy R. Schwertfeger
For -- 3,562 -- 2,173 -- 632
Withhold -- 21 -- 7 -- 1
-----------------------------------------------------------------------------------------------------------------------------------
Total -- 3,583 -- 2,180 -- 633
===================================================================================================================================
Judith M. Stockdale
For 10,706,492 -- 7,064,993 -- 2,023,827 --
Withhold 165,467 -- 85,167 -- 24,054 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 10,871,959 -- 7,150,160 -- 2,047,881 --
===================================================================================================================================
Eugene S. Sunshine
For 10,705,735 -- 7,072,240 -- 2,023,827 --
Withhold 166,224 -- 77,920 -- 24,054 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 10,871,959 -- 7,150,160 -- 2,047,881 --
===================================================================================================================================
19
Special Shareholder
Meeting Report (continued)
NUO NXI NBJ
-----------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares shares shares shares shares shares
voting together voting together voting together voting together voting together voting together
as a class as a class as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------------
Approval of the Board Members
was reached as follows:
Robert P. Bremner
For 8,817,740 -- 4,078,149 -- 3,006,605 --
Withhold 132,986 -- 45,548 -- 56,757 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 8,950,726 -- 4,123,697 -- 3,063,362 --
===================================================================================================================================
Lawrence H. Brown
For 8,823,969 -- 4,079,149 -- 3,002,043 --
Withhold 126,757 -- 44,548 -- 61,319 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 8,950,726 -- 4,123,697 -- 3,063,362 --
===================================================================================================================================
Jack B. Evans
For 8,817,496 -- 4,081,772 -- 3,003,293 --
Withhold 133,230 -- 41,925 -- 60,069 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 8,950,726 -- 4,123,697 -- 3,063,362 --
===================================================================================================================================
William C. Hunter
For 8,815,516 -- 4,081,772 -- 3,009,705 --
Withhold 135,210 -- 41,925 -- 53,657 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 8,950,726 -- 4,123,697 -- 3,063,362 --
===================================================================================================================================
David J. Kundert
For 8,816,107 -- 4,078,072 -- 3,002,693 --
Withhold 134,619 -- 45,625 -- 60,669 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 8,950,726 -- 4,123,697 -- 3,063,362 --
===================================================================================================================================
William J. Schneider
For -- 2,912 -- 1,210 -- 936
Withhold -- 9 -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total -- 2,921 -- 1,210 -- 936
===================================================================================================================================
Timothy R. Schwertfeger
For -- 2,912 -- 1,210 -- 936
Withhold -- 9 -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total -- 2,921 -- 1,210 -- 936
===================================================================================================================================
Judith M. Stockdale
For 8,817,331 -- 4,081,772 -- 3,003,643 --
Withhold 133,395 -- 41,925 -- 59,719 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 8,950,726 -- 4,123,697 -- 3,063,362 --
===================================================================================================================================
Eugene S. Sunshine
For 8,817,452 -- 4,078,172 -- 3,008,705 --
Withhold 133,274 -- 45,525 -- 54,657 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 8,950,726 -- 4,123,697 -- 3,063,362 --
===================================================================================================================================
20
NVJ
-----------------------------------------------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares shares
voting together voting together
as a class as a class
-----------------------------------------------------------------------------------------------------------------------------------
Approval of the Board Members
was reached as follows:
Robert P. Bremner
For 2,090,581 --
Withhold 20,342 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,110,923 --
===================================================================================================================================
Lawrence H. Brown
For 2,087,581 --
Withhold 23,342 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,110,923 --
===================================================================================================================================
Jack B. Evans
For 2,091,191 --
Withhold 19,732 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,110,923 --
===================================================================================================================================
William C. Hunter
For 2,090,951 --
Withhold 19,972 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,110,923 --
===================================================================================================================================
David J. Kundert
For 2,080,191 --
Withhold 30,732 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,110,923 --
===================================================================================================================================
William J. Schneider
For -- 649
Withhold -- 11
-----------------------------------------------------------------------------------------------------------------------------------
Total -- 660
===================================================================================================================================
Timothy R. Schwertfeger
For -- 649
Withhold -- 11
-----------------------------------------------------------------------------------------------------------------------------------
Total -- 660
===================================================================================================================================
Judith M. Stockdale
For 2,090,951 --
Withhold 19,972 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,110,923 --
===================================================================================================================================
Eugene S. Sunshine
For 2,091,191 --
Withhold 19,732 --
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,110,923 --
===================================================================================================================================
21
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 8.9% (5.9% of Total Investments)
$ 700 Chandler Park Academy, Michigan, Public School Academy Charter School 11/15 at 100.00 BBB- $ 694,659
Revenue Bonds, Series 2005, 5.125%, 11/01/35
1,720 Ferris State College, Michigan, General Revenue Bonds, Series 1998, 4/08 at 100.00 AAA 1,768,229
5.000%, 10/01/23 - AMBAC Insured
1,685 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100.00 Aaa 1,834,460
Revenue Refunding Bonds, Kettering University, Series 2001, 5.500%,
9/01/17 - AMBAC Insured
1,500 Michigan Higher Education Student Loan Authority, Revenue Bonds, Series No Opt. Call AAA 1,576,125
2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured (Alternative Minimum Tax)
1,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, Series 9/12 at 100.00 AAA 1,042,590
2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax)
Michigan Technological University, General Revenue Bonds, Series 2004A:
1,060 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 1,120,515
1,115 5.000%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,175,957
1,170 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,233,496
Wayne State University, Michigan, General Revenue Bonds, Series 1999:
3,430 5.250%, 11/15/19 - FGIC Insured 11/09 at 101.00 AAA 3,648,868
1,000 5.125%, 11/15/29 - FGIC Insured 11/09 at 101.00 AAA 1,050,760
1,000 Western Michigan University, General Revenue Refunding Bonds, Series 11/13 at 100.00 AAA 1,061,900
2003, 5.000%, 11/15/20 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
15,380 Total Education and Civic Organizations 16,207,559
-----------------------------------------------------------------------------------------------------------------------------------
Health Care - 15.7% (10.5% of Total Investments)
2,900 Dearborn Hospital Finance Authority, Michigan, Hospital Revenue Bonds, 5/06 at 102.00 AAA 2,963,452
Oakwood Obligated Group, Series 1995A, 5.875%, 11/15/25 - FGIC Insured
1,235 Hancock Hospital Finance Authority, Michigan, FHA-Insured Mortgage 8/08 at 100.00 AAA 1,282,263
Hospital Revenue Bonds, Portage Health System Inc., Series 1998,
5.450%, 8/01/47 - MBIA Insured
984 Michigan State Hospital Finance Authority, Collateralized Loan, Detroit No Opt. Call Baa2 988,923
Medical Center, Series 2001, 7.360%, 3/01/07
2,700 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 BB- 2,552,715
Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28
5,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry 11/09 at 101.00 A1 5,321,100
Ford Health System, Series 1999A, 6.000%, 11/15/24
1,500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 3/13 at 100.00 A1 1,622,580
Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/09 at 101.00 BBB+ 1,050,960
Bonds, Memorial Healthcare Center Obligated Group, Series 1999,
5.875%, 11/15/21
Michigan State Hospital Finance Authority, Hospital Revenue Refunding
Bonds, Mercy Mt. Clemens Corporation Obligated Group, Series 1999A:
3,385 5.750%, 5/15/17 - MBIA Insured 5/09 at 101.00 AAA 3,619,445
500 5.750%, 5/15/29 - MBIA Insured 5/09 at 101.00 AAA 532,745
500 Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea 5/15 at 100.00 BBB 485,715
Community Hospital, Series 2005, 5.000%, 5/15/37
500 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette 5/15 at 100.00 Baa1 501,990
General Hospital, Series 2005A, 5.000%, 5/15/26
5,500 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, 11/11 at 100.00 AAA 5,710,649
William Beaumont Hospital, Series 2001M, 5.250%,
11/15/31 - MBIA Insured
2,195 University of Michigan, Medical Service Plan Revenue Bonds, No Opt. Call AA+ 1,838,291
Series 1991, 0.000%, 12/01/10
-----------------------------------------------------------------------------------------------------------------------------------
27,899 Total Health Care 28,470,828
-----------------------------------------------------------------------------------------------------------------------------------
22
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.8% (1.8% of Total Investments)
$ 2,675 Michigan Housing Development Authority, FNMA Limited Obligation 12/20 at 101.00 AAA $ 2,858,960
Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series
2002A, 5.550%, 12/01/34 (Alternative Minimum Tax)
2,110 Michigan Housing Development Authority, Rental Housing Revenue Bonds, 4/09 at 101.00 AAA 2,133,864
Series 1999A, 5.300%, 10/01/37 - MBIA Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
4,785 Total Housing/Multifamily 4,992,824
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.5% (0.4% of Total Investments)
1,000 Michigan Housing Development Authority, Single Family Mortgage Revenue 1/11 at 100.00 AAA 1,033,600
Bonds, Series 2001, 5.300%, 12/01/16 - MBIA Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 0.7% (0.4% of Total Investments)
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, Presbyterian 5/15 at 100.00 N/R 977,650
Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25
200 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 7/08 at 101.00 BBB+ 202,008
Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28
-----------------------------------------------------------------------------------------------------------------------------------
1,200 Total Long-Term Care 1,179,658
-----------------------------------------------------------------------------------------------------------------------------------
Materials - 1.0% (0.6% of Total Investments)
1,750 Dickinson County Economic Development Corporation, Michigan, Pollution 11/14 at 100.00 BBB 1,725,430
Control Revenue Bonds, International Paper Company, Series
2004A, 4.800%, 11/01/18
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 38.0% (25.3% of Total Investments)
1,000 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 5/12 at 100.00 AA 1,048,550
General Obligation Refunding Bonds, Series 2002, 5.000%, 5/01/25
Anchor Bay School District, Macomb and St. Clair Counties, Michigan,
Unlimited Tax General Obligation Refunding Bonds, Series 2001:
2,500 5.000%, 5/01/21 5/11 at 100.00 AA 2,636,200
3,200 5.000%, 5/01/29 5/11 at 100.00 AA 3,291,200
1,000 Belding School District, Ionia, Kent and Montcalm Counties, Michigan, 5/08 at 100.00 AAA 1,022,120
General Obligation Refunding Bonds, Series 1998, 5.000%,
5/01/26 - AMBAC Insured
1,200 Birmingham, Michigan, General Obligation Bonds, Series 2002, 10/12 at 100.50 AAA 1,273,584
5.000%, 10/01/20
1,320 Bridgeport Spaulding Community School District, Saginaw County, 5/12 at 100.00 AA 1,445,638
Michigan, General Obligation Bonds, Series 2002, 5.500%, 5/01/16
2,110 Caledonia Community Schools, Kent, Allegan and Barry Counties, 5/13 at 100.00 AA 2,286,185
Michigan, General Obligation Bonds, Series 2003, 5.250%, 5/01/20
1,285 Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, 5/15 at 100.00 AAA 1,353,465
General Obligation Bonds, Series 2005, 5.000%, 5/01/25 - MBIA Insured
1,850 Chippewa Valley Schools, Macomb County, Michigan, General Obligation 5/15 at 100.00 AAA 1,951,473
Bonds, Series 2005, 5.000%, 5/01/24 - MBIA Insured
2,000 Detroit City School District, Wayne County, Michigan, General Obligation No Opt. Call AAA 2,381,960
Bonds, Series 2002A, 6.000%, 5/01/19 - FGIC Insured
1,195 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 4/14 at 100.00 AAA 1,274,539
5.250%, 4/01/24 - AMBAC Insured
1,065 Edwardsburg Public School, Cass County, Michigan, General Obligation 5/14 at 100.00 AAA 1,122,680
Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured
Fitzgerald Public School District, Macomb County, Michigan, General
Obligation Bonds, Series 2004B:
1,150 5.000%, 5/01/16 - AMBAC Insured 11/14 at 100.00 AAA 1,238,975
2,100 5.000%, 5/01/17 - AMBAC Insured 11/14 at 100.00 AAA 2,254,917
Grand Rapids and Kent County Joint Building Authority, Michigan, Limited
Tax General Obligation Bonds, Devos Place Project, Series 2001:
8,900 0.000%, 12/01/25 No Opt. Call AAA 3,559,822
3,000 0.000%, 12/01/26 No Opt. Call AAA 1,136,460
1,400 Howell Public Schools, Livingston County, Michigan, General Obligation 11/13 at 100.00 AA 1,478,470
Bonds, Series 2003, 5.000%, 5/01/21
23
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 1,065 Jackson Public Schools, Jackson County, Michigan, General Obligation 5/14 at 100.00 AAA $ 1,122,680
School Building and Site Bonds, Series 2004, 5.000%,
5/01/22 - FSA Insured
2,000 Lake Fenton Community Schools, Genesee County, Michigan, General 5/12 at 100.00 AA 2,105,220
Obligation Bonds, Series 2002, 5.000%, 5/01/24
1,790 Lansing Building Authority, Michigan, General Obligation Bonds, Series 6/13 at 100.00 AAA 1,863,999
2003A, 5.000%, 6/01/26 - MBIA Insured
1,785 Livonia Public Schools, Wayne County, Michigan, General Obligation 5/14 at 100.00 AAA 1,888,048
Bonds, Series 2004A, 5.000%, 5/01/21 - MBIA Insured
1,315 Lowell Area Schools, Kent and Ionia Counties, Michigan, General 5/15 at 100.00 AAA 1,387,128
Obligation Bonds, Series 2005, 5.000%, 5/01/24 - MBIA Insured
4,000 Michigan, General Obligation Bonds, Environmental Protection Program, 5/13 at 100.00 AA 4,339,240
Series 2003A, 5.250%, 5/01/20
2,500 Montrose School District, Michigan, School Building and Site Bonds, No Opt. Call AAA 3,027,600
Series 1997, 6.000%, 5/01/22 - MBIA Insured
1,100 Muskegon County, Michigan, Limited Tax General Obligation Wastewater 7/11 at 100.00 AAA 1,134,936
Management System 2 Revenue Bonds, Series 2002, 5.000%,
7/01/26 - FGIC Insured
1,000 Oakland County Building Authority, Michigan, General Obligation Bonds, 9/11 at 100.00 AAA 1,063,110
Series 2002, 5.125%, 9/01/22
4,200 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 4,837,560
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
1,510 Rockford Public Schools, Kent County, Michigan, General Obligation 5/15 at 100.00 AAA 1,582,238
Bonds, Series 2005, 5.000%, 5/01/27 - FSA Insured
1,940 South Lyon Community Schools, Oakland, Washtenaw and Livingston 5/15 at 100.00 AAA 2,050,968
Counties, Michigan, General Obligation Bonds, Series 2005-II,
5.000%, 5/01/23 - FGIC Insured
1,655 Southfield Library Building Authority, Michigan, General Obligation 5/15 at 100.00 AAA 1,738,031
Bonds, Series 2005, 5.000%, 5/01/26 - MBIA Insured
1,525 Tecumseh Public Schools, Lenawee County, Michigan, General Obligation 5/15 at 100.00 AAA 1,610,537
Bonds, Series 2005, 5.125%, 5/01/30 - FGIC Insured
1,050 Warren Consolidated School District, Macomb and Oakland Counties, 11/11 at 100.00 AAA 1,137,171
Michigan, General Obligation Bonds, Series 2001, 5.375%,
5/01/19 - FSA Insured
5,000 Wayne County, Michigan, Limited Tax General Obligation Airport Hotel 12/11 at 101.00 AAA 5,224,600
Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series
2001A, 5.000%, 12/01/21 - MBIA Insured
1,725 Williamston Community School District, Michigan, Unlimited Tax General No Opt. Call AAA 2,002,691
Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
71,435 Total Tax Obligation/General 68,871,995
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 14.7% (9.8% of Total Investments)
1,000 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax No Opt. Call AA 1,089,620
General Obligation Bonds, Series 1998, 5.000%, 4/01/16
1,345 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax 10/11 at 100.00 AAA 1,398,760
General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured
65 Michigan Municipal Bond Authority, Local Government Loan Program Revenue 5/06 at 100.00 A 65,170
Sharing Bonds, Series 1992D, 6.650%, 5/01/12
2,135 Michigan State Building Authority, Revenue Bonds, Facilities Program, 10/15 at 100.00 AAA 2,227,446
Series 2005II, 5.000%, 10/15/33 - AMBAC Insured
Michigan State Building Authority, Revenue Refunding Bonds, Facilities
Program, Series 2003II:
5,100 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,379,327
5,000 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 5,271,800
3,500 Michigan State Trunk Line, Fund Refunding Bonds, Series 2002, 10/12 at 100.00 AAA 3,771,635
5.250%, 10/01/21 - FSA Insured
915 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call BBB- 1,087,249
Bonds, Series 2002E, 6.000%, 8/01/26
24
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited (continued)
$ 4,100 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 BBB+ $ 4,421,891
Authority, Series 1996Y, 5.500%, 7/01/36
