ANNUAL REPORT May 31, 2002
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
CONNECTICUT
NTC
NFC
NGK
GEORGIA
NPG
NZX
MASSACHUSETTS
NMT
NMB
MISSOURI
NOM
Dependable,
tax-free income
because
it's not what you earn,
it's what you keep.(R)
THE NUVEEN
INVESTOR
See Page 13
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Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: " I urge you to consider receiving future Fund reports and other
information electronically ...see the inside front cover of this report for
detailed instructions."
Dear
Shareholder
I am pleased to report that during the period covered by this report, your Fund
continued to meet its primary objective of providing attractive monthly income,
while at the same time offering opportunities to reduce overall portfolio
volatility. Detailed information on your Fund's performance can be found in the
Portfolio Managers' Comments and Performance Overview sections of this report. I
urge you to take the time to read them.
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In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase diversification. In
uncertain markets like these, prudent investors understand the importance of
diversification, balance, and risk management, all attributes your Nuveen Fund
can bring to your portfolio.
For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Funds to those seeking to accumulate and preserve wealth.
Our mission continues to be to assist you and your financial advisor by offering
the investment services and products that can help you meet your financial
objectives. We thank you for continuing to choose Nuveen Investments as a
partner as you work toward that goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
July 15, 2002
1
Nuveen Municipal Closed-End Exchange-Traded Funds
(NTC, NFC, NGK, NPG, NZX, NMT, NMB, NOM)
Portfolio Managers'
Comments
Portfolio managers Paul Brennan, Tom O'Shaughnessy and Tom Futrell review
economic and market conditions, key strategies, and recent Fund performance.
Paul assumed portfolio management responsibility for NTC in 1999, for NFC at its
inception in 2001, and for NGK upon its inception in 2002. Tom O'Shaughnessy has
managed NPG since 1998 and NZX since its inception in 2001. Tom Futrell assumed
management responsibilities for NMT in 1998, and for NMB and NOM in 2001.
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD? The two major forces at work during the
twelve months ended May 31, 2002, were the general slowdown in economic growth
and the Federal Reserve's aggressive easing of short-term interest rates. In
addition, the events of September 11, 2001, and the uncertain geopolitical
climate that followed also impacted the economy and the markets.
In the municipal markets, the generally sluggish economic environment of the
past twelve months helped many securities perform well. In addition, the trend
toward increased issuance remained strong. Looking at the first five months of
2002, all the states represented in this report saw significant increases in
municipal issuance when compared with the same period in 2001. On the demand
side, municipal bonds continued to be highly sought after by individual
investors looking for diversification, tax-free income and an alternative to a
volatile stock market. Institutional investors, especially traditional
purchasers such as property/ casualty insurance companies, also have been active
buyers.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST TWELVE MONTHS?
For the fiscal year ended May 31, 2002, the Funds covered in this report
produced total annual returns on net asset value (NAV) as shown in the
accompanying table. The annual returns for the Lehman Brothers Municipal Bond
Index1 and relevant Lipper Peer Group2 also are presented.
LEHMAN
TOTAL RETURN TOTAL LIPPER
MARKET YIELD ON NAV RETURN1 AVERAGE2
-----------------------------------------------------
TAXABLE- 1 YEAR 1 YEAR 1 YEAR
EQUIV- ENDED ENDED ENDED
5/31/02 ALENT3 5/31/02 5/31/02 5/31/02
-----------------------------------------------------
NTC 5.31% 7.93% 7.87% 6.51% 8.17%
-----------------------------------------------------
NFC 5.32% 7.94% 8.81% 6.51% 8.17%
-----------------------------------------------------
NGK 5.50% 8.21% - - -
-----------------------------------------------------
NPG 5.42% 8.21% 7.32% 6.51% 8.17%
-----------------------------------------------------
NZX 5.41% 8.20% - - -
-----------------------------------------------------
NMT 5.35% 8.05% 7.51% 6.51% 8.17%
-----------------------------------------------------
NMB 5.49% 8.26% 8.46% 6.51% 8.17%
-----------------------------------------------------
NOM 5.41% 8.20% 8.65% 6.51% 8.17%
-----------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, the Fed's policy to keep short-term interest rates
relatively low, combined with generally favorable market conditions, created a
positive total return environment for municipal bonds. The Funds' participation
in the market's gains is reflected, in part, in the total returns on NAV listed
in the above table. In a market characterized by rising bond values, funds with
longer durations4 typically would be expected to outperform funds or indexes
with shorter durations. As of May 31, 2002, the durations of the Nuveen Funds
with at least one-year of history ranged from 8.73 to 13.83 compared with 7.82
for the unleveraged Lehman Brothers Municipal Bond Index.
1 The Funds' performances are compared with that of the Lehman Brothers
Municipal Bond Index, a national unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not reflect
any expenses.
2 The Funds' total returns are compared with the average annualized return of
the 26 funds in the Lipper Other States Municipal Debt Funds category. Fund
and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: Connecticut 33%, Georgia 34%,
Massachusetts 33.5%, and Missouri 34%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a Fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
Fund. Unless otherwise noted, references to duration in this commentary are
intended to indicate Fund duration.
2
Among the newer Funds, the durations of NGK and NZX, which were introduced
within the past year, were 15.21 and 16.50, respectively. Relatively high
durations like these are typical of newer Nuveen funds, and over time, we expect
these durations will get shorter to come more closely in line with the older
Nuveen Funds.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With the Fed keeping short-term interest rates relatively low, the
dividend-payment capabilities of these Funds benefited from the use of leverage,
a strategy that can potentially enhance the dividends paid to common
shareholders. This benefit is tied in part to the short-term rates the leveraged
Funds pay their MuniPreferred(R) shareholders. For example, low short-term rates
can enable the Funds to reduce the amount of income they pay preferred
shareholders, which can leave more earnings to support common share dividends.
During the year ended May 31, 2002, steady or falling short-term interest rates
enabled us to implement dividend increases in NTC, NPG, NMT, and NOM. The newer
funds, NFC, NZX and NMB all maintained steady, attractive dividends during the
period, and NGK, which was introduced in March 2002, paid its first monthly
dividend in June.
Over the past year, the share prices of these Nuveen Funds tended to remain
relatively stable (see the charts on the individual Performance Overview pages).
This steady performance helped keep all of the Funds' share prices at premiums
to their net asset values.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE FISCAL
YEAR ENDED MAY 31, 2002?
Two areas of emphasis during this reporting period were enhancing the
dividend-paying capabilities of the Funds and improving their diversification
and call protection. New issuance in several of these states tends to be
irregular, with periods of relatively strong issuance followed by periods of
relatively light new issue supply. As a result, our approach has been to look
for opportunities as they occur and to respond quickly as favorable situations
develop. Over the past year, we often focused on essential services (such as
water and sewer systems), some selected airport and utility issues, and certain
general obligation bonds. When we were able to obtain attractive prices, we
selectively sold some healthcare and multifamily housing bonds from the
portfolios.
We also were trying to modestly shorten each of the Funds' duration, which would
help to better position them in the event that interest rates start to creep
higher in the coming months. By shortening durations, we believe we can help
make the portfolios less sensitive to possible interest rate changes while still
providing yields and returns that are competitive with longer duration funds.
3
In the current geopolitical climate, we believe that maintaining strong credit
quality is a key requirement for all the Funds. As of May 31, 2002, each of
these Nuveen Funds continued to offer excellent credit quality, with allocations
of bonds rated AAA/U.S. guaranteed and AA ranging from 74% to 93%. All of the
Funds also had a portion of their assets invested in BBB bonds, which serve to
enhance the Funds' income streams.
All of the Funds also continued to offer excellent levels of call protection
through 2002 and 2003. Among the newer Funds, NGK, NZX and NMB have virtually no
call exposure over this period, while 2% of NFC becomes callable in 2003. The
four older Funds - NTC, NPG, NMT and NOM - all reach their 10-year anniversaries
in 2003, a point in their life cycles that normally is associated with an
increase in call exposure. However, we have been successful in our recent
efforts to significantly reduce this exposure. NOM now has expected call
exposure of 3% over this two-year period, while the other three Funds could see
up to 13-22% of their portfolios called over the next two years. The number of
actual calls will depend largely on market interest rates over this time. In
general, we believe this call exposure is very manageable, and we foresee no
problems in working through it. Given the current level of rates, our general
approach has been to hold higher-yielding bonds as long as possible to help
support the Funds' dividends, while we look for attractive replacement
opportunities.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS
IN PARTICULAR?
In general, our outlook for the fixed-income markets over the next twelve months
remains positive. We believe the U.S. economy is headed for recovery, but one
that may take longer and see a slower pace of growth than some are now
predicting. We believe inflation and interest rates should remain relatively low
over the near term, and that new municipal issuance should continue to be
strong. We anticipate the demand for tax-exempt municipal bonds will remain firm
as investors look for ways to rebalance their portfolios and reduce risk.
We plan to remain focused on strategies that add value for our shareholders,
provide support for the Funds' dividends, and fully utilize Nuveen's experience
and research expertise. As noted, shareholders may see these Funds' durations
shorten.
Overall, we believe these Funds can continue to play an important role in
investors' long-range financial programs, providing balance and diversification,
dependable tax-free income, and a measure of security in uncertain times. We
believe the Funds currently are well positioned for the market environment
ahead, and we will continue to closely monitor and respond to events as
appropriate.
4
Nuveen Connecticut Premium Income Municipal Fund
Performance
Overview As of May 31, 2002
NTC
[PIE CHART]
AAA/U.S. GUARANTEED 73%
AA 17%
A 2%
BBB 6%
NR 2%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $16.05
---------------------------------------------------
Common Share Net Asset Value $14.46
---------------------------------------------------
Market Yield 5.31%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.59%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.93%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $76,327
---------------------------------------------------
Average Effective Maturity (Years) 17.06
---------------------------------------------------
Leverage-Adjusted Duration 8.73
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 5/93)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 5.01% 7.87%
---------------------------------------------------
5-Year 8.12% 7.18%
---------------------------------------------------
Since Inception 6.23% 6.11%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Education and Civic Organizations 21%
---------------------------------------------------
Healthcare 13%
---------------------------------------------------
Tax Obligation/General 13%
---------------------------------------------------
U.S. Guaranteed 10%
---------------------------------------------------
Tax Obligation/Limited 7%
---------------------------------------------------
[Bar Chart]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
6/01 0.068
7/01 0.068
8/01 0.068
9/01 0.069
10/01 0.069
11/01 0.069
12/01 0.07
1/02 0.07
2/02 0.07
3/02 0.071
4/02 0.071
5/02 0.071
[Line Chart]
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/01 16.05
16.12
16.1
16.2
16.3
16.46
16.56
16.62
16.44
16.38
16.58
16.66
16.6
16.63
16.65
16.64
16.37
16.44
16.29
16.2
16.22
16.15
16.23
16.31
16.18
16.18
16
16.11
15.98
15.8
15.75
15.9
15.94
16.3
16.32
16.35
16.52
16.61
16.57
16.78
16.74
16.1
15.8
15.92
15.74
15.68
15.61
15.9
16.1
16.2
16.2
16.05
5/31/02 16.05
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
2 The Fund also paid shareholders a net ordinary income distribution in December
2001 of $0.0019 per share.
5
Nuveen Connecticut Dividend Advantage Municipal Fund
Performance
Overview As of May 31, 2002
NFC
[PIE CHART]
AAA/U.S. GUARANTEED 54%
AA 20%
A 16%
BBB 7%
NR 3%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.79
---------------------------------------------------
Common Share Net Asset Value $14.24
---------------------------------------------------
Market Yield 5.32%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.60%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.94%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $36,233
---------------------------------------------------
Average Effective Maturity (Years) 21.39
---------------------------------------------------
Leverage-Adjusted Duration 13.83
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 1/01)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 8.61% 8.81%
---------------------------------------------------
Since Inception 9.34% 5.20%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 22%
---------------------------------------------------
Education and Civic Organizations 19%
---------------------------------------------------
Utilities 11%
---------------------------------------------------
Tax Obligation/Limited 10%
---------------------------------------------------
Housing/Single Family 10%
---------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
6/01 0.07
7/01 0.07
8/01 0.07
9/01 0.07
10/01 0.07
11/01 0.07
12/01 0.07
1/02 0.07
2/02 0.07
3/02 0.07
4/02 0.07
5/02 0.07
[LINE CHART]
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
6/1/01 15.4
15.56
15.79
15.57
15.77
15.58
15.64
15.69
15.7
15.8
15.95
15.9
15.88
16.03
15.98
15.92
15.45
15.97
16
15.71
15.95
15.72
16
15.95
15.91
15.91
16
16.04
15.87
15.72
15.8
15.98
16.1
16.26
16.46
16.1
16.6
16.36
16.34
15.92
15.59
15.25
14.91
14.97
14.9
14.9
14.97
15.2
15.5
15.68
15.54
15.7
5/31/02 15.79
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
6
Nuveen Connecticut Dividend Advantage Municipal Fund 2
Performance
Overview As of May 31, 2002
NGK
[PIE CHART]
AAA/U.S. GUARANTEED 73%
AA 20%
A 4%
BBB 3%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.05
---------------------------------------------------
Common Share Net Asset Value $14.48
---------------------------------------------------
Market Yield 5.50%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.86%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.21%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $33,408
---------------------------------------------------
Average Effective Maturity (Years) 21.66
---------------------------------------------------
Leverage-Adjusted Duration 15.21
---------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 3/02)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
Since Inception 0.79% 1.53%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/General 38%
---------------------------------------------------
Education and Civic Organizations 25%
---------------------------------------------------
Tax Obligation/Limited 13%
---------------------------------------------------
Utilities 8%
---------------------------------------------------
U.S. Guaranteed 6%
---------------------------------------------------
THE FUND PAID ITS FIRST REGULAR MONTHLY DIVIDEND OF $0.069 PER SHARE ON JUNE 3,
2002.
[LINE CHART]
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/29/02 15.1
15.02
15.01
15.01
15.05
15.05
15.1
15.2
15.1
5/31/02 15.05
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33%.
7
Nuveen Georgia Premium Income Municipal Fund
Performance
Overview As of May 31, 2002
NPG
[PIE CHART]
AAA/U.S. GUARANTEED 67%
AA 12%
A 12%
BBB 9%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.83
---------------------------------------------------
Common Share Net Asset Value $14.31
---------------------------------------------------
Market Yield 5.42%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.74%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.21%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $53,909
---------------------------------------------------
Average Effective Maturity (Years) 21.71
---------------------------------------------------
Leverage-Adjusted Duration 11.11
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 5/93)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 8.98% 7.32%
---------------------------------------------------
5-Year 8.43% 6.81%
---------------------------------------------------
Since Inception 6.28% 6.05%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Healthcare 26%
---------------------------------------------------
Housing/Multifamily 15%
---------------------------------------------------
Water and Sewer 14%
---------------------------------------------------
Utilities 10%
---------------------------------------------------
Basic Materials 9%
---------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
6/01 0.0665
7/01 0.0665
8/01 0.0665
9/01 0.068
10/01 0.068
11/01 0.068
12/01 0.07
1/02 0.07
2/02 0.07
3/02 0.0715
4/02 0.0715
5/02 0.0715
[LINE CHART]
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/01 15.35
15.38
15.38
15.25
15
15.16
15.21
15.25
15.46
15.49
15.42
15.55
15.59
15.46
15.46
15.43
15.03
14.95
15.03
15.02
15.15
15.22
15.52
15.35
15.21
15.2
15.21
15.27
15.5
15.56
15.54
15.53
15.41
15.53
15.52
15.67
15.82
15.86
15.93
15.86
15.82
15.57
15.4
15.32
15.36
15.25
15.48
15.5
15.47
15.65
15.75
15.8
5/31/02 15.83
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 34%.
2 The Fund also paid shareholders a net ordinary income distribution in December
2001 of $0.0189 per share.
