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 811-7484
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Nuveen Massachusetts Premium Income Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: May 31
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Date of reporting period: May 31, 2010
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
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NUVEEN
INVESTMENTS
Closed-End Funds
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Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report
May 31, 2010
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NUVEEN CONNECTICUT NUVEEN CONNECTICUT NUVEEN CONNECTICUT NUVEEN CONNECTICUT
PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND 3
NTC NFC NGK NGO
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NUVEEN MASSACHUSETTS NUVEEN MASSACHUSETTS NUVEEN INSURED NUVEEN MISSOURI
PREMIUM INCOME DIVIDEND ADVANTAGE MASSACHUSETTS TAX-FREE PREMIUM INCOME
MUNICIPAL FUND MUNICIPAL FUND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND
NMT NMB NGX NOM
May 10
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NUVEEN
INVESTMENTS
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The economic environment in which your Fund operates reflects continuing but
uneven economic recovery. The U.S. and other major industrial countries are
experiencing steady but comparatively low levels of economic growth, while
emerging market countries are seeing a resumption of relatively strong economic
expansion. The potential impact of steps being considered by many governments to
counteract the extraordinary governmental spending and credit expansion to deal
with the recent financial and economic crisis is injecting uncertainty into
global financial markets. The implications for future tax rates, government
spending, interest rates and the pace of economic recovery in the U.S. and other
leading economies are extremely difficult to predict at the present time. The
long term health of the global economy depends on restoring some measure of
fiscal discipline around the world, but since all of the corrective steps
require economic pain, it is not surprising that governments are reluctant to
undertake them.
In the near term, governments remain committed to furthering economic recovery
and realizing a meaningful reduction in their national unemployment rates. Such
an environment should produce continued economic growth and, consequently,
attractive investment opportunities. Over the longer term, the larger
uncertainty mentioned earlier carries the risk of unexpected potholes in the
road to sustained recovery. For this reason, Nuveen's investment management
teams are working hard to balance return and risk by building well-diversified
portfolios, among other strategies. I encourage you to read the following
commentary on the management of your Fund. As always, I also encourage you to
contact your financial consultant if you have any questions about your Nuveen
Fund investment. Please consult the Nuveen website for the most recent
information on your Nuveen Fund at: www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
July 22, 2010
Nuveen Investments 1
Portfolio Managers' Comments
Nuveen Connecticut Premium Income Municipal Fund (NTC)
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC)
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK)
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO)
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB)
Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX)
Nuveen Missouri Premium Income Municipal Fund (NOM)
PORTFOLIO MANAGERS CATHRYN STEEVES AND SCOTT ROMANS REVIEW ECONOMIC AND
MUNICIPAL MARKET CONDITIONS AT THE NATIONAL AND STATE LEVELS, KEY INVESTMENT
STRATEGIES AND THE TWELVEMONTH PERFORMANCE OF THESE EIGHT NUVEEN FUNDS. CATHRYN,
WHO JOINED NUVEEN IN 1996, HAS MANAGED THE CONNECTICUT AND MASSACHUSETTS FUNDS
SINCE 2006. SCOTT, WHO HAS BEEN WITH NUVEEN SINCE 2000, ASSUMED PORTFOLIO
MANAGEMENT RESPONSIBILITY FOR NOM IN 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING
THE TWELVE-MONTH REPORTING PERIOD ENDED MAY 31, 2010?
During this reporting period, municipal bond prices generally rose as strong
cash flows into municipal bond funds combined with tighter supply of new
tax-exempt issuance to provide favorable supply and demand conditions. As the
period began, there continued to be considerable downward pressure on the
economy and both the Federal Reserve (Fed) and the federal government continued
their efforts to improve the overall economic environment. For its part, the Fed
continued to hold the benchmark fed funds rate in a target range of zero to
0.25% after cutting it to this record low level in December 2008. At its June
2010 meeting (following the end of this reporting period), the central bank
renewed its pledge to keep the fed funds rate "exceptionally low" for an
"extended period." As part of its efforts, the federal government put into place
the American Recovery and Reinvestment Act of 2009, a $787 billion economic
stimulus package intended to provide job creation, tax relief, fiscal assistance
to state and local governments and expansion of unemployment benefits and other
federal social welfare programs.
In recent months, these and other measures taken by the Fed and the government
to ease the economic recession have produced some incipient signs of
improvement. In the first quarter of 2010, the U.S. economy, as measured by the
U.S. gross domestic product (GDP), grew at an annualized rate of 2.7%. This
marked the first time since 2007 that the economy managed to string together
three consecutive positive quarters. Housing also provided something of a bright
spot, as the average home price gained 3.8% for the twelve months ended April
2010, the largest year-over-year increase since September 2006. At the same
time, inflation continued to be relatively tame, as the
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND
OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE
ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
Consumer Price Index (CPI) rose 2.0% year-over-year as of May 2010, driven
mainly by increased prices for gasoline and fuel oil. The core CPI (which
excludes food and energy) rose 0.9% over the year, the slowest pace since 1966
and within the Fed's official objective of 2.0% or lower for this measure. While
labor markets remained weak, recent months saw some improvement. As of May 2010,
the national unemployment rate was 9.7%, up from 9.4% in May 2009 but below the
26-year high of 10.1% in October 2009.
Municipal market conditions began to show general signs of improvement
throughout most of the period. This trend was bolstered by the reduced issuance
of tax-exempt municipal debt, due in part to the introduction of the Build
America Bond program in 2009. Build America Bonds are a new class of taxable
municipal debt, created as part of the February 2009 economic stimulus package.
These bonds currently offer municipal issuers a federal subsidy equal to 35% of
the security's interest payments and therefore provide issuers with an
attractive alternative to traditional tax-exempt debt. During the twelve months
ended May 31, 2010, taxable Build America Bonds issuance totaled $95.9 billion,
accounting for over 22% of new bonds issued in the municipal market.
Over the twelve months ended May 31, 2010, municipal bond issuance
nationwide--both tax-exempt and taxable--totaled $428.1 billion, an increase of
17% compared with the twelve-month period ended May 31, 2009. Although total
municipal issuance rose during this twelve months, supply actually would have
fallen approximately 9% without the Build America Bonds issuance. Demand for
tax-exempt bonds remained strong during this period, supported in part by the
prospect of higher tax rates in the future. Combined with the lower supply of
tax-exempt bonds, this provided support for municipal bond prices.
HOW WERE THE ECONOMIC AND MARKET CONDITIONS IN CONNECTICUT, MASSACHUSETTS, AND
MISSOURI DURING THIS PERIOD?
Over the past twelve months, Connecticut's economy was led by the education and
health services, government, professional and business services, and retail
trade sectors. As home to 45 colleges and universities, the state serves as a
center for research and development facilities and high-tech industries,
including bioscience, aerospace, medical technology and defense. Despite the
economic recession, the education and health services sector continued to add
jobs, as did the leisure and hospitality sectors in the state. However,
Connecticut remained heavily reliant on manufacturing, where job losses
continued to mount. As of May 2010, the unemployment rate in Connecticut was
8.9%, up from 8.2% in May 2009 but below its recent high of 9.2% in March 2010.
On a more positive note, home prices in the state, while considerably below
their 2007 peak, have posted modest gains in recent months, and residential
construction has firmed. As of May 2010, Moody's, Standard & Poor's (S&P) and
Fitch rated Connecticut general obligation debt at Aa2/AA/AA, respectively.
Moody's assigned a negative outlook to the state, while S&P and Fitch maintained
stable outlooks. Issuance of municipal debt in Connecticut during the twelve
months ended May 31, 2010, totaled $7.0 billion, an increase of 15.5% over the
previous twelve months.
The Massachusetts economy remained relatively diverse, with growth led by
education and health services, professional and business services, government
and retail trade.
Nuveen Investments 3
Half of Massachusetts's ten largest employers were medical centers or
universities, and the education and health services sectors accounted for almost
20% of the commonwealth's economy, compared with 14% nationally. The education
and health services sectors continued to add jobs even as other sectors turned
negative, adding stability in the area of employment. As of May 2010, the
jobless rate in Massachusetts had risen to 9.2% from 8.2% in May 2009, but
remained below the recent high of 9.5% in early 2010. While certain sectors of
the commonwealth's economy, notably construction and manufacturing, have been
under pressure from the recession, Massachusetts has fared better economically
than many other states. The $27 billion fiscal 2011 budget cut aid to local
governments by 4%, reduced funding for higher education, but included no new
taxes. As of May 2010, Moody's, S&P and Fitch rated Massachusetts general
obligation debt at Aa1/AA/AA+, respectively, with stable outlooks. For the
twelve months ended May 31, 2010, new municipal supply in Massachusetts totaled
$12.6 billion, an increase of 2% from the previous twelve months, making the
commonwealth the sixth largest state issuer in the nation.
Although characterized by a high level of industrial diversity, Missouri's
economy has remained largely centered on manufacturing. With the
recession-related decline in consumer spending and a significant drop in demand
for durable goods, both domestically and abroad, employment in the state's
manufacturing sector, especially the auto industry, suffered major losses and
prospects for new jobs have remained limited. In May 2010, the jobless rate in
Missouri was 9.3%, down slightly from 9.4% in May 2009 and below the recent high
of 9.7% seen during the third quarter of 2009. In response to the employment
situation, Missouri has focused recent efforts on transitioning part of its
economy away from traditional manufacturing jobs into the development of the
biotechnology and alternative energy industries. For fiscal 2011, the $23.8
billion state budget focuses on job creation, education, and health care.
Missouri's tax structure currently provides companies with some of the most
favorable tax conditions in the country, an important advantage in attracting
businesses to the state. As of May 2010, Moody's, S&P, and Fitch maintained
their ratings on Missouri general obligation debt at Aaa/AAA/AAA, respectively,
with stable outlooks, reflecting the state's conservative fiscal management and
low debt burden. During the twelve months ended May 31, 2010, municipal issuance
in Missouri was up 65% from the previous twelve-month period, to $7.7 billion.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
As previously mentioned, the availability of tax-exempt bonds declined
nationally during this period, due in part to the introduction of taxable Build
America Bonds in April 2009. Build America Bond issuance over this period,
represented approximately 15% of municipal supply in Connecticut, 20% in
Massachusetts and 22% in Missouri. Since interest payments from Build America
Bonds represent taxable income, we do not view these bonds as good investment
opportunities for these Funds.
4 Nuveen Investments
In NGX, the tighter supply situation was compounded by the severe decline in
issuance of AAA-rated insured bonds. Over the past year, new insured paper
accounted for approximately 6% of issuance nationwide, compared with more than
12% a year earlier and recent historical levels of approximately 50%. In
response to this situation, the Funds' Board of Trustees approved changes to
NGX's investment policies that increased its investment flexibility while
retaining the insured nature of its portfolio. NGX can now invest at least 80%
of its net assets in municipal securities that are covered by insurance from
insurers with a claims-paying ability rated at least BBB- at the time of
purchase. In addition, the Fund may also invest up to 20% of its net assets in
uninsured investment-grade credits rated BBB- or higher. The investment policy
changes are discussed in more detail on page eleven.
Despite the constrained issuance on tax-exempt municipal bonds, we continued to
find attractive value opportunities, taking a bottom-up approach to discovering
undervalued sectors and individual credits with the potential to perform well
over the long term. In the Connecticut Funds, we found value in several areas of
the market, including health care, housing and dedicated tax bonds. In addition,
NTC bought Connecticut general obligation (GO) bonds and NGO added higher
education credits. The Massachusetts Funds also purchased health care and higher
education bonds as well as credits issued for continuing care retirement centers
(long-term care). We also added bonds issued for WGBH, Boston's public
broadcasting service. In Missouri, we purchased higher quality school district
GOs, lower-rated health care bonds, and both insured and uninsured airport
revenue bonds.
Some of our investment activity during this period was driven by opportunities
created by the provisions of the Build America Bond program. For example,
tax-exempt supply was more plentiful in the health care and higher education
sectors because, as 501(c)(3) (nonprofit) organizations, hospitals and private
universities generally do not qualify for the Build America Bond program and
must continue to issue bonds in the tax-exempt municipal market. In addition,
health care entities were active issuers during this period, as they sought to
replace variable rate issuance with fixed rates. Refunding issues also are not
covered by the Build America Bond program, and this resulted in attractive
opportunities in various other sectors of the market.
The impact of the Build America Bond program was also evident in the area of
longer-term issuance, as municipal issuers sought to take full advantage of the
attractive financing terms offered by these bonds. Approximately 70% of Build
America Bonds were issued with maturities of at least 30 years or more. Even
though this significantly reduced the availability of tax-exempt credits with
longer maturities, we continued to find good opportunities to purchase
attractive longer-term bonds for these Funds. During this period, the
Connecticut and Massachusetts Funds generally focused on bonds in the 25-year to
30-year part of the yield curve offering 5% coupons or higher. These bonds
helped us to maintain the Funds' durations within our target range and also
rewarded investors as the yield curve remained relatively steep.
Cash for new purchases during this period was generated primarily by the
proceeds from called and maturing bonds, which we worked to redeploy to keep the
Funds fully invested. In NMT, we also trimmed our position in bonds with shorter
maturities. On the
Nuveen Investments 5
whole, however, selling was relatively limited during this period, as the bonds
in our portfolios generally offered higher yields than those available in the
current marketplace.
As of May 31, 2010, all eight Funds continued to use inverse floating rate
securities.(1) We employ inverse floaters as a form of leverage for a variety of
reasons, including duration management as well as income and total return
enhancement.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Funds, as well as relevant index and peer
group information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE
FOR PERIODS ENDED 5/31/10
1-YEAR 5-YEAR 10-YEAR
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CONNECTICUT FUNDS
NTC 12.49% 4.36% 6.95%
NFC 11.34% 4.72% N/A
NGK 10.69% 4.69% N/A
NGO 11.66% 4.24% N/A
Standard & Poor's (S&P) Connecticut Municipal Bond Index(2) 6.35% 4.23% 5.59%
Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85%
Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78%
MASSACHUSETTS FUNDS
NMT 15.03% 4.38% 6.64%
NMB 12.50% 3.90% N/A
Standard & Poor's (S&P) Massachusetts Municipal Bond Index(2) 7.67% 4.70% 6.09%
Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85%
Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78%
MISSOURI FUND
NOM 14.69% 3.38% 6.41%
Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85%
Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78%
INSURED MASSACHUSETTS FUND
NGX 11.61% 4.53% N/A
Standard & Poor's (S&P) Massachusetts Municipal Bond Index(2) 7.67% 4.70% 6.09%
Standard & Poor's (S&P) National Insured Municipal Bond Index(3) 9.13% 4.23% 6.09%
Lipper Single State Insured Municipal Debt Funds Average(5) 12.76% 4.00% 6.68%
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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.
1 An inverse floating rate security, also known as an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
2 The Standard & Poor's (S&P) Municipal Bond Indexes for Connecticut and
Massachusetts are unleveraged, market value-weighted indexes designed to
measure the performance of the tax-exempt, investment-grade Connecticut
and Massachusetts municipal bond markets, respectively. These indexes do
not reflect any initial or ongoing expenses and are not available for
direct investment.
3 The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the tax-exempt, investment-grade U.S. municipal bond
market, while the S&P National Insured Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the insured segment of the U.S. municipal bond market.
There is no S&P state municipal bond index for Missouri. These indexes do
not reflect any initial or ongoing expenses and are not available for
direct investment.
4 The Lipper Other States Municipal Debt Funds Average is calculated using
the returns of all closed-end funds in this category for each period as
follows: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 funds. Lipper
returns account for the effects of management fees and assume reinvestment
of dividends, but do not reflect any applicable sales charges. The Lipper
average is not available for direct investment.
5 The Lipper Single-State Insured Municipal Debt Funds Average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 1-year, 44 funds; 5-year, 44 funds; and
10-year, 24 funds. Lipper returns account for the effects of management
fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges. The Lipper average is not available for direct
investment.
6 Nuveen Investments
For the twelve months ended May 31, 2010, the total returns on common share net
asset value (NAV) for all seven of the Connecticut and Massachusetts Funds
exceeded the returns for their respective state's Standard & Poor's (S&P)
Municipal Bond Index. The seven uninsured Funds outperformed the S&P National
Municipal Bond Index, and NGX outperformed the S&P National Insured Municipal
Bond Index. For the same period, NMT and NOM exceeded the average return for the
Lipper Other States Municipal Debt Funds Average, while the four Connecticut
Funds and NMB lagged this Lipper average, NGX trailed the average return for the
Lipper Single State Insured Municipal Debt Funds Average. Shareholders should
note that the performance of the Lipper Other States category represents the
overall average of returns for funds from ten different states with a wide
variety of municipal market conditions, which may make direct comparisons less
meaningful.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, credit exposure and sector
allocation. In addition, the use of structural leverage was an important
positive factor during this period. The impact of structural leverage is
discussed in more detail on page eight.
During this period, bonds with longer maturities generally outperformed those
with shorter maturities, with bonds at the longest end of the yield curve
posting the strongest returns. The outperformance of longer term bonds was due
in part to the decline in interest rates, particularly at the longer end of the
curve. The scarcity of tax-exempt bonds with longer maturities also drove up the
prices of these bonds. Overall, NTC, NMT, NMB, and NOM were the best positioned
in terms of yield curve positioning and duration. In NGX, which had the shortest
duration among the Massachusetts Funds, yield curve positioning and duration was
also a positive contributor to performance, but on a smaller scale than in NMT
and NMB. The performances of NFC, NGK and NGO were restrained by their
overweightings in the underperforming short end of the yield curve. Some of this
overweight was due to the fact that much of the issuance in Connecticut came to
market with shorter maturities. NTC, on the other hand, had a longer duration as
the result of more bond calls and reinvestment at the longer end of the curve,
which benefited its performance.
Credit exposure also played an important role in the performance of these Funds.
The demand for municipal bonds increased during this period, driven by a variety
of factors, including concerns about potential tax increases, the need to
rebalance portfolio allocations and a growing appetite for additional risk. At
the same time, the supply of new tax-exempt municipal paper declined, due
largely to the Build America Bond program. As investors bid up municipal bond
prices, bonds rated BBB or below and non-rated bonds generally outperformed
those rated AAA. In this environment, the Funds' performance benefited from
their allocations to lower quality credits. All of the Funds except NGX were
overweighted in lower-rated bonds, and several Funds also were underweighted in
bonds rated AAA, which further boosted their performance. As an insured Fund,
NGX had the smallest exposure to lower-rated and non-rated credits and, together
with NGK and NFC, the largest allocation of AAA bonds. This overall higher
credit quality hampered NGX's relative performance for the period.
Nuveen Investments 7
Overall, sector allocations were a positive factor for the Funds' performance
during this period. Holdings that generally contributed to the Funds' returns
included industrial development revenue (IDR) and health care bonds, both of
which exceeded the overall municipal market return by substantial margins.
Revenue bonds as a whole performed well, with transportation, housing and
special tax among the other sectors that outperformed the general municipal
market for this period. Zero coupon bonds also were among the strongest
performers. All of these Funds benefited from their overweights in health care
and the returns of the Connecticut and Massachusetts Funds were enhanced by
their overexposures to housing. The Massachusetts Funds also had an
overweighting to IDRs and bonds in the other revenue category, specifically
dedicated tax credits.
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury
securities, performed relatively poorly during this period. The underperformance
of these bonds can be attributed primarily to their shorter effective maturities
and higher credit quality. Among the revenue sectors, education, electric
utilities, water and sewer and resource recovery trailed the overall municipal
market by small margins, while many general obligation and other tax-supported
bonds also failed to keep pace with the market for the twelve months. NFC, NGK,
NGO, NGX and NOM all were overweighted in pre-refunded bonds relative to the
market, with NGO and NGX having the highest allocations. The Connecticut and
Massachusetts Funds also had heavy exposures to higher education credits, which
underperformed due to their higher credit quality. On the other hand, all of
these Funds were underweighted in tax-supported securities, which lessened the
impact of the underperformance of these bonds.
IMPACT OF THE FUNDS' LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative indexes was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total return for common shareholders.
However, use of leverage also can expose common shareholders to additional
volatility. For example, as the prices of securities held by a Fund decline, the
negative impact of these valuation changes on common share net asset value and
common shareholder total return is magnified by the use of leverage. Conversely,
leverage may enhance common share returns during periods when bond prices
generally are rising.
Leverage made a positive contribution to the performance of these Funds over
this reporting period.
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
Shortly after their inceptions, each of the Funds issued auction rate preferred
shares (ARPS) to create financial leverage. As noted in past shareholder
reports, the ARPS issued by many closed-end funds, including these Funds, have
been hampered by a lack of liquidity since February 2008. Since that time, more
ARPS have been submitted for sale in each of their regularly scheduled auctions
than there have been offers to buy. In fact, offers to buy have been almost
completely non-existent since late February 2008.
8 Nuveen Investments
This means that these auctions have "failed to clear," and that many, or all, of
the ARPS shareholders who wanted to sell their shares in these auctions were
unable to do so. This lack of liquidity in ARPS did not lower the credit quality
of these shares, and ARPS shareholders unable to sell their shares continued to
receive distributions at the "maximum rate" applicable to failed auctions, as
calculated in accordance with the pre-established terms of the ARPS. In the
recent market, with short-term rates at multi-generational lows, those maximum
rates also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Nuveen funds' Board of
Directors/Trustees authorized several methods to refinance a portion of the
Nuveen funds' outstanding ARPS. Some funds have utilized tender option bonds
(TOBs), also known as floating rate securities, for leverage purposes. The
amount of TOBs that a fund may use varies according to the composition of each
fund's portfolio. Some funds have a greater ability to use TOBs than others.
Some funds have issued Variable Rate Demand Preferred (VRDP) Shares, but these
issuances have been limited since it has been difficult to find liquidity
providers on economically viable terms given the constrained credit environment.
Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form
of preferred stock with a mandatory redemption period of five years.
While all these efforts have reduced the total amount of outstanding ARPS issued
by the Nuveen funds, the funds cannot provide any assurance on when the
remaining outstanding ARPS might be redeemed.
At the time this report was prepared, thirty Nuveen leveraged closed-end funds
received a demand letter from a law firm on behalf of some common shareholders
of each fund alleging that Nuveen and the fund's officers and Board of
Directors/Trustees breached their fiduciary duties related to the redemption at
par of the fund's ARPS. After an extensive independent review, on July 14, 2010,
the Board of Directors/Trustees announced that each fund had rejected the
demands contained in the letters. As a result, the Board of Directors/Trustees
has resumed consideration of additional ARPS refinancing. Any future
determinations by the Board of Directors/Trustees to refinance a specific fund's
ARPS will continue to be based upon a review of the fund's specific
circumstances, considering, among other factors, the availability and terms of
potential alternative sources of leverage, the receipt of applicable ratings and
other necessary approvals for such alternative sources of leverage, and overall
market conditions.
Nuveen Investments 9
As of May 31, 2010, the amount of ARPS redeemed by the Funds are as shown in the
accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NTC $22,575,000 58.9%
NFC $19,500,000 100.0%
NGK $17,500,000 100.0%
NGO $32,000,000 100.0%
NMT $19,600,000 57.7%
NMB $15,000,000 100.0%
NGX $20,500,000 100.0%
--------------------------------------------------------------------------------
As of May 31, 2010, the Funds have issued and outstanding MTP Shares, at
liquidation value, as shown in the accompanying table. (Refer to Notes to
Financial Statements, Footnote 1 - General Information and Significant
Accounting Policies and Footnote 4 - Fund Shares for further details on MTP
Shares.)
MTP SHARES
FUND AT LIQUIDATION VALUE
--------------------------------------------------------------------------------
NTC $18,300,000
NFC $20,470,000
NGK $16,950,000
NGO $32,000,000
NMT $20,210,000
NMB $14,725,000
NGX $22,075,000
--------------------------------------------------------------------------------
During this twelve-month reporting period, NOM filed with the Securities and
Exchange Commission (SEC) a registration statement seeking to register MTP
Shares. This registration statement, declared effective by the SEC, enables the
Fund to issue to the public MTP shares to refinance all or a portion of its
outstanding ARPS. The issuance of MTP Shares by the Fund is subject to market
and other conditions. There is no assurance that these MTP Shares will be
issued.
As of May 31, 2010, 83 out of the 84 Nuveen closed-end municipal funds that had
issued ARPS have redeemed at par all or a portion of these shares. These
redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS
redemptions to approximately $4.4 billion of the approximately $11.0 billion
originally outstanding. For up-to-date information, please visit the Nuveen CEF
Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
10 Nuveen Investments
RECENT CHANGES TO INVESTMENT POLICIES OF NUVEEN INSURED FUNDS
As a result of the "credit crunch" that began in 2007 and that led to the
financial crisis that peaked in late 2008, the financial strength ratings
assigned to most municipal bond insurers have been downgraded by the primary
ratings agencies. These ratings downgrades generally have reduced, and any
additional ratings downgrades may further reduce, the effective rating of many
of the bonds insured by those bond insurers, including bonds held by the funds.
This in turn has sharply reduced, and in some cases may have eliminated, the
value provided by such insurance. Nonetheless, the insured funds' holdings
continue to be well diversified and on the whole, the underlying credit quality
of its holdings, including NGX, are of medium to high quality. It is also
important to note that municipal bonds historically have had a very low rate of
default.
On May 3, 2010, the funds' Board of Directors/Trustees approved changes to each
insured Fund's investment policies. The Board of Directors/Trustees took this
action in response to the continuing challenges faced by municipal bond
insurers. The changes to each fund's investment policies are intended to
increase the fund's investment flexibility in pursuing its investment objective,
while retaining the insured nature of its portfolio.
The changes, effective immediately, provide that under normal circumstances, the
insured funds invest at least 80% of their managed assets (as defined in
Footnote 7 - Management Fees and Other Transactions with Affiliates) in
municipal securities that are covered by insurance guaranteeing the timely
payment of principal and interest. In addition, the municipal securities in
which each fund invests will be rated investment grade at the time of purchase
(based on the higher of the rating of the insurer, if any, or the underlying
security) by at least one independent rating agency, or are unrated but judged
to be of similar credit quality by the Adviser, or are backed by an escrow or
trust account containing sufficient U.S. government or U.S. government agency
securities or U.S. Treasury-issued State and Local Government Series securities
to ensure timely payment of principal and interest. Inverse floating rate
securities whose underlying bonds are covered by insurance are included for
purposes of the 80%.
Nuveen Investments 11
Common Share Dividend and Share Price Information
During the twelve-month reporting period ended May 31, 2010, NGK, NMB and NOM
each had three monthly dividend increases and NTC, NFC, NGO, NMT and NGX each
had two monthly dividend increases.
Due to normal portfolio activity, common shareholders of the following Funds
received capital gains or net ordinary income distributions at the end of
December 2009 as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME
FUND (PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NTC $0.0041 --
NMB -- $0.0283
--------------------------------------------------------------------------------
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 May 31, 2010, all eight
Funds in this report had positive UNII balances for both tax and financial
reporting purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Funds' repurchase program, the Funds have not
repurchased any of their outstanding common shares.
12 Nuveen Investments
As of May 31, 2010, the Funds' common share prices were trading at (+) premiums
or (-) discounts to their common share NAVs as shown in the accompanying table.
5/31/10 TWELVE-MONTH AVERAGE
FUND (+)PREMIUM/(-)DISCOUNT (+)PREMIUM/(-)DISCOUNT
--------------------------------------------------------------------------------
NTC -4.26% -2.77%
NFC +2.55% +1.69%
NGK +7.86% +3.44%
NGO -2.63% -2.58%
NMT +3.11% -0.82%
NMB -1.95% +0.94%
NGX +7.34% +3.26%
NOM +21.77% +10.86%
--------------------------------------------------------------------------------
Nuveen Investments 13
NTC Performance OVERVIEW | Nuveen Connecticut Premium Income Municipal Fund
| as of May 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.94
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.56
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.26%
--------------------------------------------------------------------------------
Market Yield 5.08%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.43%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $78,106
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.74
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.25
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 9.76% 12.49%
--------------------------------------------------------------------------------
5-Year 2.84% 4.36%
--------------------------------------------------------------------------------
10-Year 5.85% 6.95%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 25.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.2%
--------------------------------------------------------------------------------
Tax Obligation/General 13.7%
--------------------------------------------------------------------------------
Health Care 11.6%
--------------------------------------------------------------------------------
Water and Sewer 7.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 7.4%
--------------------------------------------------------------------------------
Housing/Single Family 6.5%
--------------------------------------------------------------------------------
Utilities 5.6%
--------------------------------------------------------------------------------
Other 5.9%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)(2)
[PIE CHART]
AAA/U.S. Guaranteed 40%
AA 22%
A 19%
BBB 12%
BB or Lower 1%
N/R 6%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3)
[BAR CHART]
Jun $ 0.0535
Jul $ 0.0535
Aug $ 0.0535
Sep $ 0.058
Oct $ 0.058
Nov $ 0.058
Dec $ 0.059
Jan $ 0.059
Feb $ 0.059
Mar $ 0.059
Apr $ 0.059
May $ 0.059
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/2009 $ 13.3
$ 12.65
$ 12.51
$ 12.53
$ 12.5
$ 12.61
$ 13.03
$ 12.806
$ 13.11
$ 13.42
$ 13.25
$ 13.4
$ 13.82
$ 13.98
$ 13.6759
$ 13.6901
$ 14.084
$ 14.2788
$ 14.66
$ 14.39
$ 13.96
$ 13.7299
$ 13.84
$ 13.86
$ 13.55
$ 13.76
$ 13.94
$ 13.81
$ 13.95
$ 13.96
$ 13.87
$ 13.67
$ 13.85
$ 14
$ 13.82
$ 13.95
$ 13.97
$ 14.11
$ 14.0499
$ 14.21
$ 14.03
$ 14
$ 13.88
$ 14.03
$ 14.01
$ 14
$ 13.93
$ 13.95
$ 13.96
$ 13.89
$ 13.95
$ 13.85
$ 13.94
5/31/2010 $ 13.94
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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
3 The Fund paid shareholders capital gains distributions in December 2009 of
$0.0041 per share.