1,800 Wayne County, Dearborn Heights, Michigan, Tax Increment Financing 10/10 at 100.00 AAA 1,874,052
Authority, Limited Tax General Obligation Bonds, Police and Courthouse
Facility, Series 2001A, 5.000%, 10/01/26 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
24,960 Total Tax Obligation/Limited 26,586,950
-----------------------------------------------------------------------------------------------------------------------------------
Transportation - 0.5% (0.4% of Total Investments)
1,000 Capital Region Airport Authority, Michigan, Revenue Refunding Bonds, 7/12 at 100.00 AAA 1,045,610
Series 2002, 5.250%, 7/01/21 - MBIA Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 40.4% (26.9% of Total Investments) (4)
Allegan County Public School District, Michigan, General Obligation
Bonds, Series 2000:
1,850 5.600%, 5/01/20 (Pre-refunded 5/01/10) - FSA Insured 5/10 at 100.00 AAA 2,002,681
1,435 5.750%, 5/01/30 (Pre-refunded 5/01/10) - FSA Insured 5/10 at 100.00 AAA 1,561,868
2,190 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 5/09 at 100.00 AAA 2,361,915
General Obligation Bonds, Series 1999I, 6.000%, 5/01/29
(Pre-refunded 5/01/09) - FGIC Insured
1,000 Charlotte Public School District, Easton County, Michigan, General 5/09 at 100.00 AAA 1,055,630
Obligation Bonds, Series 1999, 5.250%, 5/01/25
(Pre-refunded 5/01/09) - FGIC Insured
2,000 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 1/10 at 101.00 AAA 2,181,920
Series 1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds,
Series 2001A:
3,400 5.750%, 7/01/28 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 AAA 3,789,198
770 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 832,978
Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1997A:
950 5.500%, 7/01/20 (Pre-refunded 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 988,076
1,000 5.000%, 7/01/22 (Pre-refunded 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,033,210
1,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1999A, 1/10 at 101.00 AAA 1,095,500
5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured
1,000 East China School District, St. Clair County, Michigan, General 11/11 at 100.00 AA (4) 1,098,270
Obligation Bonds, Series 2001, 5.500%, 5/01/20 (Pre-refunded 11/01/11)
2,000 East Grand Rapids Public Schools, Kent County, Michigan, Unlimited Tax 5/09 at 100.00 AAA 2,157,000
General Obligation School Building and Site Bonds, Series 2000,
6.000%, 5/01/29 (Pre-refunded 5/01/09) - FSA Insured
1,085 Freeland Community School District, Saginaw, Midland and Bay Counties, 5/10 at 100.00 AA (4) 1,159,670
Michigan, General Obligation Bonds, Series 2000, 5.250%, 5/01/19
(Pre-refunded 5/01/10)
1,500 Huron Valley School District, Oakland and Livingston Counties, Michigan, 11/11 at 100.00 AA (4) 1,647,405
General Obligation Bonds, Series 2001, 5.500%, 5/01/17
(Pre-refunded 11/01/11)
3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum 7/11 at 101.00 AA (4) 3,803,800
Health, Series 2001A, 5.250%, 1/15/21 (Pre-refunded 7/15/11)
250 Michigan South Central Power Agency, Power Supply System Revenue Bonds, No Opt. Call A3 (4) 277,727
Series 2000, 6.000%, 5/01/12 (ETM)
Michigan State Hospital Finance Authority, Hospital Revenue Bonds,
Ascension Health Credit Group, Series 1999A:
1,000 6.125%, 11/15/23 (Pre-refunded 11/15/09) - MBIA Insured 11/09 at 101.00 AAA 1,100,350
500 6.125%, 11/15/26 (Pre-refunded 11/15/09) 11/09 at 101.00 AAA 550,175
3,300 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 1/07 at 102.00 N/R (4) 3,450,975
Presbyterian Villages of Michigan Obligated Group, Series 1997,
6.375%, 1/01/25 (Pre-refunded 1/01/07)
1,700 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 8/09 at 101.00 AAA 1,840,692
Bonds, Mercy Health Services Obligated Group, Series 1999X, 5.750%,
8/15/19 (Pre-refunded 8/15/09) - MBIA Insured
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/09 at 101.00 A (4) 1,098,100
Bonds, OSF Healthcare System, Series 1999, 6.125%, 11/15/19
(Pre-refunded 11/15/09)
3,460 Michigan State Hospital Finance Authority, Hospital Revenue 5/08 at 101.00 AAA 3,573,280
Refunding Bonds, St. John's Health System, Series 1998A, 5.000%,
5/15/28 (ETM) - AMBAC Insured
25
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 1,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 5.000%, 11/01/25 11/11 at 100.00 AAA $ 1,072,510
(Pre-refunded 11/01/11) - FSA Insured
1,100 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 7/08 at 101.00 BBB+ (4) 1,157,871
Porter Hills Presbyterian Village, Series 1998, 5.375%, 7/01/28
(Pre-refunded 7/01/08)
1,000 Michigan, Certificates of Participation, New Center Development Inc., 9/11 at 100.00 AAA 1,085,970
Series 2001, 5.375%, 9/01/21 (Pre-refunded 9/01/11) - MBIA Insured
Michigan, Certificates of Participation, Series 2000:
2,000 5.500%, 6/01/19 (Pre-refunded 6/01/10) - AMBAC Insured 6/10 at 100.00 AAA 2,154,600
2,000 5.500%, 6/01/27 (Pre-refunded 6/01/10) - AMBAC Insured 6/10 at 100.00 AAA 2,154,600
2,875 Milan Area Schools, Washtenaw and Monroe Counties, Michigan, General 5/10 at 100.00 AAA 3,129,179
Obligation Bonds, Series 2000A, 5.750%, 5/01/24
(Pre-refunded 5/01/10) - FGIC Insured
4,300 Montcalm County Building Authority, Michigan, Correctional Facility 5/10 at 100.00 AAA 4,595,926
Improvement General Obligation Bonds, Series 2000, 5.250%, 5/01/25
(Pre-refunded 5/01/10) - AMBAC Insured
1,255 Morenci Area Schools, Lenawee County, Michigan, General Obligation 5/12 at 100.00 AAA 1,368,063
Bonds, Series 2002, 5.250%, 5/01/19 (Pre-refunded 5/01/12)
- MBIA Insured
Muskegon Heights, Muskegon County, Michigan, Water Supply System
Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 (Pre-refunded 11/01/10) - MBIA Insured 11/10 at 100.00 Aaa 1,133,746
1,160 5.625%, 11/01/30 (Pre-refunded 11/01/10) - MBIA Insured 11/10 at 100.00 Aaa 1,264,562
1,625 Northville Public Schools, Wayne County, Michigan, General Obligation 11/11 at 100.00 AA (4) 1,774,224
Bonds, Series 2001, 5.375%, 5/01/18 (Pre-refunded 11/01/11)
1,125 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/10 at 101.00 BBB+ (4) 1,246,106
Bonds, Series 2000B, 6.000%, 7/01/39 (Pre-refunded 7/01/10)
85 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call BBB- (4) 105,154
Bonds, Series 2002E, 6.000%, 8/01/26 (ETM)
220 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 232,085
Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10)
1,000 Rochester Community School District, Oakland and Macomb Counties, 5/10 at 100.00 AAA 1,088,410
Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19
(Pre-refunded 5/01/10) - FGIC Insured
2,100 Romulus Community Schools, Wayne County, Michigan, Unlimited Tax 5/09 at 100.00 AAA 2,248,848
General Obligation School Building and Site Bonds, Series 1999,
5.750%, 5/01/25 (Pre-refunded 5/01/09) - FGIC Insured
2,500 Taylor Building Authority, Wayne, Michigan, Limited Tax General 3/10 at 100.00 AAA 2,654,725
Obligation Bonds, Series 2000, 5.125%, 3/01/17 (Pre-refunded
3/01/10) - AMBAC Insured
1,980 Washtenaw County Building Authority, Michigan, Limited Tax General 9/07 at 100.00 AAA 2,044,132
Obligation Bonds, Series 1999, 5.400%, 9/01/17
(Pre-refunded 9/01/07) - FGIC Insured
2,600 West Bloomfield School District, Oakland County, Michigan, Unlimited 5/10 at 100.00 AAA 2,845,128
Tax General Obligation School Building and Site Bonds, Series 2000,
5.900%, 5/01/18 (Pre-refunded 5/01/10) - FGIC Insured
1,125 Whitehall District Schools, Muskegon County, Michigan, General 11/11 at 100.00 AA (4) 1,235,554
Obligation Bonds, Series 2001, 5.500%, 5/01/17 (Pre-refunded 11/01/11)
-----------------------------------------------------------------------------------------------------------------------------------
67,980 Total U.S. Guaranteed 73,251,813
-----------------------------------------------------------------------------------------------------------------------------------
Utilities - 12.3% (8.2% of Total Investments)
3,000 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 1/12 at 100.00 AAA 3,189,240
Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured
3,225 Michigan South Central Power Agency, Power Supply System Revenue Bonds, No Opt. Call A3 3,488,483
Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/09 at 102.00 AAA 1,049,980
Control Revenue Refunding Bonds, Detroit Edison Company, Series
1999A, 5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax)
4,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/11 at 100.00 A3 4,123,680
Control Revenue Refunding Bonds, Detroit Edison Company, Series
2001C, 5.450%, 9/01/29
2,000 Michigan Strategic Fund, Limited Obligation Pollution Control 9/30 at 100.00 Aaa 2,083,440
Revenue Refunding Bonds, Detroit Edison Company, Series 1995CC,
4.850%, 9/01/30 (Mandatory put 9/01/11) - AMBAC Insured
26
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Utilities (continued)
$ 3,630 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, No Opt. Call AAA $ 4,729,600
Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 - AMBAC Insured
3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 12/12 at 100.00 AAA 3,146,100
Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - XLCA
Insured (Alternative Minimum Tax)
400 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 426,668
2000HH, 5.250%, 7/01/29 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
20,255 Total Utilities 22,237,191
-----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 14.8% (9.8% of Total Investments)
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 1,745,655
Series 2001B, 5.500%, 7/01/29 - FGIC Insured
2,000 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, 7/13 at 100.00 AAA 2,135,000
Series 2003A, 5.000%, 7/01/17 - FSA Insured
730 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 771,289
Series 2001A, 5.250%, 7/01/33 - FGIC Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds,
Series 2003A:
4,025 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 4,239,009
3,000 5.000%, 7/01/25 - MBIA Insured 7/13 at 100.00 AAA 3,164,790
5,330 Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 7/15 at 100.00 AAA 5,580,457
2005, 5.000%, 1/01/30 - MBIA Insured
4,210 Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue 10/14 at 100.00 AAA 4,510,762
Bonds, Series 2004, 5.000%, 10/01/19
2,100 Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue 10/15 at 100.00 AAA 2,245,152
Bonds, Series 2005, 5.000%, 10/01/22
1,100 Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue 10/12 at 100.00 AAA 1,189,397
Refunding Bonds, Series 2002, 5.250%, 10/01/18
1,150 Michigan Municipal Bond Authority, Drinking Water Revolving Fund Revenue 10/14 at 100.00 AAA 1,220,058
Bonds, Series 2004, 5.000%, 10/01/23
-----------------------------------------------------------------------------------------------------------------------------------
25,145 Total Water and Sewer 26,801,569
-----------------------------------------------------------------------------------------------------------------------------------
$ 262,789 Total Investments (cost $256,014,375) - 150.3% 272,405,027
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 2,880,402
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.9)% (94,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $181,285,429
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption. There
may be other call provisions at varying prices at later
dates. Certain mortgage-backed securities may be subject
to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below Baa by Moody's Investor Service,
Inc. or BBB by Standard & Poor's Group are considered to
be below investment grade.
(4) 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.
(ETM) Security is escrowed to maturity.
See accompanying notes to financial statements
27
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 7.4% (5.1% of Total Investments)
$ 440 Chandler Park Academy, Michigan, Public School Academy Charter School 11/15 at 100.00 BBB- $ 436,643
Revenue Bonds, Series 2005, 5.125%, 11/01/35
Eastern Michigan University, General Revenue Bonds, Series 2003:
1,000 5.000%, 6/01/28 - FGIC Insured 6/13 at 100.00 AAA 1,039,420
1,450 5.000%, 6/01/33 - FGIC Insured 6/13 at 100.00 AAA 1,499,808
2,000 Michigan Higher Education Student Loan Authority, Revenue Bonds, Series 9/12 at 100.00 AAA 2,085,180
2002 XVII-G, 5.200%, 9/01/20 - AMBAC Insured (Alternative Minimum Tax)
3,500 Wayne State University, Michigan, General Revenue Bonds, Series 1999, 11/09 at 101.00 AAA 3,677,660
5.125%, 11/15/29 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
8,390 Total Education and Civic Organizations 8,738,711
-----------------------------------------------------------------------------------------------------------------------------------
Health Care - 15.9% (10.8% of Total Investments)
2,050 Dearborn Hospital Finance Authority, Michigan, Hospital Revenue Bonds, 5/06 at 102.00 AAA 2,094,854
Oakwood Obligated Group, Series 1995A, 5.875%, 11/15/25 - FGIC Insured
2,200 Hancock Hospital Finance Authority, Michigan, FHA-Insured Mortgage 8/08 at 100.00 AAA 2,284,194
Hospital Revenue Bonds, Portage Health System Inc., Series 1998, 5.450%,
8/01/47 - MBIA Insured
4,300 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry 11/09 at 101.00 A1 4,576,146
Ford Health System, Series 1999A, 6.000%, 11/15/24
1,500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 3/13 at 100.00 A1 1,622,580
Bonds, Henry Ford Health System, Series 2003A, 5.625%, 3/01/17
4,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 5/09 at 101.00 AAA 4,261,960
Bonds, Mercy Mt. Clemens Corporation Obligated Group, Series 1999A,
5.750%, 5/15/29 - MBIA Insured
500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/11 at 101.00 A+ 524,060
Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31
425 Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea 5/15 at 100.00 BBB 424,184
Community Hospital, Series 2005, 5.000%, 5/15/25
325 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette 5/15 at 100.00 Baa1 326,293
General Hospital, Series 2005A, 5.000%, 5/15/26
Michigan State Hospital Finance Authority, Revenue Refunding Bonds,
Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 2/06 at 100.00 BB- 2,000,800
500 6.500%, 8/15/18 2/06 at 100.00 BB- 500,260
-----------------------------------------------------------------------------------------------------------------------------------
17,800 Total Health Care 18,615,331
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 6.2% (4.2% of Total Investments)
945 Michigan Housing Development Authority, GNMA Collateralized Limited 4/12 at 102.00 Aaa 975,864
Obligation Multifamily Housing Revenue Bonds, Burkshire Pointe
Apartments, Series 2002A, 5.400%, 10/20/32 (Alternative Minimum Tax)
1,500 Michigan Housing Development Authority, Limited Obligation Revenue Bonds, 4/06 at 101.00 AAA 1,511,460
Breton Village Green Project, Series 1993, 5.625%, 10/15/18 - FSA
Insured
2,400 Michigan Housing Development Authority, Limited Obligation Revenue Bonds, 4/06 at 101.00 AAA 2,438,040
Walled Lake Villa Project, Series 1993, 6.000%, 4/15/18 - FSA Insured
Mt. Clemens Housing Corporation, Michigan, FHA-Insured
Section 8 Assisted Multifamily Housing Revenue
Refunding Bonds, Clinton Place Project, Series 1992A:
805 6.600%, 6/01/13 6/06 at 100.00 AAA 806,143
1,500 6.600%, 6/01/22 6/06 at 100.00 AAA 1,513,080
-----------------------------------------------------------------------------------------------------------------------------------
7,150 Total Housing/Multifamily 7,244,587
-----------------------------------------------------------------------------------------------------------------------------------
28
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Long Term Care - 0.5% (0.4% of Total Investments)
$ 665 Michigan State Hospital Finance Authority, Revenue Bonds, Presbyterian 5/15 at 100.00 N/R $ 650,137
Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25
-----------------------------------------------------------------------------------------------------------------------------------
Materials - 0.9% (0.6% of Total Investments)
1,050 Dickinson County Economic Development Corporation, Michigan, Pollution 11/14 at 100.00 BBB 1,035,258
Control Revenue Bonds, International Paper Company, Series 2004A,
4.800%, 11/01/18
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 48.2% (32.9% of Total Investments)
1,475 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 11/13 at 100.00 AA 1,557,674
General Obligation Bonds, Series 2003, 5.000%, 5/01/21
2,500 Anchor Bay School District, Macomb and St. Clair Counties, Michigan, 5/11 at 100.00 AA 2,636,200
Unlimited Tax General Obligation Refunding Bonds, Series 2001, 5.000%,
5/01/21
2,250 Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, 5/15 at 100.00 AAA 2,362,883
General Obligation Bonds, Series 2005, 5.000%, 5/01/26 - MBIA Insured
1,375 Chippewa Valley Schools, Macomb County, Michigan, General Obligation 5/11 at 100.00 AA 1,417,433
Bonds, Series 2001, 5.000%, 5/01/26
Detroit City School District, Wayne County, Michigan, General Obligation
Bonds, Series 2002A:
1,815 6.000%, 5/01/20 - FGIC Insured No Opt. Call AAA 2,176,621
750 6.000%, 5/01/21 - FGIC Insured No Opt. Call AAA 904,148
2,500 Detroit City School District, Wayne County, Michigan, General Obligation 5/13 at 100.00 AAA 2,633,475
Bonds, Series 2003B, 5.000%, 5/01/23 - FGIC Insured
2,665 Detroit, Michigan, General Obligation Bonds, Series 2004A-1, 5.250%, 4/14 at 100.00 AAA 2,842,382
4/01/24 - AMBAC Insured
7,000 Detroit-Wayne County Stadium Authority, Michigan, Limited Tax General 2/07 at 102.00 AAA 7,242,408
Obligation Building Authority Stadium Bonds, Series 1997, 5.250%,
2/01/27 - FGIC Insured
1,350 Gull Lake Community Schools, Barry and Calhoun Counties, Kalamazoo, 5/14 at 100.00 AAA 1,420,227
Michigan, General Obligation Bonds, Series 2004, 5.000%, 5/01/23 - FSA
Insured
2,000 Howell Public Schools, Livingston County, Michigan, General Obligation 11/13 at 100.00 AA 2,107,480
Bonds, Series 2003, 5.000%, 5/01/22
1,000 Lansing School District, Ingham County, Michigan, General Obligation 5/14 at 100.00 AA 1,054,160
Bonds, Series 2004, 5.000%, 5/01/22
1,000 Livonia Public Schools, Wayne County, Michigan, General Obligation Bonds, 5/14 at 100.00 AAA 1,057,730
Series 2004A, 5.000%, 5/01/21 - MBIA Insured
Michigan, General Obligation Bonds, Environmental Protection Program,
Series 2003A:
1,000 5.250%, 5/01/20 5/13 at 100.00 AA 1,084,810
2,000 5.250%, 5/01/21 5/13 at 100.00 AA 2,155,480
1,000 Otsego Public Schools District, Allegan and Kalamazoo Counties, Michigan, 5/14 at 100.00 AAA 1,048,480
General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured
1,100 Oxford Area Community Schools, Oakland and Lapeer Counties, Michigan, 5/14 at 100.00 AAA 1,153,328
General Obligation Bonds, Series 2004, 5.000%, 5/01/25 - FSA Insured
2,515 Plainwell Community Schools, Allegan County, Michigan, General Obligation 11/12 at 100.00 AA 2,607,326
Bonds, Series 2002, 5.000%, 5/01/28
1,000 Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, 5/15 at 100.00 AAA 1,047,840
Series 2005, 5.000%, 5/01/27 - FSA 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 2,543,053
1,575 5.250%, 5/01/22 - FGIC Insured 11/12 at 100.00 AAA 1,698,370
1,425 Walled Lake Consolidated School District, Oakland County, Michigan, 5/14 at 100.00 AAA 1,556,043