8
Nuveen Georgia Dividend Advantage Municipal Fund
Performance
Overview As of May 31, 2002
NZX
[PIE CHART]
AAA/U.S. GUARANTEED 66%
AA 15%
A 14%
BBB 5%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $14.74
---------------------------------------------------
Common Share Net Asset Value $14.00
---------------------------------------------------
Market Yield 5.41%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.73%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.20%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $27,381
---------------------------------------------------
Average Effective Maturity (Years) 25.26
---------------------------------------------------
Leverage-Adjusted Duration 16.50
---------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 9/01)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
Since Inception 1.42% 1.02%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Education and Civic Organizations 18%
---------------------------------------------------
Healthcare 18%
---------------------------------------------------
Tax Obligation/Limited 17%
---------------------------------------------------
Water and Sewer 15%
---------------------------------------------------
Housing/Single Family 11%
---------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
11/01 0.0665
12/01 0.0665
1/02 0.0665
2/02 0.0665
3/02 0.0665
4/02 0.0665
5/02 0.0665
[LINE CHART]
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/28/01 15.1
15.01
15.04
15.01
15.11
15.19
15.12
15.12
15.13
15.05
15.3
14.92
14.9
14.69
14.7
14.85
14.94
14.99
15.25
15.25
15.15
15.03
15
15
14.97
14.65
14.65
14.32
14.35
14.83
15.04
14.75
14.65
14.75
14.6
5/31/02 14.74
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 34%.
9
Nuveen Massachusetts Premium Income Municipal Fund
Performance
Overview As of May 31, 2002
NMT
[PIE CHART]
AAA/U.S. GUARANTEED 68%
AA 9%
A 16%
BBB 5%
NR 2%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.70
---------------------------------------------------
Common Share Net Asset Value $14.48
---------------------------------------------------
Market Yield 5.35%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.64%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.05%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $67,856
---------------------------------------------------
Average Effective Maturity (Years) 17.21
---------------------------------------------------
Leverage-Adjusted Duration 9.62
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 3/93)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 8.04% 7.51%
---------------------------------------------------
5-Year 6.91% 6.54%
---------------------------------------------------
Since Inception 6.16% 6.20%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
U.S. Guaranteed 24%
---------------------------------------------------
Education and Civic Organizations 20%
---------------------------------------------------
Housing/Multifamily 20%
---------------------------------------------------
Healthcare 15%
---------------------------------------------------
Tax Obligation/General 8%
---------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
6/01 0.068
7/01 0.068
8/01 0.068
9/01 0.069
10/01 0.069
11/01 0.069
12/01 0.07
1/02 0.07
2/02 0.07
3/02 0.07
4/02 0.07
5/02 0.07
[LINE CHART]
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/01 15.33
15.32
15.26
15.2
15.24
15.43
15.33
15.4
15.4
15.6
15.7
15.89
15.85
15.91
16.05
16.05
15.45
15.35
15.65
15.58
15.84
15.68
15.8
15.86
15.83
15.94
16.02
15.88
15.7
15.76
15.67
15.51
15.59
15.76
15.83
15.83
15.73
15.9
15.85
16.04
15.9
15.71
15.25
14.95
14.99
15.1
15.3
15.46
15.65
15.71
15.9
15.56
5/31/02 15.7
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33.5%.
10
Nuveen Massachusetts Dividend Advantage Municipal Fund
Performance
Overview As of May 31, 2002
NMB
[PIE CHART]
AAA/U.S. GUARANTEED 66%
AA 17%
A 6%
BBB 11%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.95
---------------------------------------------------
Common Share Net Asset Value $14.16
---------------------------------------------------
Market Yield 5.49%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.84%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.26%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $27,519
---------------------------------------------------
Average Effective Maturity (Years) 25.47
---------------------------------------------------
Leverage-Adjusted Duration 13.67
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 1/01)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 14.15% 8.46%
---------------------------------------------------
Since Inception 10.59% 5.02%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Education and Civic Organizations 19%
---------------------------------------------------
Tax Obligation/General 15%
---------------------------------------------------
Transportation 13%
---------------------------------------------------
Healthcare 11%
---------------------------------------------------
Water and Sewer 10%
---------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
6/01 0.073
7/01 0.073
8/01 0.073
9/01 0.073
10/01 0.073
11/01 0.073
12/01 0.073
1/02 0.073
2/02 0.073
3/02 0.073
4/02 0.073
5/02 0.073
[LINE CHART]
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/01 14.78
14.91
14.82
14.89
14.81
14.98
14.93
14.88
14.99
15.04
15.17
15.38
15.65
15.66
15.51
15.57
15.25
15.15
15.5
15.53
15.48
15.42
15.49
15.79
15.55
15.63
15.49
15.62
15.2
15.08
15.22
15.47
15.54
15.6
15.36
15.5
15.2
15.2
15.31
15.36
15.51
15.32
15.57
15.7
15.74
15.72
15.78
15.8
15.92
15.9
15.9
15.85
5/31/02 15.95
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 33.5%.
11
Nuveen Missouri Premium Income Municipal Fund
Performance
Overview As of May 31, 2002
NOM
[PIE CHART]
AAA/U.S. GUARANTEED 69%
AA 11%
A 3%
BBB 5%
NR 11%
OTHER 1%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.41
---------------------------------------------------
Common Share Net Asset Value $14.35
---------------------------------------------------
Market Yield 5.41%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.73%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.20%
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $31,619
---------------------------------------------------
Average Effective Maturity (Years) 16.12
---------------------------------------------------
Leverage-Adjusted Duration 9.53
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 5/93)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 14.11% 8.65%
---------------------------------------------------
5-Year 9.08% 6.66%
---------------------------------------------------
Since Inception 5.82% 5.73%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Healthcare 19%
---------------------------------------------------
U.S. Guaranteed 18%
---------------------------------------------------
Tax Obligation/General 18%
---------------------------------------------------
Tax Obligation/Limited 15%
---------------------------------------------------
Education and Civic Organizations 11%
---------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
6/01 0.0655
7/01 0.0655
8/01 0.0655
9/01 0.0665
10/01 0.0665
11/01 0.0665
12/01 0.0675
1/02 0.0675
2/02 0.0675
3/02 0.0695
4/02 0.0695
5/02 0.0695
[LINE CHART]
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/01 14.25
14.27
14.29
14.3
14.39
14.42
14.59
14.6
14.7
14.82
14.82
14.93
15
15.05
15.09
15.09
14.87
14.98
15.24
15.08
15.08
15.1
15.21
15.33
15.3
15.35
15.3
15.3
15.26
15.07
15.08
15.07
15.12
15.19
15.37
15.29
15.41
15.3
15.25
15.25
15.56
15.52
15.45
15.45
15.3
15.25
15.21
15.45
15.5
15.5
15.41
15.55
5/31/02 15.41
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30%. The rate shown for federal and state highlights the added value of owning
shares that are also exempt from state income taxes. It is based on a combined
federal and state income tax rate of 34%.
12
V1
THE NUVEEN
INVESTOR
PHOTO OF: 2 boys
Bond surveillance -
a HIGH PRIORITY at NUVEEN
The Enron scandal has raised numerous questions about the real value of American
securities. Investors want to know what safeguards are in place to inspire their
trust and ensure their holdings are dependable. The Nuveen Investor recently
spoke with David Blair, Assistant Vice President and Senior Analyst at Nuveen,
about the research and surveillance processes used for Nuveen funds.
HOW DO NUVEEN'S RESEARCH ANALYSTS EVALUATE BONDS PRIOR TO PURCHASE?
We evaluate factors impacting market sectors, issuers and specific bonds and
assign credit ratings to bonds we consider for purchase. We seek to purchase
bonds with stable and improving credit characteristics, which have attractive
prices and yields relative to other bonds in their sectors.
HOW DO YOU CONDUCT YOUR RESEARCH?
We conduct detailed analyses that often involve site visits and discussions with
managers of the projects being financed. Since Nuveen is a major investor with
large buying power, issuers and project managers are willing to listen to us and
respond to our concerns.
IS THE RESEARCH AND ANALYSIS PROCESS ANY DIFFERENT WHEN CONSIDERING HIGH-YIELD
BONDS?
Up to 20 percent of some funds can be invested in below investment grade bonds
to help the fund attain a higher yield. This underscores the need for research.
If one of our 16 analysts believes a high-yield bond should be purchased, a
second analyst reviews the issue as well.
HOW DO YOU MONITOR THE VARIOUS BONDS ONCE THEY'VE BEEN PURCHASED?
We have a proprietary database with information and analysis on the bonds Nuveen
holds in its funds. Among other things, we are able to evaluate risk exposure to
sectors, issuers and specific bonds on an on-going basis.
HOW DOES THE RESEARCH DEPARTMENT COMMUNICATE THE INFORMATION GATHERED?
We conduct biweekly meetings within the research department and weekly meetings
with portfolio managers. We also write-up our findings and distribute them with
"buy," "hold" or "sell" recommendations to portfolio managers.
(continued on page 15)
Volume one 2002
INSIDE
13 Bond Surveillance -
A High Priority at Nuveen
14 Is it Time to Rethink
Your Bond Strategy?
15 Many Investors Continue
to Find Solutions with Professional Advice
16 Fund Reports
Available Online
16 ETFConnect:
The Source for All Exchange-Traded Funds
(C)2002 Nuveen Investments.
All rights reserved.
LOGO: NUVEEN INVESTMENTS
13
V1
IS IT TIME TO RETHINK YOUR BOND STRATEGY?
Significant stock market losses in recent history have sent many investors
toward bonds as a way to potentially cut their losses and balance equity-
dominated portfolios. While many consider bonds a set-and-forget investment,
there are several circumstances that might prompt you to reassess -- and perhaps
revamp -- your bond holdings.
TAX BRACKET CHANGES
The Economic Growth and Tax Relief Reconciliation Act of 2001 has dropped tax
brackets a percentage point this year, but a higher salary, large bonus, sale of
assets or retirement may push you into a higher tax bracket for 2002.
If you are in a higher tax bracket and want to generate an income stream without
raising your tax burden, tax-free municipal bonds may be a prudent option. Even
if you are in a lower tax bracket, municipal bonds could make sense. The
question is whether municipal or taxable bonds will deliver a better taxable
yield.
RETIREMENT PLANS CHANGE
Whether you are near retirement or are currently enjoying it, you may want to
consider rebalancing your retirement accounts with less stock and more bonds, to
potentially reduce risk and try to preserve the assets that you have
accumulated. If you are just entering retirement you may want to make tax-free
municipal bonds a part of your portfolio to emphasize income generation and
protection from taxation.
RISK TOLERANCE CHANGES
The recent market volatility and market downturn may have caused many investors
to reevaluate their tolerance for risk. On the other hand, your portfolio might
have performed well over the last few years and you may not need to take on
extra risk to meet your long-term goals. In either situation you could take a
look at your bond portfolio and determine whether you need to make changes to
correspond with your tolerance for risk.
PORTFOLIO CHANGES
If you make significant changes to one or more of your investments, you'll want
to look at your portfolio as a whole, particularly with regard to overall asset
allocation. You may need to do some rebalancing to stay on track with your
investment strategy.
Your financial advisor can help. Regardless of how your circumstances change, he
or she can provide up-to-date information on the bond market and various funds
to help you decide how to maximize your returns consistent with your short- and
long-term financial goals.
No investment is risk free and some investments carry more risk than others. It
is important to know what the risks are, to evaluate them against any potential
rewards, and to determine your tolerance for risk when selecting an investment.
PHOTO OF: lighthouse
photo of: 2 children
THE NUVEEN INVESTOR VOL 02.1
LOGO: Nuveen Investments
14
photo: clouds
photo: woman and girl
V1
MANY INVESTORS CONTINUE
TO FIND SOLUTIONS WITH
PROFESSIONAL ADVICE
For many investors, current financial markets are confusing and frustrating.
According to research conducted for the Forum for Investor Advice*, that's the
number one reason many turn to a financial advisor. They want someone to suggest
ideas and provide consultation, dialogue and professional advice.
Investors say their advisors are helpful in other key ways, including...
o Saving time. After consultation, investors note that the second most
important reason for using an advisor is to have someone else monitor their
portfolio, reducing the amount of time they spend on investing.
o Help in sorting through information. Investors in the 21st century have more
products from which to choose than in the past. For example, there are
approximately 8,000 mutual funds today, up from 3,000 in 1990.
o Assistance in setting financial goals. According to investors who use a
financial advisor, they are more likely to have a plan for a specific
financial goal than do-it-yourself investors.
o Staying focused. Advisor-assisted investors are more likely than
do-it-yourself investors to have developed a comprehensive investment
program.
o Peace of mind. Investors say their comfort level in all types of markets is
higher when using an advisor for a "second opinion" on an investment
decision.
*The survey of 324 investors was conducted in December of 2000 by Market Facts
and analyzed by New York based Neuwirth Research. Of the 324, 166 said they had
an ongoing relationship with a financial advisor, while 157 described themselves
as do-it-yourselfers.
(continued from page 13)
HOW ARE PROBLEM BONDS IDENTIFIED AND HANDLED?
We conduct surveillance on our bonds on a regular basis to ensure, among other
things, that deteriorating bonds are identified early. We then discuss any
emerging problems and potential courses of action with the portfolio manager.
HOW MANY ISSUES DOES THE RESEARCH DEPARTMENT FOLLOW?
We follow 12 sectors and 1,500 uninsured bonds, worth about $18 billion of
Nuveen's $45 billion in total municipal assets. The remaining $27 billion in
municipal assets are insured or escrowed (backed by Treasury bonds). For the
insured bonds, we monitor closely on a regular basis the insurers guaranteeing
the bonds.
WILL RESEARCH AND SURVEILLANCE CHANGE IN LIGHT OF PROBLEMS WITH ENRON
SECURITIES?
Overall, our investment process and surveillance have worked well and been
effective. However, we meet as a group on a regular basis and are constantly
evaluating ways to improve the process to respond to issues and the market
environment.
The Nuveen Investor VOL 02.1
LOGO: Nuveen Investments
15
LOOK AHEAD...
FUND REPORTS
AVAILABLE
ONLINE
V1
photo of 2 web pages
Nuveen Fund information is now available online. Once you register, you'll
receive an e-mail notice with a link to your Fund's reports and other
information just as soon as it is ready. Registering takes only a few minutes.
If you receive statements from a brokerage firm or financial advisor, go to
WWW.INVESTORDELIVERY.COM. Enter your personal 13-character enrollment number
imprinted on the address sheet of this report near your name. From the options
on the follow-up page, select the New Enrollment-Create screen. Once there,
enter your e-mail address and a personal, four-digit PIN. Hit the Submit button.
Confirm the information you entered is correct, then hit Submit again.
If you receive statements directly from Nuveen, go to WWW.NUVEEN.COM. Select the
Access Your Account tab, then select E-Report Enrollment. Finally, click on the
Enrollment Page. Once there, you'll need to provide your social security number
and e-mail address. Click on Enroll.
After registering, you should receive a confirming e-mail within 24 hours. If
not, repeat these steps to ensure all information is accurate. You can use this
same process if you need to change your registration information or want to
cancel Internet viewing. The e-mail address you provide is strictly confidential
and will only be used to notify you of shareholder information.
The information in this newsletter should not be construed as specific tax or
investment advice. Contact your advisor for information about your particular
situation.