14 Nuveen Investments
NFC Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal Fund
| as of May 31, 2010
CREDIT QUALITY (as a % of total investments)(2)
[PIE CHART]
AAA/U.S. Guaranteed 45%
AA 24%
A 14%
BBB 8%
BB or Lower 2%
N/R 7%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jun $ 0.057
Jul $ 0.057
Aug $ 0.057
Sep $ 0.06
Oct $ 0.06
Nov $ 0.06
Dec $ 0.064
Jan $ 0.064
Feb $ 0.064
Mar $ 0.064
Apr $ 0.064
May $ 0.064
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/09 $ 13.75
$ 13.78
$ 13.574
$ 14.22
$ 14.45
$ 14.49
$ 13.96
$ 14.25
$ 14.6
$ 14.5
$ 14.45
$ 14.5235
$ 14.66
$ 14.76
$ 14.63
$ 15.25
$ 14.9
$ 15.15
$ 15.188
$ 15.33
$ 15.25
$ 15.13
$ 15.09
$ 14.45
$ 14.1
$ 14.42
$ 14.49
$ 14.47
$ 15.3307
$ 15.195
$ 14.69
$ 14.51
$ 14.46
$ 14.324
$ 14.65
$ 15.05
$ 14.86
$ 14.98
$ 15.01
$ 15.3099
$ 15.1
$ 15.175
$ 15.2474
$ 14.9
$ 15.22
$ 15.32
$ 15.35
$ 15.27
$ 15.57
$ 15.25
$ 15.41
$ 15.48
$ 15.2901
5/31/10 $ 15.2901
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.29
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.91
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 2.55%
--------------------------------------------------------------------------------
Market Yield 5.02%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.34%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $38,532
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.49
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.12
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 16.92% 11.34%
--------------------------------------------------------------------------------
5-Year 4.72% 4.72%
--------------------------------------------------------------------------------
Since Inception 5.63% 6.06%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 26.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.5%
--------------------------------------------------------------------------------
Health Care 9.3%
--------------------------------------------------------------------------------
Water and Sewer 7.8%
--------------------------------------------------------------------------------
Tax Obligation/General 7.0%
--------------------------------------------------------------------------------
Housing/Single Family 5.8%
--------------------------------------------------------------------------------
Other 10.5%
--------------------------------------------------------------------------------
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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
Nuveen Investments 15
NGK Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal
| Fund 2
| as of May 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 16.20
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 15.02
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 7.86%
--------------------------------------------------------------------------------
Market Yield 4.89%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.15%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $34,833
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.53
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.15
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 19.15% 10.69%
--------------------------------------------------------------------------------
5-Year 5.78% 4.69%
--------------------------------------------------------------------------------
Since Inception 6.67% 6.34%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 22.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 22.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 12.1%
--------------------------------------------------------------------------------
Health Care 9.8%
--------------------------------------------------------------------------------
Tax Obligation/General 8.7%
--------------------------------------------------------------------------------
Water and Sewer 6.3%
--------------------------------------------------------------------------------
Housing/Single Family 5.3%
--------------------------------------------------------------------------------
Utilities 5.0%
--------------------------------------------------------------------------------
Other 8.5%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)(2)
[PIE CHART]
AAA/U.S. Guaranteed 51%
AA 19%
A 8%
BBB 9%
BB or Lower 2%
N/R 11%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jun $ 0.059
Jul $ 0.059
Aug $ 0.059
Sep $ 0.062
Oct $ 0.062
Nov $ 0.062
Dec $ 0.065
Jan $ 0.065
Feb $ 0.065
Mar $ 0.066
Apr $ 0.066
May $ 0.066
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/09 $ 14.2001
$ 14.783
$ 14.5001
$ 14.9
$ 14.07
$ 14.5
$ 14.7499
$ 14.41
$ 14.79
$ 14.9
$ 15.473
$ 15.5
$ 15.445
$ 15.4
$ 15.025
$ 15.06
$ 15.2432
$ 15.52
$ 15.87
$ 15.97
$ 15.56
$ 14.76
$ 15.05
$ 14.579
$ 15.06
$ 15.31
$ 14.93
$ 14.66
$ 15.54
$ 15
$ 14.95
$ 14.7
$ 15.3
$ 15.01
$ 14.65
$ 14.77
$ 15.058
$ 15
$ 15.15
$ 15.37
$ 15.491
$ 15.575
$ 15.65
$ 15.765
$ 16.24
$ 15.9
$ 16.0499
$ 15.76
$ 16.05
$ 15.75
$ 15.45
$ 15.656
$ 16.2
5/31/10 $ 16.2
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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
16 Nuveen Investments
NGO Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal
| Fund 3
| as of May 31, 2010
CREDIT QUALITY (as a % of total investments)(2)
[PIE CHART]
AAA/U.S. Guaranteed 35%
AA 29%
A 14%
BBB 9%
BB or Lower 2%
N/R 11%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jun $ 0.051
May $ 0.051
Jul $ 0.051
Aug $ 0.056
Sep $ 0.056
Oct $ 0.056
Nov $ 0.06
Dec $ 0.06
Jan $ 0.06
Feb $ 0.06
Mar $ 0.06
Apr $ 0.06
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/09 $ 13.01
$ 12.97
$ 13.02
$ 12.47
$ 12.63
$ 13.1
$ 13.05
$ 12.9
$ 13.05
$ 13.14
$ 13.3083
$ 13.41
$ 13.6
$ 13.7305
$ 13.69
$ 13.73
$ 13.94
$ 14.224
$ 14.13
$ 13.9474
$ 13.7
$ 13.71
$ 13.7
$ 13.93
$ 13.59
$ 13.466
$ 13.2499
$ 13.44
$ 13.75
$ 13.7
$ 13.76
$ 13.52
$ 13.59
$ 13.9
$ 13.75
$ 14.01
$ 14.05
$ 14.05
$ 14.09
$ 13.942
$ 13.82
$ 13.9368
$ 13.99
$ 14.12
$ 14
$ 14.1002
$ 14.128
$ 14.1001
$ 14.2599
$ 14.4099
$ 14.1281
$ 14.2
$ 14.06
5/31/10 $ 14.06
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.06
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.44
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.63%
--------------------------------------------------------------------------------
Market Yield 5.12%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.49%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $63,059
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.72
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.51
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/26/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 13.26% 11.66%
--------------------------------------------------------------------------------
5-Year 4.17% 4.24%
--------------------------------------------------------------------------------
Since Inception 4.18% 5.04%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 18.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.2%
--------------------------------------------------------------------------------
Tax Obligation/General 13.4%
--------------------------------------------------------------------------------
Water and Sewer 8.9%
--------------------------------------------------------------------------------
Health Care 8.6%
--------------------------------------------------------------------------------
Long-Term Care 7.5%
--------------------------------------------------------------------------------
Utilities 5.1%
--------------------------------------------------------------------------------
Housing/Single Family 5.1%
--------------------------------------------------------------------------------
Other 3.6%
--------------------------------------------------------------------------------
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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
Nuveen Investments 17
NMT Performance OVERVIEW | Nuveen Massachusetts Premium Income Municipal Fund
| as of May 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.93
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.48
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 3.11%
--------------------------------------------------------------------------------
Market Yield 5.22%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.65%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $69,031
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.36
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.42
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 18.77% 15.03%
--------------------------------------------------------------------------------
5-Year 3.74% 4.38%
--------------------------------------------------------------------------------
10-Year 6.21% 6.64%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 22.3%
--------------------------------------------------------------------------------
Health Care 17.7%
--------------------------------------------------------------------------------
Tax Obligation/General 11.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.3%
--------------------------------------------------------------------------------
U.S. Guaranteed 9.3%
--------------------------------------------------------------------------------
Water and Sewer 8.0%
--------------------------------------------------------------------------------
Transportation 6.9%
--------------------------------------------------------------------------------
Long-Term Care 4.7%
--------------------------------------------------------------------------------
Other 10.5%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)(2)
[PIE CHART]
AAA/U.S. Guaranteed 34%
AA 27%
A 23%
BBB 9%
BB or Lower 1%
N/R 6%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jun $ 0.061
Jul $ 0.061
Aug $ 0.061
Sep $ 0.064
Oct $ 0.064
Nov $ 0.064
Dec $ 0.065
Jan $ 0.065
Feb $ 0.065
Mar $ 0.065
Apr $ 0.065
May $ 0.065
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/09 $ 12.99
$ 12.8799
$ 12.65
$ 12.48
$ 12.5
$ 12.78
$ 12.7
$ 12.624
$ 12.81
$ 13.24
$ 13.26
$ 13.14
$ 13.25
$ 13.39
$ 13.6
$ 13.5085
$ 13.85
$ 13.96
$ 14.39
$ 14.38
$ 14.01
$ 13.89
$ 14.12
$ 13.98
$ 13.6
$ 13.55
$ 13.72
$ 13.88
$ 13.91
$ 13.8998
$ 13.94
$ 13.55
$ 13.98
$ 14.13
$ 14.2
$ 14.18
$ 14.2
$ 14.31
$ 14.5
$ 14.58
$ 14.77
$ 14.76
$ 14.41
$ 14.56
$ 14.61
$ 14.52
$ 14.91
$ 14.82
$ 14.98
$ 14.6
$ 14.9
$ 14.97
$ 14.9338
5/31/10 $ 14.9338
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 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
18 Nuveen Investments
NMB Performance OVERVIEW | Nuveen Massachusetts Dividend Advantage Municipal
| Fund
| as of May 31, 2010
CREDIT QUALITY (as a % of total investments)(2)
[PIE CHART]
AAA/U.S. Guaranteed 33%
AA 21%
A 22%
BBB 11%
BB or Lower 3%
N/R 10%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3)
[BAR CHART]
Jun $ 0.06
Jul $ 0.06
Aug $ 0.06
Sep $ 0.063
Oct $ 0.063
Nov $ 0.063
Dec $ 0.064
Jan $ 0.064
Feb $ 0.064
Mar $ 0.069
Apr $ 0.069
May $ 0.069
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/09 $ 14.15
$ 14
$ 13.64
$ 13.95
$ 14.06
$ 13.62
$ 13.7
$ 13.6
$ 13.36
$ 13.29
$ 13.4
$ 13.599
$ 13.48
$ 13.58
$ 15.5
$ 14.69
$ 14.915
$ 14.51
$ 14.89
$ 14.38
$ 13.8035
$ 13.62
$ 13.8
$ 13.9
$ 13.91
$ 13.91
$ 14
$ 14.3
$ 13.87
$ 13.565
$ 13.56
$ 13.8
$ 13.9
$ 14.03
$ 13.93
$ 14.5
$ 14.29
$ 14.0701
$ 14.48
$ 15
$ 15.07
$ 15.07
$ 15.19
$ 15.09
$ 15.18
$ 15.2994
$ 15.3499
$ 15.21
$ 14.95
$ 14.855
$ 14.5
$ 14.32
$ 14.1
5/31/10 $ 14.1
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.10
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.38
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.95%
--------------------------------------------------------------------------------
Market Yield 5.87%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.61%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $28,235
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 18.33
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.05
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/30/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 7.90% 12.50%
--------------------------------------------------------------------------------
5-Year 1.19% 3.90%
--------------------------------------------------------------------------------
Since Inception 5.07% 6.02%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 32.0%
--------------------------------------------------------------------------------
Health Care 18.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 9.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 7.8%
--------------------------------------------------------------------------------
Housing/Multifamily 7.5%
--------------------------------------------------------------------------------
Water and Sewer 5.8%
--------------------------------------------------------------------------------
Long-Term Care 5.6%
--------------------------------------------------------------------------------
Other 13.3%
--------------------------------------------------------------------------------
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 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
3 The Fund paid shareholders net ordinary income distributions in December
2009 of $0.0283 per share.
Nuveen Investments 19
NGX Performance OVERVIEW | Nuveen Insured Massachusetts Tax-Free Advantage
| Municipal Fund
| as of May 31, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.79
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.71
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 7.34%
--------------------------------------------------------------------------------
Market Yield 4.79%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 7.02%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $40,095
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.39
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.09
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 26.19% 11.61%
--------------------------------------------------------------------------------
5-Year 4.71% 4.53%
--------------------------------------------------------------------------------
Since Inception 5.79% 5.53%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 22.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 17.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.5%
--------------------------------------------------------------------------------
Water and Sewer 11.4%
--------------------------------------------------------------------------------
Tax Obligation/General 10.7%
--------------------------------------------------------------------------------
Health Care 10.7%
--------------------------------------------------------------------------------
Housing/Multifamily 6.5%
--------------------------------------------------------------------------------
Other 9.5%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
NPFG(4) 35.4%
--------------------------------------------------------------------------------
AMBAC 21.2%
--------------------------------------------------------------------------------
AGM 19.7%
--------------------------------------------------------------------------------
FGIC 18.0%
--------------------------------------------------------------------------------
SYNCORA 5.7%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)(1,2)
[PIE CHART]
AAA/U.S. Guaranteed 43%
AA 25%
A 26%
BBB 1%
BB or Lower --*%
N/R 5%
* Rounds to less than 1%.
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jun $ 0.0565
Jul $ 0.0565
Aug $ 0.0565
Sep $ 0.06
Oct $ 0.06
Nov $ 0.06
Dec $ 0.063
Jan $ 0.063
Feb $ 0.063
Mar $ 0.063
Apr $ 0.063
May $ 0.063
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/09 $ 13.12
$ 13.38
$ 13.15
$ 13.0795
$ 13.46
$ 13.885
$ 14.2201
$ 14.013
$ 14.56
$ 14.42
$ 14.31
$ 14.33
$ 14.0899
$ 13.81
$ 14.4101
$ 14.11
$ 14.4799
$ 14.64
$ 14.4
$ 14.6536
$ 14.3689
$ 14.8896
$ 15.25
$ 15.15
$ 14.5606
$ 14.74
$ 14.4
$ 14.95
$ 14.591
$ 14.56
$ 14.38
$ 14.57
$ 14.75
$ 14.95
$ 15.2
$ 15.65
$ 15.6046
$ 15.61
$ 15.58
$ 15.77
$ 15.7
$ 15.75
$ 15.78
$ 16
$ 16.19
$ 15.9
$ 15.65
$ 15.97
$ 15.79
$ 15.39
$ 15.57
$ 15.56
$ 15.79
5/31/10 $ 15.79
1 The Fund intends to invest at least 80% of its net assets in municipal
securities that are covered by insurance guaranteeing the timely payment
of principal and interest. See Notes to Financial Statements, Footnote 1 -
Insurance, for more information. As of May 31, 2010, the Fund includes 83%
(as a % of total investments) of Insured securities.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
3 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 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
4 MBIA's public finance subsidiary.
20 Nuveen Investments
NOM Performance OVERVIEW | Nuveen Missouri Premium Income Municipal Fund
| as of May 31, 2010
CREDIT QUALITY (as a % of total investments)(2)
[PIE CHART]
AAA/U.S. Guaranteed 33%
AA 26%
A 15%
BBB 5%
N/R 21%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jun $ 0.0545
Jul $ 0.0545
Aug $ 0.0545
Sep $ 0.056
Oct $ 0.056
Nov $ 0.056
Dec $ 0.057
Jan $ 0.057
Feb $ 0.057
Mar $ 0.059
Apr $ 0.059
May $ 0.059
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
6/1/09 $ 13.09
$ 12.75
$ 13
$ 13.58
$ 13.11
$ 12.83
$ 13.11
$ 13.18
$ 13.75
$ 13.78
$ 13.56
$ 13.24
$ 13.9
$ 13.5662
$ 13.59
$ 13.79
$ 13.85
$ 14.2
$ 13.95
$ 14.0999
$ 14.09
$ 13.78
$ 13.7201
$ 14.01
$ 13.95
$ 14.1
$ 13.9
$ 13.95
$ 15.76
$ 15.27
$ 15
$ 15.5
$ 15.1896
$ 14.9
$ 15
$ 14.75
$ 14.33
$ 14.55
$ 14.9
$ 14.9
$ 15.6
$ 15.97
$ 15.78
$ 15.3499
$ 15.26
$ 15.7
$ 15.38
$ 16.14
$ 15.9
$ 15.35
$ 16.74
$ 16.69
$ 16.5
5/31/10 $ 16.5
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 16.50
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.55
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 21.77%
--------------------------------------------------------------------------------
Market Yield 4.29%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.34%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $31,348
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.33
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.41
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 34.31% 14.69%
--------------------------------------------------------------------------------
5-Year 3.60% 3.38%
--------------------------------------------------------------------------------
10-Year 8.07% 6.41%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 19.6%
--------------------------------------------------------------------------------
Health Care 17.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.8%
--------------------------------------------------------------------------------
Transportation 10.6%
--------------------------------------------------------------------------------
Water and Sewer 6.3%
--------------------------------------------------------------------------------
Long-Term Care 5.3%
--------------------------------------------------------------------------------
Other 10.9%
--------------------------------------------------------------------------------
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 32.3%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor
Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating
since they are backed by U.S. Government or agency securities. AAA, AA, A
and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are
below-investment grade. Holdings designated N/R are not rated by any of
these national rating agencies.
Nuveen Investments 21
NTC | Shareholder Meeting Report
NFC |
NGK |
The annual meeting of shareholders was held in the offices of Nuveen Investments
on November 30, 2009; at this meeting the shareholders were asked to vote on the
election of Board Members, the elimination of Fundamental Investment Policies
and the approval of new Fundamental Investment Policies. The meeting for all
funds was subsequently adjourned to January 12, 2010; the meeting for NFC, NMT,
NMB and NOM was additionally adjourned to March 23, 2010. The meeting for NOM
was additionally adjourned to March 30, 2010.
NTC NFC NGK
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
For 2,735,979 735 1,419,131 575 1,240,621 308
Against 186,604 10 114,075 13 56,698 21
Abstain 74,347 6 46,981 -- 26,698 --
Broker Non-Votes 1,046,019 -- 421,993 -- 449,871 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,042,949 751 2,002,180 588 1,773,888 329
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 2,745,674 741 1,415,682 575 1,244,996 308
Against 179,297 10 114,553 13 54,598 21
Abstain 71,959 -- 50,031 -- 24,423 --
Broker Non-Votes 1,046,019 -- 421,914 -- 449,871 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,042,949 751 2,002,180 588 1,773,888 329
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY PROHIBITING INVESTMENT
IN OTHER INVESTMENT COMPANIES.
For 2,738,927 739 -- -- -- --
Against 178,713 12 -- -- -- --
Abstain 79,289 -- -- -- -- --
Broker Non-Votes 1,046,020 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,042,949 751 -- -- -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICIES RELATING TO
INVESTMENTS IN INSURED MUNICIPAL
SECURITIES.
For -- -- -- -- -- --
Against -- -- -- -- -- --
Abstain -- -- -- -- -- --
Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN INSURED
MUNICIPAL SECURITIES.
For -- -- -- -- -- --
Against -- -- -- -- -- --
Abstain -- -- -- -- -- --
Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
====================================================================================================================================
22 Nuveen Investments
NTC NFC NGK
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For 2,698,216 739 -- -- -- --
Against 217,538 12 -- -- -- --
Abstain 81,176 -- -- -- -- --
Broker Non-Votes 1,046,019 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,042,949 751 -- -- -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 2,709,161 741 -- -- -- --
Against 191,563 10 -- -- -- --
Abstain 96,206 -- -- -- -- --
Broker Non-Votes 1,046,019 -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total 4,042,949 751 -- -- -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 2,706,621 739 -- -- -- --
Against 188,176 10 -- -- -- --
Abstain 102,133 2 -- -- -- --
Broker Non-Votes 1,046,019 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,042,949 751 -- -- -- --
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED
AS FOLLOWS:
Robert P. Bremner
For 3,928,853 -- 1,936,183 -- 1,749,819 --
Withhold 114,096 -- 50,099 -- 24,069 --
------------------------------------------------------------------------------------------------- ----------------------------------
Total 4,042,949 -- 1,986,282 -- 1,773,888 --
====================================================================================================================================
Jack B. Evans
For 3,924,308 -- 1,937,403 -- 1,749,819 --
Withhold 118,641 -- 48,879 -- 24,069 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,042,949 -- 1,986,282 -- 1,773,888 --
====================================================================================================================================
William C. Hunter
For -- 673 -- 305 -- 246
Withhold -- 78 -- 34 -- 83
------------------------------------------------------------------------------------------------------------------------------------
Total -- 751 -- 339 -- 329
====================================================================================================================================
William J. Schneider
For -- 673 -- 305 -- 246
Withhold -- 78 -- 34 -- 83
------------------------------------------------------------------------------------------------------------------------------------
Total -- 751 -- 339 -- 329
====================================================================================================================================
Nuveen Investments 23
NGO | Shareholder Meeting Report (continued)
NMT |
NMB |
NGO NMT NMB
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
For 2,281,837 613 2,400,365 1,103 944,686 505
Against 132,388 26 240,489 48 62,921 --
Abstain 85,666 -- 67,186 -- 30,897 11
Broker Non-Votes 790,735 -- 774,978 -- 334,105 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,290,626 639 3,483,018 1,151 1,372,609 516
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 2,267,867 613 2,471,170 1,105 957,232 516
Against 150,917 26 171,935 46 54,206 --
Abstain 81,107 -- 64,935 -- 27,066 --
Broker Non-Votes 790,735 -- 774,978 -- 334,105 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,290,626 639 3,483,018 1,151 1,372,609 516
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY PROHIBITING INVESTMENT
IN OTHER INVESTMENT COMPANIES.
For -- -- 2,387,702 1,105 -- --
Against -- -- 248,576 46 -- --
Abstain -- -- 71,762 -- -- --
Broker Non-Votes -- -- 774,978 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 3,483,018 1,151 -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICIES RELATING TO
INVESTMENTS IN INSURED MUNICIPAL
SECURITIES.
For -- -- -- -- -- --
Against -- -- -- -- -- --
Abstain -- -- -- -- -- --
Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN INSURED
MUNICIPAL SECURITIES.
For -- -- -- -- -- --
Against -- -- -- -- -- --
Abstain -- -- -- -- -- --
Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
====================================================================================================================================
24 Nuveen Investments
NGO NMT NMB
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For -- -- 2,377,557 1,103 -- --
Against -- -- 252,799 48 -- --
Abstain -- -- 77,684 -- -- --
Broker Non-Votes -- -- 774,978 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 3,483,018 1,151 -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 2,400,588 1,105
Against 241,105 46
Abstain -- -- 66,347 -- -- --
Broker Non-Votes -- -- 774,978 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 3,483,018 1,151 -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For -- -- 2,417,663 1,105 -- --
Against -- -- 221,280 46 -- --
Abstain -- -- 69,097 -- -- --
Broker Non-Votes -- -- 774,978 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 3,483,018 1,151 -- --
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED
AS FOLLOWS:
Robert P. Bremner
For 3,151,200 -- 3,341,761 -- 1,310,726 --
Withhold 139,426 -- 140,098 -- 59,289 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,290,626 -- 3,481,859 -- 1,370,015 --
====================================================================================================================================
Jack B. Evans
For 3,152,400 -- 3,344,775 -- 1,310,726 --
Withhold 138,226 -- 137,084 -- 59,289 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,290,626 -- 3,481,859 -- 1,370,015 --
====================================================================================================================================
William C. Hunter
For -- 547 -- 354 -- 134
Withhold -- 92 -- 237 -- 102
------------------------------------------------------------------------------------------------------------------------------------
Total -- 639 -- 591 -- 236
====================================================================================================================================
William J. Schneider
For -- 547 -- 354 -- 134
Withhold -- 92 -- 237 -- 102
------------------------------------------------------------------------------------------------------------------------------------
Total -- 639 -- 591 -- 236
====================================================================================================================================
Nuveen Investments 25
| Shareholder Meeting Report (continued)
NGX |
NOM |
NGX NOM
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING
TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE
SECURITIES.
For -- -- 1,198,331 140
Against -- -- 376,768 6
Abstain -- -- 46,047 --
Broker Non-Votes -- -- 219,991 146
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,841,137 292
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN
MUNICIPAL SECURITIES FOR THE FUND.
For -- -- 1,481,471 140
Against -- -- 91,401 6
Abstain -- -- 48,274 --
Broker Non-Votes -- -- 219,991 146
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,841,137 292
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT COMPANIES.
For -- -- 1,183,013 137
Against -- -- 401,615 9
Abstain -- -- 36,518 --
Broker Non-Votes -- -- 219,991 146
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,841,137 292
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES RELATING
TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES.
For 1,285,990 489 -- --
Against 44,835 2 -- --
Abstain 55,767 -- -- --
Broker Non-Votes 458,571 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,845,163 491 -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN
INSURED MUNICIPAL SECURITIES.