General Obligation Bonds, Series 2004, 5.250%, 5/01/20 - MBIA Insured
2,830 Warren Consolidated School District, Macomb and Oakland Counties, 5/13 at 100.00 AA 3,066,305
Michigan, General Obligation Refunding Bonds, Series 2003, 5.250%,
5/01/20
29
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Wayne County, Michigan, Limited Tax General Obligation Airport Hotel
Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A:
$ 1,500 5.500%, 12/01/18 - MBIA Insured 12/11 at 101.00 AAA $ 1,640,955
4,270 5.000%, 12/01/30 - MBIA Insured 12/11 at 101.00 AAA 4,423,378
2,950 West Bloomfield School District, Oakland County, Michigan, General 5/14 at 100.00 AAA 3,109,772
Obligation Bonds, Series 2004, 5.000%, 5/01/22 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
53,195 Total Tax Obligation/General 56,547,961
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 17.7% (12.1% of Total Investments)
Michigan State Building Authority, Revenue Bonds, Facilities Program,
Series 2001I:
2,570 5.500%, 10/15/19 10/11 at 100.00 AA- 2,799,630
6,500 5.000%, 10/15/24 10/11 at 100.00 AA- 6,813,430
1,600 Michigan State Building Authority, Revenue Bonds, Facilities Program, 10/15 at 100.00 AAA 1,676,992
Series 2005II, 5.000%, 10/15/30 - AMBAC Insured
Michigan State Building Authority, Revenue Refunding Bonds, Facilities
Program, Series 2003II:
5,000 5.000%, 10/15/22 - MBIA Insured 10/13 at 100.00 AAA 5,273,850
2,480 5.000%, 10/15/23 - MBIA Insured 10/13 at 100.00 AAA 2,614,813
1,500 Michigan, Comprehensive Transportation Revenue Refunding Bonds, Series 11/11 at 100.00 AAA 1,594,890
2001A, 5.000%, 11/01/19 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,650 Total Tax Obligation/Limited 20,773,605
-----------------------------------------------------------------------------------------------------------------------------------
Transportation - 0.7% (0.5% of Total Investments)
1,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, American 6/06 at 100.00 CCC 802,330
Airlines Inc., Series 1993A, 6.300%, 6/01/23 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 22.7% (15.5% of Total Investments) (4)
1,000 Central Montcalm Public Schools, Montcalm and Ionia Counties, Michigan, 5/09 at 100.00 AAA 1,070,880
General Obligation Unlimited Tax School Building and Site Bonds, Series
1999, 5.750%, 5/01/24 (Pre-refunded 5/01/09) - MBIA Insured
500 Detroit City School District, Wayne County, Michigan, Unlimited Tax 5/12 at 100.00 AAA 551,980
School Building and Site Improvement Bonds, Series 2001A, 5.500%,
5/01/21 (Pre-refunded 5/01/12) - FSA Insured
4,000 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 1/10 at 101.00 AAA 4,363,840
1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured
1,385 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 7/11 at 100.00 AAA 1,498,279
2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured
2,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1999A, 1/10 at 101.00 AAA 2,191,000
5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured
3,815 East Lansing Building Authority, Ingham and Clinton Counties, Michigan, 4/11 at 100.00 AA (4) 4,138,016
Unlimited Tax General Obligation Building Authority Bonds, Series 2000,
5.375%, 4/01/25 (Pre-refunded 4/01/11)
1,185 Linden Community School District, Genesse County, Michigan, General 11/13 at 100.00 AA (4) 1,283,592
Obligation Bonds, Series 2003, 5.000%, 5/01/21 (Pre-refunded 11/01/13)
75 Michigan South Central Power Agency, Power Supply System Revenue Bonds, No Opt. Call A3 (4) 83,318
Series 2000, 6.000%, 5/01/12 (ETM)
1,500 Michigan State Building Authority, Revenue Bonds, Facilities Program, 10/10 at 100.00 AA- (4) 1,617,930
Series 2000I, 5.375%, 10/15/20 (Pre-refunded 10/15/10)
2,500 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 11/09 at 101.00 AAA 2,750,875
Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26
(Pre-refunded 11/15/09)
3,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 5/06 at 100.00 AAA 3,191,850
Bonds, St. John's Hospital, Series 1993A, 6.000%, 5/15/13 (ETM) - AMBAC
Insured
1,000 Michigan, Certificates of Participation, New Center Development Inc., 9/11 at 100.00 AAA 1,085,970
Series 2001, 5.375%, 9/01/21 (Pre-refunded 9/01/11) - MBIA Insured
1,240 Milan Area Schools, Washtenaw and Monroe Counties, Michigan, General 5/10 at 100.00 AAA 1,343,552
Obligation Bonds, Series 2000A, 5.625%, 5/01/16 (Pre-refunded 5/01/10)
- FGIC Insured
30
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 310 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA $ 327,028
Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10)
1,000 Rochester Community School District, Oakland and Macomb Counties, 5/10 at 100.00 AAA 1,088,410
Michigan, General Obligation Bonds, Series 2000I, 5.750%, 5/01/19
(Pre-refunded 5/01/10) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
24,510 Total U.S. Guaranteed 26,586,520
-----------------------------------------------------------------------------------------------------------------------------------
Utilities - 13.7% (9.4% of Total Investments)
1,000 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 1/12 at 100.00 AAA 1,063,080
Project, Series 2001A, 5.250%, 1/01/27 - AMBAC Insured
925 Michigan South Central Power Agency, Power Supply System Revenue Bonds, No Opt. Call A3 1,000,573
Series 2000, 6.000%, 5/01/12
1,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/09 at 102.00 AAA 1,049,980
Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A,
5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax)
5,000 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/11 at 100.00 A3 5,154,600
Control Revenue Refunding Bonds, Detroit Edison Company, Series 2001C,
5.450%, 9/01/29
3,000 Michigan Strategic Fund, Limited Obligation Pollution Control Revenue 9/30 at 100.00 Aaa 3,125,160
Refunding Bonds, Detroit Edison Company, Series 1995CC, 4.850%, 9/01/30
(Mandatory put 9/01/11) - AMBAC Insured
3,000 Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, 12/12 at 100.00 AAA 3,146,100
Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - XLCA Insured
(Alternative Minimum Tax)
1,500 Wyandotte, Michigan, Electric Revenue Refunding Bonds, Series 2002, 10/08 at 101.00 AAA 1,582,455
5.375%, 10/01/17 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
15,425 Total Utilities 16,121,948
-----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 12.4% (8.5% of Total Investments)
2,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, 7/15 at 100.00 AAA 2,083,020
Series 2005A, 5.000%, 7/01/30 - MBIA Insured
1,500 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 1,745,655
Series 2001B, 5.500%, 7/01/29 - FGIC Insured
4,960 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, 7/13 at 100.00 AAA 5,294,800
Series 2003A, 5.000%, 7/01/17 - FSA Insured
1,315 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/11 at 100.00 AAA 1,389,376
Series 2001A, 5.250%, 7/01/33 - FGIC Insured
1,000 Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue 10/15 at 100.00 AAA 1,069,120
Bonds, Series 2005, 5.000%, 10/01/22
2,800 Michigan Municipal Bond Authority, Drinking Water Revolving Fund Revenue 10/14 at 100.00 AAA 2,970,576
Bonds, Series 2004, 5.000%, 10/01/23
-----------------------------------------------------------------------------------------------------------------------------------
13,575 Total Water and Sewer 14,552,547
-----------------------------------------------------------------------------------------------------------------------------------
$ 162,410 Total Investments (cost $163,304,801) - 146.3% 171,668,935
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 1,653,660
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.7)% (56,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $117,322,595
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below Baa by Moody's Investor Service, Inc.
or BBB by Standard & Poor's Group are considered to be
below investment grade.
(4) 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.
(ETM) Security is escrowed to maturity.
See accompanying notes to financial statements.
31
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 7.9% (5.4% of Total Investments)
$ 230 Chandler Park Academy, Michigan, Public School Academy Charter School 11/15 at 100.00 BBB- $ 228,245
Revenue Bonds, Series 2005, 5.125%, 11/01/35
1,150 Michigan Higher Education Facilities Authority, Limited Obligation 9/11 at 100.00 Aaa 1,187,525
Revenue Refunding Bonds, Kettering University, Series 2001, 5.000%,
9/01/26 - AMBAC Insured
1,010 Michigan Technological University, General Revenue Bonds, Series 2004A, 10/13 at 100.00 AAA 1,072,166
5.000%, 10/01/20 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
2,390 Total Education and Civic Organizations 2,487,936
-----------------------------------------------------------------------------------------------------------------------------------
Health Care - 16.0% (10.8% of Total Investments)
500 Allegan Hospital Finance Authority, Michigan, Revenue Bonds, Allegan 11/09 at 101.00 N/R 530,740
General Hospital, Series 1999, 7.000%, 11/15/21
500 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 5/06 at 102.00 A1 510,050
Bonds, Henry Ford Health System, Series 1995A, 5.250%, 11/15/20
700 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 7/06 at 102.00 Ba3 705,880
Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16
750 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/11 at 101.00 A+ 786,090
Bonds, Sparrow Obligated Group, Series 2001, 5.625%, 11/15/31
425 Michigan State Hospital Finance Authority, Revenue Bonds, Chelsea 5/15 at 100.00 BBB 415,323
Community Hospital, Series 2005, 5.000%, 5/15/30
200 Michigan State Hospital Finance Authority, Revenue Bonds, Marquette 5/15 at 100.00 Baa1 200,796
General Hospital, Series 2005A, 5.000%, 5/15/26
1,800 Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, 11/11 at 100.00 AAA 1,868,940
William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,875 Total Health Care 5,017,819
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.6% (3.8% of Total Investments)
1,700 Michigan Housing Development Authority, GNMA Collateralized Limited 8/12 at 102.00 Aaa 1,764,651
Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments,
Series 2001A, 5.400%, 2/20/31 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.1% (2.8% of Total Investments)
1,250 Michigan Housing Development Authority, Single Family Mortgage Revenue 1/11 at 100.00 AAA 1,292,000
Bonds, Series 2001, 5.300%, 12/01/16 - MBIA Insured (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Industrials - 1.6% (1.1% of Total Investments)
500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, Republic 8/31 at 100.00 BBB+ 487,340
Services Inc., Series 2001, 4.250%, 8/01/31 (Mandatory put 4/01/14)
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.0% (0.6% of Total Investments)
335 Michigan State Hospital Finance Authority, Revenue Bonds, Presbyterian 5/15 at 100.00 N/R 327,513
Villages of Michigan Obligated Group, Series 2005, 5.250%, 11/15/25
-----------------------------------------------------------------------------------------------------------------------------------
Materials - 1.6% (1.0% of Total Investments)
500 Dickinson County Economic Development Corporation, Michigan, Pollution 11/14 at 100.00 BBB 492,980
Control Revenue Bonds, International Paper Company, Series 2004A,
4.800%, 11/01/18
-----------------------------------------------------------------------------------------------------------------------------------
32
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 29.6% (20.0% of Total Investments)
$ 500 Fitzgerald Public School District, Macomb County, Michigan, General 11/14 at 100.00 AAA $ 538,685
Obligation Bonds, Series 2004B, 5.000%, 5/01/16 - AMBAC Insured
1,000 Garden City School District, Wayne County, Michigan, General Obligation 5/11 at 100.00 AA 1,030,860
Refunding Bonds, Series 2001, 5.000%, 5/01/26
1,500 Huron Valley School District, Oakland and Livingston Counties, Michigan, 11/11 at 100.00 AA 1,549,410
General Obligation Bonds, Series 2001, 5.000%, 5/01/27
500 Jackson Public Schools, Jackson County, Michigan, General Obligation 5/14 at 100.00 AAA 527,080
School Building and Site Bonds, Series 2004, 5.000%, 5/01/22 - FSA
Insured
1,150 Muskegon County, Michigan, Limited Tax General Obligation Wastewater 7/11 at 100.00 AAA 1,186,524
Management System 2 Revenue Bonds, Series 2002, 5.000%, 7/01/26 - 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 522,315
800 5.000%, 5/01/20 - MBIA Insured 5/09 at 100.50 AAA 835,704
1,650 Wayne County, Michigan, Limited Tax General Obligation Airport Hotel 12/11 at 101.00 AAA 1,709,268
Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A,
5.000%, 12/01/30 - MBIA Insured
1,300 Willow Run Community Schools, Washtenaw County, Michigan, General 5/11 at 100.00 AA 1,370,824
Obligation Bonds, Series 2001, 5.000%, 5/01/21
-----------------------------------------------------------------------------------------------------------------------------------
8,900 Total Tax Obligation/General 9,270,670
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 10.0% (6.8% of Total Investments)
1,100 Grand Rapids Building Authority, Kent County, Michigan, Limited Tax 10/11 at 100.00 AAA 1,143,967
General Obligation Bonds, Series 2001, 5.125%, 10/01/26 - MBIA Insured
1,205 Michigan State Building Authority, Revenue Bonds, Facilities Program, 10/11 at 100.00 AA- 1,263,105
Series 2001I, 5.000%, 10/15/24
615 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, No Opt. Call BBB- 730,774
Series 2002E, 6.000%, 8/01/26
-----------------------------------------------------------------------------------------------------------------------------------
2,920 Total Tax Obligation/Limited 3,137,846
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 41.8% (28.3% of Total Investments) (4)
1,000 Detroit City School District, Wayne County, Michigan, General Obligation 5/13 at 100.00 AAA 1,102,790
Bonds, Series 2002A, 5.375%, 5/01/24 (Pre-refunded 5/01/13) - FGIC
Insured
1,000 Detroit City School District, Wayne County, Michigan, Unlimited Tax 5/12 at 100.00 AAA 1,103,960
School Building and Site Improvement Bonds, Series 2001A, 5.500%,
5/01/21 (Pre-refunded 5/01/12) - FSA Insured
515 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 7/11 at 100.00 AAA 557,122
2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured
2,200 Huron School District, Wayne and Monroe Counties, Michigan, General 5/11 at 100.00 AAA 2,388,671
Obligation Bonds, Series 2001, 5.375%, 5/01/26 (Pre-refunded 5/01/11) -
FSA Insured
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, Spectrum 7/11 at 101.00 AA (4) 1,086,800
Health, Series 2001A, 5.250%, 1/15/21 (Pre-refunded 7/15/11)
1,000 Michigan Municipal Bond Authority, Drinking Water Revolving Fund Revenue 10/10 at 101.00 AAA 1,105,110
Bonds, Series 2000, 5.875%, 10/01/17 (Pre-refunded 10/01/10)
2,000 Michigan State Trunk Line, Fund Bonds, Series 2001A, 5.000%, 11/01/25 11/11 at 100.00 AAA 2,145,020
(Pre-refunded 11/01/11) - FSA Insured
1,000 Oxford Area Community Schools, Oakland and Lapeer Counties, Michigan, 11/11 at 100.00 AA (4) 1,098,270
General Obligation Bonds, Series 2001, 5.500%, 5/01/17 (Pre-refunded
11/01/11)
500 Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, 10/10 at 101.00 AAA 539,870
Series 2000A, 5.500%, 10/01/40 (ETM)
85 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, No Opt. Call BBB- (4) 105,154
Series 2002E, 6.000%, 8/01/26 (ETM)
235 Puerto Rico, General Obligation and Public Improvement Bonds, Series 7/11 at 100.00 Aaa 253,748
2001A, 5.125%, 7/01/31 (Pre-refunded 7/01/11)
33
Nuveen Michigan Dividend Advantage Municipal Fund (NZW) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
$ 1,000 Rochester Community School District, Oakland and Macomb Counties, 11/11 at 100.00 AA (4) $ 1,098,270
Michigan, General Obligation Bonds, Series 2001II, 5.500%, 5/01/22
(Pre-refunded 11/01/11)
500 Warren Building Authority, Michigan, Limited Tax General Obligation 11/10 at 100.00 AAA 534,770
Bonds, Series 2001, 5.150%, 11/01/22 (Pre-refunded 11/01/10) - FGIC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
12,035 Total U.S. Guaranteed 13,119,555
-----------------------------------------------------------------------------------------------------------------------------------
Utilities - 15.3% (10.4% of Total Investments)
1,115 Lansing Board of Water and Light, Michigan, Steam and Electric Utility 7/13 at 100.00 AAA 1,177,919
System Revenue Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured
1,235 Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 1/12 at 100.00 AAA 1,322,290
Project, Series 2001A, 5.250%, 1/01/24 - AMBAC Insured
2,215 Michigan Strategic Fund, Collateralized Limited Obligation Pollution 9/11 at 100.00 A3 2,308,251
Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison
Company, Series 1999C, 5.650%, 9/01/29 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
4,565 Total Utilities 4,808,460
-----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 13.4% (9.0% of Total Investments)
1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, No Opt. Call AAA 1,163,770
Series 2001B, 5.500%, 7/01/29 - FGIC Insured
1,000 Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, 7/13 at 100.00 AAA 1,067,500
Series 2003A, 5.000%, 7/01/17 - FSA Insured
Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series
2001A:
1,000 5.000%, 7/01/30 - FGIC Insured 7/11 at 100.00 AAA 1,025,940
485 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 512,432
400 Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue 10/15 at 100.00 AAA 427,648
Bonds, Series 2005, 5.000%, 10/01/22
-----------------------------------------------------------------------------------------------------------------------------------
3,885 Total Water and Sewer 4,197,290
-----------------------------------------------------------------------------------------------------------------------------------
$ 43,855 Total Investments (cost $44,070,284) - 147.9% 46,404,060
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 962,848
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (16,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 31,366,908
=====================================================================================================================
Forward Swaps outstanding at January 31, 2006:
Fixed Rate Floating Rate
Paid Fixed Rate Received Floating Rate Unrealized
Notional by the Fund Payment by the Fund Payment Effective Termination Appreciation
Counterparty Amount (annualized) Frequency Based On Frequency Date (5) Date (Depreciation)
-----------------------------------------------------------------------------------------------------------------------------------
JPMorgan $1,100,000 5.075% Semi-Annually 3 Month USD-LIBOR Quarterly 2/22/06 2/22/26 $ 9,432
JPMorgan 700,000 4.833 Semi-Annually 3 Month USD-LIBOR Quarterly 2/09/06 2/09/36 33,991
-----------------------------------------------------------------------------------------------------------------------------------
$43,423
===================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below Baa by Moody's Investor Service, Inc.
or BBB by Standard & Poor's Group are considered to be
below investment grade.