ETFCONNECT:
THE SOURCE FOR ALL
EXCHANGE-TRADED FUNDS
Last fall, Nuveen launched ETFConnect, the industry's first website featuring
all-encompassing information on exchanged-traded funds. Whatever you're looking
for in the world of Index ETFs or Closed-End Exchange-Traded Funds - prices,
NAVs, dividend information, performance histories, new developments - this is
the place. Highlights include Quick Facts sheets for more than 500 funds, a
multi-fund search capability, website links, a list of fund sponsors, tools for
portfolio tracking, and a continually updated education center. Check out
WWW.ETFCONNECT.COM.
photo of web pages
The Nuveen Investor Vol 02.1
Logo: NUVEEN Investments
16
Report of
Independent Auditors
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 GEORGIA PREMIUM INCOME MUNICIPAL FUND
NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND
NUVEEN MASSACHUSETTS DIVIDEND 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 Georgia Premium Income Municipal
Fund, Nuveen Georgia Dividend Advantage Municipal Fund, Nuveen Massachusetts
Premium Income Municipal Fund, Nuveen Massachusetts Dividend Advantage Municipal
Fund and Nuveen Missouri Premium Income Municipal Fund as of May 31, 2002, and
the related statements of operations, changes in net assets and the financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of May 31, 2002, by correspondence with the custodian and brokers or by
other appropriate alternative auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Nuveen
Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend Advantage
Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund 2, Nuveen
Georgia Premium Income Municipal Fund, Nuveen Georgia Dividend Advantage
Municipal Fund, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen
Massachusetts Dividend Advantage Municipal Fund and Nuveen Missouri Premium
Income Municipal Fund at May 31, 2002, and the results of their operations,
changes in their net assets and their financial highlights for the periods
indicated therein in conformity with accounting principles generally accepted in
the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
July 12, 2002
17
Nuveen Connecticut Premium Income Municipal Fund (NTC)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9%
$ 1,415 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 Aa3 $1,445,621
Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 31.6%
Connecticut Higher Education Supplemental Loan Authority,
Revenue Bonds (Family Education Loan Program), 1996 Series A:
1,215 5.800%, 11/15/14 (Alternative Minimum Tax) 11/06 at 102.00 AAA 1,280,355
780 5.875%, 11/15/17 (Alternative Minimum Tax) 11/06 at 102.00 AAA 812,877
830 Connecticut Higher Education Supplemental Loan Authority, 11/09 at 102.00 AAA 880,987
Revenue Bonds (Family Education Loan Program), 1999 Series A,
6.000%, 11/15/18
995 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aaa 999,756
Bonds (Family Education Loan Program), 2001 Series A,
5.250%, 11/15/18 (Alternative Minimum Tax)
1,540 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102.00 BBB 1,540,123
Revenue Bonds (Quinnipiac College Issue), Series D,
6.000%, 7/01/23
2,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 AAA 2,125,160
Revenue Bonds (Trinity College Issue), Series E, 5.875%, 7/01/26
1,500 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 AAA 1,550,520
Revenue Bonds (The Loomis Chaffee School Issue), Series C,
5.500%, 7/01/16
1,800 State of Connecticut Health and Educational Facilities Authority, 7/08 at 102.00 AAA 1,789,488
Revenue Bonds (Fairfield University Issue), Series H,
5.000%, 7/01/23
2,920 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102.00 AAA 3,033,384
Revenue Bonds (Connecticut College Issue), Series C-1,
5.500%, 7/01/20
1,250 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 AAA 1,262,988
Revenue Bonds (Fairfield University), Series I, 5.250%, 7/01/25
750 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 775,823
Revenue Bonds (The Horace Bushnell Memorial Hall Issue),
Series A, 5.625%, 7/01/29
500 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 489,840
Revenue Bonds (Trinity College), Series 2001G, 5.000%, 7/01/31
650 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 672,081
Revenue Bonds (Loomis Chaffee School), Series D, 5.500%, 7/01/23
450 State of Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 440,618
Revenue Bonds (Greenwich Academy), 2001 Series B,
5.000%, 3/01/32
2,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,976,060
Revenue Bonds (University of Hartford Issue), 2002 Series E,
5.250%, 7/01/32
500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 499,485
Revenue Bonds (Yale University Issue), 2002 Series W,
5.125%, 7/01/27
3,060 University of Connecticut, Student Fee Revenue Bonds, 11/08 at 101.00 AAA 2,888,212
1998 Series A, 4.750%, 11/15/27
1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AAA 1,035,260
2002 Series A, 5.250%, 11/15/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.1%
1,000 State of Connecticut Health and Educational Facilities Authority, 7/04 at 102.00 AAA 1,086,310
Revenue Bonds (Newington Children's Hospital), Series A,
6.050%, 7/01/10
1,595 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102.00 AAA 1,631,494
Revenue Bonds (St. Francis Hospital and Medical Center Issue),
Series B, 6.200%, 7/01/22
2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 1,959,320
Revenue Bonds (Stamford Hospital Issue), Series G, 5.000%, 7/01/24
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 102.00 AAA $1,035,190
Revenue Bonds (The William W. Backus Hospital Issue), Series D,
5.750%, 7/01/27
3,000 State of Connecticut Health and Educational Facilities Authority, 7/07 at 101.00 Aaa 2,977,680
Revenue Refunding Bonds (Middlesex Health Services Issue),
Series 1997H, 5.125%, 7/01/27
2,000 State of Connecticut Health and Educational Facilities Authority, 7/10 at 101.00 AA 2,127,220
Revenue Bonds (Eastern Connecticut Health Network Issue),
Series A, 6.000%, 7/01/25
2,000 Connecticut Development Authority, Solid Waste Disposal Facilities 7/05 at 102.00 AAA 2,211,740
Revenue Bonds (Pfizer, Inc. Project), Series 1994,
7.000%, 7/01/25 (Alternative Minimum Tax)
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 8/05 at 101.50 AAA 1,575,855
Environmental Control Facilities Financing Authority, Hospital
Revenue Refunding Bonds (FHA-Insured Mortgage - Pila
Hospital Project), 1995 Series A, 6.125%, 8/01/25
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.7%
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 12/09 at 100.00 AAA 1,042,000
Program Bonds, 1999 Series D2, 6.200%, 11/15/41 (Alternative
Minimum Tax)
1,000 Housing Authority of the City of Waterbury, Connecticut, Mortgage 7/02 at 100.00 AAA 1,000,110
Refunding Revenue Bonds (FHA-Insured Mortgage Loan -
Waterbury NSA-II Section 8 Assisted Project), Series 1998C,
5.450%, 7/01/23
965 Waterbury Nonprofit Housing Corporation, Connecticut, Taxable 7/02 at 101.00 AAA 975,740
Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage
Loan - Fairmont Height Section 8 Assisted Project), Series 1993A,
6.500%, 7/01/07
1,920 Housing Authority of the City of Willimantic, Connecticut, 10/05 at 105.00 AAA 2,100,730
Multifamily Housing Revenue Bonds (GNMA Collateralized
Mortgage Loan - Village Heights Apartments Project),
Series 1995A, 8.000%, 10/20/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.0%
3,175 Connecticut Housing Finance Authority, Housing Mortgage 5/03 at 102.00 AAA 3,295,872
Finance Program Bonds, 1993 Series B, 6.200%, 5/15/12
2,000 Connecticut Housing Finance Authority, Housing Mortgage 11/06 at 102.00 AAA 2,078,580
Finance Program Bonds, 1996 Series E (Subseries E-2),
6.150%, 11/15/27 (Alternative Minimum Tax)
225 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 236,063
Program Bonds, 2000 Series A (Subseries A-1), 6.000%, 11/15/28
500 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 497,510
Program Bonds, 2001 Series A-1, 5.250%, 11/15/28
525 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/10 at 100.00 AAA 524,213
Program Bonds, 2001 Series A (Subseries A-2), 5.450%, 5/15/32
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 983,430
Program Bonds, 2001 Series C, 5.300%, 11/15/33 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 10.1%
1,300 State of Connecticut Health and Educational Facilities Authority, 8/08 at 102.00 AAA 1,290,458
Revenue Bonds (Hebrew Home and Hospital Issue) (FHA-Insured
Mortgage), Series B, 5.200%, 8/01/38
2,000 State of Connecticut Health and Educational Facilities Authority, 11/03 at 102.00 AAA 2,080,000
Revenue Bonds (Nursing Home Program Issue) (Mansfield Center
for Nursing and Rehabilitation Project), Series 1993, 5.875%,
11/01/12
615 Connecticut Development Authority, First Mortgage Gross Revenue 9/09 at 102.00 AA 651,279
Healthcare Project Refunding Bonds (Connecticut Baptist Homes,
Inc. Project), Series 1999, 5.500%, 9/01/15
Connecticut Development Authority, Revenue Refunding Bonds
(Duncaster Inc. Project), Series 1999A:
1,000 5.250%, 8/01/19 2/10 at 102.00 AA 1,011,900
1,000 5.375%, 8/01/24 2/10 at 102.00 AA 1,004,230
Connecticut Development Authority, Health Facility Refunding
Revenue Bonds (Alzheimer's Resource Center of Connecticut, Inc.
Project), Series 1994A:
695 6.875%, 8/15/04 No Opt. Call N/R 694,555
1,000 7.000%, 8/15/09 8/04 at 102.00 N/R 999,850
19
Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued)
Portfolio of Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.9%
$ 1,500 City of Bridgeport, Connecticut, General Obligation Bonds, 2000 7/10 at 101.00 AAA $1,643,250
Series A, 6.000%, 7/15/19
Town of Cheshire, Connecticut, General Obligation Bonds, Issue of 1999:
660 5.625%, 10/15/16 10/09 at 101.00 Aa3 711,513
660 5.625%, 10/15/17 10/09 at 101.00 Aa3 708,074
1,000 State of Connecticut, General Obligation Bonds, Series 1999B, 11/09 at 101.00 AA 1,059,550
5.500%, 11/01/18
1,960 State of Connecticut, General Obligation Bonds, Series 1993E, No Opt. Call AA 2,249,982
6.000%, 3/15/12
1,500 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,566,495
5.375%, 4/15/19
1,650 State of Connecticut, General Fund Obligation Bonds, Issued by the 10/04 at 102.00 AA 1,811,403
Connecticut Development Authority, Series 1994A,
6.375%, 10/15/14
1,000 City of Hartford, Connecticut, General Obligation Bonds, 6/10 at 102.00 AAA 1,057,270
5.500%, 6/15/20
400 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A 411,112
Series 2000A, 6.000%, 6/01/20
Regional School District No. 16, Towns of Beacon Falls and Prospect,
Connecticut, General Obligation Bonds, Issue of 2000:
350 5.500%, 3/15/18 3/10 at 101.00 Aaa 374,493
350 5.625%, 3/15/19 3/10 at 101.00 Aaa 376,765
350 5.700%, 3/15/20 3/10 at 101.00 Aaa 376,464
1,000 City of Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,056,230
Series 2002A, 5.375%, 4/01/17
965 City of Waterbury, Connecticut, General Obligation Tax Revenue 2/09 at 101.00 AA 1,015,402
Intercept Bonds, 2000 Issue, 6.000%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.2%
1,900 Capitol Region Education Council, Connecticut, Revenue Bonds, 10/05 at 102.00 BBB 2,017,705
6.700%, 10/15/10
2,000 State of Connecticut Health and Educational Facilities Authority, 7/09 at 102.00 AAA 2,076,220
Revenue Bonds, Child Care Facilities Program, Series C,
5.625%, 7/01/29
1,000 State of Connecticut, Special Tax Obligation Bonds, Transportation 12/09 at 101.00 AAA 1,065,290
Infrastructure Purposes, 1999 Series A, 5.625%, 12/01/19
1,700 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 2,003,178
Infrastructure Purposes, 1991 Series B, 6.500%, 10/01/10
1,000 State of Connecticut, Second Injury Fund Special Assessment 1/11 at 101.00 AAA 1,071,090
Revenue Bonds, Series 2000A, 5.250%, 1/01/14
1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101.00 BBB- 1,078,310
Islands Gross Receipts Tax Loan Note), Series 1999A,
6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.3%
750 State of Connecticut, General Airport Revenue Bonds (Bradley 4/11 at 101.00 AAA 731,318
International Airport), Series 2001A, 5.125%, 10/01/26
(Alternative Minimum Tax)
2,075 State of Connecticut, Airport Revenue Refunding Bonds (Bradley 10/04 at 100.00 AAA 2,305,387
International Airport), Series 1992, 7.650%, 10/01/12
1,000 City of Hartford, Connecticut, Parking System Revenue Bonds, 7/10 at 100.00 BBB 1,031,070
2000 Series A, 6.400%, 7/01/20
1,500 City of New Haven, Connecticut, Air Rights Parking Facility Revenue 6/02 at 102.00 AAA 1,534,725
Bonds, Series 1991, 6.500%, 12/01/15 (Pre-refunded to 6/24/02)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.8%
40 State of Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA*** 45,918
6.000%, 3/15/12
1,600 State of Connecticut Health and Educational Facilities Authority, 7/03 at 102.00 Baa3*** 1,697,728
Revenue Bonds (Sacred Heart University Issue), Series B,
5.700%, 7/01/16 (Pre-refunded to 7/01/03)
20 State of Connecticut Health and Educational Facilities Authority, 7/02 at 102.00 AAA 20,474
Revenue Bonds (Trinity College Issue), Series C, 6.000%, 7/01/22
(Pre-refunded to 7/01/02)
2,910 State of Connecticut, Health and Educational Facilities Authority, 7/03 at 102.00 BBB*** 3,097,084
Revenue Bonds (Quinnipiac College Issue), Series D,
6.000%, 7/01/23 (Pre-refunded to 7/01/03)
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 2,000 State of Connecticut Health and Educational Facilities Authority, 11/04 at 102.00 AA-*** $2,267,500
Revenue Bonds (Nursing Home Program Issue) (AHF/Hartford,
Inc. Project), Series 1994, 7.125%, 11/01/24 (Pre-refunded to
11/01/04)
1,250 State of Connecticut Health and Educational Facilities Authority, 7/04 at 101.00 AAA 1,384,388
Revenue Bonds (Choate Rosemary Hall Issue), Series A,
7.000%, 7/01/25 (Pre-refunded to 7/01/04)
925 State of Connecticut, Airport Revenue Refunding Bonds (Bradley 10/04 at 100.00 AAA 1,039,099
International Airport), Series 1992, 7.650%, 10/01/12
(Pre-refunded to 10/01/04)
205 South Central Connecticut Regional Water Authority, Water 8/03 at 102.00 AAA 218,466
System Revenue Bonds, Eleventh Series, 5.750%, 8/01/12
(Pre-refunded to 8/01/03)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.4%
1,500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 1,531,935
Refunding Bonds (Connecticut Light and Power Company),
Series 1993A, 5.850%, 9/01/28
2,630 Connecticut Resources Recovery Authority, Resource Recovery 11/02 at 101.50 AAA 2,739,855
Revenue Bonds (American Ref-Fuel Company of Southeastern
Connecticut Project), 1989 Series A, 7.700%, 11/15/11
1,000 Connecticut Resources Recovery Authority, Corporate Credit 12/11 at 102.00 Baa2 980,890
Resource Recovery Revenue Bonds (American Ref-Fuel Company
of Southeastern Connecticut), Series A-I, 5.500%, 11/15/15
(Alternative Minimum Tax)
395 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 368,930
Revenue Bonds (Wheelabrator Lisbon Project), Series 1993A,
5.500%, 1/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.1%
1,400 Connecticut Development Authority, Water Facilities Refunding 6/03 at 102.00 AAA 1,414,000
Revenue Bonds (Bridgeport Hydraulic Company Project),
Series 1993B, 5.500%, 6/01/28
2,500 Connecticut Development Authority, Water Facilities Revenue 9/06 at 102.00 AAA 2,610,474
Bonds (Bridgeport Hydraulic Company Project), Series 1996,
6.000%, 9/01/36 (Alternative Minimum Tax)
1,000 State of Connecticut, Clean Water Fund Revenue Bonds, 10/11 at 100.00 AAA 1,050,170
Series 2001, 5.500%, 10/01/20
1,795 South Central Connecticut Regional Water Authority, Water System 8/03 at 102.00 AAA 1,904,240
Revenue Bonds, Eleventh Series, 5.750%, 8/01/12
------------------------------------------------------------------------------------------------------------------------------------
$ 107,610 Total Investments (cost $107,484,338) - 147.1% 112,273,414
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 2,353,439
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.2)% (38,300,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 76,326,853
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
21
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.5%
$ 685 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 Aa3 $699,823