For 1,288,921 489 -- --
Against 39,125 2 -- --
Abstain 58,546 -- -- --
Broker Non-Votes 458,571 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,845,163 491 -- --
====================================================================================================================================
26 Nuveen Investments
NGX NOM
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For -- -- 1,168,026 137
Against -- -- 390,130 9
Abstain -- -- 62,990 --
Broker Non-Votes -- -- 219,991 146
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,841,137 292
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For -- -- 1,169,598 140
Against -- -- 392,658 6
Abstain -- -- 58,890 --
Broker Non-Votes -- -- 219,991 146
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,841,137 292
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For -- -- 1,160,171 140
Against -- -- 402,285 6
Abstain -- -- 58,690 --
Broker Non-Votes -- -- 219,991 146
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,841,137 292
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 1,790,926 -- 1,479,825 --
Withhold 54,237 -- 361,241 --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,845,163 -- 1,841,066 --
====================================================================================================================================
Jack B. Evans
For 1,791,782 -- 1,481,815 --
Withhold 53,381 -- 359,251 --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,845,163 -- 1,841,066 --
====================================================================================================================================
William C. Hunter
For -- 428 -- 183
Withhold -- 63 -- 38
------------------------------------------------------------------------------------------------------------------------------------
Total -- 491 -- 221
====================================================================================================================================
William J. Schneider
For -- 428 -- 183
Withhold -- 63 -- 38
------------------------------------------------------------------------------------------------------------------------------------
Total -- 491 -- 221
====================================================================================================================================
Nuveen Investments 27
Report of Independent
Registered Public Accounting Firm
THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND
NUVEEN MASSACHUSETTS DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN INSURED MASSACHUSETTS TAX-FREE ADVANTAGE MUNICIPAL FUND
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Connecticut Premium Income Municipal
Fund, Nuveen Connecticut Dividend Advantage Municipal Fund, Nuveen Connecticut
Dividend Advantage Municipal Fund 2, Nuveen Connecticut Dividend Advantage
Municipal Fund 3, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen
Massachusetts Dividend Advantage Municipal Fund, Nuveen Insured Massachusetts
Tax-Free Advantage Municipal Fund, and Nuveen Missouri Premium Income Municipal
Fund (the "Funds"), as of May 31, 2010, and the related statements of operations
and cash flows (except Nuveen Missouri Premium Income Municipal Fund) for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of May 31, 2010, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend
Advantage Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund
2, Nuveen Connecticut Dividend Advantage Municipal Fund 3, Nuveen Massachusetts
Premium Income Municipal Fund, Nuveen Massachusetts Dividend Advantage Municipal
Fund, Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund, and Nuveen
Missouri Premium Income Municipal Fund at May 31, 2010, the results of their
operations and cash flows (except Nuveen Missouri Premium Income Municipal Fund)
for the year then ended, the changes in their net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
July 27, 2010
28 Nuveen Investments
NTC | Nuveen Connecticut Premium Income Municipal Fund
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 1,305 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,281,001
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 38.6% (25.5% OF TOTAL
INVESTMENTS)
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A- 1,016,220
Bonds, Quinnipiac University, Series 2006H, 5.000%, 7/01/36 -
AMBAC Insured
1,595 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 1,673,490
Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 -
NPFG Insured
1,050 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 974,096
Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36 -
RAAI Insured
925 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 A 934,185
Bonds, Brunswick School, Series 2003B, 5.000%, 7/01/33 - NPFG
Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 472,160
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI
Insured
305 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 301,535
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27
- RAAI Insured
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 1,027,080
Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/40
750 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 759,075
Bonds, Horace Bushnell Memorial Hall, Series 1999A, 5.625%,
7/01/29 - NPFG Insured
800 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 910,192
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 -
AMBAC Insured
270 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 261,425
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
1,375 Connecticut Health and Educational Facilities Authority, Revenue 7/14 at 100.00 A+ 1,500,098
Bonds, Trinity College, Series 2004H, 5.000%, 7/01/21 - NPFG
Insured
2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 1,921,580
Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32 -
RAAI Insured
800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 853,192
Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35
1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 1,540,305
Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB)
3,550 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,727,394
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
6,150 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 6,500,366
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
245 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/10 at 101.00 AAA 250,199
Bonds, Family Education Loan Program, Series 1999A, 6.000%,
11/15/18 - AMBAC Insured (Alternative Minimum Tax)
610 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aa3 617,893
Bonds, Family Education Loan Program, Series 2001A, 5.250%,
11/15/18 - NPFG Insured (Alternative Minimum Tax)
1,000 University of Connecticut, General Obligation Bonds, Series 1/14 at 100.00 AA 1,095,150
2004A, 5.000%, 1/15/18 - NPFG Insured
1,220 University of Connecticut, General Obligation Bonds, Series 2/15 at 100.00 AAA 1,388,482
2005A, 5.000%, 2/15/17 - AGM Insured
685 University of Connecticut, General Obligation Bonds, Series 2/16 at 100.00 AA 747,130
2006A, 5.000%, 2/15/23 - FGIC Insured
535 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 591,063
2010A, 5.000%, 2/15/28
1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 Aa2 1,100,860
Series 2002A, 5.250%, 11/15/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,865 Total Education and Civic Organizations 30,163,170
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29
NTC | Nuveen Connecticut Premium Income Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.6% (11.6% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Bristol Hospital, Series 2002B:
$ 500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 N/R $ 477,980
700 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 N/R 653,373
645 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R 645,426
Bonds, Eastern Connecticut Health Network, Series 2000A,
6.000%, 7/01/25 - RAAI Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Griffin Hospital, Series 2005B:
800 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 N/R 788,136
500 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 482,285
385 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 344,698
Bonds, Hospital For Special Care, Series 2007C, 5.250%,
7/01/32 - RAAI Insured
2,620 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 2,656,942
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM
Insured
2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 2,008,120
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 - NPFG
Insured
1,395 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,415,409
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%,
7/01/31 - AMBAC Insured
3,000 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.00 A2 2,898,780
Refunding Bonds, Middlesex Health Services, Series 1997H,
5.125%, 7/01/27 - NPFG Insured
1,000 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 1,032,720
Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40
350 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 351,141
Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
13,895 Total Health Care 13,755,010
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 6/10 at 100.00 AAA 1,000,830
Program Bonds, Series 1999D-2, 6.200%, 11/15/41 (Alternative
Minimum Tax)
960 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 960,442
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,960 Total Housing/Multifamily 1,961,272
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.9% (6.5% OF TOTAL INVESTMENTS)
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2001C:
1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 1,001,320
500 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 500,795
1,675 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,703,056
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
205 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 204,067
220 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 215,948
2,045 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 2,065,961
Program Bonds, Series 2006D, 4.650%, 11/15/27
2,000 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 2,010,700
Mortgage Finance Program Bonds, Series 2010-A2, 4.500%,
11/15/30
------------------------------------------------------------------------------------------------------------------------------------
7,645 Total Housing/Single Family 7,701,847
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.8% (2.5% OF TOTAL INVESTMENTS)
320 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 320,496
Refunding Healthcare Bonds, Church Homes Inc. - Congregational
Avery Heights, Series 1997, 5.700%, 4/01/12
615 Connecticut Development Authority, First Mortgage Gross Revenue 9/10 at 101.00 BBB- 622,146
Refunding Healthcare Bonds, Connecticut Baptist Homes Inc.,
Series 1999, 5.500%, 9/01/15 - RAAI Insured
Connecticut Development Authority, Revenue Refunding Bonds,
Duncaster Inc., Series 1999A:
1,000 5.250%, 8/01/19 - RAAI Insured 8/10 at 101.00 BBB 1,010,820
1,000 5.375%, 8/01/24 - RAAI Insured 8/10 at 101.00 BBB 1,006,880
------------------------------------------------------------------------------------------------------------------------------------
2,935 Total Long-Term Care 2,960,342
------------------------------------------------------------------------------------------------------------------------------------
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.8% (13.7% OF TOTAL INVESTMENTS)
$ 750 Bridgeport, Connecticut, General Obligation Refunding Bonds, 8/12 at 100.00 A1 $ 781,830
Series 2002A, 5.375%, 8/15/19 - FGIC Insured
1,110 Connecticut State, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AA 1,192,906
5.000%, 4/01/23 - FGIC Insured
2,000 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 2,162,860
4.750%, 12/15/24
1,300 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 1,422,304
5.000%, 6/01/23 - AGM Insured
500 Connecticut State, General Obligation Bonds, Series 2006E, 12/16 at 10.00 AA 564,010
5.000%, 12/15/20
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
775 5.000%, 8/01/20 - AGM Insured 8/15 at 100.00 AAA 851,245
525 4.375%, 8/01/24 - AGM Insured 8/15 at 100.00 AAA 540,729
500 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A1 555,040
5.000%, 11/01/17 - AMBAC Insured
500 North Haven, Connecticut, General Obligation Bonds, Series 2006, No Opt. Call Aa1 593,490
5.000%, 7/15/24
1,860 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 2,018,881
Series 2001A, 5.500%, 7/01/20 - NPFG Insured
1,420 Regional School District 16, Connecticut, General Obligation 3/13 at 101.00 A1 1,550,015
Bonds, Series 2003, 5.000%, 3/15/16 - AMBAC Insured
Suffield, Connecticut, General Obligation Bonds, Series 2005:
465 5.000%, 6/15/17 No Opt. Call AA 546,608
460 5.000%, 6/15/19 No Opt. Call AA 545,187
1,000 5.000%, 6/15/21 No Opt. Call AA 1,192,680
1,500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 1,734,270
2005B, 5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
14,665 Total Tax Obligation/General 16,252,055
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.4% (16.2% OF TOTAL INVESTMENTS)
380 Capitol Region Education Council, Connecticut, Revenue Bonds, No Opt. Call BBB 381,482
Series 1995, 6.700%, 10/15/10
Connecticut Health and Educational Facilities Authority, Child
Care Facilities Program Revenue Bonds, Series 2006F:
1,300 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 1,346,852
1,000 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 1,027,410
1,945 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R 1,953,150
Bonds, Child Care Facilities Program, Series 1999C, 5.625%,
7/01/29 - AMBAC Insured
Connecticut, Special Tax Obligation Transportation
Infrastructure Purpose Bonds, Series 2002B:
2,000 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AA 2,148,660
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 1,057,240
500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 536,775
Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured
1,750 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 1,889,265
Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC
Insured
1,100 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 1,166,913
Special Obligation Revenue Bonds, Harbor Point Project,
Series 2010A, 7.875%, 4/01/39
Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue Bonds, Series 2005A:
960 0.000%, 7/01/32 - FGIC Insured No Opt. Call A3 226,080
2,615 0.000%, 7/01/33 - FGIC Insured No Opt. Call A3 570,148
2,000 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 2,108,380
8/01/21 - AGM Insured
2,400 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 2,612,784
8/01/16 - AGM Insured
975 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 1,012,557
Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AAA 1,065,720
Loan Note, Series 2003, 5.250%, 10/01/19 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
20,925 Total Tax Obligation/Limited 19,103,416
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NTC | Nuveen Connecticut Premium Income Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.0% (0.6% OF TOTAL INVESTMENTS)
$ 750 Connecticut, General Airport Revenue Bonds, Bradley International 4/11 at 101.00 A $ 751,185
Airport, Series 2001A, 5.125%, 10/01/26 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.2% (7.4% OF TOTAL INVESTMENTS) (4)
50 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R (4) 50,761
Bonds, Eastern Connecticut Health Network, Series 2000A,
6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured
650 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 N/R (4) 692,803
Bonds, Loomis Chaffee School, Series 2001D, 5.500%, 7/01/23
(Pre-refunded 7/01/11)
40 Connecticut, General Obligation Bonds, Series 1993E, 6.000%, No Opt. Call AA (4) 43,907
3/15/12 (ETM)
1,500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/12 at 100.00 AA (4) 1,649,880
6/15/21 (Pre-refunded 6/15/12)
600 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 N/R (4) 628,548
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
(Pre-refunded 5/15/11)
1,000 Hartford, Connecticut, Parking System Revenue Bonds, Series 7/10 at 100.00 Baa2 (4) 1,005,450
2000A, 6.400%, 7/01/20 (Pre-refunded 7/01/10)
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,027,710
Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (Pre-refunded
10/01/10)
300 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 301,479
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded
7/01/10)
1,100 University of Connecticut, General Obligation Bonds, Series 2/13 at 100.00 AA (4) 1,222,892
2003A, 5.125%, 2/15/21 (Pre-refunded 2/15/13) - NPFG Insured
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 1,030,270
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded
10/01/10)
1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 1,085,480
5.375%, 4/01/17 (Pre-refunded 4/01/12) - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
8,240 Total U.S. Guaranteed 8,739,180
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.5% (5.6% OF TOTAL INVESTMENTS)
1,150 Bristol Resource Recovery Facility Operating Committee, No Opt. Call A+ 1,245,600
Connecticut, Solid Waste Revenue Bonds, Covanta Bristol Inc.,
Series 2005, 5.000%, 7/01/12 - AMBAC Insured
1,000 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 1,009,760
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
1,070 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 1,072,579
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
1,750 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 1,743,123
Ref-Fuel Company of Southeastern Connecticut LP, Series
1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
260 5.500%, 1/01/14 (Alternative Minimum Tax) 7/10 at 100.00 BBB 260,419
1,290 5.500%, 1/01/20 (Alternative Minimum Tax) 7/10 at 100.00 BBB 1,289,987
------------------------------------------------------------------------------------------------------------------------------------
6,520 Total Utilities 6,621,468
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.5% (7.6% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 453,575
Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,324,475
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority, Connecticut,
Regional Wastewater System Revenue Bonds, Series 2005A:
1,520 5.000%, 11/15/30 - NPFG Insured 11/15 at 100.00 A1 1,566,816
2,260 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 2,301,019
South Central Connecticut Regional Water Authority, Water System
Revenue Bonds, Eighteenth Series 2003A:
1,000 5.000%, 8/01/20 - NPFG Insured 8/13 at 100.00 Aa3 1,048,680
1,075 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 1,097,048
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,100 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ $ 1,157,548
Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32
------------------------------------------------------------------------------------------------------------------------------------
8,640 Total Water and Sewer 8,949,161
------------------------------------------------------------------------------------------------------------------------------------
$ 116,345 Total Investments (cost $115,609,318) - 151.4% 118,239,107
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.2)% (7,965,000)
---------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (23.4)% (5) (18,300,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 1,856,822
---------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (20.1)% (5) (15,725,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 78,105,929
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at
Liquidation Value as a percentage of Total Investments are 15.5% and
13.3%, respectively.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 33
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund
| Portfolio of Investments
May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 42.0% (26.2% OF TOTAL
INVESTMENTS)
$ 795 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A $ 834,122
Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25
- NPFG Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 463,855
Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36
- RAAI Insured
250 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 236,080
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 -
RAAI Insured
150 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 148,296
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27
- RAAI Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 513,540
Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/40
440 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 500,984
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/18 -
AMBAC Insured
130 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 125,871
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
50 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.00 Baa2 49,238
Bonds, Sacred Heart University, Series 1998E, 5.000%, 7/01/28
- RAAI Insured
350 Connecticut Health and Educational Facilities Authority, Revenue 7/14 at 100.00 A+ 392,658
Bonds, Trinity College, Series 2004H, 5.000%, 7/01/17 - NPFG
Insured
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 960,790
Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32
- RAAI Insured
1,600 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 1,706,384
Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35
500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 513,435
Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB)
1,800 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,889,946
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
3,050 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 3,223,759
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
475 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 Aa3 481,147
Revenue Bonds, Family Education Loan Program, Series 2001A,
5.250%, 11/15/18 - NPFG Insured (Alternative Minimum Tax)
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999:
125 5.375%, 2/01/19 8/10 at 100.50 BBB- 125,093
270 5.375%, 2/01/29 8/10 at 100.50 BBB- 256,403
University of Connecticut, General Obligation Bonds, Series
2001A:
1,000 4.750%, 4/01/20 4/11 at 101.00 AA 1,024,950
1,000 4.750%, 4/01/21 4/11 at 101.00 AA 1,023,560
485 University of Connecticut, General Obligation Bonds, Series 2/16 at 100.00 AA 528,990
2006A, 5.000%, 2/15/23 - FGIC Insured
1,070 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 1,182,125
2010A, 5.000%, 2/15/28
------------------------------------------------------------------------------------------------------------------------------------
15,540 Total Education and Civic Organizations 16,181,226
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.0% (9.3% OF TOTAL INVESTMENTS)
1,400 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 N/R 1,306,746
Bonds, Bristol Hospital, Series 2002B, 5.500%, 7/01/32 - RAAI
Insured
25 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 N/R 25,197
Bonds, Danbury Hospital, Series 1999G, 5.700%, 7/01/22 -
AMBAC Insured
840 Connecticut Health and Educational Facilities Authority, Revenue 7/15 at 100.00 N/R 762,754
Bonds, Eastern Connecticut Health Network, Series 2005,
5.000%, 7/01/25 - RAAI Insured
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Griffin Hospital, Series 2005B:
$ 500 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 N/R $ 492,585
250 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 241,143
185 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 165,634
Bonds, Hospital For Special Care, Series 2007C, 5.250%,
7/01/32 - RAAI Insured
60 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 60,846
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM
Insured
125 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 125,508
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 -
NPFG Insured
1,870 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,897,358
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%,
7/01/31 - AMBAC Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 516,360
Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40
175 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 175,571
Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
5,930 Total Health Care 5,769,702
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
480 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 480,221
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.3% (5.8% OF TOTAL INVESTMENTS)
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2001C:
1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 1,001,320
250 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 250,398
800 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 813,400
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
685 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 692,021
Program Bonds, Series 2006D, 4.650%, 11/15/27
800 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 810,952
Mortgage Finance Program Bonds, Series 2010-A2, 4.750%,
11/15/35
------------------------------------------------------------------------------------------------------------------------------------
3,535 Total Housing/Single Family 3,568,091
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.9% (1.2% OF TOTAL INVESTMENTS)
300 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 300,357
Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003,
5.750%, 12/01/23
110 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 108,341
Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.800%, 4/01/21
250 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 214,800
Revenue Bonds, Alzheimer's Resource Center of Connecticut,
Inc., Series 2007, 5.500%, 8/15/27
105 Hamden, Connecticut, Facility Revenue Bonds, Whitney Center 1/20 at 100.00 N/R 107,963
Project, Series 2009A, 7.625%, 1/01/30
------------------------------------------------------------------------------------------------------------------------------------
765 Total Long-Term Care 731,461
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.2% (7.0% OF TOTAL INVESTMENTS)
560 Connecticut State, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AA 601,826
5.000%, 4/01/23 - FGIC Insured
700 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 757,001
4.750%, 12/15/24
100 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 109,408
5.000%, 6/01/23 - AGM Insured
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
360 5.000%, 8/01/21 - AGM Insured 8/15 at 100.00 AAA 391,684
240 4.375%, 8/01/24 - AGM Insured 8/15 at 100.00 AAA 247,190
400 North Haven, Connecticut, General Obligation Bonds, Series 2006, No Opt. Call Aa1 474,792
5.000%, 7/15/24
Nuveen Investments 35
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Suffield, Connecticut, General Obligation Bonds, Series 2005:
$ 335 5.000%, 6/15/17 No Opt. Call AA $ 393,793
335 5.000%, 6/15/19 No Opt. Call AA 397,039
810 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 936,506
2005B, 5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
3,840 Total Tax Obligation/General 4,309,239
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.4% (16.5% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Child
Care Facilities Program Revenue Bonds, Series 2006F:
650 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 673,426
500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 513,705
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 103.00 A 1,052,420
Bonds, New Opportunities for Waterbury Inc., Series 1998A,
6.750%, 7/01/28
Connecticut, Certificates of Participation, Juvenile Training
School, Series 2001:
600 5.000%, 12/15/20 12/11 at 101.00 AA- 636,702
1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 1,020,810
1,475 Connecticut, Special Tax Obligation Transportation No Opt. Call AAA 1,644,035
Infrastructure Purpose Bonds, Series 1998B, 5.500%, 11/01/12
- AGM Insured
900 Connecticut, Special Tax Obligation Transportation 8/17 at 100.00 AA 971,622
Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%,
8/01/27 - AMBAC Insured
500 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 530,415
Special Obligation Revenue Bonds, Harbor Point Project,
Series 2010A, 7.875%, 4/01/39
600 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 620,178
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
470 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 110,685
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
1,200 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 1,306,392
8/01/16 - AGM Insured
325 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 337,519
Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39
750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 762,983
Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
9,970 Total Tax Obligation/Limited 10,180,892
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.5% (4.1% OF TOTAL INVESTMENTS)
2,500 Connecticut, General Airport Revenue Bonds, Bradley 4/11 at 101.00 A 2,503,950
International Airport, Series 2001A, 5.125%, 10/01/26 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.0% (16.9% OF TOTAL INVESTMENTS) (4)
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 N/R (4) 1,065,850
Bonds, Loomis Chaffee School, Series 2001D, 5.500%, 7/01/23
(Pre-refunded 7/01/11)
2,000 Connecticut, Clean Water Fund Revenue Bonds, Series 2001, 10/11 at 100.00 AAA 2,135,080
5.500%, 10/01/20 (Pre-refunded 10/01/11)
500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/12 at 100.00 AA (4) 549,960
6/15/21 (Pre-refunded 6/15/12)
500 East Lyme, Connecticut, General Obligation Bonds, Series 2001, 7/11 at 102.00 Aa2 (4) 536,860
5.125%, 7/15/20 (Pre-refunded 7/15/11) - FGIC Insured
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
25 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 26,070
500 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 521,575
1,270 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 N/R (4) 1,330,427
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
(Pre-refunded 5/15/11)
220 New Haven, Connecticut, General Obligation Bonds, Series 2001A, 11/11 at 100.00 A1 (4) 226,402
5.000%, 11/01/20 (Pre-refunded 11/01/11) - FGIC Insured
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,425 5.500%, 10/01/32 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,464,487
1,300 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,336,023
145 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 145,715
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA $ 1,085,480
5.375%, 4/01/17 (Pre-refunded 4/01/12) - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
9,885 Total U.S. Guaranteed 10,423,929
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.1% (4.4% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 504,880
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
560 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 561,350
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
1,000 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 996,070
Ref-Fuel Company of Southeastern Connecticut LP, Series
1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
665 Eastern Connecticut Resource Recovery Authority, Solid Waste 7/10 at 100.00 BBB 666,071
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A,
5.500%, 1/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,725 Total Utilities 2,728,371
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.6% (7.8% OF TOTAL INVESTMENTS)
255 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 231,323
Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37
- SYNCORA GTY Insured (Alternative Minimum Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,324,475
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority,
Connecticut, Regional Wastewater System Revenue Bonds, Series
2005A:
720 5.000%, 11/15/30 - NPFG Insured 11/15 at 100.00 A1 742,176
1,110 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 1,130,147
140 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 143,625
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
South Central Connecticut Regional Water Authority, Water System
Revenue Bonds, Eighteenth Series 2003A:
750 5.000%, 8/01/20 - NPFG Insured 8/13 at 100.00 Aa3 786,506
470 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 479,636
------------------------------------------------------------------------------------------------------------------------------------
4,630 Total Water and Sewer 4,837,888
------------------------------------------------------------------------------------------------------------------------------------
$ 59,800 Total Investments (cost $60,267,853) - 160.2% 61,714,970
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.9)% (3,820,000)
---------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (53.1)% (5) (20,470,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 1,107,385
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 38,532,355
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 33.2%.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 37
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9% (1.2% OF TOTAL INVESTMENTS)
$ 660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 647,863
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 34.8% (22.1% OF TOTAL
INVESTMENTS)
715 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 750,185
Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 -
NPFG Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 463,855
Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36 -
RAAI Insured
200 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 188,864
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI
Insured
135 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 133,466
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27
- RAAI Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 513,540
Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/40
310 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 352,699
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 -
AMBAC Insured
120 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 116,189
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, University of Hartford, Series 2002E:
590 5.500%, 7/01/22 - RAAI Insured 7/12 at 101.00 BBB- 602,142
1,000 5.250%, 7/01/32 - RAAI Insured 7/12 at 101.00 BBB- 960,790
800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 853,192
Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35
500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 513,435
Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB)
1,600 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,679,952
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
2,750 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 2,906,668
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
University of Connecticut, General Obligation Bonds, Series 2006A:
450 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 503,559
490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 534,443
460 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 508,203
2010A, 5.000%, 2/15/28
500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 Aa2 533,865
Series 2002A, 5.250%, 11/15/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,620 Total Education and Civic Organizations 12,115,047
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.4% (9.8% OF TOTAL INVESTMENTS)
300 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 N/R 280,017
Bonds, Bristol Hospital, Series 2002B, 5.500%, 7/01/32 - RAAI
Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Eastern Connecticut Health Network, Series 2000A:
20 6.125%, 7/01/20 - RAAI Insured 7/10 at 101.00 N/R 20,123
315 6.000%, 7/01/25 - RAAI Insured 7/10 at 101.00 N/R 315,208
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Griffin Hospital, Series 2005B:
300 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 N/R 295,551
300 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 289,371
170 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 152,204
Bonds, Hospital For Special Care, Series 2007C, 5.250%,
7/01/32 - RAAI Insured
1,190 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,206,779
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM
Insured
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 N/R $ 917,240
Bonds, St. Francis Hospital and Medical Center, Series 2002D,
5.000%, 7/01/22 - RAAI Insured
25 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 25,269
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 -
NPFG Insured
1,170 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,187,117
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%,
7/01/31 - AMBAC Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 516,360
Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40
175 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 175,571
Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
5,465 Total Health Care 5,380,810
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
480 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 480,221
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.4% (5.3% OF TOTAL INVESTMENTS)
250 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 250,398
Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative
Minimum Tax)
700 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 711,725
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
305 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 303,612
330 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 323,921
585 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 590,996
Program Bonds, Series 2006D, 4.650%, 11/15/27
700 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 709,583
Mortgage Finance Program Bonds, Series 2010-A2, 4.750%,
11/15/35
------------------------------------------------------------------------------------------------------------------------------------
2,870 Total Housing/Single Family 2,890,235
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5% (2.3% OF TOTAL INVESTMENTS)
320 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 320,381
Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003,
5.750%, 12/01/23
140 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 140,217
Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.700%, 4/01/12
450 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 N/R 450,680
Bonds, Village for Families and Children Inc., Series 2002A,
5.000%, 7/01/19 - AMBAC Insured
250 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 214,800
Revenue Bonds, Alzheimer's Resource Center of Connecticut,
Inc., Series 2007, 5.500%, 8/15/27
105 Hamden, Connecticut, Facility Revenue Bonds, Whitney Center 1/20 at 100.00 N/R 107,963
Project, Series 2009A, 7.625%, 1/01/30
------------------------------------------------------------------------------------------------------------------------------------
1,265 Total Long-Term Care 1,234,041
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.7% (8.7% OF TOTAL INVESTMENTS)
600 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 648,858
4.750%, 12/15/24
400 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 437,632
5.000%, 6/01/23 - AGM Insured
1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,389,838