(4) 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.
(5) Effective date represents the date on which both the Fund
and counterparty commence interest payment accruals on each
forward swap contract.
N/R Investment is not rated.
(ETM) Security is escrowed to maturity.
See accompanying notes to financial statements.
34
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.7% (1.2% of Total Investments)
$ 2,710 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 5/12 at 100.00 BBB $ 2,760,379
Refunding Bonds, Series 2002, 5.375%, 5/15/33
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.3% (7.0% of Total Investments)
1,750 Ohio Higher Education Facilities Commission, General Revenue Bonds, 10/13 at 100.00 AA 1,840,773
Oberlin College, Series 2003, 5.125%, 10/01/24
1,000 Ohio Higher Education Facilities Commission, Revenue Bonds, Wittenberg 12/15 at 100.00 Baa1 1,009,610
University, Series 2005, 5.000%, 12/01/29
1,415 Ohio Higher Educational Facilities Commission, Revenue Bonds, Denison 11/14 at 100.00 AA 1,494,962
University, Series 2004, 5.000%, 11/01/21
1,320 Ohio Higher Educational Facilities Commission, Revenue Bonds, University 12/14 at 100.00 AAA 1,384,759
of Dayton, Series 2004, 5.000%, 12/01/25 - AMBAC Insured
1,200 Ohio Higher Educational Facilities Commission, Revenue Bonds, University 9/06 at 101.00 Ba1 1,217,964
of Findlay, Series 1996, 6.125%, 9/01/16
1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, Wittenberg 12/11 at 100.00 Baa1 1,067,490
University, Series 2001, 5.500%, 12/01/15
1,200 Ohio State University, General Receipts Bonds, Series 2002A, 5.125%, 12/12 at 100.00 AA 1,249,356
12/01/31
3,000 Ohio State University, General Receipts Bonds, Series 2003B, 5.250%, 6/13 at 100.00 AA 3,242,670
6/01/22
1,510 University of Akron, Ohio, General Receipts Bonds, Series 2003A, 5.000%, 1/13 at 100.00 AAA 1,593,216
1/01/21 - AMBAC Insured
850 University of Cincinnati, Ohio, General Receipts Bonds, Series 2003C, 6/13 at 100.00 AAA 895,781
5.000%, 6/01/22 - FGIC Insured
1,200 University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D, 6/14 at 100.00 AAA 1,276,824
5.000%, 6/01/19 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
15,445 Total Education and Civic Organizations 16,273,405
-----------------------------------------------------------------------------------------------------------------------------------
Health Care - 23.1% (15.8% of Total Investments)
2,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital 11/09 at 101.00 Baa1 2,038,240
Facilities Revenue Bonds, Summa Health System, Series 1998A,
5.375%, 11/15/24
1,000 Cuyahoga County, Ohio, Hospital Revenue Refunding and Improvement Bonds, 2/07 at 102.00 AAA 1,040,070
MetroHealth System, Series 1997, 5.625%, 2/15/17 - MBIA Insured
2,000 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland Clinic Health 7/13 at 100.00 Aa3 2,201,880
System, Series 2003A, 6.000%, 1/01/32
4,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands Regional 8/12 at 101.00 A 4,696,290
Medical Center, Series 2002A, 5.625%, 8/15/32
Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds,
Children's Hospital Project, Series 1996A:
1,000 5.750%, 11/01/20 11/06 at 101.00 Aa2 1,020,310
1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,530,720
2,455 Hamilton County, Ohio, Revenue Bonds, Children's Hospital Medical 5/14 at 100.00 AAA 2,665,934
Center, Series 2004J, 5.250%, 5/15/16 - FGIC Insured
2,405 Miami County, Ohio, Hospital Facilities Revenue Refunding and Improvement 5/06 at 102.00 BBB+ 2,466,111
Bonds, Upper Valley Medical Center, Series 1996A, 6.250%, 5/15/16
1,500 Montgomery County, Ohio, Hospital Facilities Revenue Refunding and 4/06 at 102.00 AAA 1,535,535
Improvement Bonds, Kettering Medical Center, Series 1996, 5.625%,
4/01/16 - MBIA Insured
35
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Health Care (continued)
Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives,
Series 2004A:
$ 2,500 5.000%, 5/01/30 5/14 at 100.00 AA $ 2,562,650
2,500 5.000%, 5/01/32 No Opt. Call AA 2,559,725
6,000 Parma Community General Hospital Association, Ohio, Hospital Revenue 11/08 at 101.00 A- 6,136,977
Refunding and Improvement Bonds, Series 1998, 5.375%, 11/01/29
2,500 Richland County, Ohio, Hospital Facilities Revenue Improvement Bonds, 11/10 at 101.00 A- 2,708,125
MedCentral Health System Obligated Group, Series 2000B, 6.375%,
11/15/30
1,500 Steubenville, Ohio, Hospital Facilities Revenue Refunding and Improvement 10/10 at 100.00 A3 1,630,560
Bonds, Trinity Health System, Series 2000, 6.375%, 10/01/20
1,705 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, Union 10/11 at 101.00 AA 1,849,055
Hospital Project, Series 2001, 5.750%, 10/01/21 - RAAI Insured
-----------------------------------------------------------------------------------------------------------------------------------
35,065 Total Health Care 36,642,182
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.9% (4.0% of Total Investments)
1,385 Clermont County, Ohio, GNMA Collateralized Mortgage Revenue Bonds, 2/06 at 101.00 Aaa 1,393,476
S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30
1,000 Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage 9/12 at 102.00 Aaa 1,034,950
Revenue Bonds, Livingston Park Apartments Project, Series 2002A,
5.350%, 9/20/27 (Alternative Minimum Tax)
Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage
Revenue Bonds, Longwood Phase One Associates LP, Series 2001A:
2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,582,118
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,327,580
975 Cuyahoga County, Ohio, GNMA Collateralized Multifamily Housing Mortgage 9/10 at 102.00 Aaa 995,719
Revenue Bonds, West Tech Apartments Project, Series 2002A, 5.350%,
3/20/33 (Alternative Minimum Tax)
985 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage Revenue 7/06 at 102.00 Aa 996,909
Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%,
7/01/24 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
9,070 Total Housing/Multifamily 9,330,752
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.6% (2.5% of Total Investments)
1,295 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 9/07 at 102.00 Aaa 1,317,313
Residential Mortgage Revenue Bonds, Series 1996B-3, 5.750%, 9/01/28
(Alternative Minimum Tax)
2,140 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 9/08 at 102.00 Aaa 2,185,026
Residential Mortgage Revenue Bonds, Series 1997B, 5.400%, 9/01/29
(Alternative Minimum Tax)
2,045 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 3/08 at 101.50 AAA 2,099,254
Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 -
FSA Insured (Alternative Minimum Tax)
125 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 3/12 at 100.00 Aaa 128,374
Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
5,605 Total Housing/Single Family 5,729,967
-----------------------------------------------------------------------------------------------------------------------------------
Industrials - 0.4% (0.3% of Total Investments)
530 Cleveland-Cuyahoga County Port Authority, Ohio, Bond Fund Program 11/14 at 100.00 N/R 546,833
Development Revenue Bonds, Myers University, Series 2004E, 5.600%,
5/15/25
-----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 0.7% (0.4% of Total Investments)
1,000 Hamilton County, Ohio, Healthcare Facilities Improvement Revenue Bonds, 10/08 at 102.00 BBB 1,039,810
Twin Towers, Series 1999A, 5.800%, 10/01/23
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 48.1% (32.7% of Total Investments)
1,000 Ansonia Local School District, Darke County, Ohio, General Obligation 12/10 at 102.00 Aaa 1,103,760
Bonds, Series 2000, 5.500%, 12/01/22 - MBIA Insured
1,000 Bay Village City School District, Ohio, General Obligation Unlimited Tax 12/10 at 100.00 Aa2 1,042,250
School Improvement Bonds, Series 2001, 5.000%, 12/01/25
270 Berea City School District, Ohio, General Obligation Unlimited Tax School 12/06 at 100.00 AAA 270,915
Improvement Bonds, Series 1993, 7.500%, 12/15/06 - AMBAC Insured
36
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
Butler County, Ohio, General Obligation Bonds, Series 2002:
$ 1,345 5.000%, 12/01/21 - MBIA Insured 12/12 at 100.00 Aaa $ 1,422,378
1,200 5.000%, 12/01/22 - MBIA Insured 12/12 at 101.00 Aaa 1,266,072
Butler County, Ohio, General Obligation Judgment Bonds, Series 2002:
2,030 5.250%, 12/01/21 12/12 at 101.00 Aa3 2,200,601
2,140 5.250%, 12/01/22 12/12 at 101.00 Aa3 2,319,846
1,560 Canal Winchester Local School District, Franklin and Fairfield Counties, 12/11 at 100.00 Aaa 1,609,624
Ohio, School Facilities Construction and Improvement Bonds, Series
2001B, 5.000%, 12/01/28 - FGIC Insured
1,500 Centerville City School District, Montgomery County, Ohio, General 6/15 at 100.00 Aaa 1,569,945
Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured
1,000 Central Ohio Solid Waste Authority, General Obligation Bonds, Series 6/14 at 100.00 AAA 1,074,480
2004A, 5.000%, 12/01/15 - AMBAC Insured
2,600 Cincinnati City School District, Hamilton County, Ohio, General 12/12 at 100.00 AAA 2,805,712
Obligation Bonds, Series 2002, 5.250%, 6/01/21 - FSA Insured
1,000 Cleveland Municipal School District, Cuyahoga County, Ohio, General 6/14 at 100.00 AAA 1,054,630
Obligation Bonds, Series 2004, 5.000%, 12/01/22 - FSA Insured
1,200 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AA+ 1,278,840
12/01/21
1,000 Dayton, Ohio, General Obligation Bonds, Series 2004, 5.250%, 6/14 at 100.00 AAA 1,093,200
12/01/19 - AMBAC Insured
1,000 Dublin City School District, Franklin, Delaware and Union Counties, Ohio, 12/13 at 100.00 AAA 1,055,060
General Obligation Bonds, Series 2003, 5.000%, 12/01/22 - FSA Insured
1,000 Dublin, Ohio, Unlimited Tax Various Purpose Improvement Bonds, Series 12/10 at 100.00 Aaa 1,056,410
2000A, 5.000%, 12/01/20
1,195 Fairview Park City School District, Cuyahoga County, Ohio, General 6/15 at 100.00 Aaa 1,264,812
Obligation Bonds, Series 2005, 5.000%, 12/01/24 - MBIA Insured
1,300 Franklin County, Ohio, Limited Tax General Obligation Refunding Bonds, 12/08 at 102.00 AAA 1,388,894
Series 1993, 5.375%, 12/01/20
2,000 Garfield Heights City School District, Cuyahoga County, Ohio, General 12/11 at 100.00 Aaa 2,072,400
Obligation School Improvement Bonds, Series 2001, 5.000%,
12/15/26 - MBIA Insured
1,160 Kenston Local School District, Geauga County, Ohio, General Obligation 6/13 at 100.00 Aaa 1,223,754
Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured
2,000 Louisville City School District, Ohio, General Obligation Bonds, 12/11 at 100.00 Aaa 2,061,540
Series 2001, 5.000%, 12/01/29 - FGIC Insured
1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Aaa 1,634,867
Series 2003, 5.250%, 12/01/21 - MBIA Insured
760 Middletown City School District, Butler County, Ohio, General Obligation 12/13 at 100.00 Aaa 802,317
Bonds, Series 2004, 5.000%, 12/01/25 - FGIC Insured
1,260 Morgan Local School District, Morgan, Muskingum and Washington 12/10 at 101.00 AA 1,389,263
Counties, Ohio, Unlimited Tax General Obligation School Improvement
Bonds, Series 2000, 5.750%, 12/01/22
1,000 Newark City School District, Licking County, Ohio, General Obligation 12/15 at 100.00 AAA 1,051,090
Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured
3,000 Ohio, General Obligation Bonds, Infrastructure Improvements, Series 2/13 at 100.00 AA+ 3,158,760
2003F, 5.000%, 2/01/23
5,000 Ohio, General Obligation Bonds, Series 2005A, 5.000%, 9/01/20 3/15 at 100.00 AA+ 5,351,950
Olentangy Local School District, Delaware and Franklin Counties, Ohio,
General Obligation Bonds, Series 2004A:
1,315 5.250%, 12/01/23 - FGIC Insured 6/14 at 100.00 AAA 1,433,652
3,380 5.250%, 12/01/24 - FGIC Insured 6/14 at 100.00 AAA 3,677,474
1,510 Painesville City School District, Ohio, General Obligation Bonds, 12/14 at 100.00 AAA 1,601,159
Series 2004, 5.000%, 12/01/22 - FGIC Insured
1,155 Perry Local School District, Allen County, Ohio, General Obligation 12/11 at 101.00 AAA 1,247,631
Bonds, Series 2001, 5.250%, 12/01/25 - AMBAC Insured
2,720 Pickerington Local School District, Fairfield and Franklin Counties, 12/11 at 100.00 AAA 2,806,523
Ohio, General Obligation Bonds, School Facilities Construction and
Improvement, Series 2001, 5.000%, 12/01/28 - FGIC Insured
37
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 280 Plain Local School District, Franklin and Licking Counties, Ohio, 6/11 at 100.00 Aaa $ 311,539
General Obligation Bonds, Series 2000, 6.000%, 12/01/20 - FGIC Insured
1,100 Plain Local School District, Franklin and Licking Counties, Ohio, General 6/12 at 100.00 Aaa 1,203,356
Obligation Bonds, Series 2002, 5.500%, 12/01/17 - FGIC Insured
1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 5.000%, 12/11 at 100.00 AAA 1,492,468
12/01/27 - FGIC Insured
1,000 Princeton City School District, Butler County, Ohio, General Obligation 12/13 at 100.00 AAA 1,040,340
Bonds, Series 2003, 5.000%, 12/01/30 - MBIA Insured
2,830 Springfield Township, Hamilton County, Ohio, Various Purpose Limited 12/11 at 100.00 Aa3 2,982,905
Tax General Obligation Bonds, Series 2002, 5.250%, 12/01/27
2,000 Strongsville, Ohio, General Obligation Bonds, Series 2001, 5.000%, 12/11 at 100.00 Aaa 2,114,440
12/01/21 - FGIC Insured
70 Strongsville, Ohio, Limited Tax General Obligation Various Purpose 12/06 at 102.00 Aa2 72,785
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 2,140,480
Obligation Bonds, Series 2003, 5.250%, 12/01/27 - MBIA Insured
Warren City School District, Trumbull County, Ohio, General Obligation
Bonds, Series 2004:
2,515 5.000%, 12/01/20 - FGIC Insured 6/14 at 100.00 AAA 2,679,682
1,170 5.000%, 12/01/22 - FGIC Insured 6/14 at 100.00 AAA 1,237,287
1,000 West Chester Township, Butler County, Ohio, General Obligation Bonds, 12/13 at 100.00 Aaa 1,042,360
Series 2003, 5.000%, 12/01/28 - MBIA Insured
2,000 Westerville City School District, Franklin and Delaware Counties, 6/11 at 100.00 AAA 2,060,680
Ohio, Various Purpose General Obligation Bonds, Series 2001,
5.000%, 12/01/27 - MBIA Insured
1,000 Westlake, Ohio, Various Purpose General Obligation Improvement and 12/08 at 101.00 Aaa 1,063,990
Refunding Bonds, Series 1997, 5.550%, 12/01/17
2,155 Youngstown City School District, Mahoning County, Ohio, General 12/14 at 100.00 AAA 2,268,827
Obligation Bonds, Series 2005, 5.000%, 12/01/25 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
71,680 Total Tax Obligation/General 76,100,948
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 10.5% (7.1% of Total Investments)
1,380 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/14 at 100.00 AAA 1,442,555
Series 2004A, 5.000%, 12/01/25 - AMBAC Insured
3,000 Franklin County, Ohio, Excise Tax and Lease Revenue Anticipation Bonds, 12/15 at 100.00 AAA 3,160,620
Convention Facilities Authority, Series 2005, 5.000%,
12/01/27 - AMBAC Insured
1,085 Hamilton County Convention Facilities Authority, Ohio, First Lien 6/14 at 100.00 AAA 1,155,254
Revenue Bonds, Series 2004, 5.000%, 12/01/18 - FGIC Insured
1,000 Hudson City School District, Ohio, Certificates of Participation, 6/14 at 100.00 Aaa 1,041,780
Series 2004, 5.000%, 6/01/26 - MBIA 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 1,096,070
1,000 5.500%, 10/01/17 - AMBAC Insured 4/12 at 100.00 AAA 1,091,760
175 Ohio Department of Transportation, Certificates of Participation, 4/06 at 100.00 AA 175,233
Rickenbacker International Airport Improvements, Series 1996,
6.125%, 4/15/15 (Alternative Minimum Tax)
800 Ohio State Building Authority, State Facilities Bonds, Administrative 4/15 at 100.00 AAA 843,560
Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured
2,645 Ohio State Building Authority, State Facilities Bonds, Adult Correctional 4/14 at 100.00 AAA 2,897,386
Building Fund Project, Series 2004A, 5.250%, 4/01/15 - MBIA Insured
2,500 Ohio State Building Authority, State Facilities Bonds, Adult Correctional 4/15 at 100.00 AAA 2,636,125
Building Fund Project, Series 2005A, 5.000%, 4/01/25 - FSA Insured
1,000 Ohio, State Appropriation Lease Bonds, Mental Health Capital 6/13 at 100.00 AA 1,074,400
Facilities, Series 2003B-II, 5.000%, 6/01/16
-----------------------------------------------------------------------------------------------------------------------------------
15,585 Total Tax Obligation/Limited 16,614,743
-----------------------------------------------------------------------------------------------------------------------------------
38
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Transportation - 7.8% (5.3% of Total Investments)
$ 1,780 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 5.250%, 1/10 at 101.00 AAA $ 1,893,083
1/01/16 - FSA Insured
3,430 Cleveland, Ohio, Parking Facilities Revenue Refunding Bonds, Series 9/06 at 102.00 AAA 3,538,903
1996, 5.500%, 9/15/22 - MBIA Insured
3,000 Dayton, Ohio, Airport Revenue Bonds, James M. Cox International Airport, 12/13 at 100.00 AA 3,103,920
Series 2003C, 5.250%, 12/01/23 - RAAI Insured (Alternative Minimum Tax)
1,500 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, 2/08 at 102.00 AAA 1,578,135
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, 5.500%, No Opt. Call AAA 2,285,420
2/15/18 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,710 Total Transportation 12,399,461
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 17.8% (12.1% of Total Investments) (4)
1,000 Cincinnati City School District, Hamilton County, Ohio, General 12/11 at 100.00 AAA 1,095,070
Obligation Bonds, Series 2001, 5.375%, 12/01/15 (Pre-refunded
12/01/11) - MBIA Insured
420 Cleveland, Ohio, Waterworks Revenue Refunding and Improvement Bonds, 1/08 at 101.00 AAA 436,888
Series 1998I, 5.000%, 1/01/28 (Pre-refunded 1/01/08) - FSA Insured
1,210 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, Series 6/09 at 101.00 AAA 1,276,356
1999, 4.875%, 12/01/24 (Pre-refunded 6/01/09) - AMBAC Insured
1,415 Franklin County, Ohio, First Mortgage Revenue, OCLC Inc. Project, 6/06 at 100.00 AAA 1,489,118
Series 1979, 7.500%, 6/01/09 (ETM)
2,110 Hamilton County, Ohio, Sewer System Revenue and Improvement Bonds, 6/10 at 101.00 AAA 2,321,148