Bonds, Series 2000, 5.750%, 7/01/20
Guam Economic Development Authority, Asset-Backed Bonds,
Series 2001A:
250 5.000%, 5/15/22 5/11 at 100.00 A2 253,473
500 5.400%, 5/15/31 5/11 at 100.00 A2 514,100
1,270 Guam Economic Development Authority, Asset-Backed Bonds, 5/11 at 100.00 A2 1,248,931
Series 2001B, 5.500%, 5/15/41
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.4%
785 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aaa 788,752
Bonds (Family Education Loan Program), Series 2001A,
5.250%, 11/15/18 (Alternative Minimum Tax)
50 State of Connecticut Health and Educational Facilities Authority, 7/08 at 101.00 AA 47,843
Revenue Bonds (Sacred Heart University Issue), Series E,
5.000%, 7/01/28
500 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- 511,335
Revenue Bonds (University of New Haven Issue), Series D,
6.700%, 7/01/26
100 State of Connecticut Health and Educational Facilities Authority, 7/08 at 102.00 AAA 99,416
Revenue Bonds (Fairfield University Issue), Series H,
5.000%, 7/01/23
2,750 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 2,694,120
Revenue Bonds (Trinity College), Series 2001G, 5.000%, 7/01/31
1,000 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 1,033,970
Revenue Bonds (The Loomis Chaffee School), Series D,
5.500%, 7/01/23
625 State of Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 611,969
Revenue Bonds (Greenwich Academy), Series 2001B,
5.000%, 3/01/32
1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 988,030
Revenue Bonds (University of Hartford Issue), Series 2002E,
5.250%, 7/01/32
500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 499,485
Revenue Bonds (Yale University Issue), Series 2002W,
5.125%, 7/01/27
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control Facilities Financing Authority, Higher Education Revenue
Bonds (Ana G. Mendez University System Project), Series 1999:
125 5.375%, 2/01/19 2/09 at 101.00 BBB 124,581
270 5.375%, 2/01/29 2/09 at 101.00 BBB 261,074
University of Connecticut, General Obligation Bonds, Series 2001A:
1,000 5.250%, 4/01/20 4/11 at 101.00 AA 1,028,160
1,000 4.750%, 4/01/20 4/11 at 101.00 AA 986,560
1,000 4.750%, 4/01/21 4/11 at 101.00 AA 979,700
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 3.1%
125 State of Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 122,458
Revenue Bonds (Stamford Hospital Issue), Series G, 5.000%, 7/01/24
1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,015,400
Revenue Bonds (Bristol Hospital Issue), Series 2002B,
5.500%, 7/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.5%
2,000 Housing Authority of the City of Stamford, Connecticut, Multifamily No Opt. Call A3 1,995,360
Housing Revenue Refunding Bonds (The Fairfield Apartments
Project), Series 1998, 4.750%, 12/01/28 (Mandatory put 12/01/08)
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 14.9%
$ 2,000 Connecticut Housing Finance Authority, Housing Mortgage 11/05 at 102.00 AAA $2,101,960
Finance Program Bonds, 1995 Series F (Subseries F-1),
6.000%, 5/15/17
1,265 Connecticut Housing Finance Authority, Housing Mortgage 5/10 at 100.00 AAA 1,258,700
Finance Program Bonds, 2001 Series A-1, 5.250%, 11/15/28
1,065 Connecticut Housing Finance Authority, Housing Mortgage 5/10 at 100.00 AAA 1,063,403
Finance Program Bonds, 2001 Series A (Subseries A-2),
5.450%, 5/15/32
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 983,430
Program Bonds, 2001 Series C, 5.300%, 11/15/33
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3%
500 Connecticut Development Authority, Health Facility Refunding 8/04 at 102.00 N/R 465,275
Revenue Bonds (Alzheimer's Resource Center of Connecticut,
Inc. Project), Series 1994A, 7.250%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.7%
1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,044,330
5.375%, 4/15/19
Town of East Lyme, Connecticut, General Obligation Bonds:
150 5.000%, 7/15/18 7/11 at 102.00 Aaa 153,008
500 5.125%, 7/15/20 7/11 at 102.00 Aaa 508,885
700 Farmington, Connecticut, General Obligation Bonds, Series 2001, 3/11 at 101.00 Aa1 701,680
4.875%, 3/15/20
Town of Hamden, Connecticut, General Obligation Bonds:
640 5.250%, 8/15/18 8/11 at 102.00 AAA 667,795
635 5.000%, 8/15/19 8/11 at 102.00 AAA 643,934
300 5.000%, 8/15/20 8/11 at 102.00 AAA 301,899
1,000 City of Hartford, Connecticut, General Obligation Bonds, 1/08 at 102.00 AAA 1,013,700
Series 1998, 4.700%, 1/15/15
875 City of New Haven, Connecticut, General Obligation Bonds, 2/08 at 101.00 AAA 884,179
Series 1999, 4.700%, 2/01/15
1,000 City of New Haven, Connecticut, General Obligation Bonds, 11/10 at 101.00 AAA 1,006,300
Series 2001A, 5.000%, 11/01/20
250 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100.00 A 256,945
Bonds, Series 2000A, 6.000%, 6/01/20
Town of Norwich, Connecticut, General Obligation Bonds,
Series 2001A:
585 5.000%, 4/01/15 4/09 at 100.00 Aaa 601,485
245 5.000%, 4/01/16 4/09 at 100.00 Aaa 250,459
575 5.000%, 4/01/17 4/09 at 100.00 Aaa 585,448
475 5.000%, 4/01/18 4/09 at 100.00 Aaa 481,413
575 5.000%, 4/01/19 4/09 at 100.00 Aaa 580,428
275 5.000%, 4/01/20 4/09 at 100.00 Aaa 276,166
1,000 City of Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,056,230
Series 2002A, 5.375%, 4/01/17
Town of Windsor, Connecticut, General Obligation Bonds:
390 5.000%, 7/15/18 7/09 at 100.00 Aa2 396,166
390 5.000%, 7/15/19 7/09 at 100.00 Aa2 394,520
370 5.000%, 7/15/20 7/09 at 100.00 Aa2 372,072
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.5%
1,000 State of Connecticut Health and Educational Facilities Authority, 7/08 at 105.00 A 1,076,390
Revenue Bonds (New Opportunities for Waterbury, Inc. Issue),
Series 1998A, 6.750%, 7/01/28
1,475 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AAA 1,639,994
Infrastructure Purposes, 1998 Series B, 5.500%, 11/01/12
State of Connecticut, Certificates of Participation (Juvenile Training
School), Series 2001:
600 5.000%, 12/15/20 12/11 at 101.00 AA- 602,862
1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 968,240
500 Virgin Islands Public Finance Authority, Revenue and Refunding 10/08 at 101.00 AA 510,510
Bonds (Virgin Islands Matching Fund Loan Notes) (Senior
Lien/Refunding), Series 1998A, 5.500%, 10/01/18
750 Virgin Islands Public Finance Authority, Revenue Bonds 10/10 at 101.00 BBB- 808,530
(Virgin Islands Gross Receipts Tax Loan Note), Series 1999A,
6.375%, 10/01/19
23
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) (continued)
Portfolio of Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.2%
$ 2,500 State of Connecticut, General Airport Revenue Bonds (Bradley 4/11 at 101.00 AAA $2,437,725
International Airport), Series 2001A, 5.125%, 10/01/26
(Alternative Minimum Tax)
1,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 4/11 at 101.00 N/R 906,810
Special Facilities Revenue Bonds (Northwest Airlines, Inc.
Project), Series 2001A, 7.000%, 4/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 8.4%
Puerto Rico Infrastructure Financing Authority, Special Obligation
Bonds, 2000 Series A:
1,425 5.500%, 10/01/32 10/10 at 101.00 AAA 1,482,698
1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,558,005
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.2%
1,500 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 A3 1,531,935
Refunding Bonds (Connecticut Light and Power Company),
Series 1993A, 5.850%, 9/01/28
1,000 Connecticut Resources Recovery Authority, Corporate Credit 12/11 at 102.00 Baa2 980,890
Resource Recovery Revenue Bonds (American Ref-Fuel Company
of Southeastern Connecticut), Series A-I, 5.500%, 11/15/15
(Alternative Minimum Tax)
1,000 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/03 at 102.00 BBB 934,000
Revenue Bonds (Wheelabrator Lisbon Project), Series 1993A,
5.500%, 1/01/14 (Alternative Minimum Tax)
1,975 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,996,942
Series HH, 5.250%, 7/01/29
790 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/05 at 100.00 A- 793,640
Bonds, Series Z, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.8%
2,000 State of Connecticut, Clean Water Fund Revenue Bonds, 10/11 at 100.00 AAA 2,100,340
Series 2001, 5.500%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 54,310 Total Investments (cost $54,593,936) - 151.5% 54,883,861
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 849,445
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.8)% (19,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 36,233,306
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
24
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 34.4%
$ 500 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- $511,335
Revenue Bonds (University of New Haven Issue), Series D,
6.700%, 7/01/26
500 State of Connecticut Health and Educational Facilities Authority, 7/08 at 101.00 AAA 502,455
Revenue Bonds (Hopkins School Issue), Series 1998A,
5.000%, 7/01/20
2,000 State of Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 1,995,460
Revenue Bonds (Loomis Chaffee School), Series D, 5.250%, 7/01/31
1,000 State of Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 979,150
Revenue Bonds (Greenwich Academy), Series 2001B,
5.000%, 3/01/32
1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 988,030
Revenue Bonds (University of Hartford Issue), 2002 Series E,
5.250%, 7/01/32
2,250 State of Connecticut Health and Educational Facilities Authority, 11/11 at 100.00 AAA 2,260,823
Revenue Bonds (Connecticut State University System),
2002 Series D-2, 5.000%, 11/01/21
500 State of Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 499,485
Revenue Bonds (Yale University Issue), 2002 Series W,
5.125%, 7/01/27
University of Connecticut, Student Fee Revenue Refunding Bonds,
Series 2002A:
500 5.250%, 11/15/22 11/12 at 101.00 AAA 509,695
2,000 5.000%, 11/15/29 11/12 at 101.00 AAA 1,948,940
1,230 University of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,284,341
5.375%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 2.9%
1,000 State of Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 983,160
Revenue Bonds (St. Francis Hospital and Medical Center),
Series 2002D, 5.000%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.1%
1,000 Connecticut Housing Finance Authority, Housing Mortgage 11/11 at 100.00 AAA 1,009,900
Finance Program Bonds, 2002 Series A (Subseries A-1),
5.450%, 11/15/28
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/11 at 100.00 AAA 1,012,120
Program Bonds, 2002 Series A (Subseries A-2), 5.600%, 11/15/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 61.2%
1,000 City of Bridgeport, Connecticut, General Obligation Bonds, Series C, 8/11 at 100.00 AAA 1,046,470
5.375%, 8/15/18
395 Town of Colchester, Connecticut, General Obligation Bonds, 6/11 at 102.00 Aaa 433,840
Series 2001, 5.500%, 6/15/14
2,000 State of Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,225,840
5.500%, 12/15/12
1,000 State of Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,044,330
5.375%, 4/15/19
East Hartford, Connecticut, General Obligation Bonds, Series 2002:
750 4.875%, 5/01/20 5/10 at 100.00 Aaa 747,930
750 5.000%, 5/01/21 5/10 at 100.00 Aaa 752,640
750 5.000%, 5/01/22 5/10 at 100.00 Aaa 750,698
2,105 Fairfield, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 2,173,391
5.000%, 4/01/16
Farmington, Connecticut, General Obligation Bonds, Series 2002:
1,450 5.000%, 9/15/20 9/12 at 101.00 Aa1 1,462,499
1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,457,178
1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,306,644
Obligation Bonds, Series 2002, 5.000%, 4/01/22
1,000 Commonwealth of Puerto Rico, General Obligation Public 7/11 at 100.00 AAA 1,002,840
Improvement Refunding Bonds, Series 2001, 5.125%, 7/01/30
25
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) (continued)
Portfolio of Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Regional School District No. 008, Towns of Andover, Hebron and
Marlborough, Tolland County, Connecticut, General Obligation
Bonds, Series 2002:
$ 1,390 5.000%, 5/01/20 5/11 at 101.00 Aaa $1,400,217
1,535 5.000%, 5/01/22 5/11 at 101.00 Aaa 1,536,719
2,105 City of Stamford, Connecticut, General Obligation Bonds, 8/12 at 100.00 AAA 2,175,433
Series 2002, 5.000%, 8/15/16
City of Waterbury, Connecticut, General Obligation Bonds,
Series 2002A:
500 5.375%, 4/01/17 4/12 at 100.00 AAA 528,115
400 5.000%, 4/01/20 4/12 at 100.00 AAA 401,668
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.3%
1,625 State of Connecticut, Special Tax Obligation Bonds, Transportation 7/12 at 100.00 AAA 1,686,425
Infrastructure Purposes, 2002 Series A, 5.375%, 7/01/20 (WI,
settling 6/06/02)
500 State of Connecticut, Special Tax Obligation Bonds, Transportation 10/11 at 100.00 AAA 542,335
Infrastructure Purposes, 2001 Series B, 5.375%, 10/01/13
500 State of Connecticut, Special Tax Obligation Bonds, Transportation 11/07 at 101.00 AAA 514,485
Infrastructure Purposes, 1997 Series A, 5.000%, 11/01/15
2,250 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 AAA 2,222,303
Revenue Bonds, Series D, 5.000%, 7/01/32
2,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call AAA 2,155,940
Bonds, 2002 Series E, 5.500%, 8/01/27
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.4%
1,950 City of New Haven, Connecticut, Air Rights Parking Facility Revenue 12/12 at 101.00 AAA 2,124,330
Refunding Bonds, Series 2002, 5.375%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.3%
Puerto Rico Infrastructure Financing Authority, Special Obligation
Bonds, 2000 Series A:
1,000 5.500%, 10/01/32 10/10 at 101.00 AAA 1,040,490
2,000 5.500%, 10/01/40 10/10 at 101.00 AAA 2,077,340
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.4%
1,000 Connecticut Resources Recovery Authority, Corporate Credit Resource 12/11 at 102.00 Baa2 980,890
Recovery Revenue Bonds (America Ref-Fuel Company of
Southeastern Connecticut), Series A-II, 5.500%, 11/15/15
(Alternative Minimum Tax)
1,650 Guam Power Authority, Revenue Bonds, 1999 Series A, 10/09 at 101.00 AAA 1,647,476
5.125%, 10/01/29
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,516,664
Series HH, 5.250%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
$ 50,340 Total Investments (cost $50,750,616) - 154.0% 51,440,024
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 5.7%
$ 1,900 Connecticut Health and Educational Facilities Authority, Revenue VMIG-1 1,900,000
============= Bonds, Yale University Issue, Variable Rate Demand Bonds,
Series 1997, 1.500%, 07/01/29+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (7.3)% (2,432,055)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (17,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,407,969
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but
has variable rate and demand features which qualify
it as a short-term security. The rate disclosed is
that currently in effect. This rate changes
periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
26
Nuveen Georgia Premium Income Municipal Fund (NPG)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 13.7%
$ 2,500 Effingham County Industrial Development Authority, Georgia, Pollution 6/11 at 101.00 BBB- $2,319,550
Control Revenue Refunding Bonds (Georgia-Pacific Project),
Series 2001, 6.500%, 6/01/31
5,000 Richmond County Development Authority, Georgia, Environmental 2/11 at 101.00 BBB 5,053,750
Improvement Revenue Bonds (International Paper Company
Project), Series 2001A, 6.250%, 2/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.8%
2,000 Development Authority of Cartersville, Georgia, Sewage Facilities 5/07 at 101.00 A+ 2,068,620
Refunding Revenue Bonds (Anheuser-Busch Project), Series 1997,
6.125%, 5/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.1%
Urban Residential Finance Authority of the City of Atlanta,
Georgia, Dormitory Facility Refunding Revenue Bonds (Morehouse
College Project), Series 1995:
1,210 5.750%, 12/01/20 12/05 at 102.00 AAA 1,271,250
1,375 5.750%, 12/01/25 12/05 at 102.00 AAA 1,432,434
1,555 Development Authority of DeKalb County, Georgia, Revenue Bonds 10/04 at 102.00 Aa1 1,683,334
(Emory University Project), Series 1994-A, 6.000%, 10/01/14
1,550 Private Colleges and Universities Authority, Georgia, Revenue 6/03 at 102.00 AA 1,576,459