Obligation Bonds, Series 2002, 5.000%, 4/01/22
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
360 5.000%, 8/01/21 - AGM Insured 8/15 at 100.00 AAA 391,684
140 4.375%, 8/01/24 - AGM Insured 8/15 at 100.00 AAA 144,194
650 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A1 721,552
5.000%, 11/01/17 - AMBAC Insured
400 Suffield, Connecticut, General Obligation Bonds, Series 2005, No Opt. Call AA 477,072
5.000%, 6/15/21
500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 578,090
2005B, 5.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
4,355 Total Tax Obligation/General 4,788,920
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.0% (12.1% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Child
Care Facilities Program Revenue Bonds, Series 2006F:
$ 575 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA $ 595,723
500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 513,705
500 Connecticut, Special Tax Obligation Transportation 10/11 at 100.00 AAA 530,840
Infrastructure Purpose Bonds, Series 2001B, 5.375%, 10/01/13
- AGM Insured
1,625 Connecticut, Special Tax Obligation Transportation 7/12 at 100.00 AAA 1,754,870
Infrastructure Purpose Bonds, Series 2002A, 5.375%, 7/01/20 -
AGM Insured
850 Connecticut, Special Tax Obligation Transportation 8/17 at 100.00 AA 917,643
Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%,
8/01/27 - AMBAC Insured
500 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 530,415
Special Obligation Revenue Bonds, Harbor Point Project,
Series 2010A, 7.875%, 4/01/39
500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 516,815
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
430 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 101,265
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
750 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 816,495
8/01/16 - AGM Insured
325 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 337,519
Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39
------------------------------------------------------------------------------------------------------------------------------------
6,555 Total Tax Obligation/Limited 6,615,290
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.4% (4.1% OF TOTAL INVESTMENTS)
1,950 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call N/R 2,226,569
Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 35.0% (22.2% OF TOTAL INVESTMENTS) (4)
2,250 Connecticut Health and Educational Facilities Authority, Revenue 11/11 at 100.00 AAA 2,393,955
Bonds, Connecticut State University System, Series 2002D-2,
5.000%, 11/01/21 (Pre-refunded 11/01/11) - AGM Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Eastern Connecticut Health Network, Series 2000A:
100 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 N/R (4) 101,532
30 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 N/R (4) 30,460
5 6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 N/R (4) 5,076
400 Connecticut Health and Educational Facilities Authority, Revenue 3/11 at 101.00 AAA 418,192
Bonds, Greenwich Academy, Series 2001B, 5.000%, 3/01/32
(Pre-refunded 3/01/11) - AGM Insured
Farmington, Connecticut, General Obligation Bonds, Series 2002:
1,000 5.000%, 9/15/20 (Pre-refunded 9/15/12) 9/12 at 101.00 Aaa 1,106,090
1,450 5.000%, 9/15/21 (Pre-refunded 9/15/12) 9/12 at 101.00 Aaa 1,603,831
250 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 N/R (4) 261,895
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
(Pre-refunded 5/15/11)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,014,550
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - AGM
Insured
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,000 5.500%, 10/01/32 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,027,710
2,000 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 2,055,420
1,535 Regional School District 8, Andover, Hebron and Marlborough, 5/11 at 101.00 Aa3 (4) 1,616,969
Connecticut, General Obligation Bonds, Series 2002, 5.000%,
5/01/22 (Pre-refunded 5/01/11) - AGM Insured
500 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 542,740
5.375%, 4/01/17 (Pre-refunded 4/01/12) - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
11,520 Total U.S. Guaranteed 12,178,420
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.8% (5.0% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 504,880
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
470 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 471,133
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,000 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 $ 996,070
Ref-Fuel Company of Southeastern Connecticut LP, Series
1998A-II, 5.500%, 11/15/15 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
250 5.500%, 1/01/15 (Alternative Minimum Tax) 1/11 at 100.00 BBB 250,350
510 5.500%, 1/01/20 (Alternative Minimum Tax) 7/10 at 100.00 BBB 509,995
------------------------------------------------------------------------------------------------------------------------------------
2,730 Total Utilities 2,732,428
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.9% (6.3% OF TOTAL INVESTMENTS)
220 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 199,573
Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37
- SYNCORA GTY Insured (Alternative Minimum Tax)
785 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 877,395
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority, Connecticut,
Regional Wastewater System Revenue Bonds, Series 2005A:
690 5.000%, 11/15/30 - NPFG Insured 11/15 at 100.00 A1 711,252
320 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 325,808
130 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 133,366
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
South Central Connecticut Regional Water Authority, Water System
Revenue Bonds, Eighteenth Series 2003A:
750 5.000%, 8/01/20 - NPFG Insured 8/13 at 100.00 Aa3 786,510
410 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 418,407
------------------------------------------------------------------------------------------------------------------------------------
3,305 Total Water and Sewer 3,452,311
------------------------------------------------------------------------------------------------------------------------------------
$ 52,775 Total Investments (cost $53,119,452) - 157.2% 54,742,155
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.9)% (3,460,000)
---------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (48.7)% (5) (16,950,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 500,897
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 34,833,052
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 31.0%.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 41
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS)
$ 2,100 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,061,381
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.7% (18.9% OF TOTAL
INVESTMENTS)
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 987,620
Bonds, Connecticut College, Series 2007G, 4.500%, 7/01/37 -
NPFG Insured
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A- 1,016,220
Bonds, Quinnipiac University, Series 2006H, 5.000%, 7/01/36 -
AMBAC Insured
1,300 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 1,363,973
Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25
- NPFG Insured
650 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 603,012
Bonds, University of Hartford, Series 2006G, 5.250%, 7/01/36
- RAAI Insured
350 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 N/R 330,512
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 -
RAAI Insured
250 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 247,160
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27
- RAAI Insured
800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 A- 822,312
Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/35
400 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 455,096
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 -
AMBAC Insured
215 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 N/R 208,172
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
750 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 765,435
Bonds, University of Hartford, Series 2002E, 5.500%, 7/01/22
- RAAI Insured
800 Connecticut Health and Educational Facilities Authority, Revenue 7/20 at 100.00 AA 853,192
Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/35
3,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,149,910
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
5,050 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 5,337,699
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
University of Connecticut, General Obligation Bonds, Series
2006A:
850 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 951,167
490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 534,443
535 University of Connecticut, General Obligation Bonds, Series 2/20 at 100.00 AA 591,063
2010A, 5.000%, 2/15/28
500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 Aa2 533,865
Series 2002A, 5.250%, 11/15/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,940 Total Education and Civic Organizations 18,750,851
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.6% (8.6% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Bristol Hospital, Series 2002B:
500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 N/R 477,980
600 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 N/R 560,034
750 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 N/R 750,495
Bonds, Eastern Connecticut Health Network, Series 2000A,
6.000%, 7/01/25 - RAAI Insured
800 Connecticut Health and Educational Facilities Authority, Revenue 7/15 at 100.00 N/R 788,136
Bonds, Griffin Hospital, Series 2005B, 5.000%, 7/01/20 - RAAI
Insured
310 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 277,549
Bonds, Hospital For Special Care, Series 2007C, 5.250%,
7/01/32 - RAAI Insured
2,130 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 2,160,033
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - AGM
Insured
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 200 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 100.50 Baa1 $ 202,150
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 -
NPFG Insured
1,325 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,344,385
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%,
7/01/31 - AMBAC Insured
1,500 Connecticut Health and Educational Facilities Authority, Revenue 11/19 at 100.00 Aa1 1,549,080
Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40
300 Connecticut Health and Educational Facilities Authority, Revenue 11/20 at 100.00 A1 300,978
Bonds, Catholic Health East Series 2010, 4.750%, 11/15/29
200 Connecticut Health and Educational Facilities Authority, Revenue 1/16 at 100.00 N/R 157,306
Bonds, Danbury Hospital, Series 2006H, 4.500%, 7/01/33 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,615 Total Health Care 8,568,126
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS)
960 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 960,442
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.0% (5.1% OF TOTAL INVESTMENTS)
750 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 751,193
Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative
Minimum Tax)
1,300 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,321,775
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
435 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 433,021
465 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 456,435
585 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 590,996
Program Bonds, Series 2006D, 4.650%, 11/15/27
1,500 Connecticut Housing Finance Authority, Single Family Housing 11/19 at 100.00 AAA 1,508,025
Mortgage Finance Program Bonds, Series 2010-A2, 4.500%,
11/15/30
------------------------------------------------------------------------------------------------------------------------------------
5,035 Total Housing/Single Family 5,061,445
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.8% (7.5% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 500,595
Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003,
5.750%, 12/01/23
260 Connecticut Development Authority, First Mortgage Gross Revenue 10/10 at 100.00 BBB- 260,403
Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.700%, 4/01/12
Connecticut Development Authority, Revenue Bonds, Duncaster
Inc., Series 2002:
650 5.125%, 8/01/22 - RAAI Insured 8/12 at 101.00 BBB 616,363
1,025 4.750%, 8/01/32 - RAAI Insured 8/12 at 101.00 BBB 843,883
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Village for Families and Children Inc., Series 2002A:
430 5.000%, 7/01/18 - AMBAC Insured 7/12 at 101.00 N/R 432,546
475 5.000%, 7/01/20 - AMBAC Insured 7/12 at 101.00 N/R 471,267
260 5.000%, 7/01/23 - AMBAC Insured 7/12 at 101.00 N/R 253,409
1,000 5.000%, 7/01/32 - AMBAC Insured 7/12 at 101.00 N/R 894,160
Connecticut Housing Finance Authority, Special Needs Housing
Mortgage Finance Program Special Obligation Bonds, Series
2002SNH-1:
1,000 5.000%, 6/15/22 - AMBAC Insured 6/12 at 101.00 N/R 1,023,860
1,500 5.000%, 6/15/32 - AMBAC Insured 6/12 at 101.00 N/R 1,516,380
500 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 429,600
Revenue Bonds, Alzheimer's Resource Center of Connecticut,
Inc., Series 2007, 5.500%, 8/15/27
210 Hamden, Connecticut, Facility Revenue Bonds, Whitney Center 1/20 at 100.00 N/R 215,926
Project, Series 2009A, 7.625%, 1/01/30
------------------------------------------------------------------------------------------------------------------------------------
7,810 Total Long-Term Care 7,458,392
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.1% (13.4% OF TOTAL INVESTMENTS)
Bethel, Connecticut, General Obligation Bonds, Series 2002:
$ 525 5.000%, 11/01/18 - FGIC Insured 11/12 at 100.00 Aa2 $ 575,636
525 5.000%, 11/01/19 - FGIC Insured 11/12 at 100.00 Aa2 575,636
525 5.000%, 11/01/20 - FGIC Insured 11/12 at 100.00 Aa2 575,636
525 5.000%, 11/01/21 - FGIC Insured 11/12 at 100.00 Aa2 575,636
525 5.000%, 11/01/22 - FGIC Insured 11/12 at 100.00 Aa2 575,636
1,200 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 1,297,716
4.750%, 12/15/24
1,500 Connecticut State, General Obligation Bonds, Series 2006E, 12/16 at 100.00 AA 1,692,030
5.000%, 12/15/20
600 Hartford, Connecticut, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 652,806
5.000%, 8/01/21 - AGM Insured
New Canaan, Connecticut, General Obligation Bonds, Series 2002A:
900 4.600%, 5/01/20 5/11 at 100.00 Aaa 934,650
500 4.700%, 5/01/21 5/11 at 100.00 Aaa 519,710
1,000 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A1 1,110,080
5.000%, 11/01/17 - AMBAC Insured
Southbury, Connecticut, General Obligation Bonds, Series 2002:
500 4.875%, 12/15/20 12/11 at 101.00 Aa2 520,050
500 4.875%, 12/15/21 12/11 at 101.00 Aa2 519,195
500 5.000%, 12/15/22 12/11 at 101.00 Aa2 531,350
Stratford, Connecticut, General Obligation Bonds, Series 2002:
1,375 4.000%, 2/15/19 - AGM Insured 2/12 at 100.00 AAA 1,407,368
630 4.125%, 2/15/20 - AGM Insured 2/12 at 100.00 AAA 644,490
500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 578,090
2005B, 5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
12,330 Total Tax Obligation/General 13,285,715
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.1% (14.7% OF TOTAL INVESTMENTS)
930 Connecticut Health and Educational Facilities Authority, Child 7/16 at 100.00 AAA 955,491
Care Facilities Program Revenue Bonds, Series 2006F, 5.000%,
7/01/36 - AGC Insured
60 Connecticut, Special Tax Obligation Transportation No Opt. Call AA 63,609
Infrastructure Purpose Bonds, Series 1992B, 6.125%, 9/01/12
Connecticut, Special Tax Obligation Transportation Infrastructure
Purpose Bonds, Series 2002B:
2,810 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AA 3,018,867
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 1,057,240
1,000 5.000%, 12/01/22 - AMBAC Insured 12/12 at 100.00 AA 1,048,170
500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 536,775
Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured
1,500 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 1,619,370
Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC
Insured
900 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 954,747
Special Obligation Revenue Bonds, Harbor Point Project,
Series 2010A, 7.875%, 4/01/39
1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 1,033,630
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue Bonds, Series 2005A:
780 0.000%, 7/01/32 - FGIC Insured No Opt. Call A3 183,690
2,120 0.000%, 7/01/33 - FGIC Insured No Opt. Call A3 462,224
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
890 5.250%, 7/01/17 7/12 at 100.00 A3 912,704
1,000 5.250%, 7/01/20 7/12 at 100.00 A3 1,016,870
1,045 5.250%, 7/01/21 7/12 at 100.00 A3 1,060,017
650 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 675,038
Bonds, First Subordinate Series 2010A, 5.375%, 8/01/39
------------------------------------------------------------------------------------------------------------------------------------
16,185 Total Tax Obligation/Limited 14,598,442
------------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 415 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call N/R $ 473,859
Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.4% (14.2% OF TOTAL INVESTMENTS) (4)
500 Bridgeport, Connecticut, General Obligation Bonds, Series 9/13 at 100.00 AAA 567,680
2003A, 5.250%, 9/15/23 (Pre-refunded 9/15/13) - AGM Insured
3,100 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 N/R (4) 3,287,271
Revenue Bonds, Trinity College, Series 2001G, 5.000%,
7/01/21 (Pre-refunded 7/01/11) - AMBAC Insured
450 Farmington, Connecticut, General Obligation Bonds, Series 2002, 9/12 at 101.00 Aaa 497,741
5.000%, 9/15/20 (Pre-refunded 9/15/12)
950 New Canaan, Connecticut, General Obligation Bonds, Series 5/11 at 100.00 Aaa 985,701
2002A, 4.500%, 5/01/19 (Pre-refunded 5/01/11)
40 New Haven, Connecticut, General Obligation Bonds, Series 2002A, 11/11 at 101.00 A1 (4) 43,110
5.250%, 11/01/17 - AMBAC Insured (ETM)
3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 3,094,378
2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - AGM Insured
3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,083,130
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
(Pre-refunded 10/01/10)
1,010 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,144,552
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC
Insured (ETM)
195 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 210,526
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
1,100 University of Connecticut, General Obligation Bonds, Series 2/13 at 100.00 AA (4) 1,222,892
2003A, 5.125%, 2/15/21 (Pre-refunded 2/15/13) - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
13,395 Total U.S. Guaranteed 14,136,981
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.1% (5.1% OF TOTAL INVESTMENTS)
720 Connecticut Development Authority, Pollution Control Revenue 10/10 at 101.00 Baa1 727,027
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
860 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 862,073
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
2,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Ba1 1,992,140
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
665 5.500%, 1/01/14 (Alternative Minimum Tax) 7/10 at 100.00 BBB 666,071
305 5.500%, 1/01/20 (Alternative Minimum Tax) 7/10 at 100.00 BBB 304,997
530 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/20 at 100.00 A3 536,604
Series 2010XX, 5.250%, 7/01/40
------------------------------------------------------------------------------------------------------------------------------------
5,080 Total Utilities 5,088,912
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.1% (8.9% OF TOTAL INVESTMENTS)
400 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 N/R 362,860
Bonds, Aquarion Water Company Project, Series 2007, 5.100%,
9/01/37 - SYNCORA GTY Insured (Alternative Minimum Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,324,475
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority, Connecticut,
Regional Wastewater System Revenue Bonds, Series 2005A:
1,230 5.000%, 11/15/30 - NPFG Insured 11/15 at 100.00 A1 1,267,884
640 5.000%, 8/15/35 - NPFG Insured 11/15 at 100.00 A1 651,616
230 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 235,955
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
2,050 5.000%, 8/01/20 - NPFG Insured 8/13 at 100.00 Aa3 2,149,794
590 5.000%, 8/01/33 - NPFG Insured 8/13 at 100.00 Aa3 602,101
Nuveen Investments 45
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,840 South Central Connecticut Regional Water Authority, Water 8/16 at 100.00 Aa3 $ 1,926,367
System Revenue Bonds, Twentieth Series, 2007A, 5.000%,
8/01/30 - NPFG Insured
350 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ 368,309
Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32
------------------------------------------------------------------------------------------------------------------------------------
8,515 Total Water and Sewer 8,889,361
------------------------------------------------------------------------------------------------------------------------------------
$ 98,380 Total Investments (cost $97,919,182) - 157.5% 99,333,907
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.2)% (5,780,000)
---------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (50.7)% (5) (32,000,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 1,505,125
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 63,059,032
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 32.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46 Nuveen Investments
NMT | Nuveen Massachusetts Premium Income Municipal Fund
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.2% (0.8% OF TOTAL INVESTMENTS)
$ 1,425 Boston Industrial Development Financing Authority, 9/12 at 102.00 Caa3 $ 831,174
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 33.7% (22.3% OF TOTAL
INVESTMENTS)
1,045 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 A+ 1,062,086
Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37
- NPFG Insured
375 Massachusetts Development Finance Authority, Revenue Bonds, 10/19 at 100.00 A 392,648
Boston University Issue, Series 2009-V1, 5.000%, 10/01/29
830 Massachusetts Development Finance Authority, Revenue Bonds, 9/10 at 100.50 BBB 834,897
Curry College, Series 2000A, 6.000%, 3/01/20 - ACA Insured
1,745 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,825,427
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2005D, 5.000%, 7/01/27 - AGC Insured
750 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 AA- 806,685
Milton Academy, Series 2003A, 5.000%, 9/01/19
1,500 Massachusetts Development Finance Authority, Revenue Bonds, WGBH No Opt. Call N/R 1,677,645
Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC
Insured
4,900 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 5,052,684
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC
Insured (UB)
1,090 Massachusetts Development Finance Authority, Revenue Refunding No Opt. Call A2 1,285,197
Bonds, Boston University, Series 1999P, 6.000%, 5/15/29
1,550 Massachusetts Educational Finance Authority, Educational Loan 1/12 at 100.00 AA 1,606,854
Revenue Bonds, Series 2002A, 5.000%, 1/01/13 - AMBAC Insured
(Alternative Minimum Tax)
2,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 2,214,700
Revenue Bonds, Boston College, Series 2003N, 5.250%, 6/01/18
500 Massachusetts Health and Educational Facilities Authority, 9/10 at 100.00 N/R 344,410
Revenue Bonds, Hebrew College, Series 1999A, 0.600%, 7/01/31
- RAAI Insured (4)
1,000 Massachusetts Health and Educational Facilities Authority, 10/19 at 100.00 Baa1 1,042,340
Revenue Bonds, Springfield College, Series 2010, 5.500%,
10/15/31
500 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 Aaa 521,855
Revenue Bonds, Wellesley College, Series 2003H, 5.000%,
7/01/26
555 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AAA 607,431
Revenue Bonds, Williams College, Series 2003H, 5.000%,
7/01/21
1,380 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AAA 1,462,703
Revenue Bonds, Williams College, Series 2007L, 5.000%,
7/01/31
500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 A2 500,885
Revenue Bonds, Worcester State College, Series 2002, 5.000%,
11/01/32 - AMBAC Insured
1,645 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/10 at 100.00 Aa1 1,646,579
Whitehead Institute for Biomedical Research, Series 1993,
5.125%, 7/01/26
375 Puerto Rico Industrial, Tourist, Educational, Medical and 8/10 at 100.50 BBB- 375,278
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
22,240 Total Education and Civic Organizations 23,260,304
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.8% (17.7% OF TOTAL INVESTMENTS)
1,250 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 1,267,500
Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%,
10/01/31
1,000 Massachusetts Health and Educational Facilities Authority, 11/11 at 101.00 BBB 923,720
Revenue Bonds, Cape Cod Health Care Inc., Series 2001C,
5.250%, 11/15/31 - RAAI Insured
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Caregroup Inc., Series B1 Capital Asset
Program Converted June 13,2008:
2,300 5.375%, 2/01/26 - NPFG Insured 8/18 at 100.00 A 2,347,541
770 5.375%, 2/01/28 - NPFG Insured 8/18 at 100.00 A 782,921
1,500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 1,523,175
Revenue Bonds, Caregroup Inc., Series B2, Capital Asset
Program, Converted June 9, 2009, 5.375%, 2/01/27 - NPFG
Insured
Nuveen Investments 47
NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,000 Massachusetts Health and Educational Facilities Authority, 7/12 at 101.00 BBB $ 1,011,940
Revenue Bonds, Caritas Christi Obligated Group, Series 2002B,
6.250%, 7/01/22
1,000 Massachusetts Health and Educational Facilities Authority, 12/19 at 100.00 AA 1,061,560
Revenue Bonds, Children's Hospital, Series 2009M, 5.500%,
12/01/39
935 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 N/R 777,228
Revenue Bonds, Emerson Hospital, Series 2005E, 5.000%,
8/15/35 - RAAI Insured
1,000 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 A+ 1,027,620
Revenue Bonds, Lahey Clinic Medical Center, Series 2005C,
5.000%, 8/15/21 - FGIC Insured
2,000 Massachusetts Health and Educational Facilities Authority, 8/17 at 100.00 A+ 2,033,440
Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%,
8/15/28
585 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 483,924
Revenue Bonds, Milford Regional Medical Center, Series 2007E,
5.000%, 7/15/32
1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BB- 681,420
Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%,
7/01/30
750 Massachusetts Health and Educational Facilities Authority, 7/10 at 100.00 A 733,665
Revenue Bonds, New England Medical Center Hospitals, Series
1993G-1, 5.375%, 7/01/24 - NPFG Insured
75 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 76,780
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
5.750%, 7/01/32
375 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB+ 378,596
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.625%, 7/01/32
1,445 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB+ 1,331,596
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
2,000 Massachusetts State, Health and Educational Facilities 7/17 at 100.00 AA 2,021,320
Authority, Partners HealthCare System Inc., Series 2007G,
5.000%, 7/01/32
------------------------------------------------------------------------------------------------------------------------------------
18,985 Total Health Care 18,463,946
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.0% (4.6% OF TOTAL INVESTMENTS)
1,320 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 1,271,450
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%,
7/20/48
1,775 Massachusetts Development Financing Authority, Assisted Living 6/10 at 102.00 N/R 1,732,666
Revenue Bonds, Prospect House Apartments, Series 1999,
7.000%,12/01/31
500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 6/13 at 100.00 AA- 502,805
Series 2003S, 5.050%, 12/01/23(Alternative Minimum Tax)
250 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 101.00 N/R 252,830
Revenue Bonds, Series 1999D, 5.500%, 7/01/13 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA Collateralized 5/12 at 103.00 AAA 1,047,900
Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002,
5.200%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
4,845 Total Housing/Multifamily 4,807,651
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.6% (2.4% OF TOTAL INVESTMENTS)
1,500 Massachusetts Housing Finance Agency, Single Family Housing 6/16 at 100.00 AA 1,412,070
Revenue Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative
Minimum Tax)
985 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 1,094,808
Revenue Bonds, Series 2008, Trust 3145, 14.169%, 12/01/28 (IF)
------------------------------------------------------------------------------------------------------------------------------------
2,485 Total Housing/Single Family 2,506,878
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.1% (0.7% OF TOTAL INVESTMENTS)
305 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 290,363
Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series
2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
400 Massachusetts Development Finance Agency, Solid Waste Disposal No Opt. Call BBB 429,244
Revenue Bonds, Waste Management Inc., Series 2003, 5.450%,
6/01/14
------------------------------------------------------------------------------------------------------------------------------------
705 Total Industrials 719,607
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.0% (4.7% OF TOTAL INVESTMENTS)
1,270 Boston, Massachusetts, FHA-Insured Mortgage Revenue Bonds, 10/10 at 103.00 AAA 1,321,994
Deutsches Altenheim Inc., Series 1998A, 6.125%, 10/01/31
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 185 Massachusetts Development Finance Agency, Revenue Bonds, 12/19 at 100.00 A- $ 186,271
Carleton-Willard Village, Series 2010, 5.625%, 12/01/30
1,685 Massachusetts Development Finance Agency, Revenue Bonds, Orchard 10/12 at 102.00 N/R 1,374,926
Cove, Series 2007, 5.250%, 10/01/26
1,500 Massachusetts Development Finance Authority, GNMA Collateralized 3/12 at 105.00 AAA 1,584,825
Assisted Living Facility Revenue Bonds, Arbors at Chicopee,
Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax)
400 Massachusetts Industrial Finance Agency, First Mortgage Revenue 1/11 at 101.00 BBB 390,808
Bonds, Berkshire Retirement Community, Series 1994B, 4.750%,
7/01/17
------------------------------------------------------------------------------------------------------------------------------------
5,040 Total Long-Term Care 4,858,824
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.0% (11.3% OF TOTAL INVESTMENTS)
500 Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5/15 at 100.00 Aa2 539,380
5.250%, 5/15/23 - AMBAC Insured
600 Boston, Massachusetts, General Obligation Bonds, Series 2005A, 1/15 at 100.00 Aaa 675,492
5.000%, 1/01/17
1,000 Fall River, Massachusetts, General Obligation Bonds, Series 2/13 at 101.00 AAA 1,044,130
2003, 5.000%, 2/01/21 - AGM Insured
2,500 Massachusetts Bay Transportation Authority, General Obligation No Opt. Call Aa1 3,078,475
Transportation System Bonds, Series 1991A, 7.000%, 3/01/21
1,275 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call Aa1 1,480,441
Series 2001D, 6.000%, 11/01/13 - NPFG Insured
980 Monson, Massachusetts, General Obligation Bonds, Series 2002, 5/12 at 101.00 A1 1,045,699
5.250%, 5/15/22 - AMBAC Insured
1,260 Norwell, Massachusetts, General Obligation Bonds, Series 2003, No Opt. Call AAA 1,504,868
5.000%, 11/15/20 - FGIC Insured
1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A3 1,070,580
Series 2001A, 5.500%, 7/01/29 - FGIC Insured
1,220 Worcester, Massachusetts, General Obligation Bonds, Series 7/15 at 100.00 A1 1,306,400
2005A, 5.000%, 7/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,335 Total Tax Obligation/General 11,745,465
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.0% (9.3% OF TOTAL INVESTMENTS)
210 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 A 217,090
Series 2004, 5.000%, 5/01/26 - AMBAC Insured
975 Massachusetts Bay Transportation Authority, Sales Tax Revenue 7/18 at 100.00 AAA 1,074,002
Bonds, Senior Lien Series 2006C, 5.000%, 7/01/26
385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 461,977
Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21
550 Massachusetts College Building Authority, Project Revenue Bonds, 5/14 at 100.00 Aa2 602,817
Series 2004A, 5.000%,5/01/19 - NPFG Insured
325 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 Aa2 338,416
Series 2006A, 5.000%,5/01/31 - AMBAC Insured
1,200 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 1,262,040
Series 2008A, 5.000%,5/01/33 - AGC Insured
1,000 Massachusetts College Building Authority, Project Revenue No Opt. Call Aa2 1,135,200
Refunding Bonds, Series 2003B, 5.375%, 5/01/23 - SYNCORA GTY
Insured
1,300 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 1,432,951
Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - AGM Insured
540 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call A1 606,901
Series 2005, 5.000%, 1/01/20 - FGIC Insured
1,000 Massachusetts, Special Obligation Refunding Notes, Federal No Opt. Call Aa2 1,118,360
Highway Grant Anticipation Note Program, Series 2003A,
5.000%, 12/15/13 - AGM Insured
240 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 24,929
Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured
1,300 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 1,410,708
Authority, Series 2003AA, 5.500%, 7/01/19 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
9,025 Total Tax Obligation/Limited 9,685,391
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49
NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.4% (6.9% OF TOTAL INVESTMENTS)
$ 2,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- $ 2,123,660
5.000%, 7/01/33 - NPFG Insured
1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 A 992,030
BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
225 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 N/R 178,234
Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 - AMBAC
Insured (Alternative Minimum Tax)
4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 9/10 at 100.00 A 3,766,960
US Airways Group Inc., Series 1996A, 5.750%, 9/01/16 - NPFG
Insured (Alternative Minimum Tax)
115 Massachusetts Turnpike Authority, Metropolitan Highway System 7/10 at 100.00 A 115,009
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
7,340 Total Transportation 7,175,893
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.0% (9.3% OF TOTAL INVESTMENTS) (5)
650 Boston, Massachusetts, General Obligation Bonds, Series 2005A, 1/15 at 100.00 N/R (5) 747,611
5.000%, 1/01/17 (Pre-refunded 1/01/15)
25 Massachusetts Bay Transportation Authority, Sales Tax Revenue 7/18 at 100.00 AAA 29,372
Bonds, Senior Lien Series 2006C, 5.000%, 7/01/26
(Pre-refunded 7/01/18)
2,500 Massachusetts Development Finance Authority, GNMA Collateralized 10/11 at 105.00 N/R (5) 2,831,525
Revenue Bonds, VOA Concord Assisted Living Inc., Series
2000A, 6.900%, 10/20/41 (Pre-refunded 10/20/11)
500 Massachusetts Development Finance Authority, Revenue Bonds, 9/11 at 101.00 A (5) 535,180
Belmont Hills School, Series 2001, 5.375%, 9/01/23
(Pre-refunded 9/01/11)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (5) 1,151,780
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2003C, 5.750%, 7/01/33 (Pre-refunded 7/01/13)
410 Massachusetts Health and Educational Facilities Authority, 7/21 at 100.00 A (5) 477,605
Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25
(Pre-refunded 7/01/21) - NPFG Insured
600 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (5) 653,814
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.375%, 5/15/19 (Pre-refunded 5/15/12) - FGIC Insured
1,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 100.00 A+ (5) 1,063,080
Revenue Bonds, University of Massachusetts - Worcester
Campus, Series 2001B, 5.250%, 10/01/31 (Pre-refunded
10/01/11) - FGIC Insured
420 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/10 at 100.00 AAA 501,371
13.000%, 7/01/13 (ETM)
1,500 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A1 (5) 1,690,065
Series 2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
8,605 Total U.S. Guaranteed 9,681,403
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.9% (2.0% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 A 1,029,630
Revenue Bonds, SEMass System, Series 2001A, 5.625%, 1/01/16 -
NPFG Insured
1,000 Massachusetts Industrial Finance Agency, Resource Recovery 6/10 at 101.00 BBB 993,960
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Utilities 2,023,590
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.1% (8.0% OF TOTAL INVESTMENTS)
500 Boston Water and Sewerage Commission, Massachusetts, General 11/19 at 100.00 AA+ 550,265
Revenue Bonds, Senior Lien Refunding Series 2010A, 5.000%,
11/01/30
2,000 Boston Water and Sewerage Commission, Massachusetts, General 11/14 at 100.00 AA+ 2,135,040
Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25
60 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/13 at 100.00 AAA 63,481
Program Bonds, Series 2003-9, 5.000%, 8/01/22
285 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/14 at 100.00 AAA 302,197
Program Bonds, Series 2004-10, 5.000%, 8/01/26
750 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 765,750
Program Bonds, Series 2005-11, 4.500%, 8/01/29
1,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 1,008,570
Program Bonds, Series 2006-12, 4.375%, 8/01/31
1,250 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 1,357,275
MWRA Loan Program, Series 2002A, 5.250%, 8/01/20
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,500 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AA+ $ 1,615,455
Series 2005A, 5.000%,8/01/28 - NPFG Insured
625 Massachusetts Water Resources Authority, General Revenue Bonds, 8/16 at 100.00 AA+ 571,591
Series 2006A, 4.000%, 8/01/46
------------------------------------------------------------------------------------------------------------------------------------
7,970 Total Water and Sewer 8,369,624
------------------------------------------------------------------------------------------------------------------------------------
$ 101,000 Total Investments (cost $102,413,160) - 150.8% 104,129,750
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.5)% (2,450,000)
--------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (29.3)% (6) (20,210,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 1,961,161
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (20.9)% (6) (14,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 69,030,911
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Investment valued at fair value using methods determined in good faith
by, or at the discretion of, the Board of Trustees. For fair value
measurement disclosure purposes, investment categorized as Level 3. See
Notes to Financial Statements, Footnote 2 - Fair Value Measurements for
more information.