Metropolitan Sewer District of Greater Cincinnati, Series 2000A,
5.750%, 12/01/25 (Pre-refunded 6/01/10) - MBIA Insured
1,000 Hilliard School District, Ohio, General Obligation School Improvement 12/10 at 101.00 AAA 1,107,420
Bonds, Series 2000, 5.750%, 12/01/24 (Pre-refunded
12/01/10) - FGIC Insured
2,000 Lakota Local School District, Butler County, Ohio, Unlimited Tax 6/11 at 100.00 Aaa 2,153,540
General Obligation School Improvement and Refunding Bonds, Series
2001, 5.125%, 12/01/26 (Pre-refunded 6/01/11) - FGIC Insured
1,000 London City School District, Ohio, General Obligation School 12/11 at 100.00 Aaa 1,075,470
Facilities Construction and Improvement Bonds, Series 2001, 5.000%,
12/01/29 (Pre-refunded 12/01/11) - FGIC Insured
2,500 Marion County, Ohio, Hospital Revenue Refunding and Improvement Bonds, 5/06 at 102.00 BBB+ (4) 2,570,550
The Community Hospital, Series 1996, 6.375%, 5/15/11
(Pre-refunded 5/15/06)
3,000 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, Kettering 4/10 at 101.00 A (4) 3,393,870
Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10)
4,315 Ohio Capital Corporation for Housing, FHA-Insured Section 8 2/09 at 102.00 N/R (4) 4,691,613
Assisted Mortgage Loan Revenue Refunding Bonds, Series
1999G, 5.950%, 2/01/24 (Pre-refunded 2/01/09)
1,220 Plain Local School District, Franklin and Licking Counties, Ohio, 6/11 at 100.00 Aaa 1,365,131
General Obligation Bonds, Series 2000, 6.000%, 12/01/20
(Pre-refunded 6/01/11) - FGIC Insured
2,025 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,136,233
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10)
1,000 Upper Arlington City School District, Ohio, General Obligation 12/06 at 101.00 AAA 1,026,400
Improvement Bonds, Series 1996, 5.250%, 12/01/22
(Pre-refunded 12/01/06) - MBIA Insured
2,000 Wayne Local School District, Warren County, Ohio, Unlimited Tax 12/06 at 101.00 AAA 2,067,260
General Obligation School Improvement Bonds, Series 1996, 6.100%,
12/01/24 (Pre-refunded 12/01/06) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
26,215 Total U.S. Guaranteed 28,206,067
-----------------------------------------------------------------------------------------------------------------------------------
39
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 7.0% (4.8% of Total Investments)
$ 4,000 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 Aaa $ 4,212,200
Improvement Revenue Bonds, Series 2002, 5.000%, 2/15/22 - MBIA Insured
3,000 Ohio Air Quality Development Authority, Revenue Bonds, JMG Funding 4/07 at 102.00 AAA 3,117,150
Limited Partnership Project, Series 1997, 5.625%, 1/01/23 - AMBAC
Insured (Alternative Minimum Tax)
2,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 2,114,460
Certificates, Belleville Hydroelectric Project - Joint Venture 5,
Series 2004, 5.000%, 2/15/20 - AMBAC Insured
1,700 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, Bay 9/08 at 102.00 N/R 1,717,000
Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,700 Total Utilities 11,160,810
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 10.0% (6.8% of Total Investments)
Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,084,080
3,510 5.000%, 12/01/18 6/11 at 100.00 AA+ 3,710,561
3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,171,420
1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,059,120
2,000 Cincinnati, Ohio, Water System Revenue Bonds, Series 2003, 6/11 at 100.00 AA+ 2,099,700
5.000%, 12/01/22
1,000 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding and No Opt. Call AAA 1,148,380
Improvement Bonds, Series 1993G, 5.500%, 1/01/21 - MBIA Insured
40 Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding and 7/06 at 102.00 AAA 40,869
Improvement Bonds, Series 1996H, 5.750%, 1/01/26 - MBIA Insured
580 Cleveland, Ohio, Waterworks Revenue Refunding and Improvement Bonds, 1/08 at 101.00 AAA 596,391
Series 1998I, 5.000%, 1/01/28 - FSA Insured
1,220 Hamilton, Ohio, Wastewater System Revenue Bonds, Series 2005, 5.250%, 10/15 at 100.00 Aaa 1,330,471
10/01/22 - FSA Insured
1,500 Ohio Water Development Authority, Water Pollution Control Loan Fund 6/15 at 100.00 AAA 1,592,385
Revenue Bonds, Water Quality Project, Series 2005B, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
14,850 Total Water and Sewer 15,833,377
------------------------------------------------------------------------------------------------------------------------------------
$ 220,165 Total Investments (cost $222,344,877) - 146.9% 232,638,734
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 2,682,082
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.6)% (77,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $158,320,816
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below Baa by Moody's Investor Service, Inc. or
BBB by Standard & Poor's Group are considered to be below
investment grade.
(4) 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.
(ETM) Security is escrowed to maturity.
See accompanying notes to financial statements.
40
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 1.7% (1.1% of Total Investments)
$ 1,080 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 5/12 at 100.00 BBB $ 1,100,077
Refunding Bonds, Series 2002, 5.375%, 5/15/33
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 19.2% (13.1% of Total Investments)
1,165 Cleveland-Cuyahoga County Port Authority, Ohio, Lease Revenue Bonds, 8/15 at 100.00 AAA 1,219,720
Euclid Avenue Housing Corporation - Fenn Tower Project, Series 2005,
5.000%, 8/01/23 - AMBAC Insured
2,650 Ohio Higher Education Facilities Commission, Revenue Bonds, Ohio Northern 5/12 at 100.00 A2 2,734,429
University, Series 2002, 5.000%, 5/01/22
500 Ohio Higher Education Facilities Commission, Revenue Bonds, Wittenberg 12/15 at 100.00 Baa1 511,080
University, Series 2005, 5.000%, 12/01/24
2,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, Denison 11/11 at 101.00 AA 2,111,180
University, Series 2001, 5.200%, 11/01/26
1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, University 12/10 at 101.00 AAA 1,079,110
of Dayton, Series 2000, 5.500%, 12/01/25 - AMBAC Insured
1,760 Ohio University at Athens, Subordinate Lien General Receipts Bonds, 6/14 at 100.00 AAA 1,870,123
Series 2004, 5.000%, 12/01/20 - MBIA Insured
2,735 University of Cincinnati, Ohio, General Receipts Bonds, Series 2002F, 6/12 at 100.00 A+ 2,931,564
5.375%, 6/01/19
-----------------------------------------------------------------------------------------------------------------------------------
11,810 Total Education and Civic Organizations 12,457,206
-----------------------------------------------------------------------------------------------------------------------------------
Health Care - 17.6% (12.0% of Total Investments)
1,100 Cuyahoga County, Ohio, Revenue Refunding Bonds, Cleveland Clinic Health 7/13 at 100.00 Aa3 1,211,034
System, Series 2003A, 6.000%, 1/01/32
1,950 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare 11/09 at 101.00 AAA 2,064,582
Obligated Group, Series 1999, 5.375%, 11/15/29 - AMBAC Insured
1,600 Miami County, Ohio, Hospital Facilities Revenue Refunding and Improvement 5/06 at 102.00 BBB+ 1,639,472
Bonds, Upper Valley Medical Center, Series 1996A, 6.375%, 5/15/26
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, 5/14 at 100.00 AA 1,025,060
Series 2004A, 5.000%, 5/01/30
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- 2,329,965
2,000 5.375%, 11/01/29 11/08 at 101.00 A- 2,045,660
1,000 Richland County, Ohio, Hospital Facilities Revenue Improvement Bonds, 11/10 at 101.00 A- 1,083,250
MedCentral Health System Obligated Group, Series 2000B, 6.375%,
11/15/30
-----------------------------------------------------------------------------------------------------------------------------------
10,900 Total Health Care 11,399,023
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.6% (3.2% of Total Investments)
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue Bonds, Asbury 4/11 at 102.00 Aa2 3,005,535
Woods Project, Series 2001A, 5.450%, 4/01/26
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.4% (2.3% of Total Investments)
540 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 546,323
Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32
(Alternative Minimum Tax)
1,190 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 1,214,466
Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31
(Alternative Minimum Tax)
355 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 363,112
Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16
41
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family (continued)
$ 50 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 3/12 at 100.00 Aaa $ 51,350
Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
2,135 Total Housing/Single Family 2,175,251
-----------------------------------------------------------------------------------------------------------------------------------
Industrials - 2.4% (1.6% of Total Investments)
410 Cleveland-Cuyahoga County Port Authority, Ohio, Development Revenue 11/15 at 100.00 N/R 410,947
Bonds, Bond Fund Program - Columbia National Group Project, Series
2005D, 5.000%, 5/15/20 (Alternative Minimum Tax)
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding Bonds, CSX No Opt. Call Baa2 1,147,380
Transportation Inc., Series 1992, 6.450%, 12/15/21
-----------------------------------------------------------------------------------------------------------------------------------
1,410 Total Industrials 1,558,327
-----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 4.1% (2.8% of Total Investments)
1,000 Franklin County, Ohio, Healthcare Facilities Revenue Bonds, Ohio 7/11 at 101.00 BBB 1,108,850
Presbyterian Retirement Services, Series 2001A, 7.125%, 7/01/29
1,470 Hamilton County, Ohio, Healthcare Facilities Improvement Revenue Bonds, 10/08 at 102.00 BBB 1,533,592
Twin Towers, Series 1999A, 5.750%, 10/01/19
-----------------------------------------------------------------------------------------------------------------------------------
2,470 Total Long-Term Care 2,642,442
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 42.0% (28.6% of Total Investments)
1,090 Akron, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/26 - 12/15 at 100.00 AAA 1,151,040
AMBAC Insured
1,000 Bay Village City School District, Ohio, General Obligation Unlimited Tax 12/10 at 100.00 Aa2 1,042,250
School Improvement Bonds, Series 2001, 5.000%, 12/01/25
1,500 Centerville City School District, Montgomery County, Ohio, General 6/15 at 100.00 Aaa 1,569,945
Obligation Bonds, Series 2005, 5.000%, 12/01/30 - FSA Insured
1,000 Centerville, Ohio, General Obligation Limited Tax Bonds, Capital 12/11 at 100.00 Aa3 1,041,060
Facilities Improvement, Series 2001, 5.125%, 12/01/26
1,000 Columbus City School District, Franklin County, Ohio, General Obligation 12/14 at 100.00 AAA 1,122,350
Bonds, Series 2004, 5.500%, 12/01/15 - FSA Insured
500 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AA+ 532,850
12/01/21
2,965 Franklin County, Worthington, Ohio, Various Purpose Unlimited Tax General 12/11 at 100.00 AA 3,204,364
Obligation Bonds, Series 2001, 5.375%, 12/01/21
1,000 Lakewood City School District, Cuyahoga County, Ohio, General Obligation 12/14 at 100.00 AAA 1,099,770
Bonds, Series 2004, 5.250%, 12/01/16 - FSA Insured
1,000 Middletown City School District, Butler County, Ohio, General Obligation 12/13 at 100.00 Aaa 1,055,680
Bonds, Series 2004, 5.000%, 12/01/25 - FGIC Insured
1,000 Nordonia Hills City School District, Ohio, School Improvement Bonds, 12/10 at 101.00 AAA 1,076,560
Series 2000, 5.450%, 12/01/25 - AMBAC Insured
1,000 Ohio, General Obligation Bonds, Series 2005A, 5.000%, 9/01/16 3/15 at 100.00 AA+ 1,083,820
2,000 Ohio, General Obligation Higher Education Capital Facilities Bonds, 2/11 at 100.00 AA+ 2,111,620
Series 2001A, 5.000%, 2/01/20
1,900 Olentangy Local School District, Delaware and Franklin Counties, Ohio, 6/14 at 100.00 AAA 2,071,437
General Obligation Bonds, Series 2004A, 5.250%, 12/01/23 - FGIC Insured
1,850 Swanton Local School District, Fulton County, Ohio, General Obligation 12/11 at 101.00 AAA 1,978,945
Bonds, Series 2001, 5.250%, 12/01/25 - FGIC Insured
1,275 Sycamore Community School District, Hamilton County, Ohio, Unlimited Tax 12/09 at 101.00 AAA 1,342,409
General Obligation School Improvement Bonds, Series 1999, 5.000%,
12/01/23 - MBIA Insured
2,415 Troy City School District, Miami County, Ohio, General Obligation Bonds, 12/14 at 100.00 Aaa 2,528,070
Series 2005, 5.000%, 12/01/28 - FSA Insured
1,485 West Chester Township, Butler County, Ohio, Various Purpose Limited Tax 11/11 at 101.00 Aaa 1,632,223
General Obligation Refunding Bonds, Series 2001, 5.500%, 12/01/17 -
AMBAC Insured
1,500 Westerville City School District, Franklin and Delaware Counties, Ohio, 6/11 at 100.00 AAA 1,545,510
Various Purpose General Obligation Bonds, Series 2001, 5.000%, 12/01/27
- MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
25,480 Total Tax Obligation/General 27,189,903
-----------------------------------------------------------------------------------------------------------------------------------
42
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 10.2% (6.9% of Total Investments)
$ 2,000 Franklin County, Ohio, Excise Tax and Lease Revenue Anticipation Bonds, 12/15 at 100.00 AAA $ 2,107,080
Convention Facilities Authority, Series 2005, 5.000%, 12/01/27 - AMBAC
Insured
1,415 Hamilton County Convention Facilities Authority, Ohio, First Lien Revenue 6/14 at 100.00 AAA 1,494,325
Bonds, Series 2004, 5.000%, 12/01/21 - FGIC Insured
345 Ohio State Building Authority, State Facilities Bonds, Administrative 4/15 at 100.00 AAA 363,785
Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured
1,000 Ohio State Building Authority, State Facilities Bonds, Adult Correctional 4/15 at 100.00 AAA 1,058,340
Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured
1,400 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, 10/10 at 101.00 BBB 1,558,900
Series 1999A, 6.375%, 10/01/19
-----------------------------------------------------------------------------------------------------------------------------------
6,160 Total Tax Obligation/Limited 6,582,430
-----------------------------------------------------------------------------------------------------------------------------------
Transportation - 3.3% (2.3% of Total Investments)
2,000 Ohio Turnpike Commission, Revenue Bonds, Series 2001A, 5.500%, 2/15/26 2/11 at 100.00 AA 2,141,100
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 21.4% (14.6% of Total Investments) (4)
2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding Bonds, Series 1997, 12/06 at 101.00 AAA 2,057,700
5.550%, 12/01/16 (Pre-refunded 12/01/06) - MBIA Insured
Jackson City School District, Jackson County, Ohio, Unlimited Tax General
Obligation School Improvement Bonds, Series 2001:
880 5.500%, 12/01/22 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 Aaa 966,610
935 5.500%, 12/01/23 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 Aaa 1,027,023
2,000 Lakota Local School District, Butler County, Ohio, Unlimited Tax General 6/11 at 100.00 Aaa 2,153,540
Obligation School Improvement and Refunding Bonds, Series 2001, 5.125%,
12/01/26 (Pre-refunded 6/01/11) - FGIC Insured
1,000 Medina City School District, Medina County, Ohio, Unlimited Tax General 12/09 at 100.00 AAA 1,065,360
Obligation School Building Construction Bonds, Series 1999, 5.250%,
12/01/28 (Pre-refunded 12/01/09) - FGIC Insured
4,000 Puerto Rico Municipal Finance Agency, Series 1999A, 6.000%, 8/01/16 8/09 at 101.00 AAA 4,382,241
(Pre-refunded 8/01/09) - FSA Insured
2,000 University of Cincinnati, Ohio, General Receipts Bonds, Series 2001A, 6/11 at 101.00 AAA 2,230,400
5.750%, 6/01/17 (Pre-refunded 6/01/11) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
12,815 Total U.S. Guaranteed 13,882,874
-----------------------------------------------------------------------------------------------------------------------------------
Utilities - 10.3% (7.0% of Total Investments)
1,440 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 Aaa 1,547,280
Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - MBIA Insured
910 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, Series 2001, 12/10 at 101.00 AAA 990,599
5.500%, 12/01/18 - AMBAC Insured
2,000 Ohio Air Quality Development Authority, Revenue Refunding Bonds, Ohio 5/09 at 101.00 AAA 2,095,640
Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured
1,000 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 1,054,430
Certificates, Belleville Hydroelectric Project - Joint Venture 5,
Series 2004, 5.000%, 2/15/21 - AMBAC Insured
1,000 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, Bay 9/08 at 102.00 N/R 1,010,000
Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
6,350 Total Utilities 6,697,949
-----------------------------------------------------------------------------------------------------------------------------------
43
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 6.6% (4.5% of Total Investments)
$ 1,700 Cincinnati, Ohio, Water System Revenue Bonds, Series 2001, 5.125%, 6/11 at 100.00 AA+ $ 1,802,085
12/01/21
2,375 Ohio Water Development Authority, Revenue Bonds, Water Development 12/13 at 100.00 Aaa 2,504,628
Community Assistance Program, Series 2003, 5.000%, 12/01/23 - MBIA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,075 Total Water and Sewer 4,306,713
-----------------------------------------------------------------------------------------------------------------------------------
$ 89,570 Total Investments (cost $90,738,065) - 146.8% 95,138,830
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 663,353
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.8)% (31,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 64,802,183
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below Baa by Moody's Investor Service, Inc. or
BBB by Standard & Poor's Group are considered to be below
investment grade.