Bonds (Agnes Scott College Project), Series 1993, 5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 38.9%
3,000 Hospital Authority of Albany-Dougherty County, Georgia, Revenue 9/03 at 102.00 AAA 3,154,350
Bonds (Phoebe Putney Memorial Hospital), Series 1993,
5.700%, 9/01/13
2,300 Chatham County Hospital Authority, Savannah, Georgia, Hospital 7/11 at 101.00 A- 2,372,266
Revenue Improvement Bonds (Memorial Health University Medical
Center, Inc.), Series 2001A, 6.125%, 1/01/24
2,000 Hospital Authority of Clarke County, Georgia, Hospital Revenue 1/12 at 101.00 AAA 1,972,920
Certificates (Athens Regional Medical Center), Series 2002,
5.125%, 1/01/32 (WI, settling 6/05/02)
3,000 Floyd County Hospital Authority, Georgia, Revenue Anticipation 7/12 at 101.00 Aaa 2,979,540
Certificates (Floyd Medical Center Project), Series 2002,
5.200%, 7/01/32 (WI, settling 6/12/02)
1,765 Hospital Authority of Hall County and the City of Gainesville, 10/05 at 102.00 AAA 1,836,130
Georgia, Revenue Anticipation Certificates (Northeast Georgia
Healthcare Project), Series 1995, 6.000%, 10/01/25
1,750 Hospital Authority of Hall County and the City of Gainesville, 5/11 at 100.00 A- 1,698,428
Georgia, Revenue Anticipation Certificates (Northeast Georgia
Health System, Inc. Project), Series 2001, 5.500%, 5/15/31
3,000 Glynn-Brunswick Memorial Hospital Authority, Revenue Anticipation 8/06 at 102.00 AAA 3,138,690
Certificates (Southeast Georgia Health Systems Project),
Series 1996, 5.250%, 8/01/13
3,750 Hospital Authority of Gwinnett County, Georgia, Revenue 2/12 at 102.00 AAA 3,767,363
Anticipation Certificates (Gwinnett Hospital System, Inc.),
Series 1997B, 5.300%, 9/01/27
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 22.8%
1,145 Housing Authority of Clayton County, Georgia, Multifamily 12/05 at 102.00 AAA 1,176,121
Housing Revenue Bonds (The Advantages Project), Series 1995,
5.800%, 12/01/20
3,400 Housing Authority of DeKalb County, Georgia, Multifamily 1/05 at 102.00 AAA 3,587,136
Housing Revenue Bonds (The Lakes at Indian Creek Apartments
Project), Series 1994, 7.150%, 1/01/25 (Alternative Minimum Tax)
950 Housing Authority of the City of Decatur, Georgia, Mortgage 7/02 at 102.00 AAA 968,544
Revenue Refunding Bonds (FHA-Insured Mortgage Loan) (Park
Trace Apartments - Section 8 Assisted Project), Series 1992A,
6.450%, 7/01/25
27
Nuveen Georgia Premium Income Municipal Fund (NPG) (continued)
Portfolio of Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 2,000 Housing Authority of the City of Lawrenceville, Georgia, Multifamily 12/10 at 100.00 AAA $2,027,040
Housing Senior Revenue Bonds (Brisben Greens of Hillcrest II
Project), Series 2000A-1, 5.800%, 12/01/33 (Alternative
Minimum Tax)
3,000 Macon-Bibb County Urban Development Authority, Georgia, 1/04 at 103.00 AAA 3,024,750
Multifamily Housing Refunding Revenue Bonds, Series 1997A,
5.550%, 1/01/24
1,500 Housing Authority of the City of Marietta, Georgia, Multifamily 10/06 at 102.00 AAA 1,530,780
Housing Revenue Bonds (GNMA Collateralized - Country Oaks
Apartments), Series 1996, 6.150%, 10/20/26 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.2%
255 Housing Authority of Fulton County, Georgia, Single Family Mortgage 3/05 at 102.00 AAA 262,069
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
Series 1995A, 6.550%, 3/01/18 (Alternative Minimum Tax)
60 Georgia Housing and Finance Authority, Single Family Mortgage 6/06 at 102.00 AAA 61,678
Bonds, 1996 Series A (Subseries A-2), 6.450%, 12/01/27
(Alternative Minimum Tax)
2,995 Georgia Housing and Finance Authority, Single Family Mortgage 12/10 at 100.00 AAA 3,017,463
Bonds, 2001 Series A (Subseries A-2), 5.700%, 12/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.0%
2,500 Forsyth County School District, Georgia, General Obligation 2/10 at 102.00 Aa2 2,702,875
Bonds, Series 1999, 5.750%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.1%
1,000 Downtown Development Authority of the City of Atlanta, 10/02 at 102.00 AA 1,059,200
Georgia, Refunding Revenue Bonds (Underground Atlanta
Project), Series 1992, 6.250%, 10/01/12
3,000 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 AAA 3,228,870
Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26
1,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax No Opt. Call AAA 1,169,250
Revenue Refunding Bonds, Series P, 6.250%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.1%
1,000 City of Atlanta, Georgia, Airport Facilities Revenue Refunding Bonds, No Opt. Call AAA 1,146,830
Series 1994A, 6.500%, 1/01/09
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 0.2%
85 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A*** 97,576
Obligation Bonds, Fifth Crossover Series, 6.400%, 1/01/09
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.7%
1,900 Municipal Electric Authority of Georgia, General Power Revenue 1/03 at 100.00 AAA 1,907,844
Bonds, Series 1992B, 5.500%, 1/01/18
1,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, No Opt. Call AAA 1,089,810
Series Z, 5.500%, 1/01/20
1,665 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A 1,884,430
Obligation Bonds, Fifth Crossover Series, 6.400%, 1/01/09
2,000 Development Authority of Monroe County, Georgia, Pollution 9/02 at 100.00 A+ 2,001,840
Control Revenue Bonds (Gulf Power Company Plant Scherer
Project), First Series 1994, 6.300%, 9/01/24
1,000 Development Authority of Monroe County, Georgia, Pollution No Opt. Call AAA 1,017,880
Control Revenue Bonds (Georgia Power Company Plant Scherer
Project), Series 2001, 4.200%, 1/01/12 (Mandatory put 12/01/08)
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.1%
$ 4,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA $ 4,263,640
Series 2001A, 5.500%, 11/01/27
3,500 Coweta County Water and Sewer Authority, Georgia, Revenue 6/11 at 102.00 Aaa 3,518,900
Bonds, Series 2001, 5.250%, 6/01/26
2,500 DeKalb County, Georgia, Water and Sewerage Bonds, 10/10 at 101.00 AA 2,462,500
Series 2000, 5.125%, 10/01/31
1,000 City of Milledgeville, Georgia, Water and Sewerage Revenue and No Opt. Call AAA 1,132,400
Refunding Bonds, Series 1996, 6.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 78,210 Total Investments (cost $77,682,722) - 149.7% 80,664,510
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 1,044,849
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.6)% (27,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 53,909,359
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
29
Nuveen Georgia Dividend Advantage Municipal Fund (NZX)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.6%
$ 1,000 Richmond County Development Authority, Georgia, Environmental 2/12 at 101.00 BBB $ 996,220
Improvement Revenue Refunding Bonds (International Paper
Company Project), Series 2002A, 6.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.7%
1,000 Cartersville Development Authority, Georgia, Waste and Wastewater 2/12 at 100.00 A+ 1,012,730
Facilities Revenue Refunding Bonds (Anheuser Busch, Inc. Project),
Series 2002, 5.950%, 2/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 28.0%
1,200 Atlanta Development Authority, Georgia, Revenue Bonds (Yamacraw 1/12 at 100.00 AAA 1,181,808
Design Center Project), Series 2001A, 5.125%, 1/01/27
1,485 Development Authority of Fulton County, Georgia, Georgia Tech 4/12 at 100.00 AAA 1,488,906
Athletic Association Revenue Bonds, Series 2001, 5.000%, 10/01/20
Private Colleges and University Authority, Georgia, Revenue Bonds
(Emory University Project), Series 2001A:
1,225 5.000%, 9/01/31 9/11 at 100.00 Aa1 1,183,816
1,315 5.125%, 9/01/33 9/11 at 100.00 Aa1 1,292,750
2,500 Private Colleges and Universities Authority, Georgia, Revenue 10/11 at 102.00 A3 2,521,525
Bonds (Mercer University Project), Series 2001, 5.750%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 26.9%
1,000 Hospital Authority of Clarke County, Georgia, Hospital Revenue 1/12 at 101.00 AAA 1,033,390
Certificates (Athens Regional Medical Center), Series 2002,
5.375%, 1/01/19 (WI, settling 6/05/02)
2,500 Hospital Authority of Hall County and the City of Gainesville, 5/11 at 100.00 A- 2,426,325
Georgia, Revenue Anticipation Certificates (Northeast Georgia
Health System, Inc. Project), Series 2001, 5.500%, 5/15/31
1,900 Hospital Authority of Gwinnett County, Georgia, Revenue 2/12 at 102.00 AAA 1,908,797
Anticipation Certificates (Gwinnett Hospital System, Inc.),
Series 1997B, 5.300%, 9/01/27
2,000 Valdosta and Lowndes County Hospital Authority, Georgia, Revenue 10/12 at 101.00 AAA 2,010,380
Certificates (South Georgia Medical Center Project), Series 2002,
5.250%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.5%
1,000 Housing Authority of DeKalb County, Georgia, Multifamily Housing 8/11 at 103.00 Aaa 997,810
Revenue Bonds (GNMA Collateralized - Castaways Apartments
Project), Series 2001A, 5.400%, 2/20/29
1,000 Housing Authority of DeKalb County, Georgia, Multifamily Housing 12/11 at 103.00 Aaa 1,001,310
Revenue Bonds (GNMA Collateralized - Snapwoods Apartments
Project), Series 2001A, 5.500%, 12/20/32
1,400 Housing Authority of Savannah, Georgia, Multifamily Housing 8/16 at 100.00 Aaa 1,426,208
Revenue Refunding Bonds (Chatham Gardens Project), Series 2001,
5.625%, 8/01/31 (Alternative Minimum Tax) (Mandatory put 2/01/19)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 16.3%
2,500 Georgia Housing and Finance Authority, Single Family Mortgage 6/11 at 100.00 AAA 2,435,250
Bonds, 2001 Series B (Subseries B-2), 5.400%, 12/01/31
(Alternative Minimum Tax)
2,000 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 2,015,920
Bonds, 2002 Series A (Subseries A-2), 5.450%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.4%
1,000 Carroll City-County Hospital Authority, Georgia, Revenue 7/11 at 101.00 AAA 924,080
Anticipation Certificates (Tanner Medical Center, Inc. Project),
Series 2001, 4.750%, 7/01/25
1,400 Development Authority of Clayton County, Georgia, Revenue Bonds 7/12 at 100.00 AAA 1,345,554
(TUFF Archives LLC Project), Series 2001A, 5.000%, 7/01/33
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 750 Georgia Municipal Association, Inc., Certificates of Participation 1/12 at 101.00 AAA $ 753,135
(City of Atlanta Court Project), Series 2002, 5.125%, 12/01/21
2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax No Opt. Call AAA 2,923,125
Revenue Refunding Bonds, Series P, 6.250%, 7/01/20
1,000 Rockdale County Water and Sewerage Authority, Georgia, 1/10 at 101.00 AAA 1,010,910
Revenue Bonds, Series 1999A, 5.375%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.9%
1,000 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101.00 AAA 1,055,730
Bonds, Series 2000A, 5.400%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 2.1%
525 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 567,866
Series 1999A, 5.000%, 11/01/38 (Pre-refunded to 5/01/09)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.0%
1,000 City of Elberton, Georgia, Combined Utility System Revenue 1/12 at 100.00 Aaa 990,590
Refunding and Improvement Bonds, Series 2001, 5.000%, 1/01/22
1,200 Summerville, Georgia, Combined Public Utility Revenue Refunding 1/12 at 101.00 Baa3 1,207,020
and Improvement Bonds, Series 2002, 5.750%, 1/01/26
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 22.9%
2,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/12 at 100.00 AAA 1,898,640
Series 2001A, 5.000%, 11/01/39
475 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 451,725
Series 1999A, 5.000%, 11/01/38
2,500 DeKalb County, Georgia, Water and Sewerage Bonds, 10/10 at 101.00 AA 2,523,724
Series 2000, 5.375%, 10/01/35
1,395 Macon Water Authority, Georgia, Water and Sewer Revenue 10/11 at 101.00 AA- 1,390,620
Bonds, Series 2001B, 5.000%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 41,770 Total Investments (cost $42,002,379) - 153.3% 41,975,864
=============----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 405,522
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.8)% (15,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 27,381,386
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
31
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.7%
$ 585 Massachusetts Educational Financing Authority, Education Loan 7/04 at 102.00 AAA $ 610,436
Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10
(Alternative Minimum Tax)
1,730 Massachusetts Educational Financing Authority, Educational Loan 1/12 at 100.00 AAA 1,770,274
Revenue Bonds, 2002 Series E, 5.000%, 1/01/13 (Alternative
Minimum Tax)
2,090 Massachusetts Development Finance Authority, Revenue Refunding No Opt. Call A3 2,165,470
Bonds (Boston University), Series 1999P, 6.000%, 5/15/29
890 Massachusetts Development Finance Agency, Revenue Bonds 3/09 at 101.00 A 915,819
(Curry College Issue), Series A, 6.000%, 3/01/20
500 Massachusetts Development Finance Authority, Revenue Bonds 9/11 at 101.00 A 501,630
(Belmont Hills School), Series 2001, 5.375%, 9/01/23
1,500 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 100.00 AAA 1,500,435
Bonds (UMASS-Worcester Campus), Series 2001B, 5.250%, 10/01/31
2,645 Massachusetts Industrial Finance Agency, Revenue Bonds 7/03 at 102.00 Aa1 2,616,011
(Whitehead Institute for Biomedical Research), 1993 Issue,
5.125%, 7/01/26
1,500 Massachusetts Industrial Finance Agency, Revenue Bonds (Phillips 9/08 at 102.00 AAA 1,528,890
Academy Issue), Series 1993, 5.375%, 9/01/23
2,300 Massachusetts Industrial Finance Agency, Education Revenue 9/08 at 101.00 A 2,213,612
Bonds (Belmont Hill School Issue), Series 1998, 5.250%, 9/01/28
1,765 New England Education Loan Marketing Corporation, No Opt. Call A3 1,783,744
Massachusetts, Student Loan Revenue Bonds, 1992 Subordinated
Issue C, 6.750%, 9/01/02 (Alternative Minimum Tax)
4,000 New England Education Loan Marketing Corporation, No Opt. Call A3 4,518,800
Massachusetts, Student Loan Revenue onds, 1992 Subordinated
Issue H, 6.900%, 11/01/09 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.9%
3,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/04 at 102.00 AAA 3,007,470
Bonds (New England Medical Center Hospitals Issue), Series G-1,
5.375%, 7/01/24
3,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/03 at 102.00 AAA 3,073,890
Bonds (Lahey Clinic Medical Center Issue), Series B,
5.625%, 7/01/15
2,500 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AA- 2,519,825
Bonds (Partners Healthcare System Issue), Series C, 5.750%, 7/01/32
2,395 Massachusetts Health and Educational Facilities Authority, 7/08 at 102.00 AAA 2,301,403
Revenue Bonds (Caregroup Issue), Series A, 5.000%, 7/01/25
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 11/11 at 101.00 AA 967,250
Bonds (Cape Cod Health Care Inc.), Series 2001C, 5.250%, 11/15/31
2,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 2,004,300
Revenue Bonds (Berkshire Health System Issue), Series 2001E,
6.250%, 10/01/31
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB 1,000,650
Bonds (Caritas Christi Obligated Group), Series 2002B, 6.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 29.0%
3,000 Massachusetts Development Finance Agency, Assisted Living 9/10 at 105.00 AAA 3,533,670
Facility Revenue Bonds (The Monastery at West Springfield Project -
GNMA Collateralized), Series 1999A, 7.625%, 3/20/41 (Alternative
Minimum Tax)
2,500 Massachusetts Development Finance Agency, Revenue Bonds 10/11 at 105.00 AAA 2,844,875
(GNMA Collateralized - VOA Concord Assisted Living, Inc. Project),
Series 2000A, 6.900%, 10/20/41 (Alternative Minimum Tax)
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,990 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102.00 N/R $2,003,691
Revenue Bonds (Prospect House Apartments), Series 1999,
7.000%, 12/01/31 (Alternative Minimum Tax)
2,000 Massachusetts Development Finance Agency, GNMA Collateralized 6/11 at 105.00 AAA 2,199,180
Assisted Living Facility Revenue Bonds (Haskell House on Parker
Hill Project), Series 2000A, 6.500%, 12/20/41 (Alternative
Minimum Tax)
1,500 Massachusetts Development Finance Agency, Assisted Living 3/12 at 105.00 AAA 1,566,450
Facility Revenue Bonds (The Arbors at Chicopee Project - GNMA
Collateralized), Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax)
3,800 Massachusetts Housing Finance Agency, Housing Project Revenue 4/03 at 102.00 A+ 3,965,376