(5) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(6) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at
Liquidation Value as a percentage of Total Investments are 19.4% and
13.8%, respectively.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 51
NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.0% (0.7% OF TOTAL INVESTMENTS)
$ 480 Boston Industrial Development Financing Authority, 9/12 at 102.00 Caa3 $ 279,974
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 48.7% (32.0% OF TOTAL
INVESTMENTS)
450 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 A+ 457,358
Worcester Polytechnic Institute, Series 2007, 5.000%,
9/01/37 - NPFG Insured
375 Massachusetts Development Finance Authority, Revenue Bonds, 10/19 at 100.00 A 392,648
Boston University Issue, Series 2009-V1, 5.000%, 10/01/29
495 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 517,815
Massachusetts College of Pharmacy and Allied Health
Sciences, Series 2005D, 5.000%, 7/01/27 - AGC Insured
500 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 AA- 537,790
Milton Academy, Series 2003A, 5.000%, 9/01/19
500 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call N/R 559,215
WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42
- AMBAC Insured
2,100 Massachusetts Development Finance Authority, Revenue Bonds, 1/18 at 100.00 AAA 2,165,436
WGBH Educational Foundation, Series 2008A, 5.000%, 1/01/42
- AGC Insured (UB)
1,000 Massachusetts Development Finance Authority, Revenue 5/29 at 105.00 A2 1,146,070
Refunding Bonds, Boston University, Series 1999P, 6.000%,
5/15/59
990 Massachusetts Educational Finance Authority, Educational Loan 7/10 at 100.00 AA 991,356
Revenue Bonds, Series 2001E, 5.300%, 1/01/16 - AMBAC
Insured (Alternative Minimum Tax)
1,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,107,350
Revenue Bonds, Boston College, Series 2003N, 5.250%,
6/01/18
1,000 Massachusetts Health and Educational Facilities Authority, 9/10 at 100.00 N/R 688,820
Revenue Bonds, Hebrew College, Series 1999A, 0.600%,
7/01/31 - RAAI Insured (4)
500 Massachusetts Health and Educational Facilities Authority, 10/19 at 100.00 Baa1 521,170
Revenue Bonds, Springfield College, Series 2010, 5.500%,
10/15/31
2,000 Massachusetts Health and Educational Facilities Authority, 2/11 at 100.00 Aa2 2,016,840
Revenue Bonds, Tufts University, Series 2001I, 5.500%,
2/15/36
1,500 Massachusetts Health and Educational Facilities Authority, No Opt. Call A2 1,504,470
Revenue Bonds, Wheaton College Issues, Series 2010F,
5.000%, 1/01/41
590 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AAA 625,359
Revenue Bonds, Williams College, Series 2007L, 5.000%,
7/01/31
500 Massachusetts Health and Educational Facilities Authority, 7/19 at 100.00 BBB 513,680
Revenue Refunding Bonds, Suffolk University Issue, Series
2009A, 5.750%, 7/01/39
------------------------------------------------------------------------------------------------------------------------------------
13,500 Total Education and Civic Organizations 13,745,377
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 28.4% (18.6% OF TOTAL INVESTMENTS)
500 Massachusetts Health and Educational Facilities Authority 1/18 at 100.00 N/R 446,765
Revenue Bonds, Quincy Medical Center Issue, Series 2008A,
6.500%, 1/15/38
500 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 507,000
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
775 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 791,019
Revenue Bonds, Caregroup Inc., Series B1 Capital Asset
Program Converted June 13,2008, 5.375%, 2/01/26 - NPFG
Insured
500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 507,725
Revenue Bonds, Caregroup Inc., Series B2, Capital Asset
Program, Converted June 9, 2009, 5.375%, 2/01/27 - NPFG
Insured
250 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 247,995
Revenue Bonds, Caritas Christi Obligated Group, Series
1999A, 5.625%, 7/01/20
1,000 Massachusetts Health and Educational Facilities Authority, 12/19 at 100.00 AA 1,061,560
Revenue Bonds, Children's Hospital, Series 2009M, 5.500%,
12/01/39
295 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A 300,856
Revenue Bonds, Covenant Health Systems Obligated Group,
Series 2002, 6.000%, 7/01/31
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Emerson Hospital, Series 2005E:
$ 550 5.000%, 8/15/25 - RAAI Insured 8/15 at 100.00 N/R $ 497,101
315 5.000%, 8/15/35 - RAAI Insured 8/15 at 100.00 N/R 261,847
600 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 A+ 616,572
Revenue Bonds, Lahey Clinic Medical Center, Series 2005C,
5.000%, 8/15/21 - FGIC Insured
1,000 Massachusetts Health and Educational Facilities Authority, 8/17 at 100.00 A+ 1,016,720
Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%,
8/15/28
290 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 239,894
Revenue Bonds, Milford Regional Medical Center, Series
2007E, 5.000%, 7/15/32
500 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BB- 340,710
Revenue Bonds, Milton Hospital Project, Series 2005D,
5.250%, 7/01/30
500 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 378,150
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B, 6.375%, 7/01/34
35 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 35,831
Revenue Bonds, Partners HealthCare System Inc., Series
2001C, 5.750%, 7/01/32
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB+ 504,795
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.625%, 7/01/32
285 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB+ 262,633
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
8,395 Total Health Care 8,017,173
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.4% (7.5% OF TOTAL INVESTMENTS)
565 Massachusetts Development Finance Authority, Multifamily 7/17 at 100.00 AAA 544,219
Housing Revenue Bonds, Emerson Manor Project, Series 2007,
4.800%, 7/20/48
500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 6/13 at 100.00 AA- 502,805
Series 2003S, 5.050%, 12/01/23 (Alternative Minimum Tax)
1,135 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 N/R 1,136,101
Revenue Bonds, Series 2001A, 5.850%, 7/01/35 - AMBAC
Insured (Alternative Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA 5/12 at 103.00 AAA 1,047,900
Collateralized Mortgage Revenue Bonds, Clarendon Hill
Towers, Series 2002, 5.200%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
3,200 Total Housing/Multifamily 3,231,025
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0% (2.7% OF TOTAL INVESTMENTS)
650 Massachusetts Housing Finance Agency, Single Family Housing 6/16 at 100.00 AA 611,897
Revenue Bonds, Series 2006-126, 4.625%, 6/01/32
(Alternative Minimum Tax)
480 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 529,565
Revenue Bonds, Series 2008, Trust 3145, 15.224%, 12/01/33
(IF)
------------------------------------------------------------------------------------------------------------------------------------
1,130 Total Housing/Single Family 1,141,462
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.8% OF TOTAL INVESTMENTS)
145 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 138,041
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
200 Massachusetts Development Finance Agency, Solid Waste No Opt. Call BBB 214,622
Disposal Revenue Bonds, Waste Management Inc., Series
2003, 5.450%, 6/01/14
------------------------------------------------------------------------------------------------------------------------------------
345 Total Industrials 352,663
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 8.6% (5.6% OF TOTAL INVESTMENTS)
100 Massachusetts Development Finance Agency, Revenue Bonds, 12/19 at 100.00 A- 100,687
Carleton-Willard Village, Series 2010, 5.625%, 12/01/30
725 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 N/R 591,586
Orchard Cove, Series 2007, 5.250%, 10/01/26
655 Massachusetts Development Finance Authority, First Mortgage 7/11 at 102.00 BBB 667,517
Revenue Bonds, Berkshire Retirement Community - Edgecombe
Project, Series 2001A, 6.750%, 7/01/21
1,000 Massachusetts Development Finance Authority, GNMA 3/12 at 105.00 AAA 1,056,550
Collateralized Assisted Living Facility Revenue Bonds,
Arbors at Chicopee, Series 2001A, 6.250%, 9/20/42
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,480 Total Long-Term Care 2,416,340
------------------------------------------------------------------------------------------------------------------------------------
Investments Nuveen 53
NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.8% (4.5% OF TOTAL INVESTMENTS)
$ 310 Ashland, Massachusetts, General Obligation Bonds, Series 5/15 at 100.00 Aa2 $ 334,416
2004, 5.250%, 5/15/23 - AMBAC Insured
440 Fall River, Massachusetts, General Obligation Bonds, Series 2/13 at 101.00 AAA 459,417
2003, 5.000%, 2/01/21 - AGM Insured
500 Norwell, Massachusetts, General Obligation Bonds, Series No Opt. Call AAA 597,170
2003, 5.000%, 11/15/20 - FGIC Insured
500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A3 535,290
Series 2001A, 5.500%, 7/01/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,750 Total Tax Obligation/General 1,926,293
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.9% (7.8% OF TOTAL INVESTMENTS)
395 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 A 408,335
Series 2004, 5.000%, 5/01/26 - AMBAC Insured
85 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 85,385
Series 2000A, 5.250%, 7/01/30
385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 461,977
Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21
230 Massachusetts College Building Authority, Project Revenue 5/14 at 100.00 Aa2 252,087
Bonds, Series 2004A, 5.000%, 5/01/19 - NPFG Insured
250 Massachusetts College Building Authority, Project Revenue 5/16 at 100.00 Aa2 260,320
Bonds, Series 2006A, 5.000%, 5/01/31 - AMBAC Insured
550 Massachusetts College Building Authority, Project Revenue 5/18 at 100.00 AAA 578,435
Bonds, Series 2008A, 5.000%, 5/01/33 - AGC Insured
500 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 551,135
Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - AGM Insured
230 Massachusetts, Special Obligation Dedicated Tax Revenue No Opt. Call A1 258,495
Bonds, Series 2005, 5.000%, 1/01/20 - FGIC Insured
500 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 508,655
Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
3,125 Total Tax Obligation/Limited 3,364,824
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.4% (0.9% OF TOTAL INVESTMENTS)
400 Massachusetts Port Authority, Special Facilities Revenue 7/17 at 100.00 A 396,812
Bonds, BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.3% (9.4% OF TOTAL INVESTMENTS) (5)
1,000 Boston, Massachusetts, General Obligation Bonds, Series 2/11 at 100.00 Aaa 1,031,680
2001A, 5.000%, 2/01/20 (Pre-refunded 2/01/11)
1,675 Lawrence, Massachusetts, General Obligation Bonds, Series 2/11 at 100.00 Aa2 (5) 1,728,064
2001, 5.000%, 2/01/21 (Pre-refunded 2/01/11) - AMBAC
Insured
125 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 Aa1 (5) 125,569
Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
80 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A (5) 87,591
Revenue Bonds, Covenant Health Systems Obligated Group,
Series 2002, 6.000%, 7/01/31 (Pre-refunded 1/01/12)
215 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AAA 229,547
Revenue Bonds, Partners HealthCare System Inc., Series
2001C, 5.750%, 7/01/32 (Pre-refunded 7/01/11)
750 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 A1 (5) 845,033
Bonds, Series 2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14)
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,845 Total U.S. Guaranteed 4,047,484
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.7% (3.7% OF TOTAL INVESTMENTS)
1,070 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 A 1,108,402
Revenue Bonds, SEMass System, Series 2001A, 5.625%,
1/01/14 - NPFG Insured
500 Massachusetts Industrial Finance Agency, Resource Recovery 6/10 at 101.00 BBB 496,980
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,570 Total Utilities 1,605,382
------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.8% (5.8% OF TOTAL INVESTMENTS)
$ 530 Boston Water and Sewerage Commission, Massachusetts, General 11/14 at 100.00 AA+ $ 565,786
Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25
125 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 128,236
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
500 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 510,500
Program Bonds, Series 2005-11, 4.500%, 8/01/29
400 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 403,428
Program Bonds, Series 2006-12, 4.375%, 8/01/31
500 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 542,910
MWRA Loan Program, Series 2002A, 5.250%, 8/01/20
105 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/10 at 100.00 AAA 105,743
MWRA Loan Program, Subordinate Series 1999A, 5.750%,
8/01/29
250 Massachusetts Water Resources Authority, General Revenue 8/16 at 100.00 AA+ 228,635
Bonds, Series 2006A, 4.000%, 8/01/46
------------------------------------------------------------------------------------------------------------------------------------
2,410 Total Water and Sewer 2,485,238
------------------------------------------------------------------------------------------------------------------------------------
$ 42,630 Total Investments (cost $42,972,702) - 152.3% 43,010,047
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.7)% (1,050,000)
--------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (52.2)% (6) (14,725,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 1,000,446
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 28,235,493
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Investment valued at fair value using methods determined in good faith
by, or at the discretion of, the Board of Trustees. For fair value
measurement disclosure purposes, investment categorized as Level 3. See
Notes to Financial Statements, Footnote 2 - Fair Value Measurements for
more information.
(5) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(6) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 34.2%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 55
NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 26.4% (17.1% OF TOTAL
INVESTMENTS)
$ 1,135 Massachusetts Development Finance Agency, Revenue Bonds, Boston 10/15 at 100.00 A $ 1,142,854
University, Series 2005T-1, 5.000%, 10/01/39 - AMBAC Insured
600 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 A+ 609,810
Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37
- NPFG Insured
1,250 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,266,388
Middlesex School, Series 2003, 5.000%, 9/01/33
1,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH No Opt. Call N/R 1,118,430
Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC
Insured
3,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 3,093,480
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC
Insured (UB)
1,750 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,834,350
Revenue Bonds, Boston College, Series 2003N, 5.125%, 6/01/37
1,500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 A2 1,502,655
Revenue Bonds, Worcester State College, Series 2002, 5.000%,
11/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,235 Total Education and Civic Organizations 10,567,967
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.5% (10.7% OF TOTAL INVESTMENTS)
500 Massachusetts Health and Educational Facilities Authority, 11/19 at 100.00 AAA 503,530
Revenue Bonds, Cape Cod Healthcare Obligated Group, Series
2004D, 5.125%, 11/15/35 - AGC Insured
455 Massachusetts Health and Educational Facilities Authority, 7/10 at 100.00 A 450,700
Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25
- NPFG Insured
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Caregroup Inc., Series B1 Capital Asset Program
Converted June 13,2008:
450 5.375%, 2/01/26 - NPFG Insured 8/18 at 100.00 A 459,302
600 5.375%, 2/01/27 - NPFG Insured 8/18 at 100.00 A 609,270
1,500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 A 1,525,170
Revenue Bonds, Caregroup Inc., Series B2, Capital Asset
Program, Converted June 9, 2009, 5.375%, 2/01/28 - NPFG
Insured
585 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 483,924
Revenue Bonds, Milford Regional Medical Center, Series 2007E,
5.000%, 7/15/32
200 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BB- 136,284
Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%,
7/01/30
2,400 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R 2,196,792
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 - FGIC Insured
250 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB+ 230,380
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
6,940 Total Health Care 6,595,352
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.0% (6.5% OF TOTAL INVESTMENTS)
765 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 736,863
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%,
7/20/48
2,000 Massachusetts Housing Finance Agency, Housing Bonds, Series 12/12 at 100.00 AA- 2,006,740
2003H, 5.125%, 6/01/43
1,265 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/12 at 100.00 AAA 1,271,148
Revenue Bonds, Series 2002H, 5.200%, 7/01/42 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
4,030 Total Housing/Multifamily 4,014,751
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 7.4% (4.8% OF TOTAL INVESTMENTS)
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, Series 2002A:
1,475 5.125%, 8/01/28 - NPFG Insured 2/12 at 100.00 A 1,479,941
1,500 5.125%, 2/01/34 - NPFG Insured 2/12 at 100.00 A 1,488,705
------------------------------------------------------------------------------------------------------------------------------------
2,975 Total Industrials 2,968,646
------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.6% (3.0% OF TOTAL INVESTMENTS)
$ 1,750 Massachusetts Development Finance Authority, GNMA Collateralized 12/12 at 105.00 AAA $ 1,863,523
Revenue Bonds, Neville Communities, Series 2002A, 6.000%,
6/20/44
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.6% (10.7% OF TOTAL INVESTMENTS)
1,280 Littleton, Massachusetts, General Obligation Bonds, Series 2003, 1/13 at 101.00 AA 1,350,042
5.000%, 1/15/21 - FGIC Insured
1,500 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 1,778,865
Series 2004B, 5.250%, 8/01/21 - AGM Insured
1,705 North Attleborough, Massachusetts, General Obligation Bonds, 7/14 at 101.00 Aa2 1,944,672
Series 2004, 5.000%, 7/15/15 - FGIC Insured
1,500 Pittsfield, Massachusetts, General Obligation Bonds, Series 4/12 at 101.00 Aa2 1,574,880
2002, 5.000%, 4/15/18 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
5,985 Total Tax Obligation/General 6,648,459
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.8% (11.5% OF TOTAL INVESTMENTS)
3,000 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/13 at 100.00 A 3,052,920
Series 2002, 5.000%, 5/01/32 - AMBAC Insured
750 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 788,775
Series 2008A, 5.000%, 5/01/33 - AGC Insured
2,790 Massachusetts College Building Authority, Project Revenue 5/13 at 100.00 Aa2 2,944,175
Refunding Bonds, Series 2003A, 5.250%, 5/01/22 - SYNCORA GTY
Insured
300 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call A1 337,167
Series 2005, 5.000%, 1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,840 Total Tax Obligation/Limited 7,123,037
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 1,061,830
5.000%, 7/01/33 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 34.9% (22.6% OF TOTAL INVESTMENTS) (4)
2,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 2,182,860
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
500 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (4) 585,370
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2003C, 6.375%, 7/01/23 (Pre-refunded 7/01/13)
100 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 108,239
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 (Pre-refunded 5/15/12) - FGIC Insured
415 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/10 at 100.00 AAA 495,402
13.000%, 7/01/13 (ETM)
2,000 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/11 at 100.00 Aa1 (4) 2,122,040
Series 2001D, 5.000%, 11/01/20 (Pre-refunded 11/01/11) - NPFG
Insured
1,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A1 (4) 1,126,710
Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC
Insured
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,521,825
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - AGM
Insured
3,000 Springfield, Massachusetts, General Obligation Bonds, Series 1/13 at 100.00 AA- (4) 3,330,180
2003, 5.250%, 1/15/22 (Pre-refunded 1/15/13) - NPFG Insured
2,140 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 A+ (4) 2,510,156
Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/21
(Pre-refunded 11/01/14) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,655 Total U.S. Guaranteed 13,982,782
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.5% (11.4% OF TOTAL INVESTMENTS)
1,900 Lynn Water and Sewer Commission, Massachusetts, General Revenue 12/13 at 100.00 A1 1,916,397
Bonds, Series 2003A, 5.000%, 12/01/32 - NPFG Insured
600 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 605,142
Program Bonds, Series 2006-12, 4.375%, 8/01/31
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, No Opt. Call AAA 1,200,390
Series 2002J, 5.250%, 8/01/19 - AGM Insured
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/13 at 100.00 AA+ 1,072,400
Series 2004D, 5.000%, 8/01/24 - NPFG Insured
Nuveen Investments 57
NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Massachusetts Water Resources Authority, General Revenue Bonds,
Series 2006A:
$ 1,500 5.000%, 8/01/31 - AMBAC Insured 8/16 at 100.00 AA+ $ 1,584,210
125 4.000%, 8/01/46 8/16 at 100.00 AA+ 114,319
495 Springfield Water and Sewerage Commission, Massachusetts, 7/14 at 100.00 A+ 539,410
General Revenue Bonds, Series 2003A, 5.000%, 7/01/16 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,620 Total Water and Sewer 7,032,268
------------------------------------------------------------------------------------------------------------------------------------
$ 59,030 Total Investments (cost $59,804,316) - 154.3% 61,858,615
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.7)% (1,500,000)
---------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (55.1)% (5) (22,075,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 1,811,020
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 40,094,635
=====================================================================================================================
The Fund intends to invest at least 80% of its net assets in municipal
securities that are covered by insurance guaranteeing the timely payment
of principal and interest. See Notes to Financial Statements, Footnote 1
- Insurance, for more information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 35.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
58 Nuveen Investments
NOM | Nuveen Missouri Premium Income Municipal Fund
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS)
$ 1,000 Missouri Development Finance Board, Solid Waste Disposal Revenue No Opt. Call AA- $ 1,047,820
Bonds, Procter and Gamble Inc., Series 1999, 5.200%, 3/15/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.0% (1.3% OF TOTAL
INVESTMENTS)
250 Lincoln University, Missouri, Auxiliary System Revenue Bonds, 6/17 at 100.00 AAA 256,430
Series 2007, 5.125%, 6/01/37 - AGC Insured
365 Missouri Health and Educational Facilities Authority, Revenue 4/11 at 100.00 A3 369,906
Bonds, Webster University, Series 2001, 5.500%, 4/01/18 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
615 Total Education and Civic Organizations 626,336
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 28.0% (17.9% OF TOTAL INVESTMENTS)
760 Cape Girardeau County Industrial Development Authority, Missouri, 6/17 at 100.00 N/R 700,211
Health Facilities Revenue Bonds, Southeast Missouri Hospital
Association, Series 2007, 5.000%, 6/01/27
930 Cass County, Missouri, Hospital Revenue Bonds, Series 2007, 11/16 at 100.00 N/R 845,677
5.625%, 5/01/38
480 Clinton County Industrial Development Authority, Missouri, 12/17 at 100.00 N/R 346,723
Revenue Bonds, Cameron Regional Medical Center, Series 2007,
5.000%, 12/01/37
750 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 734,498
Facilities Revenue Bonds, Freeman Health System, Series 2004,
5.500%, 2/15/29
500 Missouri Health & Educational Facilities Authority, St. Luke's 6/11 at 101.00 AAA 509,525
Episcopal- Presbyterian Hospitals Revenue Bonds, Series 2001,
5.250%, 12/01/26 - AGM Insured
2,000 Missouri Health and Educational Facilities Authority, Health 11/20 at 100.00 A+ 2,004,800
Facility Revenue Bonds, St. Lukes's Health System, Series
2010A, 5.000%, 11/15/30 (WI/DD, Settling 6/03/10)
Missouri Health and Educational Facilities Authority, Revenue
Bonds, BJC Health System, Series 2003:
1,500 5.125%, 5/15/25 5/13 at 100.00 AA 1,532,385
1,155 5.250%, 5/15/32 5/13 at 100.00 AA 1,173,318
425 Missouri Health and Educational Facilities Authority, Revenue 8/10 at 100.00 BBB+ 425,319
Bonds, Lake Regional Health System, Series 1996, 6.500%,
2/15/21
500 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ 502,105
Bonds, Lake Regional Health System, Series 2003, 5.700%,
2/15/34
------------------------------------------------------------------------------------------------------------------------------------
9,000 Total Health Care 8,774,561
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.4% (2.1% OF TOTAL INVESTMENTS)
390 Jefferson County Industrial Development Authority, Missouri, 12/11 at 100.00 N/R 382,812
Multifamily Housing Revenue Bonds, Lakewood Apartments
Project, Series 2001B, 5.750%, 11/01/34 (Mandatory put
11/01/16) (Alternative Minimum Tax)
165 Missouri Housing Development Commission, Multifamily Housing 12/11 at 100.00 AA 169,260
Revenue Bonds, Series 2001II, 5.250%, 12/01/16
500 St. Charles County Industrial Development Authority, Missouri, 10/10 at 100.00 AAA 500,235
FHA-Insured Multifamily Housing Revenue Bonds, Ashwood
Apartments, Series 1998A, 5.600%, 4/01/30 - AGM Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,055 Total Housing/Multifamily 1,052,307
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.5% (2.9% OF TOTAL INVESTMENTS)
60 Missouri Housing Development Commission, Single Family Mortgage 9/10 at 100.00 AAA 61,796
Revenue Bonds, Homeownership Loan Program, Series 2000B-1,
6.250%, 3/01/31 (Alternative Minimum Tax)
530 Missouri Housing Development Commission, Single Family Mortgage 9/16 at 100.00 AAA 530,249
Revenue Bonds, Homeownership Loan Program, Series 2007A-1,
4.700%, 9/01/27 (Alternative Minimum Tax)
855 Missouri Housing Development Commission, Single Family Mortgage 3/17 at 100.00 AAA 834,266
Revenue Bonds, Homeownership Loan Program, Series 2007C-1,
4.800%, 9/01/38 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,445 Total Housing/Single Family 1,426,311
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59
NOM | Nuveen Missouri Premium Income Municipal Fund (continued)
| Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 8.3% (5.3% OF TOTAL INVESTMENTS)
$ 1,750 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R $ 1,708,315
Bonds, Lutheran Senior Services - Heisinger Project, Series
2004, 5.500%, 2/01/35
475 Lees Summit Industrial Development Authority, Missouri, Revenue 8/17 at 100.00 N/R 417,967
Bonds, John Knox Village Obligated Group, Series 2007A,
5.125%, 8/15/32
500 St. Louis County Industrial Development Authority, Missouri, 9/17 at 100.00 N/R 470,855
Revenue Bonds, Friendship Village of West County, Series
2007A, 5.500%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
2,725 Total Long-Term Care 2,597,137
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.2% (1.4% OF TOTAL INVESTMENTS)
750 Sugar Creek, Missouri, Industrial Development Revenue Bonds, 6/13 at 101.00 BBB- 694,133
Lafarge North America Inc., Series 2003A, 5.650%, 6/01/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 30.8% (19.6% OF TOTAL INVESTMENTS)
1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,645,545
Missouri, General Obligation Bonds, Series 2005, 5.250%,
3/01/24 - AGM Insured (4)
1,685 Independence School District, Jackson County, Missouri, General 3/20 at 100.00 AA+ 1,852,085
Obligation Bonds, Series 2010, 5.000%, 3/01/27
500 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 533,615
General Obligation Refunding and Improvement Bonds, Series
2002, 5.250%, 3/01/18 - AGM Insured
500 Missouri School Boards Association, Lease Participation 3/17 at 100.00 AAA 538,500
Certificates, Clay County School District 53 Liberty, Series
2007, 5.250%, 3/01/27 - AGM Insured
1,630 North Kansas City School District, Missouri, General Obligation 3/13 at 100.00 AA+ 1,760,090
Bonds, Series 2003A, 5.000%, 3/01/23
1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 1,085,420
Series 2001A, 5.500%, 7/01/20 - NPFG Insured
1,800 Ritenour Consolidated School District, St. Louis County, No Opt. Call Aa2 1,932,930
Missouri, General Obligation Bonds, Series 1995, 7.375%,
2/01/12 - FGIC Insured
270 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 300,437
General Obligation Bonds, Series 2004, 5.250%, 3/01/20 - AGM
Insured
------------------------------------------------------------------------------------------------------------------------------------
8,885 Total Tax Obligation/General 9,648,622
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.6% (13.8% OF TOTAL INVESTMENTS)
600 Chesterfield, Missouri, Certificates of Participation, Series 12/15 at 100.00 Aa1 622,188
2005, 5.000%, 12/01/24 - FGIC Insured
80 Cottleville, Missouri, Certificates of Participation, Series 8/14 at 100.00 N/R 69,571
2006, 5.250%, 8/01/31
335 Fenton, Missouri, Tax Increment Revenue Bonds, Gravois Bluffs 4/14 at 100.00 N/R 324,856
Redevelopment Project, Series 2006, 4.500%, 4/01/21
315 Fulton, Missouri, Tax Increment Revenue Bonds, Fulton Commons 6/16 at 100.00 N/R 254,939
Redevelopment Project, Series 2006, 5.000%, 6/01/28
475 Kansas City Tax Increment Financing District, Missouri, Tax 6/14 at 102.00 N/R 410,894
Increment Revenue Bonds, Briarcliff West Project, Series
2006A, 5.400%, 6/01/24
360 Missouri Development Finance Board, Infrastructure Facilities 6/15 at 100.00 A 333,853
Revenue Bonds, Branson Landing Project, Series 2005A, 5.000%,
6/01/35
415 Missouri Development Finance Board, Infrastructure Facilities 3/16 at 100.00 A 415,174
Revenue Bonds, City of Independence, Crackerneck Creek
Project, Series 2006C, 5.000%, 3/01/28
450 Monarch-Chesterfield Levee District, St. Louis County, Missouri, 9/10 at 101.00 A 456,156
Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19
- NPFG Insured
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 500 Osage Beach, Missouri, Tax Increment Revenue Bonds, Prewitts 5/12 at 102.00 N/R $ 418,830
Point Transportation Development District, Series 2006,
5.000%, 5/01/23
600 Riverside, Missouri, L-385 Levee Redevelopment Plan Tax Increment 5/15 at 100.00 A 616,458
Revenue Bonds, Series 2004, 5.250%, 5/01/20
2,000 Springfield Public Building Corporation, Missouri, Lease Revenue 6/10 at 100.00 N/R 2,002,360
Bonds, Jordan Valley Park Projects, Series 2000A, 6.125%,
6/01/21 - AMBAC Insured
St. Joseph Industrial Development Authority, Missouri, Tax
Increment Bonds, Shoppes at North Village Project, Series
2005A:
340 5.375%, 11/01/24 11/14 at 100.00 N/R 309,862
400 5.500%, 11/01/27 11/14 at 100.00 N/R 359,012
200 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 179,506
Increment Bonds, Shoppes at North Village Project, Series
2005B, 5.500%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
7,070 Total Tax Obligation/Limited 6,773,659
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.7% (10.6% OF TOTAL INVESTMENTS)
500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 A 501,870
Kansas City International Airport, Series 2001, 5.000%,
4/01/23 - AMBAC Insured (Alternative Minimum Tax)
1,000 St. Louis Land Clearance Redevelopment Authority, Missouri, 9/10 at 101.00 N/R 997,830
Revenue Refunding and Improvement Bonds, LCRA Parking
Facilities, Series 1999C, 7.000%, 9/01/19
1,000 St. Louis, Missouri, Airport Revenue Bonds, Lambert-St. Louis No Opt. Call A 1,083,010
International Airport, Series 2005, 5.500%, 7/01/18 - NPFG
Insured
2,500 St. Louis, Missouri, Airport Revenue Bonds, Lambert-St. Louis 7/17 at 100.00 AAA 2,641,875
International Airport, Series 2007A, 5.000%, 7/01/21 - AGM
Insured
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Transportation 5,224,585
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.5% (15.6% OF TOTAL INVESTMENTS) (5)
685 Fenton, Missouri, Tax Increment Refunding and Improvement Revenue 10/12 at 100.00 N/R (5) 763,583
Bonds, Gravois Bluffs Redevelopment Project, Series 2002,
6.125%, 10/01/21 (Pre-refunded 10/01/12)
2,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- (5) 2,644,025
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28
(Pre-refunded 6/01/11) - AMBAC Insured
1,000 Missouri Health and Educational Facilities Authority, Revenue 12/10 at 101.00 N/R (5) 1,038,890
Bonds, St. Anthony's Medical Center, Series 2000, 6.250%,
12/01/30 (Pre-refunded 12/01/10)
1,380 Springfield Center City Development Corporation, Missouri, Lease 11/11 at 100.00 Aa3 (5) 1,465,367
Revenue Bonds, Jordan Valley Park Parking Garage, Series
2002D, 5.000%, 11/01/22 (Pre-refunded 11/01/11) - AMBAC
Insured
80 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 91,759
General Obligation Bonds, Series 2004, 5.250%, 3/01/20
(Pre-refunded 3/01/14) - AGM Insured
500 St. Louis County, Missouri, GNMA Collateralized Mortgage Revenue No Opt. Call AAA 573,975
Bonds, Series 1993D, 5.650%, 7/01/20 (Alternative Minimum Tax)
(ETM)
1,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold 2/12 at 100.00 N/R (5) 1,088,480
Revenue Bonds, Carnahan Courthouse, Series 2002A, 5.750%,
2/15/16 (Pre-refunded 2/15/12) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,145 Total U.S. Guaranteed 7,666,079
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.7% (1.1% OF TOTAL INVESTMENTS)
530 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/20 at 100.00 A3 536,604
2010XX, 5.250%, 7/01/40
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 61
NOM | Nuveen Missouri Premium Income Municipal Fund (continued)
Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.9% (6.3% OF TOTAL INVESTMENTS)
$ 2,965 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AA+ $ 2,726,584
Authority, Water Facility Revenue Bonds, Missouri-American
Water Company, Series 2006, 4.600%, 12/01/36 - AMBAC Insured
(Alternative Minimum Tax) (UB)
350 Missouri Environmental Improvement and Energy Resources No Opt. Call Aaa 382,809
Authority, Water Pollution Control Revenue Bonds, State
Revolving Fund Program - Kansas City Project, Series 1997C,
6.750%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
3,315 Total Water and Sewer 3,109,393
------------------------------------------------------------------------------------------------------------------------------------
$ 48,535 Total Investments (cost $48,966,860) - 156.9% 49,177,547
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.1)% (2,225,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 395,157
---------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (51.0)% (6) (16,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 31,347,704
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the highest of Standard & Poor's Group
("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or
Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's,
Baa by Moody's or BBB by Fitch are considered to be below investment
grade.
(4) Investment, or portion of investment, has been pledged as collateral for
inverse floating rate transactions.