(4) 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.
N/R Investment is not rated.
See accompanying notes to financial statements.
44
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 8.6% (5.8% of Total Investments)
$ 3,000 Ohio State Sewage and Solid Waste Disposal Facilities, Revenue Bonds, 11/11 at 100.00 A+ $ 3,108,000
Anheuser-Busch Project, Series 2001, 5.500%, 11/01/35 (Alternative
Minimum Tax)
940 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 5/12 at 100.00 BBB 957,475
Refunding Bonds, Series 2002, 5.375%, 5/15/33
-----------------------------------------------------------------------------------------------------------------------------------
3,940 Total Consumer Staples 4,065,475
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.5% (7.0% of Total Investments)
1,345 Bowling Green State University, Ohio, General Receipts Bonds, Series 2003, 6/13 at 100.00 AAA 1,460,213
5.250%, 6/01/18 - AMBAC Insured
1,050 Ohio Higher Educational Facilities Commission, Revenue Bonds, Wittenberg 12/11 at 100.00 Baa1 1,120,865
University, Series 2001, 5.500%, 12/01/15
1,000 University of Cincinnati, Ohio, General Receipts Bonds, Series 2003C, 6/13 at 100.00 AAA 1,053,860
5.000%, 6/01/22 - FGIC Insured
1,245 University of Cincinnati, Ohio, General Receipts Bonds, Series 2004D, 6/14 at 100.00 AAA 1,324,705
5.000%, 6/01/19 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,640 Total Education and Civic Organizations 4,959,643
-----------------------------------------------------------------------------------------------------------------------------------
Health Care - 25.2% (16.8% of Total Investments)
1,060 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital No Opt. Call Baa1 1,074,119
Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.000%,
11/15/08
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands Regional 8/12 at 101.00 A 1,055,140
Medical Center, Series 2002A, 5.500%, 8/15/22
1,850 Lorain County, Ohio, Hospital Revenue Refunding and Improvement Bonds, 10/11 at 101.00 AA- 1,963,498
Catholic Healthcare Partners, Series 2001A, 5.400%, 10/01/21
900 Miami County, Ohio, Hospital Facilities Revenue Refunding and Improvement 5/06 at 102.00 BBB+ 922,203
Bonds, Upper Valley Medical Center, Series 1996A, 6.375%, 5/15/26
700 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, 5/14 at 100.00 AA 717,542
Series 2004A, 5.000%, 5/01/30
2,000 Richland County, Ohio, Hospital Facilities Revenue Improvement Bonds, 11/10 at 101.00 A- 2,166,500
MedCentral Health System Obligated Group, Series 2000B, 6.375%,
11/15/30
3,670 Tuscarawas County, Ohio, Hospital Facilities Revenue Bonds, Union 10/11 at 101.00 AA 3,948,369
Hospital Project, Series 2001, 5.750%, 10/01/26 - RAAI Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,180 Total Health Care 11,847,371
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.2% (1.5% of Total Investments)
1,000 Franklin County, Ohio, GNMA Collateralized Multifamily Housing Mortgage 5/12 at 102.00 Aaa 1,059,420
Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.4% (0.3% of Total Investments)
120 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 9/10 at 100.00 Aaa 122,746
Residential Mortgage Revenue Bonds, Series 2001A, 5.500%, 9/01/34
(Alternative Minimum Tax)
40 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 3/12 at 100.00 Aaa 41,080
Residential Mortgage Revenue Bonds, Series 2002D, 5.400%, 9/01/34
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
160 Total Housing/Single Family 163,826
-----------------------------------------------------------------------------------------------------------------------------------
45
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 2.2% (1.5% of Total Investments)
$ 1,000 Hamilton County, Ohio, Healthcare Facilities Improvement Revenue Bonds, 10/08 at 102.00 BBB $ 1,039,810
Twin Towers, Series 1999A, 5.800%, 10/01/23
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 44.9% (29.9% of Total Investments)
1,700 Butler County, Hamilton, Ohio, Limited Tax General Obligation Bonds, One 11/11 at 101.00 Aaa 1,769,479
Renaissance Center Acquisition, Series 2001, 5.000%, 11/01/26 - AMBAC
Insured
Cleveland Municipal School District, Cuyahoga County, Ohio, General
Obligation Bonds, Series 2004:
1,000 5.000%, 12/01/15 - FSA Insured 6/14 at 100.00 AAA 1,076,680
1,000 5.000%, 12/01/22 - FSA Insured 6/14 at 100.00 AAA 1,054,630
2,605 Columbus City School District, Franklin County, Ohio, General Obligation 12/14 at 100.00 AAA 2,923,722
Bonds, Series 2004, 5.500%, 12/01/15 - FSA Insured
400 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AA+ 426,280
12/01/21
1,750 Fairfield City School District, Ohio, General Obligation Refunding Bonds, 12/11 at 100.00 AAA 1,897,193
Series 2001, 5.375%, 12/01/19 - FGIC Insured
1,000 Greater Cleveland Regional Transit Authority, Ohio, General Obligation 12/11 at 100.00 Aaa 1,065,080
Capital Improvement Bonds, Series 2001A, 5.125%, 12/01/21 - MBIA
Insured
1,065 Lakewood City School District, Cuyahoga County, Ohio, General Obligation 12/14 at 100.00 AAA 1,171,255
Bonds, Series 2004, 5.250%, 12/01/16 - FSA Insured
2,420 Lorain County, Ohio, Limited Tax General Obligation Justice Center Bonds, 12/12 at 100.00 Aaa 2,647,432
Series 2002, 5.500%, 12/01/22 - FGIC Insured
2,665 Newark City School District, Licking County, Ohio, General Obligation 12/15 at 100.00 AAA 2,801,155
Bonds, Series 2005, 5.000%, 12/01/28 - FGIC Insured
1,050 Olentangy Local School District, Delaware and Franklin Counties, Ohio, 6/14 at 100.00 AAA 1,172,294
General Obligation Bonds, Series 2004A, 5.500%, 12/01/15 - FGIC Insured
1,960 Portage County, Ohio, General Obligation Bonds, Series 2001, 5.000%, 12/11 at 100.00 AAA 2,054,942
12/01/25 - FGIC Insured
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/25 - 12/12 at 100.00 AAA 1,087,730
FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,615 Total Tax Obligation/General 21,147,872
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 15.6% (10.4% of Total Investments)
250 Ohio State Building Authority, State Facilities Bonds, Administrative 4/15 at 100.00 AAA 263,612
Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured
1,000 Ohio State Building Authority, State Facilities Bonds, Adult Correctional 4/15 at 100.00 AAA 1,058,340
Building Fund Project, Series 2005A, 5.000%, 4/01/23 - FSA Insured
2,500 Ohio, State Appropriation Lease Bonds, Higher Education Capital No Opt. Call AAA 2,687,825
Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured
1,095 Ohio, State Appropriation Lease Bonds, Parks and Recreation Capital 12/13 at 100.00 AA 1,167,577
Facilities, Series 2004A-II, 5.000%, 12/01/18
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/12 at 100.00 BBB+ 1,090,460
Refunding Bonds, Series 2002E, 5.750%, 7/01/24
1,000 Summit County Port Authority, Ohio, Revenue Bonds, Civic Theatre Project, 12/11 at 100.00 AAA 1,080,640
Series 2001, 5.500%, 12/01/26 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,845 Total Tax Obligation/Limited 7,348,454
-----------------------------------------------------------------------------------------------------------------------------------
Transportation - 7.9% (5.2% of Total Investments)
3,495 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 5.250%, 1/10 at 101.00 AAA 3,705,749
1/01/18 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
46
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 20.1% (13.4% of Total Investments) (4)
$ 2,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding Bonds, Series 1997, 12/06 at 101.00 AAA $ 2,057,700
5.550%, 12/01/16 (Pre-refunded 12/01/06) - MBIA Insured
1,000 Cleveland, Ohio, General Obligation Bonds, Series 2003, 5.250%, 8/01/18 8/13 at 100.00 AAA 1,098,300
(Pre-refunded 8/01/13) - FGIC Insured
4,000 Lebanon City School District, Warren County, Ohio, General Obligation 12/11 at 100.00 AAA 4,406,396
Bonds, Series 2001, 5.500%, 12/01/21 (Pre-refunded 12/01/11) - FSA
Insured
1,710 Marysville Exempted Village School District, Ohio, Certificates of 6/15 at 100.00 AAA 1,890,046
Participation, School Facilities Project, Series 2005, 5.250%, 12/01/21
(Pre-refunded 6/01/15) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,710 Total U.S. Guaranteed 9,452,442
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 9.0% (6.0% of Total Investments)
2,500 Ohio Air Quality Development Authority, Revenue Refunding Bonds, Ohio 5/09 at 101.00 AAA 2,619,550
Power Company Project, Series 1999C, 5.150%, 5/01/26 - AMBAC Insured
595 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 629,052
Certificates, Belleville Hydroelectric Project - Joint Venture 5,
Series 2004, 5.000%, 2/15/20 - AMBAC Insured
1,000 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, 9/08 at 102.00 N/R 1,010,000
Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,095 Total Utilities 4,258,602
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.4% (2.2% of Total Investments)
1,500 Ohio Water Development Authority, Revenue Bonds, Fresh Water Development, 12/11 at 100.00 AAA 1,585,830
Series 2001A, 5.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 66,180 Total Investments (cost $67,955,909) - 150.0% 70,634,494
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 454,221
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (24,000,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 47,088,715
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below Baa by Moody's Investor Service, Inc. or
BBB by Standard & Poor's Group are considered to be below
investment grade.
(4) 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.
N/R Investment is not rated.
See accompanying notes to financial statements.
47
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ)
Portfolio of
Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 6.2% (4.2% of Total Investments)
$ 2,025 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 5/12 at 100.00 BBB $ 2,062,645
Refunding Bonds, Series 2002, 5.375%, 5/15/33
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.8% (8.0% of Total Investments)
2,000 Ohio Higher Education Facilities Commission, Revenue Bonds, Case Western 10/12 at 100.00 AA- 2,181,860
Reserve University, Series 2002B, 5.500%, 10/01/22
1,125 Ohio Higher Education Facilities Commission, Revenue Bonds, Ohio Northern 5/12 at 100.00 A2 1,227,645
University, Series 2002, 5.750%, 5/01/16
500 Ohio Higher Education Facilities Commission, Revenue Bonds, Wittenberg 12/15 at 100.00 Baa1 511,080
University, Series 2005, 5.000%, 12/01/24
-----------------------------------------------------------------------------------------------------------------------------------
3,625 Total Education and Civic Organizations 3,920,585
-----------------------------------------------------------------------------------------------------------------------------------
Health Care - 18.4% (12.4% of Total Investments)
530 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital No Opt. Call Baa1 537,060
Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.000%,
11/15/08
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands Regional 8/12 at 101.00 A 1,846,495
Medical Center, Series 2002A, 5.500%, 8/15/22
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, 9/11 at 100.00 AA 1,079,030
Series 2001, 5.500%, 9/01/12
500 Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, 5/14 at 100.00 AA 512,530
Series 2004A, 5.000%, 5/01/30
1,000 Parma Community General Hospital Association, Ohio, Hospital Revenue 11/08 at 101.00 A- 1,022,830
Refunding and Improvement Bonds, Series 1998, 5.375%, 11/01/29
1,000 Richland County, Ohio, Hospital Facilities Revenue Improvement Bonds, 11/10 at 101.00 A- 1,083,250
MedCentral Health System Obligated Group, Series 2000B, 6.375%,
11/15/30
-----------------------------------------------------------------------------------------------------------------------------------
5,780 Total Health Care 6,081,195
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.1% (2.8% of Total Investments)
255 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 257,986
Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32
(Alternative Minimum Tax)
725 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 739,906
Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31
(Alternative Minimum Tax)
345 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities Program 8/10 at 100.00 Aaa 352,883
Residential Mortgage Revenue Bonds, Series 2000F, 5.625%, 9/01/16
-----------------------------------------------------------------------------------------------------------------------------------
1,325 Total Housing/Single Family 1,350,775
-----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.5% (1.0% of Total Investments)
500 Hamilton County, Ohio, Healthcare Facilities Improvement Revenue Bonds, 10/08 at 102.00 BBB 521,630
Twin Towers, Series 1999A, 5.750%, 10/01/19
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 45.0% (30.4% of Total Investments)
2,000 Canal Winchester Local School District, Franklin and Fairfield Counties, 12/08 at 102.00 AAA 2,117,940
Ohio, Unlimited Tax General Obligation School Improvement Bonds, Series
1998, 5.300%, 12/01/25 - FGIC Insured
300 Cuyahoga County, Ohio, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AA+ 319,710
12/01/21
1,475 Eaton City School District, Preble County, Ohio, General Obligation Bonds, 12/12 at 101.00 Aaa 1,652,502
Series 2002, 5.750%, 12/01/21 - FGIC Insured
48
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General (continued)
$ 2,000 Granville Exempt Village School District, Ohio, General Obligation Bonds, 12/11 at 100.00 Aa2 $ 2,155,880
Series 2001, 5.500%, 12/01/28
1,000 Kenston Local School District, Geauga County, Ohio, General Obligation 6/13 at 100.00 Aaa 1,054,960
Bonds, Series 2003, 5.000%, 12/01/22 - MBIA Insured
1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 5.125%, 12/01/26 - 12/12 at 100.00 Aaa 1,332,929
AMBAC Insured
1,190 Miami East Local School District, Miami County, Ohio, General Obligation 12/12 at 100.00 AAA 1,264,042
Bonds, Series 2002, 5.125%, 12/01/29 - FSA Insured
1,000 Ohio, Common Schools Capital Facilities, General Obligation Bonds, Series 9/11 at 100.00 AA+ 1,061,020
2001B, 5.000%, 9/15/20
1,000 Olentangy Local School District, Delaware and Franklin Counties, Ohio, 6/14 at 100.00 AAA 1,090,970
General Obligation Bonds, Series 2004A, 5.250%, 12/01/21 - FGIC Insured
1,535 Pickerington Local School District, Fairfield and Franklin Counties, Ohio, 12/11 at 100.00 AAA 1,653,302
General Obligation Bonds, School Facilities Construction and
Improvement, Series 2001, 5.250%, 12/01/20 - FGIC Insured
1,130 Solon, Ohio, General Obligation Refunding and Improvement Bonds, Series 12/12 at 100.00 AA+ 1,204,716
2002, 5.000%, 12/01/18
-----------------------------------------------------------------------------------------------------------------------------------
13,900 Total Tax Obligation/General 14,907,971
-----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 21.3% (14.4% of Total Investments)
1,000 Midview Local School District, Lorain County, Ohio, Certificates of 5/13 at 100.00 A 1,022,500
Participation, Series 2003, 5.000%, 11/01/30
1,250 Ohio State Building Authority, State Facilities Bonds, Administrative 4/12 at 100.00 AAA 1,363,263
Building Fund Projects, Series 2002A, 5.500%, 4/01/18 - FSA Insured
200 Ohio State Building Authority, State Facilities Bonds, Administrative 4/15 at 100.00 AAA 210,890
Building Fund Projects, Series 2005A, 5.000%, 4/01/25 - FSA Insured
2,000 Ohio, State Appropriation Lease Bonds, Higher Education Capital No Opt. Call AAA 2,150,260
Facilities, Series 2002A-II, 5.500%, 12/01/09 - MBIA Insured
2,000 Puerto Rico Public Buildings Authority, Guaranteed Government Facilities No Opt. Call AAA 2,303,897
Revenue Bonds, Series 1993L, 5.500%, 7/01/21 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,450 Total Tax Obligation/Limited 7,050,810
-----------------------------------------------------------------------------------------------------------------------------------
Transportation - 9.0% (6.1% of Total Investments)
1,140 Columbus Municipal Airport Authority, Ohio, Airport Improvement Revenue No Opt. Call AAA 1,221,385
Bonds, Port Columbus International Airport Project, Series 1998B,
5.250%, 1/01/11 - AMBAC Insured
1,550 Ohio Turnpike Commission, Revenue Bonds, Series 1998A, 5.500%, 2/15/18 - No Opt. Call AAA 1,771,201
FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
2,690 Total Transportation 2,992,586
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 19.5% (13.2% of Total Investments) (4)
1,000 Akron, Ohio, Sanitary Sewer System Revenue Refunding Bonds, Series 1997, 12/06 at 101.00 AAA 1,028,850
5.550%, 12/01/16 (Pre-refunded 12/01/06) - MBIA Insured
1,500 Hamilton County, Ohio, Sewer System Revenue Refunding and Improvement 12/11 at 100.00 AAA 1,632,810
Bonds, Metropolitan Sewer District of Greater Cincinnati, Series 2001A,
5.250%, 12/01/18 (Pre-refunded 12/01/11) - MBIA Insured
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 5.375%, 12/01/22 12/12 at 100.00 AA- (4) 1,104,590
(Pre-refunded 12/01/12)
1,425 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, Kettering 4/10 at 101.00 A (4) 1,612,088
Medical Center, Series 1999, 6.750%, 4/01/18 (Pre-refunded 4/01/10)
1,000 Ohio State University, General Receipts Bonds, Series 1999A, 5.800%, 12/09 at 101.00 AA (4) 1,093,740
12/01/29 (Pre-refunded 12/01/09)
-----------------------------------------------------------------------------------------------------------------------------------
5,925 Total U.S. Guaranteed 6,472,078
-----------------------------------------------------------------------------------------------------------------------------------
49
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) (continued)
Portfolio of Investments January 31, 2006 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
-----------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.9% (3.3% of Total Investments)
$ 1,500 American Municipal Power Ohio Inc., Wadsworth, Electric System 2/12 at 100.00 Aaa $ 1,611,750
Improvement Revenue Bonds, Series 2002, 5.250%, 2/15/17 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 4.8% (3.2% of Total Investments)
1,500 Ohio Water Development Authority, Revenue Bonds, Fresh Water Development, 12/11 at 100.00 AAA 1,585,830
Series 2001A, 5.000%, 12/01/21 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
$ 45,220 Total Long-Term Investments (cost $45,976,775) - 146.5% 48,557,855
============-----------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 1.7% (1.0% of Total Investments)
550 Puerto Rico Government Development Bank, Adjustable Refunding Bonds, No Opt. Call VMIG-1 550,000
Variable Rate Demand Obligations, Series 1985, 2.930%, 12/01/15 - MBIA
Insured (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 550 Total Short-Term Investments (cost $550,000) 550,000
============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $46,526,775) - 148.2% 49,107,855
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 522,317
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.8)% (16,500,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,130,172
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below Baa by Moody's Investor Service, Inc. or
BBB by Standard & Poor's Group are considered to be below
investment grade.