Refunding Bonds, Series 1993A, 6.300%, 10/01/13
1,480 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 101.00 AAA 1,555,702
Revenue Bonds, 1999 Series D, 5.500%, 7/01/13 (Alternative
Minimum Tax)
1,880 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/05 at 102.00 AAA 1,979,433
Revenue Bonds (FHA-Insured Mortgage Loans), 1995 Series A,
7.350%, 1/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.2%
1,270 City of Boston, Massachusetts, Revenue Bonds (Deutsches 10/08 at 105.00 AAA 1,340,015
Altenheim, Inc. Project - FHA-Insured Mortgage), Series 1998A,
6.125%, 10/01/31
2,000 Massachusetts Industrial Finance Agency, Healthcare Facilities 5/07 at 102.00 A+ 1,917,520
Revenue Bonds (Jewish Geriatric Services, Inc. Obligated Group),
eries 1997B, 5.500%, 5/15/27
895 Massachusetts Industrial Financial Agency, Revenue Bonds 2/06 at 102.00 AAA 927,238
(Heights Crossing Limited Partnership Issue) (FHA-Insured Project),
Series 1995, 6.000%, 2/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.3%
2,500 Massachusetts Bay Transportation Authority, General Transportation No Opt. Call AAA 3,095,200
System Bonds, 1991 Series A, 7.000%, 3/01/21
3,000 The Commonwealth of Massachusetts, General Obligation Bonds No Opt. Call AAA 3,454,710
(Consolidated Loan of 2001), Series D, 6.000%, 11/01/13
1,000 Narragansett Regional School District, Massachusetts, General 6/10 at 101.00 Aaa 1,150,680
Obligation Bonds, Series 2000, 6.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.1%
1,300 Massachusetts Development Finance Agency, Revenue Bonds 6/09 at 101.00 AA 1,345,955
(Worcester Redevelopment Authority Issue), Series 1999, 6.000%,
6/01/24 (Mandatory put 6/01/04)
4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 9/06 at 102.00 AAA 4,173,160
(US Air Project), Series 1996-A, 5.750%, 9/01/16 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 35.1%
Town of Barnstable, Massachusetts, General Obligation Bonds:
1,020 5.750%, 9/15/10 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA*** 1,119,134
1,020 5.750%, 9/15/11 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA*** 1,119,134
4,375 City of Lowell, Massachusetts, General Obligation State Qualified 11/03 at 102.00 AAA 4,686,281
Bonds, 5.600%, 11/01/12 (Pre-refunded to 11/01/03)
1,000 Massachusetts Municipal Wholesale Electric Company, Power 7/02 at 100.00 AAA 1,003,730
Supply System Revenue Bonds, 1992 Series A, 6.000%, 7/01/18
(Pre-refunded to 7/01/02)
1,250 The Commonwealth of Massachusetts, General Obligation Bonds 2/10 at 101.00 AAA 1,428,600
(Consolidated Loan), Series 2000A, 6.000%, 2/01/14
(Pre-refunded to 2/01/10)
2,500 Massachusetts Health and Educational Facilities Authority, Revenue No Opt. Call AAA 2,619,575
Bonds (Malden Hospital Issue) (FHA-Insured Project), Series A,
5.000%, 8/01/16
2,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/06 at 100.00 Aaa 2,159,940
Bonds (Daughters of Charity National Health System - The Carney
Hospital), Series D, 6.100%, 7/01/14 (Pre-refunded to 7/01/06)
Massachusetts Health and Educational Facilities Authority,
Revenue Refunding Bonds (Youville Hospital Issue) (FHA-Insured
Project), Series B:
1,570 6.125%, 2/15/15 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,702,649
1,000 6.000%, 2/15/25 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,082,410
33
Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued)
Portfolio of Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 2/07 at 102.00 Aa2*** $1,143,980
Refunding Bonds (Youville Hospital Issue) (FHA-Insured Project),
` Series A, 6.250%, 2/15/41 (Pre-refunded to 2/15/07)
410 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 102.00 AAA 409,734
Bonds (Caregroup Issue), Series A, 5.000%, 7/01/25
1,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/02 at 100.00 AAA 1,534,390
13.000%, 7/01/13
2,500 Massachusetts Industrial Finance Agency, Revenue Refunding 11/02 at 102.00 AA-*** 2,599,250
Bonds (College of the Holy Cross), 1992 Issue II, 6.375%,
11/01/15 (Pre-refunded to 11/01/02)
1,175 Massachusetts Industrial Finance Agency, Revenue Bonds (Brooks 7/03 at 102.00 A3*** 1,249,648
School Issue), Series 1993, 5.950%, 7/01/23 (Pre-refunded to 7/01/03)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.5%
1,000 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 AAA 1,073,370
Revenue Bonds (SEMASS System), 2001 Series A, 5.625%, 1/01/16
2,500 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 1,965,675
Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A,
5.600%, 12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.8%
1,250 Massachusetts Water Resources Authority, General Revenue 3/03 at 100.00 AA 1,235,225
Refunding Bonds, 1993 Series B, 5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 95,085 Total Investments (cost $95,876,284) - 147.6% 100,185,489
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,670,970
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (34,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 67,856,459
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
34
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.8%
$ 1,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 Aa3 $1,042,480
Bonds, Series 2000, 6.000%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.4%
1,500 Massachusetts Educational Financing Authority, Educational Loan 7/10 at 100.00 AAA 1,524,570
Revenue Bonds, Issue E, Series 2001, 5.300%, 1/01/16
(Alternative Minimum Tax)
2,000 Massachusetts Development Finance Authority, Revenue Refunding 5/29 at 105.00 A3 2,022,200
Bonds (Boston University), Series 1999P, 6.000%, 5/15/59
1,250 Massachusetts Health and Educational Facilities Authority, Revenue 10/09 at 101.00 Aaa 1,214,775
Bonds (Brandeis University), Series J, 5.000%, 10/01/26
2,000 Massachusetts Health and Educational Facilities Authority, Revenue 2/11 at 100.00 AA- 2,043,380
Bonds (Tufts University), Series 2001-I, 5.500%, 2/15/36
1,250 University of Massachusetts Building Authority, Project Revenue 11/10 at 100.00 AAA 1,271,625
Bonds, Senior Series 2000-2, 5.250%, 11/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.8%
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/09 at 101.00 AA- 972,240
Bonds (Partners Healthcare System Issue), Series B, 5.125%, 7/01/19
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AA- 1,007,930
Bonds (Partners Healthcare System Issue), Series C, 5.750%, 7/01/32
1,250 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 100.00 BBB 1,252,437
Bonds (UMass Memorial Health Care), Series 2001C, 6.625%, 7/01/32
375 Massachusetts Health and Educational Facilities Authority, Revenue 1/12 at 101.00 A- 376,219
Bonds (Covenant Health Systems Obligated Group), Series 2002,
6.000%, 7/01/31
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 101.00 BBB+ 1,002,150
Bonds (Berkshire Health System Issue), Series 2001E, 6.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.4%
1,000 Massachusetts Development Finance Agency, Assisted Living Facility 3/12 at 105.00 AAA 1,044,300
Revenue Bonds (The Arbors at Chicopee Project) (GNMA
Collateralized), Series 2001A, 6.250%, 9/20/42 (Alternative
Minimum Tax)
1,250 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 AAA 1,277,313
Revenue Bonds, Series 2001A, 5.850%, 7/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.3%
900 Massachusetts Housing Finance Agency, Single Family Housing 12/04 at 102.00 AA 935,442
Revenue Bonds, Series 36, 6.600%, 12/01/26 (Alternative
Minimum Tax)
2,175 Massachusetts Housing Finance Agency, Single Family Housing 6/10 at 100.00 AAA 2,186,941
Revenue Bonds, Series 82, 5.375%, 12/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4%
655 Massachusetts Development Finance Agency, First Mortgage 7/11 at 102.00 BBB- 663,410
Revenue Bonds (Edgecombe Project), Series 2001A,
6.750%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.8%
1,000 City of Boston, Massachusetts, General Obligation Bonds, Series 2/11 at 100.00 Aa2 1,005,870
2001A, 5.000%, 2/01/20
2,000 Town of Brookline, Massachusetts, General Obligation Bonds, 4/10 at 101.00 Aaa 2,112,820
Series 2000, 5.375%, 4/01/17
2,175 City of Lawrence, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aaa 2,181,677
Series 2001, 5.000%, 2/01/21
35
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) (continued)
Portfolio of Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,020 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101.00 AAA $ 986,595
System Bonds, 1997 Series A, 5.000%, 3/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.6%
1,000 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 1,000,280
2000 Series A, 5.250%, 7/01/30
1,000 Puerto Rico Municipal Finance Agency, Revenue Bonds, 1999 8/09 at 101.00 AAA 1,112,840
Series A, 6.000%, 8/01/16
1,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin Islands 10/10 at 101.00 BBB- 1,078,040
Gross Receipts Tax Loan Note), Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 19.2%
2,000 Massachusetts Port Authority, Revenue Bonds, Series 1998-D, 7/08 at 101.00 AAA 1,919,180
5.000%, 7/01/28
1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds 7/07 at 102.00 AAA 1,018,430
(BOSFUEL Project), Series 1997, 5.500%, 7/01/18
2,500 Massachusetts Turnpike Authority, Senior Metropolitan Highway 1/07 at 102.00 AAA 2,345,875
System Revenue Bonds, 1997 Series A, 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 8.9%
1,250 Commonwealth of Massachusetts, General Obligation Bonds, 10/10 at 100.00 AAA 1,409,788
Consolidated Loan, Series 2000C, 5.750%, 10/01/19 (Pre-refunded
to 10/01/10)
1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,038,670
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.9%
1,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 786,270
Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A,
5.600%, 12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.8%
2,000 Boston Water and Sewer Commission, Massachusetts, General 11/08 at 101.00 AAA 1,933,620
Revenue Bonds, Senior Series 1998D, 5.000%, 11/01/28
1,750 Massachusetts Water Pollution Abatement Trust, Water Pollution 8/09 at 101.00 Aaa 1,831,603
Abatement Revenue Bonds (MWRA Program), Subordinate
Series 1999A, 5.750%, 8/01/29
300 Massachusetts Water Resources Authority, General Revenue Bonds, 8/10 at 101.00 AAA 315,986
2000 Series A, 5.750%, 8/01/30
------------------------------------------------------------------------------------------------------------------------------------
$ 41,600 Total Investments (cost $41,798,168) - 152.3% 41,914,956
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 604,219
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.5)% (15,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 27,519,175
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
36
Nuveen Missouri Premium Income Municipal Fund (NOM)
Portfolio of
Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.1%
$ 1,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA- $ 980,790
Revenue Bonds (Procter & Gamble Paper Products Company Project),
Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.7%
1,875 Junior College District of Mineral Area, Missouri, Student 9/10 at 102.00 N/R 2,004,113
Housing System Revenue Bonds (Mineral Area College),
Series 2000, 7.200%, 9/01/20
2,000 Health and Educational Facilities Authority of the State of Missouri, 6/10 at 100.00 Baa2 2,082,860
Educational Facilities Revenue Bonds (Maryville University of
St. Louis Project), Series 2000, 6.750%, 6/15/30
500 Health and Educational Facilities Authority of the State of Missouri, 2/08 at 101.00 A3 506,740
Educational Facilities Revenue Bonds (St. Louis Priory School
Project), 5.650%, 2/01/25
365 Health and Educational Facilities Authority of the State of 4/11 at 100.00 Aaa 383,060
Missouri, Educational Facilities Revenue Bonds (Webster
University), Series 2001, 5.500%, 4/01/18
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 27.7%
1,800 Johnson County, Missouri, Hospital Revenue Bonds (Western 6/10 at 100.00 AA 1,865,268
Missouri Medical Center Project), Series 2000, 6.000%, 6/01/20
2,500 Health and Educational Facilities Authority of the State of Missouri, 6/11 at 101.00 AAA 2,500,200
Revenue Bonds (SSM Health Care), Series 2001A, 5.250%, 6/01/28
500 Health and Educational Facilities Authority of the State of Missouri, 6/11 at 101.00 AAA 500,580
Health Facilities Revenue Bonds (St. Luke's Episcopal-Presbyterian
Hospitals), Series 2001, 5.250%, 12/01/26
425 Health and Educational Facilities Authority of the State of Missouri, 2/06 at 102.00 BBB+ 436,637
Health Facilities Revenue Bonds (Lake of the Ozarks General
Hospital, Inc.), Series 1996, 6.500%, 2/15/21
1,000 Health and Educational Facilities Authority of the State of 12/10 at 101.00 A 1,035,840
Missouri, Health Facilities Revenue Bonds (St. Anthony's
Medical Center), Series 2000, 6.250%, 12/01/30
1,000 Ray County, Missouri, Hospital Revenue Bonds (Ray County 5/05 at 101.50 N/R 984,260
Memorial Hospital), Series 1997, 5.750%, 11/15/12
950 Texas County, Missouri, Hospital Revenue Bonds (Texas County 6/10 at 100.00 N/R 946,799
Memorial Hospital), Series 2000, 7.250%, 6/15/25
500 Industrial Development Authority of the City of West Plains, 11/07 at 101.00 BB+ 450,650
Missouri, Hospital Facilities Revenue Bonds (Ozark Medical
Center), Series 1997, 5.600%, 11/15/17
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.9%
1,000 Missouri Housing Development Commission, Multifamily Housing 12/11 at 100.00 AA 1,025,950
Revenue Bonds, 2001 Series II, 5.250%, 12/01/16
1,250 Industrial Development Authority of St. Charles County, Missouri, 4/08 at 102.00 AAA 1,230,150
Multifamily Housing Revenue Bonds (Ashwood Apartments
Project), Series 1998A, 5.600%, 4/01/30 (Alternative Minimum Tax)
545 Industrial Development Authority of St. Louis County, Missouri, 4/07 at 102.00 AAA 569,302
Multifamily Housing Revenue Refunding Bonds (GNMA
Collateralized - South Summit Apartments Project), Series 1997A,
5.950%, 4/20/17
600 Industrial Development Authority of St. Louis County, Missouri, 4/07 at 102.00 AAA 624,276
Multifamily Housing Revenue Refunding Bonds (GNMA
Collateralized - South Summit Apartments Project), Series 1997B,
6.000%, 10/20/15 (Alternative Minimum Tax)
37
Nuveen Missouri Premium Income Municipal Fund (NOM) (continued)
Portfolio of Investments May 31, 2002
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.9%
$ 900 Missouri Housing Development Commission, Single Family Mortgage 3/06 at 105.00 AAA $ 970,146
Revenue Bonds (Homeownership Loan Program), 1995 Series C,
7.250%, 9/01/26 (Alternative Minimum Tax)
870 Missouri Housing Development Commission, Single Family Mortgage 3/10 at 100.00 AAA 906,731
Revenue Bonds (Homeownership Loan Program), 2000 Series B-1,
6.250%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.1%
2,020 Ritenour School District of St. Louis County, Missouri, General No Opt. Call AAA 2,480,641
Obligation School Bonds, Series 1995, 7.375%, 2/01/12
1,500 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 1,766,970
General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08
1,000 School District of the City of St. Charles, Missouri, General Obligation 3/06 at 100.00 AA+ 1,043,080
Bonds (Missouri Direct Deposit Program), Series 1996A, 5.625%, 3/01/14
1,000 Pattonville R-3 School District, St. Louis County, Missouri, General 3/10 at 101.00 AAA 1,085,640
Obligation Bonds, Series 2000, 5.750%, 3/01/17
895 Board of Education of the City of St. Louis, Missouri, General No Opt. Call AAA 1,096,348
Obligation School Refunding Bonds, Series 1993A, 8.500%, 4/01/07
625 Reorganized School District No. R-IV of Stone County, Reeds Spring, No Opt. Call AAA 774,788
Missouri, General Obligation School Building Refunding and
Improvement Bonds, Series 1995, 7.600%, 3/01/10
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.9%
1,000 Land Clearance for Redevelopment Authority, Kansas City, Missouri, 12/05 at 102.00 AAA 1,057,080
Lease Revenue Bonds (Municipal Auditorium and Muehlebach
Hotel Redevelopment Projects), Series 1995A, 5.900%, 12/01/18
2,000 Missouri Development Finance Board, Infrastructure Facilities 4/10 at 100.00 AAA 2,112,660
Revenue Bonds, Kansas City, Missouri (Midtown Redevelopment
Projects), Series 2000A, 5.750%, 4/01/22