(5) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 32.5%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
62 Nuveen Investments
| Statement of
| Assets & Liabilities
May 31, 2010
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $115,609,318, $60,267,853,
$53,119,452 and $97,919,182, respectively) $ 118,239,107 $ 61,714,970 $ 54,742,155 $ 99,333,907
Cash -- -- -- --
Receivables:
Interest 1,762,986 807,532 731,090 1,469,971
Investments sold 400,000 250,000 -- --
Deferred offering costs 514,699 547,818 487,147 704,903
Other assets 20,505 6,474 30,866 10,585
----------------------------------------------------------------------------------------------------------------------
Total assets 120,937,297 63,326,794 55,991,258 101,519,366
----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 138,105 10,549 288,379 36,404
Floating rate obligations 7,965,000 3,820,000 3,460,000 5,780,000
Payables:
Investments purchased -- -- -- --
Auction Rate Preferred share dividends 1,052 -- -- --
Common share dividends 284,973 155,102 146,226 239,029
Interest 40,412 44,352 36,725 70,667
Offering costs 257,865 234,400 224,400 248,907
MuniFund Term Preferred shares, at liquidation value 18,300,000 20,470,000 16,950,000 32,000,000
Accrued expenses:
Management fees 62,911 30,390 24,433 46,483
Other 56,050 29,646 28,043 38,844
----------------------------------------------------------------------------------------------------------------------
Total liabilities 27,106,368 24,794,439 21,158,206 38,460,334
----------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 15,725,000 -- -- --
----------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 78,105,929 $ 38,532,355 $ 34,833,052 $ 63,059,032
======================================================================================================================
Common shares outstanding 5,365,029 2,584,269 2,319,104 4,367,134
======================================================================================================================
Net asset value per Common share outstanding (net
assets applicable to Common shares, divided by
Common shares outstanding) $ 14.56 $ 14.91 $ 15.02 $ 14.44
======================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 53,650 $ 25,843 $ 23,191 $ 43,671
Paid-in surplus 74,500,251 36,644,120 32,822,344 61,584,748
Undistributed (Over-distribution of) net investment
income 967,954 451,596 416,725 516,876
Accumulated net realized gain (loss) (45,715) (36,321) (51,911) (500,988)
Net unrealized appreciation (depreciation) 2,629,789 1,447,117 1,622,703 1,414,725
----------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 78,105,929 $ 38,532,355 $ 34,833,052 $ 63,059,032
======================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Auction Rate Preferred Unlimited Unlimited Unlimited Unlimited
MuniFund Term Preferred Unlimited Unlimited Unlimited Unlimited
======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 63
| Statement of
| Assets & Liabilities (continued)
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $102,413,160, $42,972,702,
$59,804,316 and $48,966,860, respectively) $ 104,129,750 $ 43,010,047 $ 61,858,615 $ 49,177,547
Cash 250,652 249,337 691,270 784,388
Receivables:
Interest 1,726,360 726,929 927,612 818,320
Investments sold 125,000 -- 110,000 950,000
Deferred offering costs 541,587 448,113 536,783 --
Other assets 17,458 4,994 31,912 7,869
----------------------------------------------------------------------------------------------------------------------
Total assets 106,790,807 44,439,420 64,156,192 51,738,124
----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Floating rate obligations 2,450,000 1,050,000 1,500,000 2,225,000
Payables:
Investments purchased -- -- -- 1,987,280
Auction Rate Preferred share dividends 1,141 -- -- 749
Common share dividends 284,330 130,748 166,734 125,610
Interest 44,630 31,904 48,749 --
Offering costs 264,275 219,316 211,575 --
MuniFund Term Preferred shares, at liquidation value 20,210,000 14,725,000 22,075,000 --
Accrued expenses:
Management fees 55,773 21,307 29,266 25,459
Other 49,747 25,652 30,233 26,322
----------------------------------------------------------------------------------------------------------------------
Total liabilities 23,359,896 16,203,927 24,061,557 4,390,420
----------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 14,400,000 -- -- 16,000,000
----------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 69,030,911 $ 28,235,493 $ 40,094,635 $ 31,347,704
======================================================================================================================
Common shares outstanding 4,767,916 1,963,953 2,725,887 2,314,214
======================================================================================================================
Net asset value per Common share outstanding (net
assets applicable to Common shares, divided by
Common shares outstanding) $ 14.48 $ 14.38 $ 14.71 $ 13.55
======================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 47,679 $ 19,640 $ 27,259 $ 23,142
Paid-in surplus 66,163,333 27,786,504 38,377,333 31,026,177
Undistributed (Over-distribution of) net investment
income 914,982 342,155 340,463 440,220
Accumulated net realized gain (loss) 188,327 49,849 (704,719) (352,522)
Net unrealized appreciation (depreciation) 1,716,590 37,345 2,054,299 210,687
----------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 69,030,911 $ 28,235,493 $ 40,094,635 $ 31,347,704
======================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Auction Rate Preferred Unlimited Unlimited Unlimited Unlimited
MuniFund Term Preferred Unlimited Unlimited Unlimited --
======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
64 Nuveen Investments
| Statement of
| Operations
Year Ended May 31, 2010
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,451,756 $ 2,764,474 $ 2,477,798 $ 4,335,057
----------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 731,002 368,471 331,952 609,899
Auction fees 42,171 19,649 17,242 27,005
Dividend disbursing agent fees 10,000 7,479 9,151 14,192
Shareholders' servicing agent fees and expenses 8,796 1,337 1,210 1,206
Interest expense and amortization of offering costs 278,519 135,503 116,787 347,914
Custodian's fees and expenses 27,089 17,527 16,785 23,867
Trustees' fees and expenses 3,170 1,521 1,375 2,571
Professional fees 15,875 10,954 10,571 13,605
Shareholders' reports -- printing and mailing expenses 33,835 18,918 17,452 26,501
Stock exchange listing fees 9,167 364 327 616
Investor relations expense 8,866 4,307 3,964 7,041
Other expenses 16,816 22,900 24,604 16,366
----------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 1,185,306 608,930 551,420 1,090,783
Custodian fee credit (1,450) (827) (445) (1,720)
Expense reimbursement -- (47,839) (73,300) (100,751)
----------------------------------------------------------------------------------------------------------------------
Net expenses 1,183,856 560,264 477,675 988,312
----------------------------------------------------------------------------------------------------------------------
Net investment income 4,267,900 2,204,210 2,000,123 3,346,745
----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 60,723 10,610 12,514 1,887
Change in net unrealized appreciation (depreciation)
of investments 4,700,543 1,900,772 1,510,001 3,514,247
----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 4,761,266 1,911,382 1,522,515 3,516,134
----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (119,197) (66,605) (59,765) (92,898)
From accumulated net realized gains (5,151) -- -- --
----------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Auction Rate Preferred
shareholders (124,348) (66,605) (59,765) (92,898)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 8,904,818 $ 4,048,987 $ 3,462,873 $ 6,769,981
======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 65
| Statement of
| Operations (continued)
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,212,230 $ 2,165,478 $ 2,882,384 $ 2,340,581
----------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 646,378 268,929 390,406 295,984
Auction fees 42,698 17,823 21,173 23,999
Dividend disbursing agent fees 10,000 7,479 15,863 10,000
Shareholders' servicing agent fees and expenses 5,198 591 600 3,427
Interest expense and amortization of offering costs 249,452 96,954 223,654 10,418
Custodian's fees and expenses 25,804 15,227 16,010 14,319
Trustees' fees and expenses 2,898 1,377 1,725 1,290
Professional fees 15,395 10,102 11,437 11,824
Shareholders' reports -- printing and mailing expenses 34,167 16,480 19,975 20,872
Stock exchange listing fees 9,167 277 384 326
Investor relations expense 8,282 3,475 4,792 3,993
Other expenses 17,508 22,156 22,008 18,359
----------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 1,066,947 460,870 728,027 414,811
Custodian fee credit (307) (319) (281) (675)
Expense reimbursement -- (34,986) (72,462) --
----------------------------------------------------------------------------------------------------------------------
Net expenses 1,066,640 425,565 655,284 414,136
----------------------------------------------------------------------------------------------------------------------
Net investment income 4,145,590 1,739,913 2,227,100 1,926,445
----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 209,192 60,102 (18,813) 12,118
Change in net unrealized appreciation (depreciation)
of investments 5,077,663 1,496,853 2,157,735 2,255,157
----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 5,286,855 1,556,955 2,138,922 2,267,275
----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (122,559) (45,739) (68,205) (67,634)
From accumulated net realized gains -- (13,657) -- --
----------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Auction Rate Preferred
shareholders (122,559) (59,396) (68,205) (67,634)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 9,309,886 $ 3,237,472 $ 4,297,817 $ 4,126,086
======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
66 Nuveen Investments
| Statement of
| Changes in Net Assets
CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK)
--------------------------- --------------------------- ----------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,267,900 $ 4,513,886 $ 2,204,210 $ 2,342,463 $ 2,000,123 $ 2,107,759
Net realized gain (loss) from:
Investments 60,723 (65,422) 10,610 (52,277) 12,514 (53,947)
Forward swaps -- -- -- -- -- --
Futures -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 4,700,543 (3,446,470) 1,900,772 (1,392,610) 1,510,001 (903,421)
Forward swaps -- -- -- -- -- --
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (119,197) (772,216) (66,605) (377,309) (59,765) (335,215)
From accumulated net realized gains (5,151) (147,930) -- (97,695) -- (99,314)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations 8,904,818 81,848 4,048,987 422,572 3,462,873 715,862
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,693,594) (3,221,068) (1,898,150) (1,722,367) (1,752,532) (1,538,392)
From accumulated net realized gains (21,997) (400,689) -- (273,291) -- (288,702)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (3,715,591) (3,621,757) (1,898,150) (1,995,658) (1,752,532) (1,827,094)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 15,348 -- 52,783 28,119 30,801 15,125
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital share
transactions 15,348 -- 52,783 28,119 30,801 15,125
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 5,204,575 (3,539,909) 2,203,620 (1,544,967) 1,741,142 (1,096,107)
Net assets applicable to Common shares
at the beginning of year 72,901,354 76,441,263 36,328,735 37,873,702 33,091,910 34,188,017
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $ 78,105,929 $ 72,901,354 $ 38,532,355 $ 36,328,735 $ 34,833,052 $ 33,091,910
====================================================================================================================================
Undistributed (Over-distribution of)net
investment income at the end of year $ 967,954 $ 474,468 $ 451,596 $ 196,527 $ 416,725 $ 211,796
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 67
| Statement of
| Changes in Net Assets (continued)
CONNECTICUT MASSACHUSETTS MASSACHUSETTS
DIVIDEND ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) DIVIDEND ADVANTAGE (NMB)
--------------------------- --------------------------- ----------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,346,745 $ 3,669,187 $ 4,145,590 $ 4,318,144 $ 1,739,913 $ 1,871,615
Net realized gain (loss) from:
Investments 1,887 (124,826) 209,192 136,221 60,102 29,163
Forward swaps -- -- -- 101,206 -- 62,818
Futures -- -- -- (44,426) -- (13,669)
Change in net unrealized appreciation
(depreciation) of:
Investments 3,514,247 (2,451,332) 5,077,663 (4,755,329) 1,496,853 (1,831,289)
Forward swaps -- -- -- (92,080) -- (57,153)
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (92,898) (720,819) (122,559) (717,206) (45,739) (334,450)
From accumulated net realized gains -- -- -- (80,090) (13,657) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations 6,769,981 372,210 9,309,886 (1,133,560) 3,237,472 (272,965)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,973,311) (2,604,243) (3,645,432) (3,084,501) (1,507,494) (1,359,879)
From accumulated net realized gains -- -- -- (197,208) (55,550) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (2,973,311) (2,604,243) (3,645,432) (3,281,709) (1,563,044) (1,359,879)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 17,921 -- 45,881 15,479 31,080 27,520
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital share
transactions 17,921 -- 45,881 15,479 31,080 27,520
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 3,814,591 (2,232,033) 5,710,335 (4,399,790) 1,705,508 (1,605,324)
Net assets applicable to Common shares
at the beginning of year 59,244,441 61,476,474 63,320,576 67,720,366 26,529,985 28,135,309
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $ 63,059,032 $ 59,244,441 $ 69,030,911 $ 63,320,576 $ 28,235,493 $ 26,529,985
====================================================================================================================================
Undistributed (Over-distribution
of) net investment income at the end
of year $ 516,876 $ 191,277 $ 914,982 $ 495,820 $ 342,155 $ 137,815
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
68 Nuveen Investments
INSURED MASSACHUSETTS MISSOURI
TAX-FREE ADVANTAGE (NGX) PREMIUM INCOME (NOM)
--------------------------- ----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
5/31/10 5/31/09 5/31/10 5/31/09
------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,227,100 $ 2,473,655 $ 1,926,445 $ 1,972,280
Net realized gain (loss) from:
Investments (18,813) (175,187) 12,118 (348,183)
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 2,157,735 (1,160,172) 2,255,157 (2,238,845)
Forward swaps -- -- -- --
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (68,205) (465,067) (67,634) (360,699)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations 4,297,817 673,229 4,126,086 (975,447)
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,982,428) (1,808,499) (1,571,225) (1,509,479)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (1,982,428) (1,808,499) (1,571,225) (1,509,479)
------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions 24,769 16,315 58,988 48,910
------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from capital share
transactions 24,769 16,315 58,988 48,910
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,340,158 (1,118,955) 2,613,849 (2,436,016)
Net assets applicable to Common shares at
the beginning of year 37,754,477 38,873,432 28,733,855 31,169,871
------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at
the end of year $ 40,094,635 $ 37,754,477 $ 31,347,704 $ 28,733,855
======================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of year $ 340,463 $ 129,654 $ 440,220 $ 152,639
======================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 69
| Statement of
| Cash Flows
Year Ended May 31, 2010
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON
SHARES FROM OPERATIONS $ 8,904,818 $ 4,048,987 $ 3,462,873 $ 6,769,981
Adjustments to reconcile the net increase (decrease) in net
assets applicable to Common shares from operations to net cash
provided by (used in) operating activities:
Purchases of investments (9,675,247) (6,678,087) (4,482,500) (11,612,984)
Proceeds from sales and maturities of investments 5,733,200 2,287,500 1,718,450 2,623,750
Amortization (Accretion) of premiums and discounts, net 247,577 129,667 101,075 208,740
(Increase) Decrease in receivable for interest (3,812) (14,364) (3,140) (98,816)
(Increase) Decrease in receivable for investments sold (215,000) (160,000) -- --
(Increase) Decrease in other assets (2,408) 6,424 (995) 2,468
Increase (Decrease) in payable for Auction Rate Preferred
share dividends (434) (1,429) (995) (2,859)
Increase (Decrease) in payable for interest 40,412 44,352 36,725 70,667
Increase (Decrease) in accrued management fees 3,455 5,064 3,627 9,427
Increase (Decrease) in accrued other liabilities 19,466 7,649 6,729 7,018
Net realized (gain) loss from investments (60,723) (10,610) (12,514) (1,887)
Change in net unrealized (appreciation) depreciation of
investments (4,700,543) (1,900,772) (1,510,001) (3,514,247)
Taxes paid on undistributed capital gains (1,361) (535) -- (10)
----------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 289,400 (2,236,154) (680,666) (5,538,752)
----------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance 138,105 10,549 288,379 36,404
Cash distributions paid to Common shareholders (3,672,118) (1,827,242) (1,706,177) (2,920,659)
Increase (Decrease) in payable for Auction Rate Preferred shares
noticed for redemption, at liquidation value (1,525,000) (750,000) (675,000) (1,750,000)
(Increase) Decrease in deferred offering costs (514,699) (547,818) (487,147) (704,903)
Increase (Decrease) in payable for offering costs 257,865 234,400 224,400 248,907
Increase (Decrease) in MuniFund Term Preferred shares, at
liquidation value 18,300,000 20,470,000 16,950,000 32,000,000
Increase (Decrease) in Auction Rate Preferred shares, at
liquidation value (17,725,000) (17,250,000) (15,450,000) (28,275,000)
----------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (4,740,847) 339,889 (855,545) (1,365,251)
----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (4,451,447) (1,896,265) (1,536,211) (6,904,003)
Cash at the beginning of year 4,451,447 1,896,265 1,536,211 6,904,003
----------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ -- $ -- $ -- $ --
==================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------------------------------
$ 15,348 $ 52,783 $ 30,801 $ 17,921
==================================================================================================================================
Cash paid for interest (excluding amortization of offering costs, where
applicable) was as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------------------------------
$ 198,306 $ 71,919 $ 62,959 $ 232,150
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
70 Nuveen Investments
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE
(NMT) (NMB) (NGX)
----------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS $ 9,309,886 $ 3,237,472 $ 4,297,817
Adjustments to reconcile the net increase (decrease) in net assets applicable to
Common shares from operations to net cash provided by (used in) operating
activities:
Purchases of investments (5,313,966) (4,983,784) (2,001,969)
Proceeds from sales and maturities of investments 3,351,027 4,503,675 620,000
Amortization (Accretion) of premiums and discounts, net 264,657 85,880 147,670
(Increase) Decrease in receivable for interest (25,782) (6,540) (17,267)
(Increase) Decrease in receivable for investments sold (15,000) -- (15,000)
(Increase) Decrease in other assets (2,190) 6,659 4,644
Increase (Decrease) in payable for Auction Rate Preferred share dividends (242) (1,132) (1,265)
Increase (Decrease) in payable for interest 44,630 31,904 48,749
Increase (Decrease) in accrued management fees 2,312 2,368 5,064
Increase (Decrease) in accrued other liabilities 13,414 7,281 7,768
Net realized (gain) loss from investments (209,192) (60,102) 18,813
Change in net unrealized (appreciation) depreciation of investments (5,077,663) (1,496,853) (2,157,735)
Taxes paid on undistributed capital gains (24) (242) --
----------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 2,341,867 1,326,586 957,289
----------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance -- -- --
Cash distributions paid to Common shareholders (3,577,699) (1,514,040) (1,940,160)
Increase (Decrease) in payable for Auction Rate Preferred shares noticed for
redemption, at liquidation value -- -- --
(Increase) Decrease in deferred offering costs (541,587) (448,113) (536,783)
Increase (Decrease) in payable for offering costs 264,275 219,316 211,575
Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value 20,210,000 14,725,000 22,075,000
Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (19,600,000) (14,250,000) (20,500,000)
----------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (3,245,011) (1,267,837) (690,368)
----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (903,144) 58,749 266,921
Cash at the beginning of year 1,153,796 190,588 424,349
----------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ 250,652 $ 249,337 $ 691,270
==================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions as follows:
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE
(NMT) (NMB) (NGX)
----------------------------------------------------------------------------------------------------------------------------------
$ 45,881 $ 31,080 $ 24,769
==================================================================================================================================
Cash paid for interest (excluding amortization of offering costs, where
applicable) was as follows:
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE
(NMT) (NMB) (NGX)
----------------------------------------------------------------------------------------------------------------------------------
$ 163,259 $ 47,288 $ 140,563
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 71
| Notes to
| Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds covered in this report and their corresponding Common share
stock exchange symbols are Nuveen Connecticut Premium Income Municipal Fund
(NTC), Nuveen Connecticut Dividend Advantage Municipal Fund (NFC), Nuveen
Connecticut Dividend Advantage Municipal Fund 2 (NGK), Nuveen Connecticut
Dividend Advantage Municipal Fund 3 (NGO), Nuveen Massachusetts Premium Income
Municipal Fund (NMT), Nuveen Massachusetts Dividend Advantage Municipal Fund
(NMB), Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX) and
Nuveen Missouri Premium Income Municipal Fund (NOM) (collectively, the "Funds").
Common shares of Connecticut Premium Income (NTC) and Massachusetts Premium
Income (NMT) are traded on the New York Stock Exchange ("NYSE") while Common
shares of Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2
(NGK), Connecticut Dividend Advantage 3 (NGO), Massachusetts Dividend Advantage
(NMB), Insured Massachusetts Tax-Free Advantage (NGX) and Missouri Premium
Income (NOM) are traded on the NYSE Amex. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, management investment
companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes, and in the case of Insured Massachusetts Tax-Free
Advantage (NGX) the alternative minimum tax applicable to individuals, by
investing primarily in a portfolio of municipal obligations issued by state and
local government authorities within a single state or certain U.S. territories.
In June 2009, the Financial Accounting Standards Board ("FASB") established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with U.S. generally accepted
accounting principles ("GAAP"). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles ("U.S. GAAP").
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. Prices of forward
swap contracts are also provided by an independent pricing service approved by
each Fund's Board of Trustees. Futures contracts are valued using the closing
settlement price or, in the absence of such a price, at the mean of the bid and
asked prices. When market price quotes are not readily available (which is
usually the case for municipal securities), the pricing service or, in the
absence of a pricing service for a particular investment or derivative
instrument, the Board of Trustees of the Fund, or its designee, may establish
fair value using a wide variety of market data including yields or prices of
investments of comparable quality, type of issue, coupon, maturity and rating,
market quotes or indications of value from security dealers, evaluations of
anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At May 31, 2010, Missouri
Premium Income (NOM) had outstanding when-issued/delayed delivery purchase
commitments of $1,987,280. There were no such outstanding purchase commitments
in any of the other 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.
72 Nuveen Investments
INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions that will enable interest from municipal
securities, which is exempt from regular federal and designated state income
taxes, and in the case of Insured Massachusetts Tax-Free Advantage (NGX) the
alternative minimum tax applicable to individuals, to retain such tax-exempt
status when distributed to shareholders of the Funds. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S. GAAP.
AUCTION RATE PREFERRED SHARES
The following Funds have issued and outstanding Auction Rate Preferred Shares
("ARPS"), $25,000 stated value per share, which approximates market value, as a
means of effecting financial leverage. Each Fund's ARPS are issued in one
Series. The dividend rate paid by the Funds on each Series is determined every
seven days, pursuant to a dutch auction process overseen by the auction agent,
and is payable at the end of each rate period. As of May 31, 2010, the number of
ARPS outstanding for each Fund is as follows:
CONNECTICUT MASSACHUSETTS MISSOURI
PREMIUM PREMIUM PREMIUM
INCOME INCOME INCOME
(NTC) (NMT) (NOM)
----------------------------------------------------------------------------------------------------------------------------------
Number of shares:
Series TH 629 576 640
==================================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the ARPS issued by the Funds than there were offers to
buy. This meant that these auctions "failed to clear," and that many ARPS
shareholders who wanted to sell their shares in these auctions were unable to do
so. ARPS shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions as calculated in accordance with
the pre-established terms of the ARPS. As of May 31, 2010, the aggregate amount
of outstanding ARPS redeemed by each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed, at liquidation value $ 22,575,000 $ 19,500,000 $ 17,500,000 $ 32,000,000
==================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed, at liquidation value $ 19,600,000 $ 15,000,000 $ 20,500,000 $ --
==================================================================================================================================
Nuveen Investments 73
| Notes to
| Financial Statements (continued)
MUNIFUND TERM PREFERRED SHARES
The following funds have issued and outstanding MuniFund Term Preferred ("MTP")
Shares, with a $10 stated value per share. Proceeds from the issuance of MTP
Shares, net of offering expenses, were used to redeem all, or a portion of, each
Fund's outstanding ARPS. Each Fund's MTP Shares are issued in one Series.
Dividends, which are recognized as interest expense for financial reporting
purposes, are paid monthly at a fixed annual rate subject to adjustments in
certain circumstances. The MTP Shares trade on the NYSE. As of May 31, 2010, the
number of MTP Shares outstanding, annual interest rate and NYSE "ticker" symbol
for each Fund are as follows:
CONNECTICUT PREMIUM INCOME (NTC) CONNECTICUT DIVIDEND ADVANTAGE (NFC)
------------------------------------- --------------------------------------
ANNUAL ANNUAL
SHARES INTEREST NYSE SHARES INTEREST NYSE
OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER
------------------------------------------------------------------------------------------------------------------------------------
Series 2015 1,830,000 2.65% NTC Pr C 2,047,000 2.60% NFC Pr C
====================================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
------------------------------------- --------------------------------------
ANNUAL ANNUAL
SHARES INTEREST NYSE SHARES INTEREST NYSE
OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER
------------------------------------------------------------------------------------------------------------------------------------
Series 2015 1,695,000 2.60% NGK Pr C 3,200,000 2.65% NGO Pr C
====================================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT) MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
------------------------------------- --------------------------------------
ANNUAL ANNUAL
SHARES INTEREST NYSE SHARES INTEREST NYSE
OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER
------------------------------------------------------------------------------------------------------------------------------------
Series 2015 2,021,000 2.65% NMT Pr C 1,472,500 2.60% NMB Pr C
====================================================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
-------------------------------------------------
ANNUAL
SHARES INTEREST NYSE
OUTSTANDING RATE TICKER
------------------------------------------------------------------------------------------------------------------------------------
Series 2015 2,207,500 2.65% NGX Pr C
====================================================================================================================================
Each Fund is obligated to redeem its MTP Shares by the date as specified in its
offering document ("Term Redemption Date"), unless earlier redeemed or
repurchased by the Fund. MTP Shares are subject to optional and mandatory
redemption in certain circumstances. MTP Shares will be subject to redemption at
the option of each Fund ("Optional Redemption Date"), subject to a payment of
premium for one year following the Optional Redemption Date ("Premium Expiration
Date"), and at par thereafter. MTP Shares also will be subject to redemption, at
the option of each Fund, at par in the event of certain changes in the credit
rating of the MTP Shares. Each Fund may be obligated to redeem certain of the
MTP Shares if the Fund fails to maintain certain asset coverage and leverage
ratio requirements and such failures are not cured by the applicable cure date.
The redemption price per share is equal to the sum of the liquidation value per
share plus any accumulated but unpaid dividends. The Term Redemption Date,
Optional Redemption Date and Premium Expiration Date for each Fund's MTP Shares
are as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
SERIES 2015 SERIES 2015 SERIES 2015 SERIES 2015
------------------------------------------------------------------------------------------------------------------------------------
Term Redemption Date February 1, 2015 April 1, 2015 April 1, 2015 March 1, 2015
Optional Redemption Date February 1, 2011 April 1, 2011 April 1, 2011 March 1, 2011
Premium Expiration Date January 31, 2012 March 31, 2012 March 31, 2012 February 29, 2012
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE
(NMT) (NMB) (NGX)
SERIES 2015 SERIES 2015 SERIES 2015
------------------------------------------------------------------------------------------------------------------------------------
Term Redemption Date February 1, 2015 April 1, 2015 March 1, 2015
Optional Redemption Date February 1, 2011 April 1, 2011 March 1, 2011
Premium Expiration Date January 31, 2012 March 31, 2012 February 29, 2012
====================================================================================================================================
74 Nuveen Investments
The average liquidation value of MTP Shares outstanding for each Fund during the
fiscal year ended May 31, 2010, was as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC)* (NFC)** (NGK)** (NGO)***
--------------------------------------------------------------------------------------------------------------------------------
Average liquidation value of MTP Shares outstanding $ 18,300,000 $ 19,944,754 $ 16,753,279 $ 31,672,727
================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE
(NMT)**** (NMB)***** (NGX)***
--------------------------------------------------------------------------------------------------------------------------------
Average liquidation value of MTP Shares outstanding $ 20,210,000 $ 14,725,000 $ 21,965,909
================================================================================================================================
* For the period January 19, 2010 (first issuance date of shares) through
May 31, 2010.
** For the period March 31, 2010 (first issuance date of shares) through May
31, 2010.
*** For the period February 9, 2010 (first issuance date of shares) through
May 31, 2010.
**** For the period January 21, 2010 (first issuance date of shares) through
May 31, 2010.
***** For the period March 23, 2010 (first issuance date of shares) through May
31, 2010.
For financial reporting purposes only, the liquidation value of MTP Shares is
recorded as a liability on the Statement of Assets and Liabilities. Unpaid
dividends on MTP Shares are recognized as "Interest payable" on the Statement of
Assets and Liabilities. Dividends paid on MTP Shares are recognized as a
component of "Interest expense and amortization of offering costs" on the
Statement of Operations.
Net amounts earned by Nuveen Investments, Inc. ("Nuveen") as underwriter of each
Fund's MTP Share offering were recorded as reductions of offering costs
recognized by the Funds. For the fiscal year ended May 31, 2010 the net amounts
earned by Nuveen for each Fund were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
--------------------------------------------------------------------------------------------------------------------------------
Net amounts earned by Nuveen $ 662 $ 1,974 $ -- $ --
================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE
(NMT) (NMB) (NGX)
--------------------------------------------------------------------------------------------------------------------------------
Net amounts earned by Nuveen $ 1,195 $ -- $ 1,174
================================================================================================================================
INSURANCE
Under normal circumstances, and during the period from June 1, 2009 through May
2, 2010, the Insured Massachusetts Tax-Free Advantage (NGX) invested at least
80% of its net assets, (as defined in Footnote 7 - Management Fees and Other
Transactions with Affiliates) in municipal securities that were covered by
insurance guaranteeing the timely payment of principal and interest. For
purposes of this 80%, insurers must have a claims paying ability rated at least
"A" at the time of purchase by at least one independent rating agency. In
addition, the Fund invested at least 80% of its net assets in municipal
securities that were rated at least "AA" at the time of purchase (based on the
higher of the rating of the insurer, if any, or the underlying security) by at
least one independent rating agency, or are unrated but judged to be of similar
credit quality by Nuveen Asset Management (the "Adviser"), a wholly-owned
subsidiary of Nuveen, or are backed by an escrow or trust account containing
sufficient U.S. Government or U.S. Government agency securities or U.S.
Treasury-issued State and Local Government Series securities to ensure timely
payment of principal and interest. Inverse floating rate securities whose
underlying bonds are covered by insurance are included for purposes of the 80%.
Each Fund may also invest up to 20% of its net assets in municipal securities
rated below "AA' but at least "BBB" (based on the higher rating of the insurer,
if any, or the underlying bond) or are unrated but judged to be of comparable
quality by the Adviser.
On May 3, 2010, the Funds' Board of Trustees approved changes to Insured
Massachusetts Tax-Free Advantage's (NGX) insurance investment policies in
response to the continuing challenges faced by municipal bond insurers. The
changes to Insured Massachusetts Tax-Free Advantage (NGX)'s investment policies
are intended to increase the Fund's investment flexibility in pursuing its
investment objective, while retaining the insured nature of its portfolio.
The changes, which were effective immediately, provide that under normal
circumstances, Insured Massachusetts Tax-Free Advantage (NGX) invest at least
80% of its net assets in municipal securities that are covered by insurance
guaranteeing the timely payment of principal and interest. In addition, the
municipal securities in which Insured Massachusetts Tax-Free Advantage (NGX)
invests will be investment grade at the time of purchase (including (i) bonds
insured by investment grade insurers or rated investment grade; (ii) unrated
bonds that are judged to be investment grade by the Adviser; and (iii) escrowed
bonds). Ratings below BBB by one or more national rating agencies are considered
to be below investment grade.
Nuveen Investments 75
| Notes to
| Financial Statements (continued)
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Fund's Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Fund
ultimately disposes of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Fund, and is reflected as an expense over the term of the policy,
when applicable. Accordingly, neither the prices used in determining the market
value of the underlying municipal securities nor the Common share net asset
value of the Fund include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Fund
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
INVERSE FLOATING RATE SECURITIES
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as a component of "Interest expense and
amortization of offering costs" on the Statement of Operations.
During the fiscal year ended May 31, 2010, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At May 31, 2010, the Funds were not invested in externally-deposited Recourse
Trusts.
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ --
===================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ --
===================================================================================================================
76 Nuveen Investments
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended May 31, 2010, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $ 7,965,000 $ 3,820,000 $ 3,460,000 $ 5,780,000
Average annual interest rate and fees 0.79% 0.78% 0.78% 0.76%
===================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-------------------------------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $ 2,450,000 $ 1,050,000 $ 1,500,000 $ 2,225,000
Average annual interest rate and fees 0.65% 0.65% 0.65% 0.47%
===================================================================================================================
FORWARD SWAP CONTRACTS
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Fund a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the notional amount of
the swap contract and the termination date of the swap (which is akin to a
bond's maturity). The value of the Fund's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date increases or decreases.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
The Funds may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward swap is terminated,
it ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." 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. The Funds did not invest in forward interest rate swap transactions
during the fiscal year ended May 31, 2010.