(4) 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.
(5) Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified market
index.
See accompanying notes to financial statements.
50
Statement of
Assets and Liabilities January 31, 2006 (Unaudited)
Michigan Michigan Michigan
Quality Premium Dividend
Income Income Advantage
(NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $256,014,375, $163,304,801 and
$44,070,284, respectively) $272,405,027 $171,668,935 $ 46,404,060
Cash -- -- 385,350
Interest receivable 3,122,410 2,265,680 554,672
Unrealized appreciation on forward swaps -- -- 43,423
Other assets 16,496 7,576 7,947
----------------------------------------------------------------------------------------------------------
Total assets 275,543,933 173,942,191 47,395,452
----------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 14,495 460,256 --
Accrued expenses:
Management fees 148,005 93,808 13,685
Other 63,823 49,771 6,971
Preferred share dividends payable 32,181 15,761 7,888
----------------------------------------------------------------------------------------------------------
Total liabilities 258,504 619,596 28,544
----------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $181,285,429 $117,322,595 $ 31,366,908
==========================================================================================================
Common shares outstanding 11,714,953 7,748,342 2,062,472
==========================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.47 $ 15.14 $ 15.21
==========================================================================================================
Net assets applicable to Common shares consist of:
----------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 117,150 $ 77,483 $ 20,625
Paid-in surplus 163,946,943 108,352,273 29,206,502
Undistributed (over-distribution of) net investment income 553,499 425,196 175,322
Accumulated net realized gain (loss) from investments and
derivative transactions 277,185 103,509 (412,740)
Net unrealized appreciation (depreciation) of investments and
derivative transactions 16,390,652 8,364,134 2,377,199
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $181,285,429 $117,322,595 $ 31,366,908
==========================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
==========================================================================================================
See accompanying notes to financial statements.
51
Statement of
Assets and Liabilities January 31, 2006 (Unaudited) (continued)
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $222,344,877, $90,738,065,
$67,955,909 and $46,526,775, respectively) $232,638,734 $ 95,138,830 $ 70,634,494 $ 49,107,855
Cash 147,758 -- -- --
Interest receivable 2,754,646 1,180,173 749,048 592,728
Unrealized appreciation on forward swaps -- -- -- --
Other assets 4,286 3,113 8,049 2,962
-------------------------------------------------------------------------------------------------------------------------
Total assets 235,545,424 96,322,116 71,391,591 49,703,545
-------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- 460,576 267,043 38,040
Accrued expenses:
Management fees 126,889 27,661 20,529 14,317
Other 71,981 16,413 11,558 11,425
Preferred share dividends payable 25,738 15,283 3,746 9,591
-------------------------------------------------------------------------------------------------------------------------
Total liabilities 224,608 519,933 302,876 73,373
-------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
-------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $158,320,816 $ 64,802,183 $ 47,088,715 $ 33,130,172
=========================================================================================================================
Common shares outstanding 9,727,482 4,239,643 3,119,982 2,157,883
=========================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.28 $ 15.28 $ 15.09 $ 15.35
=========================================================================================================================
Net assets applicable to Common shares consist of:
-------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 97,275 $ 42,396 $ 31,200 $ 21,579
Paid-in surplus 147,505,013 60,198,592 44,232,309 30,532,224
Undistributed (Over-distribution of) net investment income 405,983 160,407 86,821 209
Accumulated net realized gain (loss) from investments and
derivative transactions 18,688 23 59,800 (4,920)
Net unrealized appreciation (depreciation) of investments and
derivative transactions 10,293,857 4,400,765 2,678,585 2,581,080
-------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $158,320,816 $ 64,802,183 $ 47,088,715 $ 33,130,172
=========================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
=========================================================================================================================
See accompanying notes to financial statements.
52
Statement of
Operations Six Months Ended January 31, 2006 (Unaudited)
Michigan Michigan Michigan
Quality Premium Dividend
Income Income Advantage
(NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Investment Income $ 6,724,150 $ 4,255,465 $ 1,130,026
----------------------------------------------------------------------------------------------------------
Expenses
Management fees 882,899 560,503 153,265
Preferred shares - auction fees 120,297 71,650 20,472
Preferred shares - dividend disbursing agent fees 10,932 10,575 5,041
Shareholders' servicing agent fees and expenses 13,651 10,300 418
Custodian's fees and expenses 44,305 22,667 9,464
Directors'/Trustees' fees and expenses 2,795 1,799 507
Professional fees 9,502 7,673 5,233
Shareholders' reports - printing and mailing expenses 19,864 9,705 5,008
Stock exchange listing fees 5,281 5,294 88
Investor relations expense 18,060 11,690 3,143
Other expenses 14,474 8,023 5,897
----------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,142,060 719,879 208,536
Custodian fee credit (16,261) (7,165) (2,779)
Expense reimbursement -- -- (71,859)
----------------------------------------------------------------------------------------------------------
Net expenses 1,125,799 712,714 133,898
----------------------------------------------------------------------------------------------------------
Net investment income 5,598,351 3,542,751 996,128
----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from investments 837,604 314,920 37,454
Net realized gain (loss) from forward swaps -- -- 363
Change in net unrealized appreciation (depreciation)
of investments (3,630,717) (1,918,091) (436,231)
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- 48,645
----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (2,793,113) (1,603,171) (349,769)
----------------------------------------------------------------------------------------------------------
Distributions to Preferred Shareholders
From net investment income (1,058,319) (603,700) (193,328)
From accumulated net realized gains (204,980) (177,593) --
----------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,263,299) (781,293) (193,328)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 1,541,939 $ 1,158,287 $ 453,031
==========================================================================================================
See accompanying notes to financial statements.
53
Statement of
Operations Six Months Ended January 31, 2006 (Unaudited) (continued)
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------------------------------------------------
Investment Income $ 5,762,778 $ 2,283,023 $ 1,636,043 $ 1,158,348
-------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 754,921 310,093 230,301 160,465
Preferred shares - auction fees 98,521 39,620 30,748 21,110
Preferred shares - dividend disbursing agent fees 15,123 5,041 5,039 5,041
Shareholders' servicing agent fees and expenses 15,014 732 630 510
Custodian's fees and expenses 32,319 15,612 14,299 7,089
Directors'/Trustees' fees and expenses 2,170 1,037 745 545
Professional fees 7,877 6,102 5,711 5,205
Shareholders' reports - printing and mailing expenses 4,374 8,133 6,541 5,091
Stock exchange listing fees 5,322 182 134 92
Investor relations expense 15,646 6,171 4,642 3,373
Other expenses 10,835 7,261 5,832 5,100
-------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 962,122 399,984 304,622 213,621
Custodian fee credit (5,856) (9,576) (8,017) (4,291)
Expense reimbursement -- (145,387) (107,977) (75,234)
-------------------------------------------------------------------------------------------------------------------------
Net expenses 956,266 245,021 188,628 134,096
-------------------------------------------------------------------------------------------------------------------------
Net investment income 4,806,512 2,038,002 1,447,415 1,024,252
-------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from investments 29,329 24,166 131,179 (137)
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments (2,021,903) (772,515) (694,013) (412,479)
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (1,992,574) (748,349) (562,834) (412,616)
-------------------------------------------------------------------------------------------------------------------------
Distributions to Preferred Shareholders
From net investment income (919,230) (380,806) (286,513) (210,762)
From accumulated net realized gains (76,287) (18,831) (22,844) --
-------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (995,517) (399,637) (309,357) (210,762)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 1,818,421 $ 890,016 $ 575,224 $ 400,874
=========================================================================================================================
See accompanying notes to financial statements.
54
Statement of
Changes in Net Assets (Unaudited)
Michigan Michigan
Quality Income (NUM) Premium Income (NMP)
------------------------------ ------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
1/31/06 7/31/05 1/31/06 7/31/05
--------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 5,598,351 $ 11,434,474 $ 3,542,751 $ 7,216,850
Net realized gain (loss) from investments 837,604 1,581,756 314,920 1,197,250
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments (3,630,717) 4,992,452 (1,918,091) 2,658,205
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (1,058,319) (1,477,435) (603,700) (885,902)
From accumulated net realized gains (204,980) (81,692) (177,593) (11,575)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 1,541,939 16,449,555 1,158,287 10,174,828
--------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (4,977,269) (10,880,505) (3,217,539) (7,012,719)
From accumulated net realized gains (1,317,945) (1,296,599) (1,135,489) (357,099)
--------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (6,295,214) (12,177,104) (4,353,028) (7,369,818)
--------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 139,064 513,084 42,597 140,855
Preferred shares offering costs -- -- -- --
--------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 139,064 513,084 42,597 140,855
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (4,614,211) 4,785,535 (3,152,144) 2,945,865
Net assets applicable to Common
shares at the beginning of period 185,899,640 181,114,105 120,474,739 117,528,874
--------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 181,285,429 $ 185,899,640 $ 117,322,595 $ 120,474,739
==============================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 553,499 $ 990,736 $ 425,196 $ 703,684
==============================================================================================================
Michigan
Dividend Advantage (NZW)
------------------------------
Six Months
Ended Year Ended
1/31/06 7/31/05
----------------------------------------------------------------------------
Operations
Net investment income $ 996,128 $ 2,018,904
Net realized gain (loss) from investments 37,454 129,220
Net realized gain (loss) from forward swaps 363 (496,596)
Change in net unrealized appreciation
(depreciation) of investments (436,231) 1,604,711
Change in net unrealized appreciation
(depreciation) of forward swaps 48,645 59,406
Distributions to Preferred Shareholders:
From net investment income (193,328) (229,801)
From accumulated net realized gains -- --
----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 453,031 3,085,844
----------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (921,814) (1,842,204)
From accumulated net realized gains -- --
----------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (921,814) (1,842,204)
----------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 15,029 24,803
Preferred shares offering costs -- 13,775
----------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 15,029 38,578
----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (453,754) 1,282,218
Net assets applicable to Common
shares at the beginning of period 31,820,662 30,538,444
----------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 31,366,908 $ 31,820,662
============================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 175,322 $ 294,336
============================================================================
See accompanying notes to financial statements.
55
Statement of
Changes in Net Assets (Unaudited) (continued)
Ohio Ohio
Quality Income (NUO) Dividend Advantage (NXI)
------------------------------ ------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
1/31/06 7/31/05 1/31/06 7/31/05
--------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 4,806,512 $ 9,930,851 $ 2,038,002 $ 4,243,742
Net realized gain (loss) from investments 29,329 795,602 24,166 285,990
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments (2,021,903) 3,879,996 (772,515) 2,106,549
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (919,230) (1,186,754) (380,806) (473,047)
From accumulated net realized gains (76,287) (14,809) (18,831) --
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 1,818,421 13,404,886 890,016 6,163,234
--------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (4,291,485) (9,486,568) (1,886,891) (4,050,053)
From accumulated net realized gains (528,190) (345,280) (143,033) --
--------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,819,675) (9,831,848) (2,029,924) (4,050,053)
--------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 340,569 774,356 69,503 117,890
Preferred shares offering costs -- -- -- --
--------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 340,569 774,356 69,503 117,890
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,660,685) 4,347,394 (1,070,405) 2,231,071
Net assets applicable to Common
shares at the beginning of period 160,981,501 156,634,107 65,872,588 63,641,517
--------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 158,320,816 $ 160,981,501 $ 64,802,183 $ 65,872,588
==============================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 405,983 $ 810,186 $ 160,407 $ 390,102
==============================================================================================================
Ohio
Dividend Advantage 2 (NBJ)
------------------------------
Six Months
Ended Year Ended
1/31/06 7/31/05
----------------------------------------------------------------------------
Operations
Net investment income $ 1,447,415 $ 2,953,831
Net realized gain (loss) from investments 131,179 218,487
Net realized gain (loss) from forward swaps -- --
Change in net unrealized appreciation
(depreciation) of investments (694,013) 1,685,657
Change in net unrealized appreciation
(depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (286,513) (377,637)
From accumulated net realized gains (22,844) (3,841)
----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 575,224 4,476,497
----------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (1,288,638) (2,813,531)
From accumulated net realized gains (149,743) (65,438)
----------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,438,381) (2,878,969)
----------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 14,703 56,222
Preferred shares offering costs -- 14,942
----------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 14,703 71,164
----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (848,454) 1,668,692
Net assets applicable to Common
shares at the beginning of period 47,937,169 46,268,477
----------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 47,088,715 $ 47,937,169
============================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 86,821 $ 214,557
============================================================================
See accompanying notes to financial statements.
56
Ohio
Dividend Advantage 3 (NVJ)
------------------------------
Six Months
Ended Year Ended
1/31/06 7/31/05
----------------------------------------------------------------------------
Operations
Net investment income $ 1,024,252 $ 2,057,495
Net realized gain (loss) from investments (137) (4,849)
Net realized gain (loss) from forward swaps -- --
Change in net unrealized appreciation
(depreciation) of investments (412,479) 1,502,016
Change in net unrealized appreciation
(depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (210,762) (245,582)
From accumulated net realized gains -- (2,521)
----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 400,874 3,306,559
----------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (878,255) (1,872,857)
From accumulated net realized gains -- (39,484)
----------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (878,255) (1,912,341)
----------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 1,605 3,478
Preferred shares offering costs -- --
----------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 1,605 3,478
----------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (475,776) 1,397,696
Net assets applicable to Common
shares at the beginning of period 33,605,948 32,208,252
----------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 33,130,172 $ 33,605,948
============================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 209 $ 64,974
============================================================================
See accompanying notes to financial statements.
57
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
applicable state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market 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. Prices of derivative investments are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or derivative
investment, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value quote for an investment is unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At January 31, 2006,
there were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and applicable state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
58
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
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
========================================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to
mitigate the negative impact that an increase in long-term interest rates could
have on Common share net asset value. Forward interest rate swap transactions
involve each Fund's agreement with the counterparty to pay, in the future, a
fixed rate payment in exchange for the counterparty paying the Fund a variable
rate payment, the accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the forward swap contract, and would increase or decrease
in value based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date were to increase or
decrease. The Funds may close out a contract prior to the effective date, at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
Each Fund intends, but is not obligated to, terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To minimize such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the pre-determined
threshold amount.
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.