450 Monarch-Chesterfield Levee District, St. Louis County, Missouri, 3/10 at 101.00 AAA 484,560
Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19
1,000 St Louis Municipal Finance Corporation, Missouri, Carnahan 2/12 at 100.00 Aaa 1,095,290
Courthouse Leasehold Revenue Bonds, Series 2002A, 5.750%, 2/15/16
2,000 Public Building Corporation of the City of Springfield, Missouri, 6/10 at 100.00 AAA 2,177,800
Leasehold Revenue Bonds (Jordan Valley Park Projects),
Series 2000A, 6.125%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.8%
500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 AAA 479,655
Series 2001 (Kansas City International Airport), 5.000%, 4/01/23
(Alternative Minimum Tax)
1,000 Land Clearance for Redevelopment Authority of the City of St. Louis, 9/09 at 102.00 N/R 1,053,030
Missouri, Tax-Exempt Parking Facility Revenue Refunding and
Improvement Bonds (LCRA Parking Facilities Project), Series 1999C,
7.000%, 9/01/19
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.7%
675 Health and Educational Facilities Authority of the State of Missouri, 2/06 at 102.00 BBB+*** 764,343
Health Facilities Revenue Bonds (Lake of the Ozarks General
Hospital, Inc.), Series 1996, 6.500%, 2/15/21 (Pre-refunded
to 2/15/06)
1,290 Health and Educational Facilities Authority of the State of Missouri, 6/02 at 100.00 AAA 1,292,580
Health Facilities Revenue Bonds (SSM Health Care Obligated Group
Projects), Series 1990B, 7.000%, 6/01/15
825 Health and Educational Facilities Authority of the State of Missouri, 3/10 at 101.00 Aa1*** 939,147
Educational Facilities Revenue Bonds (The Washington University),
Series 2000A, 6.000%, 3/01/30 (Pre-refunded to 3/01/10)
530 State Environmental Improvement and Energy Resources Authority, 7/04 at 102.00 AAA 581,156
Missouri, Water Pollution Control Revenue Bonds (State Revolving
Fund Program) (City of Branson Project), Series 1995A, 6.050%,
7/01/16 (Pre-refunded to 7/01/04)
540 State Environmental Improvement and Energy Resources Authority, 1/06 at 101.00 Aaa 595,949
Missouri, Water Pollution Control Revenue Bonds (State
Revolving Fund) (Multi-Participant Program), Series 1996D, 5.875%,
1/01/15 (Pre-refunded to 1/01/06)
1,000 St. Louis County, Missouri, Certificates of Receipt, GNMA No Opt. Call AAA 1,062,580
Collateralized Mortgage Revenue Bonds, Series 1993D, 5.650%,
7/01/20 (Alternative Minimum Tax)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,275 St. Louis Municipal Finance Corporation, Leasehold Revenue 2/05 at 100.00 AAA $1,390,694
Improvement and Refunding Bonds (City of St. Louis, Missouri,
Lessee), Series 1992, 6.250%, 2/15/12 (Pre-refunded to 2/15/05)
1,600 St. Louis Municipal Finance Corporation, City Justice Center, 2/06 at 102.00 AAA 1,776,112
Leasehold Revenue Improvement Bonds (City of St. Louis, Missouri,
Lessee), Series 1996A, 5.750%, 2/15/11 (Pre-refunded to 2/15/06)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.5%
500 Columbia, Missouri, Water and Electric Revenue Bonds, Series 2002A, 10/12 at 100.00 AAA 489,965
5.000%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.6%
350 State Environmental Improvement and Energy Resources Authority, No Opt. Call Aaa 418,429
Missouri, Water Pollution Control Revenue Bonds (State Revolving
Fund Program - Kansas City Project), Series 1997C, 6.750%, 1/01/12
470 State Environmental Improvement and Energy Resources Authority, 7/04 at 102.00 AAA 506,496
Missouri, Water Pollution Control Revenue Bonds (State Revolving
Fund Program - City of Branson Project), Series 1995A, 6.050%, 7/01/16
210 State Environmental Improvement and Energy Resources Authority, 1/06 at 101.00 Aaa 226,990
Missouri, Water Pollution Control Revenue Bonds (State Revolving
Fund - Multi-Participant Program), Series 1996D, 5.875%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 43,835 Total Investments (cost $44,161,019) - 147.9% 46,756,335
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 862,990
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.6)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 31,619,325
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
39
Statement of
Assets and Liabilities May 31, 2002
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NPG)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $112,273,414 $54,883,861 $51,440,024 $80,664,510
Temporary investments in short-term securities, at
amortized cost, which approximates market value -- -- 1,900,000 --
Cash 934,767 416,127 756,928 4,118,402
Receivables:
Interest 1,671,737 681,079 536,434 1,436,512
Investments sold 214,225 -- -- 735,264
Other assets 10,656 10,799 475 4,397
------------------------------------------------------------------------------------------------------------------------------------
Total assets 115,104,799 55,991,866 54,633,861 86,959,085
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payable for investments purchased -- -- 3,350,858 4,908,786
Accrued expenses:
Management fees 63,061 16,498 11,864 44,919
Organization and offering costs -- 7,713 80,500 --
Other 39,169 62,491 122,529 25,819
Preferred share dividends payable 996 1,457 958 762
Common share dividends payable 374,720 170,401 159,183 269,440
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 477,946 258,560 3,725,892 5,249,726
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 38,300,000 19,500,000 17,500,000 27,800,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 76,326,853 $36,233,306 $33,407,969 $53,909,359
====================================================================================================================================
Common shares outstanding 5,277,752 2,544,489 2,307,000 3,768,386
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.46 $ 14.24 $ 14.48 $ 14.31
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 52,778 $ 25,445 $ 23,070 $ 37,684
Paid-in surplus 73,138,804 36,013,848 32,675,095 52,106,860
Balance of undistributed net investment income 645,815 6,243 20,396 520,560
Accumulated net realized gain (loss) from
investment transactions (2,299,620) (102,155) -- (1,737,533)
Net unrealized appreciation (depreciation) of investments 4,789,076 289,925 689,408 2,981,788
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 76,326,853 $36,233,306 $33,407,969 $53,909,359
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
40
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX) (NMT) (NMB) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $41,975,864 $100,185,489 $41,914,956 $46,756,335
Temporary investments in short-term securities, at
amortized cost, which approximates market value -- -- -- --
Cash 1,071,961 515,631 104,710 141,053
Receivables:
Interest 606,008 1,554,149 709,358 883,984
Investments sold -- 10,000 -- 35,584
Other assets 6,095 9,924 10,607 3,947
------------------------------------------------------------------------------------------------------------------------------------
Total assets 43,659,928 102,275,193 42,739,631 47,820,903
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payable for investments purchased 1,037,707 -- -- --
Accrued expenses:
Management fees 12,521 56,090 12,585 26,184
Organization and offering costs 3,709 -- 7,713 --
Other 95,588 33,248 64,778 21,874
Preferred share dividends payable 2,630 1,304 1,232 415
Common share dividends payable 126,387 328,092 134,148 153,105
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,278,542 418,734 220,456 201,578
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 15,000,000 34,000,000 15,000,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $27,381,386 $ 67,856,459 $27,519,175 $31,619,325
====================================================================================================================================
Common shares outstanding 1,956,336 4,687,023 1,943,302 2,202,955
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.00 $ 14.48 $ 14.16 $ 14.35
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 19,563 $ 46,870 $ 19,433 $ 22,030
Paid-in surplus 27,630,818 64,953,042 27,468,146 30,279,150
Balance of undistributed net investment income 103,113 659,569 9,113 286,262
Accumulated net realized gain (loss) from
investment transactions (345,593) (2,112,227) (94,305) (1,563,433)
Net unrealized appreciation (depreciation) of investments (26,515) 4,309,205 116,788 2,595,316
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $27,381,386 $ 67,856,459 $27,519,175 $31,619,325
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
Operations Year Ended May 31, 2002
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK)* (NPG)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $6,275,894 $2,867,198 $231,335 $4,588,053
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 743,595 361,613 40,983 532,206
Preferred shares - auction fees 95,750 48,750 1,798 69,500
Preferred shares - dividend disbursing agent fees 10,000 10,000 411 10,000
Shareholders' servicing agent fees and expenses 24,709 2,849 669 12,022
Custodian's fees and expenses 47,897 36,537 6,839 55,685
Trustees' fees and expenses 1,280 864 235 1,294
Professional fees 9,492 9,830 6,589 8,687
Shareholders' reports - printing and mailing expenses 32,163 14,446 4,258 21,265
Stock exchange listing fees 22,078 82 -- 4,640
Investor relations expense 17,997 6,241 -- 13,109
Other expenses 16,773 7,681 252 11,998
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,021,734 498,893 62,034 740,406
Custodian fee credit (5,778) (13,880) (427) (8,425)
Expense reimbursement -- (166,899) (18,915) --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,015,956 318,114 42,692 731,981
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,259,938 2,549,084 188,643 3,856,072
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 544,946 (44,913) -- 570,501
Change in net unrealized appreciation (depreciation)
of investments 474,512 840,819 689,408 (195,055)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 1,019,458 795,906 689,408 375,446
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (546,694) (291,100) (9,064) (460,881)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations $5,732,702 $3,053,890 $868,987 $3,770,637
====================================================================================================================================
* For the period March 26, 2002 (commencement of operations) through May 31,
2002.
See accompanying notes to financial statements.
42
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX)** (NMT) (NMB) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $1,296,464 $5,711,613 $2,261,170 $2,655,293
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 171,740 662,035 277,363 307,994
Preferred shares - auction fees 20,240 85,000 37,500 40,000
Preferred shares - dividend disbursing agent fees 5,397 10,000 10,000 10,000
Shareholders' servicing agent fees and expenses 1,445 11,960 2,711 9,430
Custodian's fees and expenses 24,941 34,276 39,697 26,240
Trustees' fees and expenses 606 1,359 825 751
Professional fees 10,716 9,676 10,862 8,156
Shareholders' reports - printing and mailing expenses 10,368 26,396 13,691 12,583
Stock exchange listing fees -- 20,726 62 96
Investor relations expense 1,703 16,987 7,005 7,909
Other expenses 4,017 12,022 7,724 8,939
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 251,173 890,437 407,440 432,098
Custodian fee credit (4,147) (8,805) (19,971) (5,035)
Expense reimbursement (78,823) -- (128,014) --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 168,203 881,632 259,455 427,063
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 1,128,261 4,829,981 2,001,715 2,228,230
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (345,593) 511,753 (68,781) (29,238)
Change in net unrealized appreciation (depreciation)
of investments (26,515) 56,519 555,011 669,418
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (372,108) 568,272 486,230 640,180
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (114,572) (513,588) (238,070) (283,065)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations $ 641,581 $4,884,665 $2,249,875 $2,585,345
====================================================================================================================================
** For the period September 25, 2001 (commencement of operations) through May
31, 2002.
See accompanying notes to financial statements.
43
Statement of
Changes in Net Assets
CONNECTICUT
DIVIDEND
CONNECTICUT CONNECTICUT ADVANTAGE 2
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) (NGK)
----------------------------- ---------------------------- ----------------
FOR THE FOR THE
PERIOD 1/26/01 PERIOD 3/26/02
(COMMENCEMENT (COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) OF OPERATIONS)
5/31/02 5/31/01 5/31/02 THROUGH 5/31/01 THROUGH 5/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,259,938 $ 5,383,842 $ 2,549,084 $ 537,367 $ 188,643
Net realized gain (loss) from investment
transactions 544,946 576 (44,913) (57,242) --
Change in net unrealized appreciation
(depreciation) of investments 474,512 6,892,339 840,819 (548,693) 689,408
Distributions to Preferred Shareholders
from net investment income (546,694) (1,264,121) (291,100) (122,470) (9,064)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations 5,732,702 11,012,636 3,053,890 (191,038) 868,987
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,403,107) (4,316,867) (2,135,321) (533,518) (159,183)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 36,216,383 32,878,500
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 355,425 366,668 60,234 1,776 --
Preferred shares offering costs -- -- -- (339,375) (280,610)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 355,425 366,668 60,234 35,878,784 32,597,890
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 1,685,020 7,062,437 978,803 35,154,228 33,307,694
Net assets applicable to Common
shares at the beginning of period 74,641,833 67,579,396 35,254,503 100,275 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $76,326,853 $74,641,833 $36,233,306 $35,254,503 $33,407,969
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 645,815 $ 231,595 $ 6,243 $ (118,621) $ 20,396
====================================================================================================================================
See accompanying notes to financial statements.
44
GEORGIA
DIVIDEND MASSACHUSETTS PREMIUM
GEORGIA PREMIUM INCOME (NPG) ADVANTAGE (NZX) INCOME (NMT)
----------------------------- ----------------- ----------------------------
FOR THE
PERIOD 9/25/01
(COMMENCEMENT
YEAR ENDED YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED
5/31/02 5/31/01 THROUGH 5/31/02 5/31/02 5/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,856,072 $ 3,987,219 $ 1,128,261 $ 4,829,981 $ 4,893,855
Net realized gain (loss) from investment
transactions 570,501 1,111,221 (345,593) 511,753 22,543
Change in net unrealized appreciation
(depreciation) of investments (195,055) 3,931,839 (26,515) 56,519 5,076,539
Distributions to Preferred Shareholders
from net investment income (460,881) (981,605) (114,572) (513,588) (1,136,585)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations 3,770,637 8,048,674 641,581 4,884,665 8,856,352
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,187,446) (2,989,672) (910,576) (3,887,315) (3,804,794)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 27,860,955 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 158,444 117,835 4,901 280,344 203,930
Preferred shares offering costs -- -- (315,750) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 158,444 117,835 27,550,106 280,344 203,930
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 741,635 5,176,837 27,281,111 1,277,694 5,255,488
Net assets applicable to Common
shares at the beginning of period 53,167,724 47,990,887 100,275 66,578,765 61,323,277
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $53,909,359 $53,167,724 $27,381,386 $67,856,459 $66,578,765
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 520,560 $ 169,607 $ 103,113 $ 659,569 $ 30,016
====================================================================================================================================
See accompanying notes to financial statements.