FUTURES CONTRACTS
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in
attempt to manage such risk. Upon entering into a futures contract, a Fund is
required to deposit with the broker an amount of cash or liquid securities equal
to a specified percentage of the contract amount. This is known as the "initial
margin." Cash held by the broker to cover initial margin requirements on open
futures contracts, if any, is recognized as "Deposits with brokers for open
futures contracts" on the Statement of Assets and Liabilities. Subsequent
payments ("variation margin") are made or received by a Fund each day, depending
on the daily fluctuation of the value of the contract. Variation margin is
recognized as a receivable or payable for "Variation margin on futures
contracts" on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the
contract are recorded as an unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the changes in market value of the contract and is
recognized as "Change in net unrealized appreciation (depreciation) of futures
contracts" on the Statement of Operations. When the contract is closed or
expired, a Fund records a realized gain or loss equal to the difference between
the value of the contract on the closing date and value of the contract when
originally entered into and is recognized as "Net realized gain (loss) from
futures contracts" on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices. The Funds did not invest in futures
contracts during the fiscal year ended May 31, 2010.
Nuveen Investments 77
| Notes to
| Financial Statements (continued)
MARKET AND COUNTERPARTY CREDIT RISK
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions, when applicable. The extent of each Fund's exposure to
counterparty credit risk in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities. Futures
contracts, when applicable, expose a Fund to minimal counterparty credit risk as
they are exchange traded and the exchange's clearinghouse, which is counterparty
to all exchange traded futures, guarantees the futures contracts against
default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the
Funds as collateral with a value approximately equal to the amount of the
unrealized loss above a pre-determined threshold. Collateral pledges are
monitored and subsequently adjusted if and when the valuations fluctuate, either
up or down, by at least the predetermined threshold amount.
ZERO COUPON SECURITIES
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. The market prices of zero coupon securities generally are more
volatile than the market prices of securities that pay interest periodically.
OFFERING COSTS
Costs incurred by the Funds in connection with their offerings of MTP Shares
were recorded as a deferred charge, which will be amortized over the 5-year life
of the shares. Each Fund's amortized deferred charges are recognized as a
component of "Interest expense and amortization of offering costs" on the
Statement of Operations. Each Fund's offering costs incurred were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
---------------------------------------------------------------------------------------------------------
MTP Shares offering costs $ 553,838 $ 565,076 $ 504,250 $ 750,000
=========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE
(NMT) (NMB) (NGX)
---------------------------------------------------------------------------------------------------------
MTP Shares offering costs $ 581,955 $ 465,875 $ 569,951
=========================================================================================================
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
INDEMNIFICATIONS
Under the Funds' organizational documents, their officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets applicable to Common shares
from operations during the reporting period. Actual results may differ from
those estimates.
78 Nuveen Investments
2. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments, various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of May 31, 2010:
CONNECTICUT PREMIUM INCOME (NTC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $118,239,107 $ -- $118,239,107
==================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 61,714,970 $ -- $ 61,714,970
==================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 54,742,155 $ -- $ 54,742,155
==================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 99,333,907 $ -- $ 99,333,907
==================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $103,785,340 $344,410 $104,129,750
==================================================================================================
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 42,321,227 $688,820 $ 43,010,047
==================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 61,858,615 $ -- $ 61,858,615
==================================================================================================
MISSOURI PREMIUM INCOME (NOM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 49,177,547 $ -- $ 49,177,547
==================================================================================================
The following is a reconciliation of the following Fund's Level 3 investments
held at the beginning and end of the measurement period:
MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NMT) (NMB)
LEVEL3 LEVEL3
INVESTMENTS INVESTMENTS
---------------------------------------------------------------------------------------------
Balance at the beginning of year $ 457,505 $ 915,010
Gains (losses):
Net realized gains (losses) -- --
Net change in unrealized appreciation (depreciation) (113,095) (226,190)
Net purchases at cost (sales at proceeds) -- --
Net discounts (premiums) -- --
Net transfers in to (out of) at end of period fair value -- --
---------------------------------------------------------------------------------------------
Balance at the end of year $ 344,410 $ 688,820
=============================================================================================
Nuveen Investments 79
| Notes to
| Financial Statements (continued)
"Change in net unrealized appreciation (depreciation) of investments" on the
Statement of Operations includes net unrealized appreciation (depreciation)
related to securities classified as Level 3 at year end as follows:
MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NMT) (NMB)
--------------------------------------------------------------------------------------------------------------------
Level 3 net unrealized appreciation (depreciation) $ (113,095) $ (226,190)
====================================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Funds record derivative instruments at fair value, with changes in fair
value recognized on the Statement of Operations, when applicable. Even though
the Funds' investments in derivatives may represent economic hedges, they are
not considered to be hedge transactions for financial reporting purposes. The
Funds did not invest in derivative instruments during the fiscal year ended May
31, 2010.
4. FUND SHARES
COMMON SHARES
Since the inception of the Funds' repurchase program, the Funds have not
repurchased any of their outstanding Common shares.
Transactions in Common shares were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK)
-------------------------- ------------------------ ---------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09
----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 1,053 -- 3,615 1,966 2,074 1,051
==================================================================================================================================
CONNECTICUT MASSACHUSETTS MASSACHUSETTS
DIVIDEND ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) DIVIDEND ADVANTAGE (NMB)
-------------------------- ------------------------ ---------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09
----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 1,261 -- 3,206 1,224 2,198 2,066
==================================================================================================================================
INSURED MASSACHUSETTS MISSOURI
TAX-FREE ADVANTAGE (NGX) PREMIUM INCOME (NOM)
------------------------ ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
5/31/10 5/31/09 5/31/10 5/31/09
----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 1,696 1,233 4,352 3,842
==================================================================================================================================
PREFERRED SHARES
Transactions in ARPS were as follows:
CONNECTICUT PREMIUM INCOME (NTC) CONNECTICUT DIVIDEND ADVANTAGE (NFC)
------------------------------------------ --------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/10 5/31/09 5/31/10 5/31/09
-----------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for
redemption:
Series T -- $ -- -- $ -- 609 $17,250,000 90 $2,250,000
Series TH 709 17,725,000 194 4,850,000 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 709 $17,725,000 194 $4,850,000 609 $17,250,000 90 $2,250,000
====================================================================================================================================
80 Nuveen Investments
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
------------------------------------------ --------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/10 5/31/09 5/31/10 5/31/09
-----------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for
redemption:
Series W 618 $15,450,000 82 $2,050,000 -- $ -- -- $ --
Series F -- -- -- -- 1,131 28,275,000 149 3,725,000
------------------------------------------------------------------------------------------------------------------------------------
Total 618 $15,450,000 82 $2,050,000 1,131 $28,275,000 149 $3,725,000
====================================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT) MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
------------------------------------------ --------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/10 5/31/09 5/31/10 5/31/09
-----------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for
redemption:
Series T -- $ -- -- $ -- 570 $14,250,000 30 $750,000
Series TH 784 19,600,000 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 784 $19,600,000 -- $ -- 570 $14,250,000 30 $750,000
====================================================================================================================================
INSURED MASSACHUSETTS TAX-FREE (NGX)
--------------------------------------------
YEAR ENDED YEAR ENDED
5/31/10 5/31/09
--------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for redemption:
Series W 820 $ 20,500,000 -- $ --
====================================================================================================================================
During the fiscal years ended May 31, 2010 and May 31, 2009, Missouri Premium
Income (NOM) did not have any transactions in ARPS.
Transactions in MTP Shares were as follows:
CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC)
----------------------------------------- ------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/10 5/31/09 5/31/10 5/31/09
--------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
Series 2015 1,830,000 $18,300,000 -- -- 2,047,000 $20,470,000 -- --
=================================================================================================================================
CONNECTICUT CONNECTICUT
DIVIDEND ADVANTAGE 2 (NGK) DIVIDEND ADVANTAGE 3 (NGO)
----------------------------------------- ------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/10 5/31/09 5/31/10 5/31/09
--------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
Series 2015 1,695,000 $16,950,000 -- -- 3,200,000 $32,000,000 -- --
=================================================================================================================================
MASSACHUSETTS MASSACHUSETTS
PREMIUM INCOME (NMT) DIVIDEND ADVANTAGE (NMB)
----------------------------------------- ------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/10 5/31/09 5/31/10 5/31/09
--------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
Series 2015 2,021,000 $20,210,000 -- -- 1,472,500 $14,725,000 -- --
=================================================================================================================================
Nuveen Investments 81
| Notes to
| Financial Statements (continued)
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE (NGX)
------------------------------------------
YEAR ENDED YEAR ENDED
5/31/10 5/31/09
------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
Series 2015 2,207,500 $22,075,000 -- --
====================================================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the fiscal year ended May 31, 2010, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Purchases $9,675,247 $6,678,087 $4,482,500 $11,612,984
Sales and maturities 5,733,200 2,287,500 1,718,450 2,623,750
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Purchases $5,313,966 $4,983,784 $2,001,969 $ 8,052,334
Sales and maturities 3,351,027 4,503,675 620,000 2,920,000
====================================================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts as detailed below. Temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At May 31, 2010, the cost and unrealized appreciation (depreciation) of
investments as determined on a federal income tax basis, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $107,707,432 $56,455,855 $49,665,853 $92,176,374
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 3,758,562 $ 1,969,557 $ 2,116,003 $ 2,845,364
Depreciation (1,189,947) (530,759) (499,766) (1,466,538)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 2,568,615 $ 1,438,798 $ 1,616,237 $ 1,378,826
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $99,869,135 $41,899,354 $58,304,176 $46,718,530
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 4,143,755 $ 1,228,860 $ 2,506,986 $ 1,338,171
Depreciation (2,333,115) (1,168,156) (452,532) (1,103,692)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 1,810,640 $ 60,704 $ 2,054,454 $ 234,479
====================================================================================================================================
82 Nuveen Investments
Permanent differences, primarily due to federal taxes paid, taxable market
discount and distribution character reclassifications, resulted in
reclassifications among the Funds' components of net assets at May 31, 2010, the
Funds' tax year end, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Paid-in surplus $(39,747) $(16,159) $(17,103) $(45,073)
Undistributed (Over-distribution of) net investment income 38,377 15,614 17,103 45,063
Accumulated net realized gain (loss) 1,370 545 -- 10
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Paid-in surplus $(41,587) $(18,004) $(34,342) $ --
Undistributed (Over-distribution of) net investment income 41,563 17,660 34,342 (5)
Accumulated net realized gain (loss) 24 344 -- 5
====================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at May 31, 2010, the Funds' tax year end, were
as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $1,288,968 $617,741 $559,855 $799,489
Undistributed net ordinary income ** 2,399 6,433 -- --
Undistributed net long-term capital gains 50,047 9,165 1,210 --
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $1,175,615 $469,338 $559,768 $553,717
Undistributed net ordinary income ** 1,005 16,872 1,015 --
Undistributed net long-term capital gains 188,326 49,847 -- --
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared May 3, 2010, and paid on June 1, 2010.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended May
31, 2010 and May 31, 2009, was designated for purposes of the dividends paid
deduction as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2010 (NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $3,919,054 $1,989,927 $1,832,795 $3,217,850
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains**** 27,148 -- -- --
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
2010 (NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $3,896,180 $1,576,968 $2,164,823 $1,628,139
Distributions from net ordinary income ** -- 69,207 -- --
Distributions from net long-term capital gains**** -- -- -- --
====================================================================================================================================
Nuveen Investments 83
| Notes to
| Financial Statements (continued)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2009 (NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $3,972,803 $2,099,897 $1,866,508 $3,322,638
Distributions from net ordinary income ** 487,842 223,136 275,669 --
Distributions from net long-term capital gains 60,777 147,900 112,806 --
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
2009 (NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $3,759,696 $1,690,469 $2,271,085 $1,871,464
Distributions from net ordinary income ** 123,018 -- -- --
Distributions from net long-term capital gains 154,203 -- -- --
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
May 31, 2010, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852 (b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended May 31, 2010.
At May 31, 2010, the Funds' tax 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:
INSURED
CONNECTICUT MASSACHUSETTS MISSOURI
DIVIDEND TAX-FREE PREMIUM
ADVANTAGE 3 ADVANTAGE INCOME
(NGO) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Expiration:
May 31, 2013 $ 35,642 $ 18,655 $ --
May 31, 2014 111,331 427,135 --
May 31, 2015 211,213 -- --
May 31, 2017 43,691 215,629 260,982
May 31, 2018 13,130 24,486 91,539
------------------------------------------------------------------------------------------------------------------------------------
Total $415,007 $685,905 $352,521
====================================================================================================================================
During the tax year ended May 31, 2010, Connecticut Dividend Advantage (NFC) and
Connecticut Dividend Advantage 2 (NGK) utilized $1,980 and $443, respectively,
of their capital loss carryforwards.
The following Fund elected to defer net realized losses from investments
incurred from November 1, 2009 through May 31, 2010, the Fund's tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
INSURED
MASSACHUSETTS
TAX-FREE
ADVANTAGE
(NGX)
------------------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $18,813
====================================================================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a fund-level fee,
based only on the amount of assets within each individual Fund, and a
complex-level fee, based on the aggregate amount of all fund assets managed by
the Adviser. This pricing structure enables each Fund's shareholders to benefit
from growth in the assets within their respective Fund as well as from growth in
the amount of complex-wide assets managed by the Adviser.
84 Nuveen Investments
The annual fund-level fee for each Fund, payable monthly, is calculated
according to the following schedule:
CONNECTICUT PREMIUM INCOME (NTC)
MASSACHUSETTS PREMIUM INCOME (NMT)
MISSOURI PREMIUM INCOME (NOM)
AVERAGE DAILY NET ASSETS* 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
===================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
AVERAGE DAILY NET ASSETS* 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
===================================================================================
The annual complex-level fee for each Fund, payable monthly, is calculated
according to the following schedule:
COMPLEX-LEVEL MANAGED ASSET BREAKPOINT LEVEL* EFFECTIVE RATE AT BREAKPOINT LEVEL
-----------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
===================================================================================
* The complex-level fee is calculated based upon the aggregate daily managed
assets of all Nuveen funds, with such daily managed assets defined
separately for each fund in its management agreement, but excluding assets
attributable to investments in other Nuveen funds. For the complex-level
and fund-level fees, daily net assets and managed assets include
closed-end fund assets managed by the Adviser that are attributable to
financial leverage. For these purposes, financial leverage includes the
funds' use of preferred stock and borrowings and certain investments in
the residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of
assets held by a TOB trust that has been effectively financed by the
trust's issuance of floating rate securities, subject to an agreement by
the Adviser to limit the amount of such assets for determining managed
assets in certain circumstances. As of May 31, 2010, the complex-level fee
rate was .1855%.
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 trustees who are affiliated with the
Adviser or to its officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent trustees that enables
trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
Nuveen Investments 85
| Notes to
| Financial Statements (continued)
For the first ten years of Connecticut Dividend Advantage's (NFC) and
Massachusetts Dividend Advantage's (NMB) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets, for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 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 Connecticut Dividend Advantage (NFC) and
Massachusetts Dividend Advantage (NMB) for any portion of their fees and
expenses beyond January 31, 2011.
For the first ten years of Connecticut Dividend Advantage 2's (NGK) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets, 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 Connecticut Dividend Advantage 2 (NGK)
for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Connecticut Dividend Advantage 3's (NGO)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets, for fees and expenses in the amounts and for the time
periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 3 (NGO)
for any portion of its fees and expenses beyond September 30, 2010.
For the first eight years of Insured Massachusetts Tax-Free Advantage's (NGX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets, for fees and expenses in the amounts and for the time
periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Massachusetts Tax-Free Advantage
(NGX) for any portion of its fees and expenses beyond November 30, 2010.
86 Nuveen Investments
8. NEW ACCOUNTING STANDARDS
FAIR VALUE MEASUREMENTS
On January 21, 2010, FASB issued changes to the authoritative guidance under
U.S. GAAP for fair value measurements. The objective of this guidance is to
provide guidance on how investment assets and liabilities are to be valued and
disclosed. Specifically, the amendment requires reporting entities to disclose
i) the input and valuation techniques used to measure fair value for both
recurring and nonrecurring fair value measurements, for both Level 2 and Level 3
positions, ii) transfers between all levels (including Level 1 and Level 2) on a
gross basis (i.e., transfers out must be disclosed separately from transfers in)
as well as the reason(s) for the transfer and iii) purchases, sales, issuances
and settlements in the Level 3 rollforward must be shown on a gross basis rather
than as one net number. The effective date of the amendment is for interim and
annual periods beginning after December 15, 2009, however, the requirement to
provide the Level 3 activity for purchases, sales, issuances and settlements on
a gross basis will be effective for interim and annual periods beginning after
December 15, 2010. At this time, management is evaluating the implications of
this guidance and the impact it will have to the financial statement amounts and
footnote disclosures, if any.
Nuveen Investments 87
| Financial
| Highlights
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------------------------- ----------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL NET
BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING
COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET
VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE
====================================================================================================================================
CONNECTICUT PREMIUM INCOME (NTC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $13.59 $.80 $ .88 $(.02) $ --* $1.66 $(.69) $ --* $(.69) $14.56 $13.94
2009 14.25 .84 (.66) (.14) (.03) .01 (.60) (.07) (.67) 13.59 13.35
2008 14.39 .83 (.09) (.22) (.01) .51 (.62) (.03) (.65) 14.25 14.08
2007 14.42 .83 .07 (.20) (.01) .69 (.65) (.07) (.72) 14.39 14.91
2006 15.26 .84 (.54) (.14) (.03) .13 (.75) (.22) (.97) 14.42 13.95
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 14.08 .85 .75 (.03) -- 1.57 (.74) -- (.74) 14.91 15.29
2009 14.69 .91 (.55) (.15) (.04) .17 (.67) (.11) (.78) 14.08 13.75
2008 14.76 .91 .01 (.24) (.02) .66 (.67) (.06) (.73) 14.69 14.93
2007 14.75 .92 .04 (.22) -- .74 (.73) -- (.73) 14.76 16.37
2006 15.39 .93 (.55) (.17) -- .21 (.85) -- (.85) 14.75 16.26
====================================================================================================================================
AUCTION RATE PREFERRED
SHARES AND MUNIFUND
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES TERM PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD AT END OF PERIOD
----------------------------------- ------------------------------------------------------------ -----------------------
AGGREGATE AGGREGATE ENDING AVERAGE
AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE ASSET COVERAGE PER $1
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE LIQUIDATION PREFERENCE
====================================================================================================================================
CONNECTICUT PREMIUM INCOME (NTC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $15,725 $25,000 $82,389 $18,300 $10.00 $10.00 $10.02** $32.96 $3.30
2009 34,975 25,000 77,110 -- -- -- -- -- --
2008 38,300 25,000 74,896 -- -- -- -- -- --
2007 38,300 25,000 75,360 -- -- -- -- -- --
2006 38,300 25,000 75,443 -- -- -- -- -- --
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 -- -- -- 20,470 10.00 9.98 9.95*** 28.82 --
2009 18,000 25,000 75,457 -- -- -- -- -- --
2008 19,500 25,000 73,556 -- -- -- -- -- --
2007 19,500 25,000 73,749 -- -- -- -- -- --
2006 19,500 25,000 73,596 -- -- -- -- -- --
====================================================================================================================================
88 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT(c)
------------------- -------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME
=======================================================================================================
CONNECTICUT PREMIUM INCOME (NTC)
-------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 9.76% 12.49% $78,106 1.57% 1.25% 5.64%
2009 .32 .45 72,901 1.43 1.32 6.40
2008 (1.08) 3.60 76,441 1.30 1.27 5.82
2007 12.33 4.79 77,151 1.24 1.24 5.67
2006 (6.00) .88 77,278 1.25 1.25 5.66
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
-------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 16.92 11.34 38,532 1.62 1.31 5.73
2009 (2.10) 1.50 36,329 1.47 1.36 6.45
2008 (4.10) 4.62 37,874 1.33 1.31 5.90
2007 5.46 5.05 38,024 1.29 1.29 5.78
2006 8.79 1.38 37,905 1.29 1.29 5.70
=======================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT(c)(d)
----------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST(e) INTEREST INCOME RATE
===========================================================================
CONNECTICUT PREMIUM INCOME (NTC)
---------------------------------------------------------------------------
Year Ended 5/31:
2010 N/A% N/A% N/A% 5%
2009 N/A N/A N/A 0
2008 N/A N/A N/A 22
2007 N/A N/A N/A 8
2006 N/A N/A N/A 16
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
---------------------------------------------------------------------------
Year Ended 5/31:
2010 1.49 1.18 5.86 4
2009 1.26 1.15 6.66 0
2008 1.05 1.03 6.18 20
2007 .94 .94 6.14 9
2006 .86 .86 6.12 14
===========================================================================
(a) The amounts shown are based on Common share equivalents.
(b) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
(c) Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares and/or MuniFund Term Preferred shares, where applicable.
(d) After expense reimbursement from Adviser, where applicable. Ratios do not
reflect the effect of custodian fee credits earned on the Fund's net cash
on deposit with the custodian bank, where applicable.
(e) The expense ratios reflect, among other things, payments to MuniFund Term
Preferred shareholders and/or the interest expense deemed to have been
paid by the Fund on the floating rate certificates issued by the special
purpose trusts for the self-deposited inverse floaters held by the Fund,
where applicable, as described in Footnote 1 - MuniFund Term Preferred
Shares and Inverse Floating Rate Securities, respectively.
* Rounds to less than $.01 per share.
** For the period January 19, 2010 (first issuance date of shares) through
May 31, 2010.
*** For the period March 31, 2010 (first issuance date of shares) through May
31, 2010.
N/A Fund does not have a contractual reimbursement with the Adviser.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 89
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------------------------- ---------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL NET
BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING
COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET
VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE
====================================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $14.28 $.86 $ .67 $(.03) $ -- $1.50 $(.76) $ -- $(.76) $15.02 $16.20
2009 14.76 .91 (.43) (.14) (.04) .30 (.66) (.12) (.78) 14.28 14.30
2008 14.85 .91 (.01) (.23) (.02) .65 (.67) (.07) (.74) 14.76 15.00
2007 14.86 .91 .08 (.22) (.01) .76 (.73) (.04) (.77) 14.85 16.38
2006 15.64 .91 (.60) (.17) (.01) .13 (.83) (.08) (.91) 14.86 16.60
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 13.57 .77 .80 (.02) -- 1.55 (.68) -- (.68) 14.44 14.06
2009 14.08 .84 (.58) (.17) -- .09 (.60) -- (.60) 13.57 13.04
2008 14.30 .87 (.23) (.25) -- .39 (.61) -- (.61) 14.08 13.63
2007 14.18 .86 .13 (.23) -- .76 (.64) -- (.64) 14.30 14.70
2006 14.78 .84 (.54) (.18) -- .12 (.72) -- (.72) 14.18 14.09
====================================================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
------------------------------------- ---------------------------------------------------------------
AGGREGATE AGGREGATE ENDING AVERAGE
AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE
============================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ -- $ -- $ -- $16,950 $10.00 $ 9.97 $ 9.96* $30.55
2009 16,125 25,000 76,305 -- -- -- -- --
2008 17,500 25,000 73,840 -- -- -- -- --
2007 17,500 25,000 74,094 -- -- -- -- --
2006 17,500 25,000 74,074 -- -- -- -- --
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 -- -- -- 32,000 10.00 10.00 9.99** 29.71
2009 30,025 25,000 74,329 -- -- -- -- --
2008 32,000 25,000 73,028 -- -- -- -- --
2007 32,000 25,000 73,691 -- -- -- -- --
2006 32,000 25,000 73,302 -- -- -- -- --
============================================================================================================================
90 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT(c)
------------------- -----------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME
======================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 19.15% 10.69% $34,833 1.61% 1.32% 5.64%
2009 1.40 2.52 33,092 1.48 1.37 6.31
2008 (3.63) 4.54 34,188 1.36 1.33 5.79
2007 3.58 5.13 34,366 1.31 1.31 5.60
2006 9.78 .84 34,352 1.29 1.29 5.51
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 13.26 11.66 63,059 1.78 1.28 5.28
2009 .53 .89 59,244 1.43 1.32 6.12
2008 (3.07) 2.79 61,476 1.29 1.27 5.70
2007 9.15 5.42 62,325 1.26 1.26 5.44
2006 1.84 .83 61,826 1.24 1.24 5.30
======================================================================================================
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT(c)(d)
-----------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST(e) INTEREST INCOME RATE
============================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
----------------------------------------------------------------------------
Year Ended 5/31:
2010 1.40% 1.11% 5.86% 3%
2009 1.19 1.08 6.60 0
2008 1.00 .97 6.15 23
2007 .87 .87 6.04 12
2006 .84 .84 5.96 11
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
----------------------------------------------------------------------------
Year Ended 5/31:
2010 1.61 1.12 5.45 3
2009 1.14 1.03 6.41 0
2008 .88 .86 6.11 24
2007 .78 .78 5.92 15
2006 .76 .76 5.78 9
============================================================================
(a) The amounts shown are based on Common share equivalents.
(b) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
(c) Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares and/or MuniFund Term Preferred shares, where applicable.
(d) After expense reimbursement from Adviser, where applicable. Ratios do not
reflect the effect of custodian fee credits earned on the Fund's net cash
on deposit with the custodian bank, where applicable.
(e) The expense ratios reflect, among other things, payments to MuniFund Term
Preferred shareholders and/or the interest expense deemed to have been
paid by the Fund on the floating rate certificates issued by the special
purpose trusts for the self-deposited inverse floaters held by the Fund,
where applicable, as described in Footnote 1 - MuniFund Term Preferred
Shares and Inverse Floating Rate Securities, respectively.
* For the period March 31, 2010 (first issuance date of shares) through May
31, 2010.
** For the period February 10, 2010 (first issuance date of shares) through
May 31, 2010.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 91
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------------------------- ------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL NET
BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING
COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET
VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE
====================================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $13.29 $.87 $1.12 $(.03) $ -- $1.96 $(.77) $ -- $(.77) $14.48 $14.93
2009 14.22 .91 (.98) (.15) (.02) (.24) (.65) (.04) (.69) 13.29 13.28
2008 14.56 .88 (.32) (.25) (.01) .30 (.62) (.02) (.64) 14.22 13.61
2007 14.45 .88 .13 (.23) --* .78 (.67) --* (.67) 14.56 14.33
2006 15.10 .88 (.50) (.18) -- .20 (.81) (.04) (.85) 14.45 14.35
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 13.52 .89 .80 (.02) (.01) 1.66 (.77) (.03) (.80) 14.38 14.10
2009 14.36 .95 (.93) (.17) -- (.15) (.69) -- (.69) 13.52 13.83
2008 14.84 .94 (.45) (.26) (.01) .22 (.68) (.02) (.70) 14.36 14.61
2007 14.83 .93 .08 (.25) -- .76 (.75) -- (.75) 14.84 16.28
2006 15.65 .95 (.54) (.17) (.02) .22 (.85) (.19) (1.04) 14.83 15.53
====================================================================================================================================
AUCTION RATE PREFERRED
SHARES AND MUNIFUND
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES TERM PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD AT END OF PERIOD
----------------------------------- ------------------------------------------------------------ -----------------------
AGGREGATE AGGREGATE ENDING AVERAGE
AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE ASSET COVERAGE PER $1
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE LIQUIDATION PREFERENCE
====================================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $14,400 $25,000 $74,863 $20,210 $10.00 $10.00 $10.00** $29.95 $2.99
2009 34,000 25,000 71,559 -- -- -- -- -- --
2008 34,000 25,000 74,794 -- -- -- -- -- --
2007 34,000 25,000 75,973 -- -- -- -- -- --
2006 34,000 25,000 75,571 -- -- -- -- -- --
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 -- -- -- 14,725 10.00 9.98 9.95*** 29.18 --
2009 14,250 25,000 71,544 -- -- -- -- -- --
2008 15,000 25,000 71,892 -- -- -- -- -- --
2007 15,000 25,000 73,453 -- -- -- -- -- --
2006 15,000 25,000 73,340 -- -- -- -- -- --
====================================================================================================================================
92 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT(c)
------------------- -----------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME
=================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT)
-------------------------------------------------------------------------------------------------
Year Ended 5/31: 18.77% 15.03% $69,031 1.60% 1.29% 6.21%
2010 3.54 (1.36) 63,321 1.43 1.34 7.01
2009 (.48) 2.08 67,720 1.26 1.26 6.09
2008 4.60 5.47 69,323 1.24 1.24 5.97
2007 (6.14) 1.41 68,776 1.25 1.25 5.98
2006
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
-------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 7.90 12.50 28,235 1.67 1.38 6.16
2009 (.04) (.70) 26,530 1.54 1.44 7.09
2008 (5.73) 1.55 28,135 1.32 1.32 6.11
2007 10.04 5.14 29,072 1.33 1.33 5.84
2006 (5.23) 1.49 29,004 1.29 1.29 5.79
=================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT(c)(d)
----------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST(e) INTEREST INCOME RATE
=======================================================================
MASSACHUSETTS PREMIUM INCOME (NMT)
-----------------------------------------------------------------------
Year Ended 5/31: N/A% N/A% N/A% 3%
2010 N/A N/A N/A 1
2009 N/A N/A N/A 14
2008 N/A N/A N/A 9
2007 N/A N/A N/A 13
2006
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
-----------------------------------------------------------------------
Year Ended 5/31:
2010 1.54 1.25 6.29 11
2009 1.33 1.23 7.30 1
2008 1.05 1.05 6.39 15
2007 .97 .97 6.19 9
2006 .86 .86 6.21 13
=======================================================================
(a) The amounts shown are based on Common share equivalents.
(b) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
(c) Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares and/or MuniFund Term Preferred shares, where applicable.
(d) After expense reimbursement from Adviser, where applicable. Ratios do not
reflect the effect of custodian fee credits earned on the Fund's net cash
on deposit with the custodian bank, where applicable.
(e) The expense ratios reflect, among other things, payments to MuniFund Term
Preferred shareholders and/or the interest expense deemed to have been
paid by the Fund on the floating rate certificates issued by the special
purpose trusts for the self-deposited inverse floaters held by the Fund,
where applicable, as described in Footnote 1 - MuniFund Term Preferred
Shares and Inverse Floating Rate Securities, respectively.