59
Notes to
Financial Statements (Unaudited) (continued)
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. 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
1/31/06 7/31/05 1/31/06 7/31/05 1/31/06 7/31/05
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 8,799 31,281 2,719 8,960 946 1,581
=================================================================================================================
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
1/31/06 7/31/05 1/31/06 7/31/05 1/31/06 7/31/05
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 20,497 44,115 4,175 7,184 941 3,544
=================================================================================================================
Ohio Dividend
Advantage 3 (NVJ)
-----------------------
Six Months
Ended Year Ended
1/31/06 7/31/05
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 102 217
=================================================================================================================
60
3. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended January 31, 2006, were
as follows:
Michigan Michigan Michigan
Quality Premium Dividend
Income Income Advantage
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------
Purchases $ 13,901,630 $ 1,880,346 $ 113,943
Sales and maturities 14,519,905 3,244,709 1,001,322
========================================================================================================================
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------
Purchases $ 7,910,975 $ 2,657,285 $ 2,779,728 $ --
Sales and maturities 8,235,880 1,915,000 2,594,040 350,000
========================================================================================================================
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 the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At January 31, 2006, the cost of investments was as follows:
Michigan Michigan Michigan
Quality Premium Dividend
Income Income Advantage
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------
Cost of investments $256,104,818 $163,270,174 $ 44,482,567
========================================================================================================================
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------
Cost of investments $222,282,819 $ 90,665,030 $ 67,943,085 $ 46,516,016
========================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at January 31, 2006, were as follows:
Michigan Michigan Michigan
Quality Premium Dividend
Income Income Advantage
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 16,738,304 $ 8,624,152 $ 2,380,770
Depreciation (438,095) (225,391) (459,277)
------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 16,300,209 $ 8,398,761 $ 1,921,493
========================================================================================================================
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 10,508,065 $ 4,561,626 $ 2,745,962 $ 2,614,356
Depreciation (152,150) (87,826) (54,553) (22,517)
------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 10,355,915 $ 4,473,800 $ 2,691,409 $ 2,591,839
========================================================================================================================
61
Notes to
Financial Statements (Unaudited) (continued)
The tax components of undistributed net investment income and net realized gains
at July 31, 2005, 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 * $ 1,766,789 $ 1,206,094 $ 448,052
Undistributed net ordinary income ** -- 20,208 --
Undistributed net long-term capital gains 1,139,426 1,101,668 --
========================================================================================================================
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 1,515,578 $ 655,225 $ 430,138 $ 208,689
Undistributed net ordinary income ** -- 8,426 350 --
Undistributed net long-term capital gains 593,836 137,721 101,207 --
========================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on July 1, 2005, paid on August 1, 2005.
** 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,
2005, 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 $ 12,353,910 $ 7,901,622 $ 2,070,374
Distributions from net ordinary income ** 68,743 44,066 --
Distributions from net long-term capital gains 1,378,291 363,651 --
========================================================================================================================
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 10,725,327 $ 4,531,442 $ 3,201,799 $ 2,124,939
Distributions from net ordinary income ** 59,986 -- 4,973 --
Distributions from net long-term capital gains 300,638 -- 69,279 41,879
========================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
62
At July 31, 2005, 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 3
(NZW) (NVJ)
------------------------------------------------------------------------------------------------------------------------
Expiration Year:
2011 $ 35,129 $ --
2012 -- --
2013 -- 1,451
------------------------------------------------------------------------------------------------------------------------
Total $ 35,129 $ 1,451
========================================================================================================================
Ohio Dividend Advantage 3 elected to defer net realized losses from investments
incurred from November 1, 2004 through July 31, 2005 ("post-October losses") in
accordance with Federal income tax regulations. The post-October losses of
$3,332 were treated as having arisen on the first day of the current fiscal
year.
5. Management Fee and Other Transactions with Affiliates
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser), a wholly owned subsidiary of Nuveen
Investments, Inc., and a specific fund-level component, based only on the amount
of assets within each individual fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
Michigan Quality Income (NUM)
Michigan Premium Income (NMP)
Ohio Quality Income (NUO)
Average Daily Net Assets (including net assets attributable to Preferred shares) Fund-Level Fee Rate
------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
========================================================================================================================
Michigan Dividend Advantage (NZW)
Ohio Dividend Advantage (NXI)
Ohio Dividend Advantage 2 (NBJ)
Ohio Dividend Advantage 3 (NVJ)
Average Daily Net Assets (including net assets attributable to Preferred shares) Fund-Level Fee Rate
------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
========================================================================================================================
63
Notes to
Financial Statements (Unaudited) (continued)
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of January 31, 2006, the complex-level fee rate was .1891%.
Complex-Level Assets(1) Complex-Level Fee Rate
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
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. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
For the first ten years of Ohio Dividend Advantage's (NXI) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
Year Ending Year Ending
March 31, March 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Ohio Dividend Advantage (NXI) for any
portion of its fees and expenses beyond March 31, 2011.
64
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.
6. Subsequent Events - Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on March 1, 2006, to shareholders of record on
February 15, 2006, as follows:
Michigan Michigan Michigan
Quality Premium Dividend
Income Income Advantage
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0685 $ .0665 $ .0745
========================================================================================================================
Ohio Ohio Ohio Ohio
Quality Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0730 $ .0710 $ .0665 $ .0655
========================================================================================================================
65
Financial
Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
===========================================================================================================
Michigan Quality Income (NUM)
-----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) $ 15.88 $ .48 $ (.24) $ (.09) $ (.02) $ .13
2005 15.51 .98 .57 (.13) (.01) 1.41
2004 15.14 1.01 .49 (.06) (.01) 1.43
2003 15.48 1.04 (.27) (.08) (.01) .68
2002 15.32 1.11 .15 (.11) (.02) 1.13
2001 14.54 1.16 .82 (.29) (.01) 1.68
Michigan Premium Income (NMP)
-----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 15.55 .46 (.20) (.08) (.02) .16
2005 15.19 .93 .50 (.11) -- 1.32
2004 15.24 .97 .38 (.04) (.03) 1.28
2003 15.56 1.03 (.37) (.07) -- .59
2002 15.31 1.05 .16 (.11) -- 1.10
2001 14.24 1.07 1.07 (.25) -- 1.89
Michigan Dividend Advantage (NZW)
-----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 15.44 .48 (.17) (.09) -- .22
2005 14.82 .98 .63 (.11) -- 1.50
2004 14.30 .99 .47 (.05) -- 1.41
2003 14.42 .99 (.20) (.07) -- .72
2002(b) 14.33 .76 .22 (.07) -- .91
===========================================================================================================
Less Distributions
--------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
==========================================================================================================
Michigan Quality Income (NUM)
----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) $ (.43) $ (.11) $ (.54) $ -- $ 15.47 $ 15.26
2005 (.93) (.11) (1.04) -- 15.88 15.67
2004 (.95) (.11) (1.06) -- 15.51 15.20
2003 (.92) (.10) (1.02) -- 15.14 15.45
2002 (.90) (.07) (.97) -- 15.48 16.10
2001 (.88) (.02) (.90) -- 15.32 15.42
Michigan Premium Income (NMP)
----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) (.42) (.15) (.57) -- 15.14 14.88
2005 (.91) (.05) (.96) -- 15.55 15.68
2004 (.94) (.39) (1.33) -- 15.19 14.37
2003 (.91) -- (.91) -- 15.24 14.85
2002 (.85) -- (.85) -- 15.56 15.35
2001 (.82) -- (.82) -- 15.31 14.71
Michigan Dividend Advantage (NZW)
----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) (.45) -- (.45) -- 15.21 15.62
2005 (.89) -- (.89) .01 15.44 16.79
2004 (.89) -- (.89) -- 14.82 14.65
2003 (.86) -- (.86) .02 14.30 15.10
2002(b) (.63) -- (.63) (.19) 14.42 14.65
==========================================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended January 31, 2006.
(b) For the period September 25, 2001 (commencement of operations) through
July 31, 2002.
66
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
After Credit/
Total Returns Before Credit/Reimbursement Reimbursement***
-------------------- --------------------------- -------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Based Ending Expenses Income to Expenses Income to
on Net to Average Average to Average Average
Based Common Assets Net Assets Net Assets Net Assets Net Assets
on Share Net Applicable Applicable Applicable Applicable Applicable Portfolio
Market Asset to Common to Common to Common to Common to Common Turnover
Value** Value** Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================================
Michigan Quality Income (NUM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) .84% .82% $ 181,285 1.24%* 6.04%* 1.22%* 6.06%* 5%
2005 9.94 9.28 185,900 1.22 6.13 1.21 6.14 8
2004 5.17 9.52 181,114 1.22 6.44 1.22 6.45 15
2003 2.40 4.35 176,186 1.24 6.56 1.24 6.57 15
2002 11.18 7.68 179,630 1.28 7.29 1.27 7.29 19
2001 17.11 11.90 176,664 1.30 7.79 1.29 7.80 20
Michigan Premium Income (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) (1.50) 1.00 117,323 1.20* 5.91* 1.19* 5.92* 1
2005 16.03 8.80 120,475 1.19 5.97 1.17 5.98 11
2004 5.46 8.56 117,529 1.20 6.28 1.19 6.30 28
2003 2.64 3.71 117,418 1.21 6.49 1.20 6.50 18
2002 10.52 7.40 119,820 1.25 6.82 1.24 6.83 9
2001 17.81 13.61 117,784 1.24 7.24 1.23 7.25 15
Michigan Dividend Advantage (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) (4.24) 1.43 31,367 1.31* 5.80* .84* 6.27* --
2005 21.34 10.41 31,821 1.27 5.93 .81 6.39 8
2004 2.99 10.00 30,538 1.28 6.13 .81 6.60 9
2003 9.19 5.01 29,443 1.29 6.15 .82 6.61 2
2002(b) 2.00 5.21 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:
2006(a) $94,000 $ 25,000 $ 73,214
2005 94,000 25,000 74,441
2004 94,000 25,000 73,169
2003 94,000 25,000 71,858
2002 94,000 25,000 72,774
2001 94,000 25,000 71,985
Michigan Premium Income (NMP)
-------------------------------------------------------------
Year Ended 7/31:
2006(a) 56,000 25,000 77,376
2005 56,000 25,000 78,783
2004 56,000 25,000 77,468
2003 56,000 25,000 77,419
2002 56,000 25,000 78,491
2001 56,000 25,000 77,582
Michigan Dividend Advantage (NZW)
-------------------------------------------------------------
Year Ended 7/31:
2006(a) 16,000 25,000 74,011
2005 16,000 25,000 74,720
2004 16,000 25,000 72,716
2003 16,000 25,000 71,005
2002(b) 16,000 25,000 71,374
=============================================================
See accompanying notes to financial statements.
67
Financial Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
===========================================================================================================
Ohio Quality Income (NUO)
-----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) $ 16.58 $ .49 $ (.20) $ (.09) $ (.01) $ .19
2005 16.21 1.02 .49 (.12) -- 1.39
2004 16.17 1.07 .25 (.06) (.01) 1.25
2003 16.36 1.10 (.22) (.08) -- .80
2002 16.10 1.14 .18 (.13) -- 1.19
2001 15.52 1.20 .56 (.27) -- 1.49
Ohio Dividend Advantage (NXI)
-----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 15.55 .48 (.18) (.09) -- .21
2005 15.05 1.00 .57 (.11) -- 1.46
2004 14.66 1.04 .40 (.06) -- 1.38
2003 14.83 1.05 (.23) (.07) -- .75
2002 14.57 1.06 .19 (.12) -- 1.13
2001(b) 14.33 .29 .35 (.04) -- .60
Ohio Dividend Advantage 2 (NBJ)
-----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 15.37 .46 (.18) (.09) (.01) .18
2005 14.85 .95 .61 (.12) -- 1.44
2004 14.31 .99 .53 (.06) -- 1.46
2003 14.48 1.00 (.23) (.08) -- .69
2002(c) 14.33 .78 .23 (.08) -- .93
Ohio Dividend Advantage 3 (NVJ)
-----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 15.57 .47 (.18) (.10) -- .19
2005 14.93 .95 .69 (.11) -- 1.53
2004 14.48 .96 .51 (.06) (.01) 1.40
2003 14.83 .97 (.29) (.07) (.01) .60
2002(d) 14.33 .25 .65 (.02) -- .88
===========================================================================================================
Less Distributions
--------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
==========================================================================================================
Ohio Quality Income (NUO)
----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) $ (.44) $(.05) $ (.49) $ -- $ 16.28 $ 17.03
2005 (.98) (.04) (1.02) -- 16.58 16.96
2004 (1.00) (.21) (1.21) -- 16.21 16.30
2003 (.99) -- (.99) -- 16.17 17.04
2002 (.93) -- (.93) -- 16.36 18.62
2001 (.91) -- (.91) -- 16.10 16.80
Ohio Dividend Advantage (NXI)
----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) (.45) (.03) (.48) -- 15.28 17.35
2005 (.96) -- (.96) -- 15.55 17.00
2004 (.97) (.02) (.99) -- 15.05 14.80
2003 (.92) (.01) (.93) .01 14.66 14.26
2002 (.87) -- (.87) -- 14.83 15.15
2001(b) (.22) -- (.22) (.14) 14.57 15.35
Ohio Dividend Advantage 2 (NBJ)
----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) (.41) (.05) (.46) -- 15.09 16.45
2005 (.90) (.02) (.92) -- 15.37 15.48
2004 (.92) -- (.92) -- 14.85 14.70
2003 (.87) -- (.87) .01 14.31 14.26
2002(c) (.62) -- (.62) (.16) 14.48 14.65
Ohio Dividend Advantage 3 (NVJ)
----------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) (.41) -- (.41) -- 15.35 15.84
2005 (.87) (.02) (.89) -- 15.57 15.90
2004 (.88) (.07) (.95) -- 14.93 14.30
2003 (.88) (.06) (.94) (.01) 14.48 14.40
2002(d) (.22) -- (.22) (.16) 14.83 15.30
==========================================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended January 31, 2006.
(b) For the period March 27, 2001 (commencement of operations) through July
31, 2001.
(c) For the period September 25, 2001 (commencement of operations) through
July 31, 2002.
(d) For the period March 25, 2002 (commencement of operations) through July
31, 2002.
68
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
After Credit/
Total Returns Before Credit/Reimbursement Reimbursement***
-------------------- --------------------------- -------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Based Ending Expenses Income to Expenses Income to
on Net to Average Average to Average Average
Based Common Assets Net Assets Net Assets Net Assets Net Assets
on Share Net Applicable Applicable Applicable Applicable Applicable Portfolio
Market Asset to Common to Common to Common to Common to Common Turnover
Value** Value** Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================================
Ohio Quality Income (NUO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 3.45% 1.20% $ 158,321 1.20%* 5.98%* 1.19%* 5.99%* 3%
2005 10.25 8.70 160,982 1.19 6.16 1.18 6.17 14
2004 2.59 7.87 156,634 1.20 6.46 1.19 6.47 31
2003 (3.15) 4.84 155,412 1.22 6.59 1.22 6.60 12
2002 17.00 7.63 156,351 1.26 7.10 1.24 7.12 26
2001 6.86 9.85 153,164 1.32 7.58 1.30 7.60 15
Ohio Dividend Advantage (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 5.02 1.37 64,802 1.22* 5.73* .75* 6.21* 2
2005 21.79 9.87 65,873 1.21 6.00 .76 6.46 14
2004 10.70 9.54 63,642 1.20 6.41 .75 6.86 10
2003 (.04) 5.09 61,924 1.23 6.52 .78 6.97 6
2002 4.48 8.02 62,548 1.24 6.79 .78 7.25 18
2001(b) 3.77 3.21 61,424 1.15* 5.58* .71* 6.02* 4
Ohio Dividend Advantage 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 9.45 1.20 47,089 1.27* 5.57* .79* 6.06* 4
2005 11.63 9.90 47,937 1.23 5.71 .77 6.17 14
2004 9.60 10.33 46,268 1.25 6.13 .79 6.60 15
2003 3.17 4.74 44,578 1.27 6.26 .81 6.72 15
2002(c) 1.91 5.58 45,073 1.25* 6.12* .80* 6.57* 39
Ohio Dividend Advantage 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2006(a) 2.28 1.22 33,130 1.27* 5.64* .80* 6.11* --
2005 17.60 10.40 33,606 1.27 5.68 .81 6.14 3
2004 5.86 9.72 32,208 1.28 5.87 .81 6.34 8
2003 .09 3.81 31,245 1.28 5.89 .82 6.35 16
2002(d) 3.47 5.05 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:
2006(a) $77,000 $ 25,000 $ 76,403
2005 77,000 25,000 77,267
2004 77,000 25,000 75,855
2003 77,000 25,000 75,458
2002 77,000 25,000 75,763
2001 77,000 25,000 74,729
Ohio Dividend Advantage (NXI)
-------------------------------------------------------------
Year Ended 7/31:
2006(a) 31,000 25,000 77,260
2005 31,000 25,000 78,123
2004 31,000 25,000 76,324
2003 31,000 25,000 74,938
2002 31,000 25,000 75,442
2001(b) 31,000 25,000 74,535
Ohio Dividend Advantage 2 (NBJ)
-------------------------------------------------------------
Year Ended 7/31:
2006(a) 24,000 25,000 74,051
2005 24,000 25,000 74,935
2004 24,000 25,000 73,196
2003 24,000 25,000 71,435
2002(c) 24,000 25,000 71,951
Ohio Dividend Advantage 3 (NVJ)
-------------------------------------------------------------
Year Ended 7/31:
2006(a) 16,500 25,000 75,197
2005 16,500 25,000 75,918
2004 16,500 25,000 73,800
2003 16,500 25,000 72,341
2002(d) 16,500 25,000 73,477
=============================================================
See accompanying notes to financial statements.
69
Reinvest Automatically
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
Nuveen Closed-End 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
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
Call today to start reinvesting dividends and/or distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
70
Other Useful
Information
Quarterly Portfolio of Investments and Proxy voting information
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
Average Effective Maturity: The 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 the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage 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.
Board of Directors/Trustees
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase 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 covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
71
[GRAPHIC OMITTED]
Learn more
about Nuveen Funds at
www.nuveen.com/etf
Nuveen Investments:
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.
We offer many different investing solutions for our clients' different needs.
Managing more than $135 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 fixed-income 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.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
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NUVEEN
Investments
ESA-B-0106D
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.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Michigan Quality Income Municipal Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: April 7, 2006
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: April 7, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: April 7, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.