* Rounds to less than $.01 per share.
** For the period January 21, 2010 (first issuance date of shares) through
May 31, 2010.
*** For the period March 23, 2010 (first issuance date of shares) through May
31, 2010.
N/A Fund does not have a contractual reimbursement with the Adviser.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 93
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------------------------- ---------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL NET
BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING
COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET
VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE
====================================================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $13.86 $.82 $ .79 $(.03) $ -- $1.58 $(.73) $ -- $(.73) $14.71 $15.79
2009 14.28 .91 (.50) (.17) -- .24 (.66) -- (.66) 13.86 13.15
2008 14.50 .90 (.21) (.26) -- .43 (.65) -- (.65) 14.28 14.14
2007 14.39 .90 .08 (.25) -- .73 (.62) -- (.62) 14.50 14.45
2006 14.93 .90 (.53) (.20) -- .17 (.71) -- (.71) 14.39 13.43
MISSOURI PREMIUM INCOME (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 12.44 .83 .99 (.03) -- 1.79 (.68) -- (.68) 13.55 16.50
2009 13.52 .85 (1.12) (.16) -- (.43) (.65) -- (.65) 12.44 12.90
2008 14.27 .89 (.62) (.20) (.04) .03 (.65) (.13) (.78) 13.52 14.76
2007 14.40 .90 (.08) (.23) --* .59 (.72) --* (.72) 14.27 16.56
2006 15.11 .92 (.51) (.17) (.01) .23 (.84) (.10) (.94) 14.40 16.35
====================================================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
------------------------------------- ---------------------------------------------------------------
AGGREGATE AGGREGATE ENDING AVERAGE
AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE
============================================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ -- $ -- $ -- $22,075 $10.00 $10.00 $9.98** $28.16
2009 20,500 25,000 71,042 -- -- -- -- --
2008 20,500 25,000 72,407 -- -- -- -- --
2007 20,500 25,000 73,120 -- -- -- -- --
2006 20,500 25,000 72,779 -- -- -- -- --
MISSOURI PREMIUM INCOME (NOM)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 16,000 25,000 73,981 -- -- -- -- --
2009 16,000 25,000 69,897 -- -- -- -- --
2008 16,000 25,000 73,703 -- -- -- -- --
2007 16,000 25,000 76,291 -- -- -- -- --
2006 16,000 25,000 76,460 -- -- -- -- --
============================================================================================================================
94 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d)
------------------- ---------------------------------- -----------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE
====================================================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 26.19% 11.61% $40,095 1.86% 1.38% 5.50% 1.67% 1.19% 5.69% 1%
2009 (2.11) 2.00 37,754 1.47 1.38 6.47 1.16 1.06 6.78 0
2008 2.49 3.04 38,873 1.29 1.29 5.82 .85 .85 6.25 13
2007 12.49 5.12 39,458 1.28 1.28 5.67 .79 .79 6.15 6
2006 (11.62) 1.20 39,179 1.29 1.29 5.66 .81 .81 6.14 5
MISSOURI PREMIUM INCOME (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 34.31 14.69 31,348 1.37 1.34 6.37 N/A N/A N/A 7
2009 (7.83) (2.92) 28,734 1.55 1.42 6.96 N/A N/A N/A 2
2008 (5.74) .26 31,170 1.52 1.31 6.43 N/A N/A N/A 5
2007 5.98 4.17 32,826 1.39 1.30 6.15 N/A N/A N/A 16
2006 (3.53) 1.57 32,934 1.29 1.29 6.20 N/A N/A N/A 9
====================================================================================================================================
(a) The amounts shown are based on Common share equivalents.
(b) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
(c) Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares and/or MuniFund Term Preferred shares, where applicable.
(d) After expense reimbursement from Adviser, where applicable. Ratios do not
reflect the effect of custodian fee credits earned on the Fund's net cash
on deposit with the custodian bank, where applicable.
(e) The expense ratios reflect, among other things, payments to MuniFund Term
Preferred shareholders and/or the interest expense deemed to have been
paid by the Fund on the floating rate certificates issued by the special
purpose trusts for the self-deposited inverse floaters held by the Fund,
where applicable, as described in Footnote 1 - MuniFund Term Preferred
Shares and Inverse Floating Rate Securities, respectively.
* Rounds to less than $.01 per share.
** For the period February 9, 2010 (first issuance date of shares) through
May 31, 2010.
N/A Fund does not have a contractual reimbursement with the Adviser.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 95
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
------------------------------------------------------------------------------------------------------------------------------------
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER(2) Private Investor and Management Consultant;
8/22/40 Chairman of Treasurer and Director, Humanities Council of
333 W. Wacker Drive the Board 1996 200 Washington, D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since 1996);
333 W. Wacker Drive Board Member 1999 200 Director and Chairman, United Fire Group, a
Chicago, IL 60606 publicly held company; President Pro Tem of the
Board of Regents for the State of Iowa
University System; Director, Gazette Companies;
Life Trustee of Coe College and the Iowa College
Foundation; formerly, Director, Alliant Energy;
formerly, Director, Federal Reserve Bank of
Chicago; formerly, President and Chief Operating
Officer, SCI Financial Group, Inc., a regional
financial services firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University of
3/6/48 Iowa (since 2006); Director (since 2004) of
333 W. Wacker Drive Board Member 2004 200 Xerox Corporation; Director (since 2005), Beta
Chicago, IL 60606 Gamma Sigma International Honor Society;
formerly, Dean and Distinguished Professor of
Finance, School of Business at the University of
Connecticut (2003-2006); previously, Senior Vice
President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003);
Director, SS&C Technologies, Inc. (May
2005-October 2005); formerly, Director
(1997-2007), Credit Research Center at
Georgetown University.
o DAVID J. KUNDERT(2) Director, Northwestern Mutual Wealth Management
10/28/42 Company; retired (since 2004) as Chairman,
333 W. Wacker Drive Board Member 2005 200 JPMorgan Fleming Asset Management, President and
Chicago, IL 60606 CEO, Banc One Investment Advisors Corporation,
and President, One Group Mutual Funds; prior
thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One
Investment Management Group; Member, Board of
Regents, Luther College; member of the Wisconsin
Bar Association; member of Board of Directors,
Friends of Boerner Botanical Gardens; member of
Board of Directors and chair of Investment
Committee, Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER(2) Chairman of Miller-Valentine Partners Ltd., a
9/24/44 real estate investment company; formerly, Senior
333 W. Wacker Drive Board Member 1997 200 Partner and Chief Operating Officer (retired,
Chicago, IL 60606 2004) of Miller-Valentine Group; member,
University of Dayton Business School Advisory
Council; member, Mid-America Health System
board; formerly, member and chair, Dayton
Philharmonic Orchestra Association; formerly,
member, Business Advisory Council, Cleveland
Federal Reserve Bank; formerly, Director, Dayton
Development Coalition.
96 Nuveen Investments
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NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board Member 1997 200 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (1990-1994).
o CAROLE E. STONE(2) Director, Chicago Board Options Exchange (since
6/28/47 2006); Director, C2 Options Exchange,
333 W. Wacker Drive Board Member 2007 200 Incorporated (since 2009); Commissioner, New
Chicago, IL 60606 York State Commission on Public Authority Reform
(since 2005); formerly, Chair, New York Racing
Association Oversight Board (2005-2007).
o TERENCE J. TOTH(2)
9/29/59 Director, Legal & General Investment Management
333 W. Wacker Drive Board Member 2008 200 America, Inc. (since 2008); Managing Partner,
Chicago, IL 60606 Promus Capital (since 2008); formerly, CEO and
President, Northern Trust Global Investments
(2004-2007); Executive Vice President,
Quantitative Management & Securities Lending
(2000-2004); prior thereto, various positions
with Northern Trust Company (since 1994);
member: Goodman Theatre Board (since 2004),
Chicago Fellowship Boards (since 2005),
University of Illinois Leadership Council Board
(since 2007) and Catalyst Schools of Chicago
Board (since 2008); formerly, member: Northern
Trust Mutual Funds Board (2005-2007), Northern
Trust Global Investments Board (2004-2007),
Northern Trust Japan Board (2004-2007), Northern
Trust Securities Inc. Board (2003-2007) and
Northern Trust Hong Kong Board (1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(3) Chief Executive Officer (since July 2007),
6/14/61 Director (since 1999) and Chairman (since 2007)
333 W. Wacker Drive Board Member 2008 200 of Nuveen Investments, Inc.; Chief Executive
Chicago, IL 60606 Officer (since 2007) of Nuveen Asset Management,
Nuveen Investments Advisors, Inc.; President
(since 2005) of Nuveen Commodities Asset
Management, LLC.
Nuveen Investments 97
Board Members & Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 200 Nuveen Investments, LLC; Managing Director,
Chicago, IL 60606 Officer Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management (since
2002) and of Symphony Asset Management LLC,
(since 2003); Vice President and Assistant
Secretary of NWQ Investment Management Company,
LLC. (since 2002), Nuveen Investments Advisers
Inc. (since 2002), Tradewinds Global Investors,
LLC, and Santa Barbara Asset Management, LLC
(since 2006), Nuveen HydePark Group LLC and
Nuveen Investment Solutions, Inc. (since 2007);
Managing Director (since 2004) and Assistant
Secretary (since 1994) of Nuveen Investments,
Inc.; Managing Director (since 2005) of Nuveen
Commodities Asset Management, LLC; Chartered
Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen Investments,
6/9/55 Inc.; Executive Vice President, U.S. Structured
333 W. Wacker Drive Vice President 2007 125 Products of Nuveen Investments, LLC, (since
Chicago, IL 60606 1999),; Executive Vice President (since 2005)
of Nuveen Commodities Asset Management, LLC.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 125 Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Senior Vice President of Nuveen Investments, LLC
6/1/68 (since 2010); formerly, Vice President
333 W. Wacker Drive Vice President 2009 200 (2007-2010); previously, Portfolio Manager,
Chicago, IL 60606 Allstate Investments, LLC (1996-2006); Chartered
Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of Nuveen
333 W. Wacker Drive and Assistant 2000 200 Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct 2008) of
4/11/64 Nuveen Investments, Inc.; previously, Head of
333 W. Wacker Drive Vice President 2009 200 Institutional Asset Management (2007-2008) of
Chicago, IL 60606 Bear Stearns Asset Management; Head of
Institutional Asset Mgt (1986-2007) of Bank of
NY Mellon; Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
10/24/45 Investments, LLC and Managing Director (since
333 W. Wacker Drive Vice President 1998 200 2005) of Nuveen Asset Management.
Chicago, IL 60606
o STEPHEN D. FOY Senior Vice President (since 2010), formerly,
5/31/54 Vice President Vice President (1993-2010) and Funds Controller
333 W. Wacker Drive and Controller 1998 200 (since 1998) of Nuveen Investments, LLC; Vice
Chicago, IL 60606 President (2005-2010) of Nuveen Asset
Management; Certified Public Accountant.
o SCOTT S. GRACE Managing Director, Corporate Finance &
8/20/70 Vice President Development, Treasurer (since September 2009) of
333 W. Wacker Drive and Treasurer 2009 200 Nuveen Investments, LLC; Managing Director and
Chicago, IL 60606 Treasurer of Nuveen Asset Management (since
2009); formerly, Treasurer (2006-2009), Senior
Vice President (2008-2009), previously, Vice
President (2006-2008) of Janus Capital Group,
Inc.; formerly, Senior Associate in Morgan
Stanley's Global Financial Services Group
(2000-2003); Chartered Accountant Designation.
98 Nuveen Investments
------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed Income
5/7/69 (since 2008) of Nuveen Asset Management;
333 W. Wacker Drive Vice President 2009 136 previously, Chairman, President and Chief
Chicago, IL 60606 Executive Officer (2002 - 2007) of Northern
Trust Global Advisors, Inc. and Chief Executive
Officer (2007) of Northern Trust Global
Investments Limited; Certified Public
Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice
333 W. Wacker Drive Officer and 2003 200 President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Senior
Vice President (since 2008), formerly, Vice
President (2006-2008) and Assistant Secretary
(since 2008) of Nuveen Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009), formerly,
3/22/63 Vice President (2000-2009) of Nuveen
333 W. Wacker Drive Vice President 2000 200 Investments, LLC; Vice President (since 2005) of
Chicago, IL 60606 Nuveen Asset Management; Certified Public
Accountant.
o TINA M. LAZAR Senior Vice President (since 2009), formerly,
8/27/61 Vice President of Nuveen Investments, LLC
333 W. Wacker Drive Vice President 2002 200 (1999-2009); Vice President of Nuveen Asset
Chicago, IL 60606 Management (since 2005).
o LARRY W. MARTIN Senior Vice President (since 2010), formerly,
7/27/51 Vice President Vice President (1993- 2010), Assistant Secretary
333 W. Wacker Drive and Assistant 1988 200 and Assistant General Counsel of Nuveen
Chicago, IL 60606 Secretary Investments, LLC; Vice President (since 2005)
and Assistant Secretary of Nuveen Investments,
Inc.; Vice President (since 2005) and Assistant
Secretary (since 1997) of Nuveen Asset
Management; Vice President and Assistant
Secretary of Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment Management Company,
LLC (since 2002), Symphony Asset Management LLC
(since 2003), Tradewinds Global Investors, LLC,
Santa Barbara Asset Management LLC (since 2006)
and of Nuveen HydePark Group, LLC and Nuveen
Investment Solutions, Inc. (since 2007).
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
3/26/66 Vice President President (2007-2008), Nuveen Investments, LLC;
333 W. Wacker Drive and Secretary 2007 200 Managing Director (since 2008), formerly, Vice
Chicago, IL 60606 President, and Assistant Secretary, Nuveen Asset
Management, and Nuveen Investments Holdings,
Inc.; Vice President (since 2007) and Assistant
Secretary, Nuveen Investment Advisers Inc., NWQ
Investment Management Company, LLC, Tradewinds
Global Investors LLC, NWQ Holdings, LLC,
Symphony Asset Management LLC, Santa Barbara
Asset Management LLC, Nuveen HydePark Group, LLC
and Nuveen Investment Solutions, Inc. (since
2007); prior thereto, Partner, Bell, Boyd &
Lloyd LLP (1997-2007).
o JOHN V. MILLER Chief Investment Officer and Managing Director
4/10/67 (since 2007), formerly, Vice President
333 W. Wacker Drive Vice President 2007 136 (2002-2007) of Nuveen Asset Management and
Chicago, IL 60606 Managing Director (since 2007), formerly Vice
President (2002-2007) Nuveen Investments, LLC;
Chartered Financial Analyst.
Nuveen Investments 99
Board Members & Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GREGORY MINO Senior Vice President (since 2010) of Nuveen
1/4/71 Investments, LLC, formerly, Vice President
333 W. Wacker Drive Vice President 2009 200 (2008-2010); previously, Director (2004- 2007)
Chicago, IL 60606 and Executive Director (2007-2008) of UBS Global
Asset Management; previously, Vice President
(2000-2003) and Director (2003-2004) of Merrill
Lynch Investment Managers; Chartered Financial
Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since
8/1/71 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate,
Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since
7/3/62 Vice President 2007); prior thereto, Partner, Deloitte & Touche
333 W. Wacker Drive and Assistant 2007 200 USA LLP (2005-2007), formerly, senior tax
Chicago, IL 60606 Secretary manager (2002-2005); Certified Public
Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC (since
12/21/68 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) Board Members serve three year terms, except for two board members who are
elected by the holders of Preferred Shares. The Board of Trustees is
divided into three classes, Class I, Class II, and Class III, with each
being elected to serve until the third succeeding annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed, except two board
members are elected by the holders of Preferred Shares to serve until the
next annual shareholders' meeting subsequent to its election or thereafter
in each case when its respective successors are duly elected or appointed.
The first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(2) Also serves as a trustee of the Nuveen Diversified Commodity Fund, a
Nuveen-sponsored commodity pool that has filed a registration statement on
Form S-1 with the SEC for a proposed initial public offering. The S-1 has
not been declared effective, and the commodity pool has not commenced
operations.
(3) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
100 Nuveen Investments
Annual Investment Management
Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 ACT"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "INDEPENDENT BOARD
MEMBERS"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 25-26, 2010 (the "MAY
MEETING"), the Boards of Trustees or Directors (as the case may be) (each a
"BOARD" and each Trustee or Director, a "BOARD MEMBER") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "ADVISORY AGREEMENT") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2010 (the "APRIL MEETING"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute and comparative performance, fee and expense information for
the Funds (as described in more detail below), the profitability of Nuveen for
its advisory activities (which includes its wholly owned subsidiaries), and
other information regarding the organization, personnel, and services provided
by NAM. The Independent Board Members also met quarterly as well as at other
times as the need arose during the year and took into account the information
provided at such meetings and the knowledge gained therefrom. Prior to approving
the renewal of the Advisory Agreements, the Independent Board Members reviewed
the foregoing information with their independent legal counsel and with
management, reviewed materials from independent legal counsel describing
applicable law and their duties in reviewing advisory contracts, and met with
independent legal counsel in private sessions without management present. The
Independent Board Members considered the legal advice provided by independent
legal counsel and relied upon their knowledge of NAM, its services and the Funds
resulting from their meetings and other interactions throughout the year and
their own business judgment in determining the factors to be considered in
evaluating the Advisory Agreements. Each Board Member may have accorded
different weight to the various factors in reaching his or her conclusions with
respect to a Fund's Advisory Agreement. The Independent Board Members did not
identify any single factor as
Nuveen Investments 101
Annual Investment Management Agreement
Approval Process (continued)
all-important or controlling. The Independent Board Members' considerations were
instead based on a comprehensive consideration of all the information presented.
The principal factors considered by the Board and its conclusions are described
below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line, including continued activities to refinance auction rate
preferred securities, manage leverage during periods of market turbulence and
implement an enhanced leverage management process, modify investment mandates in
light of market conditions and seek shareholder approval as necessary, maintain
the fund share repurchase program and maintain shareholder communications to
keep shareholders apprised of Nuveen's efforts in refinancing preferred shares.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include maintaining an investor relations
program to provide timely information and education to financial advisers and
investors; providing marketing for the closed-end funds; maintaining and
enhancing a closed-end fund website; participating in conferences and having
direct communications with analysts and financial advisors.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members also considered NAM's compliance program, including
the report of the chief compliance officer regarding the Funds' compliance
policies and procedures.
102 Nuveen Investments
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the performance results of each Fund over various time
periods. The Board reviewed, among other things, each Fund's historic investment
performance as well as information comparing the Fund's performance information
with that of other funds (the "PERFORMANCE PEER GROUP") based on data provided
by an independent provider of mutual fund data and with recognized and/or
customized benchmarks. In this regard, the Board reviewed each Fund's total
return information compared to its Performance Peer Group for the quarter, one-,
three- and five-year periods ending December 31, 2009 and for the same periods
ending March 31, 2010 (or for the periods available for Funds that did not exist
during part of the foregoing time frame). In addition, the Board reviewed each
Fund's total return information compared to recognized and/or customized
benchmarks for the quarter, one- and three-year periods ending December 31, 2009
and for the same periods ending March 31, 2010 (or for the periods available for
Funds that did not exist during part of the foregoing time frame). Moreover, the
Board reviewed the peer ranking of the Nuveen municipal funds advised by NAM in
the aggregate. The Independent Board Members also reviewed historic premium and
discount levels. This information supplemented the Fund performance information
provided to the Board at each of its quarterly meetings.
In reviewing peer comparison information, the Independent Board Members
recognized that the Performance Peer Group of certain funds may not adequately
represent the objectives and strategies of the funds, thereby limiting the
usefulness of comparing a fund's performance with that of its Performance Peer
Group. In this regard, the Independent Board Members considered that the
Performance Peer Groups of certain funds (including the Funds) were classified
as having significant differences from such funds based on considerations such
as special fund objectives, potential investable universe and the composition of
the peer set (e.g., the number and size of competing funds and number of
competing managers).
Based on their review, the Independent Board Members determined that each Fund's
investment performance over time had been satisfactory. The Independent Board
Members noted that the Nuveen Connecticut Dividend Advantage Municipal Fund and
the Nuveen Connecticut Dividend Advantage Municipal Fund 2 outperformed or
matched the performance of their respective benchmarks in the one- and
three-year periods and that each other Fund outperformed the performance of its
respective benchmark in the one-year period but underperformed such benchmark in
the three-year period.
Nuveen Investments 103
Annual Investment Management Agreement
Approval Process (continued)
C. FEES, EXPENSES AND PROFITABILITY
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing,
among other things, such Fund's gross management fees, net management fees
and net expense ratios in absolute terms as well as compared to the fee and
expenses of a comparable universe of unaffiliated funds based on data
provided by an independent fund data provider (the "PEER UNIVERSE") and in
certain cases, to a more focused subset of funds in the Peer Universe (the
"PEER GROUP") and any expense limitations.
The Independent Board Members further reviewed the methodology regarding the
construction of the applicable Peer Universe and/or Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board Members
took into account that in certain instances various factors such as: the
asset level of a fund relative to peers; the limited size and particular
composition of the Peer Universe or Peer Group; the investment objectives of
the peers; expense anomalies; changes in the funds comprising the Peer
Universe or Peer Group from year to year; levels of reimbursement; the timing
of information used; the differences in the type and use of leverage; and
differences in the states reflected in the Peer Universe or Peer Group may
impact the comparative data, thereby limiting the ability to make a
meaningful comparison with peers.
In reviewing the fee schedule for a Fund, the Independent Board Members also
considered the fund-level and complex-wide breakpoint schedules (described in
further detail below) and any fee waivers and reimbursements provided by
Nuveen (applicable, in particular, for certain closed-end funds launched
since 1999). Except as set forth in the following sentence, the Independent
Board Members noted that the Funds had net management fees and/or net expense
ratios below, at or near (within 5 basis points or less) the peer averages of
their Peer Group or Peer Universe. The Nuveen Connecticut Premium Income
Municipal Fund, the Nuveen Massachusetts Premium Income Municipal Fund and
the Nuveen Missouri Premium Income Municipal Fund had net advisory fees above
the peer average but net expense ratios below, at or near the peer expense
ratio average.
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees were
reasonable in light of the nature, extent and quality of services provided to
the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients, including
municipal separately managed accounts and passively managed municipal bond
exchange traded funds (ETFs) that are sub-advised by NAM. In evaluating the
comparisons of fees, the Independent Board Members noted that the fee rates
charged to the Funds and other clients vary, among other things, because of
the different services involved and the additional regulatory and compliance
requirements associated with registered investment companies, such as the
Funds. Accordingly, the Independent Board Members considered the differences
in the product types, including, but not limited to, the services provided,
the structure and operations, product distribution and costs thereof,
portfolio investment policies, investor profiles, account sizes and
104 Nuveen Investments
regulatory requirements. The Independent Board Members noted, in particular,
that the range of services provided to the Funds (as discussed above) is much
more extensive than that provided to separately managed accounts. Given the
inherent differences in the products, particularly the extensive services
provided to the Funds, the Independent Board Members believe such facts
justify the different levels of fees.
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its financial
condition. The Independent Board Members reviewed the revenues and expenses
of Nuveen's advisory activities for the last two years, the allocation
methodology used in preparing the profitability data and an analysis of the
key drivers behind the changes in revenues and expenses that impacted
profitability in 2009. The Independent Board Members noted this information
supplemented the profitability information requested and received during the
year to help keep them apprised of developments affecting profitability (such
as changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed an
Independent Board Member as a point person to review and keep them apprised
of changes to the profitability analysis and/or methodologies during the
year. The Independent Board Members also considered Nuveen's revenues for
advisory activities, expenses, and profit margin compared to that of various
unaffiliated management firms with similar amounts of assets under management
and relatively comparable asset composition prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making comparisons
as the profitability of other advisers generally is not publicly available
and the profitability information that is available for certain advisers or
management firms may not be representative of the industry and may be
affected by, among other things, the adviser's particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In reviewing profitability, the Independent
Board Members recognized Nuveen's investment in its fund business. Based on
their review, the Independent Board Members concluded that Nuveen's level of
profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) NAM and its
affiliates receive, or are expected to receive, that are directly
attributable to the management of the Funds, if any. See Section E below for
additional information on indirect benefits NAM may receive as a result of
its relationship with the Funds. Based on their review of the overall fee
arrangements of each Fund, the Independent Board
Nuveen Investments 105
Annual Investment Management Agreement
Approval Process (continued)
Members determined that the advisory fees and expenses of the respective Fund
were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. Further, the Independent Board Members noted that although
closed-end funds may from time-to-time make additional share offerings, the
growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex are generally reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered any revenues received by
affiliates of NAM for serving as agent at Nuveen's trading desk and as
co-manager in initial public offerings of new closed-end funds.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
106 Nuveen Investments
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 107
Reinvest Automatically
Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS AUTOMATIC REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in
additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of compounding.
Just like distributions in cash, there may be times when income or capital gains
taxes may be payable on distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each quarter you'll receive a
statement showing your total distributions, the date of investment, the shares
acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Distributions received to purchase
shares in the open market will normally be invested shortly after the
distribution payment date. No interest will be paid on distributions awaiting
reinvestment. Because the market price of the shares may increase before
purchases are completed, the average purchase price per share may
108 Nuveen Investments
exceed the market price at the time of valuation, resulting in the acquisition
of fewer shares than if the distribution had been paid in shares issued by the
Fund. A pro rata portion of any applicable brokerage commissions on open market
purchases will be paid by Plan participants. These commissions usually will be
lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your financial advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 109
Glossary of Terms
Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest payments
are adjusted periodically through an auction process, which process typically
also serves as a means for buying and selling the bond. Auctions that fail to
attract enough buyers for all the shares offered for sale are deemed to have
"failed," with current holders receiving a formula-based interest rate until
the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over
the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments or
the exercise of call provisions unless an escrow account has been established
to redeem the bond before maturity. The market value weighting for an
investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. This
trust, in turn, (a) issues floating rate certificates typically paying
short-term tax-exempt interest rates to third parties in amounts equal to
some fraction of the deposited bond's par amount or market value, and (b)
issues an inverse floating rate certificate (sometimes referred to as an
"inverse floater") to an investor (such as a Fund) interested in gaining
investment exposure to a long-term municipal bond. The income received by the
holder of the inverse floater varies inversely with the short-term rate paid
to the floating rate certificates' holders, and in most circumstances the
holder of the inverse floater bears substantially all of the underlying
bond's downside investment risk. The holder of the inverse floater typically
also benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
110 Nuveen Investments
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's
duration, the more the price of the bond or Fund will change as interest
rates change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of common shares outstanding. Fund NAVs are
calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to refinance
municipal bonds to lower interest expenses. The issuer sells new bonds with a
lower yield and uses the proceeds to buy U.S. Treasury securities, the
interest from which is used to make payments on the higher-yielding bonds.
Because of this collateral, pre-refunding generally raises a bond's credit
rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment
to equal, on an after-tax basis, the yield of a municipal bond investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds that
pay interest periodically.
Nuveen Investments 111
Notes
112 Nuveen Investments
Other Useful Information
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
("NYSE") the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common and/or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NTC -- 709
NFC -- 609
NGK -- 618
NGO -- 1,131
NMT -- 784
NMB -- 570
NGX -- 820
NOM -- --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 113
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions through continued
adherence to proven, longterm investing principles. Today, we offer a range of
high quality equity and fixed-income solutions designed to be integral
components of a well-diversified core portfolio.
FOCUSED ON MEETING INVESTOR NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. We market our growing
range of specialized investment solutions under the high-quality brands of
HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital.
In total, Nuveen Investments managed approximately $150 billion of assets on
March 31, 2010.
FIND OUT HOW WE CAN HELP YOU.
To learn more about the products and services of Nuveen Investments may be able
to help you meet your financial goals, talk to your financial advisor, or call
us at (800) 257-8787. Please read the information provided carefully before you
invest. Investors should consider the investment objective and policies, risk
considerations, charges and expenses of any investment carefully. Where
applicable, be sure to obtain a prospectus, which contains this and other
relevant information. To obtain a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
EAN-B-0510D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Massachusetts Premium Income Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2010 $ 10,697 $ 15,000 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2009 $ 10,495 $ 0 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
for agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services
to the Fund ("Affiliated Fund Service Provider"), for engagements directly
related to the Fund's operations and financial reporting, during the Fund's
last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2010 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2010 $ 850 $ 0 $ 0 $ 850
May 31, 2009 $ 850 $ 0 $ 0 $ 850
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees"
and "All Other Fees" billed to Fund in their respective amounts from the
previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Cathryn P. Steeves Nuveen Massachusetts Premium Income Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Cathryn P. Steeves Registered Investment Company 44 $8.474 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of May 31, 2010. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of May 31, 2010, the
S&P/Investortools Municipal Bond index was comprised of 55,306 securities with
an aggregate current market value of $1,205 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors lead by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event. In
addition, in July 2009, Nuveen Investments created and funded a trust, as part
of a newly-established incentive program, which purchased shares of certain
Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain
employees, including portfolio managers.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of May 31, 2010, the portfolio manager
beneficially owned the following dollar range of equity securities issued by the
Registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF
DOLLAR EQUITY SECURITIES
RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS
BENEFICIALLY MANAGED BY NAM'S
NAME OF PORTFOLIO OWNED IN MUNICIPAL
MANAGER FUND FUND INVESTMENT TEAM
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Cathryn P. Steeves Nuveen Massachusetts Premium Income Municipal Fund $0 $10,001-$50,000
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD, Senior Vice President of NAM, is currently a portfolio
manager for 45 state-specific municipal bond funds. She joined Nuveen in 1996
and worked as a senior analyst in the healthcare sector. Ms. Steeves has an
undergraduate degree from Wake Forest University as well as an MA, an MPhil and
a PhD from Columbia University.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Massachusetts Premium Income Municipal Fund
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
Vice President and Secretary
Date: August 6, 2010
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: August 6, 2010
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: August 6, 2010
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