45
Statement of
Changes in Net Assets (continued)
MASSACHUSETTS MISSOURI PREMIUM
DIVIDEND ADVANTAGE (NMB) INCOME (NOM)
----------------------------- ----------------------------
FOR THE
PERIOD 1/31/01
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED
5/31/02 THROUGH 5/31/01 5/31/02 5/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,001,715 $ 472,617 $ 2,228,230 $ 2,229,305
Net realized gain (loss) from investment
transactions (68,781) (25,524) (29,238) 181,966
Change in net unrealized appreciation
(depreciation) of investments 555,011 (435,935) 669,418 2,388,233
Distributions to Preferred Shareholders
from net investment income (238,070) (102,546) (283,065) (555,464)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations 2,249,875 (91,388) 2,585,345 4,244,040
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,701,593) (425,298) (1,770,473) (1,616,505)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 27,660,825 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 19,714 15 296,123 180,182
Preferred shares offering costs -- (293,250) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 19,714 27,367,590 296,123 180,182
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 567,996 26,850,904 1,110,995 2,807,717
Net assets applicable to Common
shares at the beginning of period 26,951,179 100,275 30,508,330 27,700,613
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $27,519,175 $26,951,179 $31,619,325 $30,508,330
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 9,113 $ (55,227) $ 286,262 $ 88,313
====================================================================================================================================
See accompanying notes to financial statements.
46
Notes to
Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
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 Georgia Premium
Income Municipal Fund (NPG), Nuveen Georgia Dividend Advantage Municipal Fund
(NZX), Nuveen Massachusetts Premium Income Municipal Fund (NMT), Nuveen
Massachusetts Dividend Advantage Municipal Fund (NMB) and Nuveen Missouri
Premium Income Municipal Fund (NOM). Connecticut Premium Income (NTC) and
Massachusetts Premium Income (NMT) are traded on the New York Stock Exchange
while Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2
(NGK), Georgia Premium Income (NPG), Georgia Dividend Advantage (NZX),
Massachusetts Dividend Advantage (NMB) and Missouri Premium Income (NOM) are
traded on the American Stock Exchange. Prior to the commencement of operations
of Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK),
Georgia Dividend Advantage (NZX) and Massachusetts Dividend Advantage (NMB),
each Fund had no operations other than those related to organizational matters,
the initial capital contribution of $100,275 by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, and the
recording of the organization expenses ($15,000, $11,500, $11,500 and $15,000,
respectively) and their reimbursement by Nuveen Investments, also a wholly owned
subsidiary of The John Nuveen Company.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state. The Funds are registered under the Investment Company Act of
1940 as closed-end management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers and general market
conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Trustees of the Funds may establish a
fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At May
31, 2002, Connecticut Dividend Advantage 2 (NGK), Georgia Premium Income (NPG)
and Georgia Dividend Advantage (NZX) had outstanding when-issued purchase
commitments of $1,685,069, $4,908,786 and $1,037,707, respectively. There were
no such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
for financial reporting purposes.
47
Notes to
Financial Statements (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Funds. All monthly tax-exempt income dividends paid
during the period ended May 31, 2002, have been designated Exempt Interest
Dividends.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend. Generally,
payment is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, are recorded on the ex-dividend
date. The amount and timing of distributions are determined in accordance with
federal income tax regulations, which may differ from accounting principles
generally accepted in the United States. Accordingly, temporary
over-distributions as a result of these differences may occur and will be
classified as either distributions in excess of net investment income,
distributions in excess of net realized gains and/or distributions in excess of
net ordinary taxable income from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one Series. The dividend rate on each
Series may change every seven days, as set by the auction agent. The number of
shares outstanding for each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NPG)
--------------------------------------------------------------------------------
Number of Shares:
Series M -- -- -- --
Series T -- 780 -- --
Series W -- -- 700 --
Series Th 1,532 -- -- 1,112
================================================================================
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX) (NMT) (NMB) (NOM)
--------------------------------------------------------------------------------
Number of Shares:
Series M 600 -- -- --
Series T -- -- 600 --
Series W -- -- -- --
Series Th -- 1,360 -- 640
================================================================================
Effective November 16, 2001, Georgia Dividend Advantage (NZX) issued 600 Series
M $25,000 stated value Preferred shares. Effective May 17, 2002, Connecticut
Dividend Advantage 2 (NGK) issued 700 Series W $25,000 stated value Preferred
shares.
48
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the period ended May 31, 2002.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments has agreed to pay all offering costs (other than the sales
load) that exceed $.03 per Common share for Connecticut Dividend Advantage
(NFC), Connecticut Dividend Advantage 2 (NGK), Georgia Dividend Advantage (NZX)
and Massachusetts Dividend Advantage (NMB). Connecticut Dividend Advantage's
(NFC), Connecticut Dividend Advantage 2's (NGK), Georgia Dividend Advantage's
(NZX) and Massachusetts Dividend Advantage's (NMB) share of offering costs
($76,005, $69,000, $58,470 and $58,050, respectively) were recorded as a
reduction of the proceeds from the sale of common shares.
Costs incurred by Connecticut Dividend Advantage (NFC), Connecticut Dividend
Advantage 2 (NGK), Georgia Dividend Advantage (NZX) and Massachusetts Dividend
Advantage (NMB) in connection with their offering of Preferred shares ($339,375,
$280,610, $315,750 and $293,250, respectively) were recorded as a reduction to
paid-in surplus.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common Shares from operations during the
reporting period. Actual results may differ from those estimates.
Change in Accounting Policy
As required, effective June 1, 2001, the Funds have adopted the provisions of
the new AICPA Audit and Accounting Guide for Investment Companies and began
accreting taxable market discount on debt securities. Prior to June 1, 2001, the
Funds did not accrete taxable market discount on debt securities until they were
sold. The cumulative effect of this accounting change had no impact on the total
net assets applicable to Common Shares or the Common share net asset values of
the Funds, but resulted in an increase in the cost of securities and a
corresponding decrease in net unrealized appreciation or increase in net
unrealized depreciation based on securities held by the following Funds on June
1, 2001, as follows:
CONNECTICUT CONNECTICUT GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND PREMIUM PREMIUM DIVIDEND PREMIUM
INCOME ADVANTAGE INCOME INCOME ADVANTAGE INCOME
(NTC) (NFC) (NPG) (NMT) (NMB) (NOM)
------------------------------------------------------------------------------------------------------------
$104,083 $2,201 $143,208 $200,475 $2,288 $23,257
============================================================================================================
The effect of this change for the fiscal year ended May 31, 2002, was to
increase investment income with a corresponding decrease in net unrealized
appreciation as follows:
The Statement of Changes in Net Assets and Financial Highlights for the prior
periods have not been restated to reflect this change in presentation.
CONNECTICUT CONNECTICUT GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND PREMIUM PREMIUM DIVIDEND PREMIUM
INCOME ADVANTAGE INCOME INCOME ADVANTAGE INCOME
(NTC) (NFC) (NPG) (NMT) (NMB) (NOM)
------------------------------------------------------------------------------------------------------------
$14,611 $7,336 $21,549 $38,158 $8,795 $3,328
============================================================================================================
Classification and Measurement of Redeemable Securities
The Funds have adopted the classification requirement of EITF D-98,
Classification and Measurement of Redeemable Securities. EITF D-98 requires that
Preferred shares, at liquidation value, be presented separately in the Statement
of Assets and Liabilities. Accordingly, certain reclassifications have been made
to the financial statements and financial highlights for all prior periods
presented. The adoption of EITF D-98 had no impact on the Funds' Common share
net asset values.
49
Notes to
Financial Statements (continued)
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
CONNECTICUT
DIVIDEND
CONNECTICUT CONNECTICUT DIVIDEND ADVANTAGE 2 GEORGIA
PREMIUM INCOME (NTC) ADVANTAGE (NFC) (NGK) PREMIUM INCOME (NPG)
--------------------- -------------------------- ---------------- -----------------------
FOR THE FOR THE
PERIOD 1/26/01 PERIOD 3/26/02
(COMMENCEMENT (COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) OF OPERATIONS) YEAR ENDED YEAR ENDED
5/31/02 5/31/01 5/31/02 THROUGH 5/31/01 THROUGH 5/31/02 5/31/02 5/31/01
---------------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 2,533,500 2,300,000 -- --
Shares issued to
shareholders due
to reinvestment of
distributions 22,147 24,620 3,869 120 -- 10,384 8,153
---------------------------------------------------------------------------------------------------------------------
22,147 24,620 3,869 2,533,620 2,300,000 10,384 8,153
=====================================================================================================================
Preferred shares sold -- -- -- 780 700 -- --
=====================================================================================================================
GEORGIA
DIVIDEND
ADVANTAGE MASSACHUSETTS MASSACHUSETTS DIVIDEND MISSOURI
(NZX) PREMIUM INCOME (NMT) ADVANTAGE (NMB) PREMIUM INCOME (NOM)
--------------- --------------------- ------------------------------ -----------------------
FOR THE FOR THE
PERIOD 9/25/01 PERIOD 1/31/01
(COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED
THROUGH 5/31/02 5/31/02 5/31/01 5/31/02 THROUGH 5/31/01 5/31/02 5/31/01
---------------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold 1,949,000 -- -- -- 1,935,000 -- --
Shares issued to
shareholders due
to reinvestment of
distributions 336 18,094 13,928 1,301 1 19,877 13,147
---------------------------------------------------------------------------------------------------------------------
1,949,336 18,094 13,928 1,301 1,935,001 19,877 13,147
=====================================================================================================================
Preferred shares sold 600 -- -- -- 600 -- --
=====================================================================================================================
51
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on July 1, 2002, to shareholders of record on
June 15, 2002, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NPG)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0710 $.0700 $.0690 $.0715
=========================================================================================================
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX) (NMT) (NMB) (NOM)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0665 $.0710 $.0730 $.0715
=========================================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities for the fiscal year ended May 31, 2002,
were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK)* (NPG)
----------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $13,657,675 $11,135,342 $50,754,399 $30,484,076
Short-term securities 1,750,000 500,000 16,650,000 --
Sales and maturities:
Long-term municipal securities 15,826,734 17,973,000 -- 36,500,806
Short-term securities 1,750,000 500,000 14,750,000 --
==========================================================================================================
* For the period March 26, 2002 (commencement of operations) through May 31,
2002.
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX)** (NMT) (NMB) (NOM)
-------------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $65,896,313 $15,828,623 $3,829,161 $4,236,685
Short-term securities 4,900,000 2,000,000 1,000,000 --
Sales and maturities:
Long-term municipal securities 23,523,874 13,473,681 5,919,095 3,699,981
Short-term securities 4,900,000 4,000,000 1,000,000 --
=============================================================================================================
**For the period September 25, 2001 (commencement of operations) through May
31, 2002.
52
Notes to
Financial Statements (continued)
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis as of May 31,
2002. Differences between amounts for financial statement and federal income tax
purposes are primarily due to timing differences in recognizing income on
taxable market discount securities and timing differences in recognizing certain
gains and losses on security transactions.
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NPG)
--------------------------------------------------------------------------------------------------------------
Cost of Investments $107,406,099 $54,587,285 $52,650,550 $77,579,757
==============================================================================================================
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX) (NMT) (NMB) (NOM)
--------------------------------------------------------------------------------------------------------------
Cost of Investments $42,347,972 $95,637,651 $41,823,909 $44,157,072
==============================================================================================================
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NPG)
---------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation $5,053,311 $ 519,551 $692,989 $3,341,199
Gross unrealized depreciation (185,996) (222,975) (3,515) (256,446)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) on investments $4,867,315 $ 296,576 $689,474 $3,084,753
===============================================================================================================
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX) (NMT) (NMB) (NOM)
---------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation $ 307,531 $5,205,883 $ 456,604 $2,717,138
Gross unrealized depreciation (679,639) (658,045) (365,557) (117,875)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) on investments $(372,108) $4,547,838 $ 91,047 $2,599,263
===============================================================================================================
53
The tax components of undistributed net investment income and realized gains at
May 31, 2002, are as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NPG)
---------------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $897,969 $176,278 $188,577 $686,277
Undistributed ordinary income * 34,265 -- -- 1,522
Undistributed long-term capital gains -- -- -- --
===============================================================================================================
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX) (NMT) (NMB) (NOM)
---------------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $235,839 $750,534 $141,123 $409,490
Undistributed ordinary income * -- -- -- --
Undistributed long-term capital gains -- -- -- --
===============================================================================================================
The tax character of distributions paid during the period ended May 31, 2002,
are as follows:
CONNECTICUT CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NPG)
---------------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income $4,936,883 $2,427,472 $-- $3,537,237
Distributions from ordinary income * 12,951 -- -- 94,734
Distributions from long-term capital gains -- -- -- --
===============================================================================================================
GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND PREMIUM DIVIDEND PREMIUM
ADVANTAGE INCOME ADVANTAGE INCOME
(NZX) (NMT) (NMB) (NOM)
---------------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income $892,422 $4,408,553 $1,940,760 $2,047,062
Distributions from ordinary income * -- -- -- --
Distributions from long-term capital gains -- -- -- --
===============================================================================================================
* Ordinary income consists of taxable market discount income and short-term
capital gains, if any.
At May 31, 2002, 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:
CONNECTICUT CONNECTICUT GEORGIA MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND PREMIUM PREMIUM DIVIDEND PREMIUM
INCOME ADVANTAGE INCOME INCOME ADVANTAGE INCOME
(NTC) (NFC) (NPG) (NMT) (NMB) (NOM)
--------------------------------------------------------------------------------------------------------------
Expiration year:
2003 $ 170,060 $-- $-- $ 41,189 $ -- $ 768,346
2004 1,105,901 -- 1,266,940 945,779 -- 708,417
2005 847,914 -- 340,685 195,761 -- --
2006 -- -- -- -- -- --
2007 -- -- -- -- -- --
2008 7,281 -- 129,908 210,989 -- 57,432
2009 168,464 57,242 -- 718,509 25,524 --
2010 -- 42,027 -- -- 31,957 6,599
--------------------------------------------------------------------------------------------------------------
Total $2,299,620 $99,269 $1,737,533 $2,112,227 $57,481 $1,540,794
==============================================================================================================
53
Notes to
Financial Statements (continued)
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Connecticut Premium Income's (NTC), Georgia Premium Income's (NPG),
Massachusetts Premium Income's (NMB) and Missouri Premium Income's (NOM)
investment management agreements with the Adviser, each Fund pays an annual
management fee, payable monthly, at the rates set forth below, which are based
upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
------------------------------------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
============================================================================================================
Under Connecticut Dividend Advantage's (NFC), Connecticut Dividend Advantage 2's
(NGK), Georgia Dividend Advantage's (NZX) and Massachusetts Dividend Advantage's
(NMB) investment management agreements with the Adviser, each Fund pays an
annual management fee, payable monthly, at the rates set forth below, which are
based upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
------------------------------------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5750 of 1
============================================================================================================
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 (including net
assets attributable to Preferred shares), for fees and expenses in the amounts,
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
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 its fees and expenses
beyond January 31, 2011.
54
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 (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
==============================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 2 (NGK)
for any portion of its fees and expenses beyond March 31, 2012.
For the first ten years of Georgia Dividend Advantage's (NZX) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
==============================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Georgia Dividend Advantage (NZX) for any
portion of its fees and expenses beyond September 30, 2011.
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 their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
55
Financial
Highlights
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------- ---------------------------
Distributions
from and From and
in Excess Distributions in Excess
of Net from of Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
=====================================================================================================================
CONNECTICUT PREMIUM INCOME (NTC)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) $14.20 $1.00 $ .20 $(.10) $-- $1.10 $(.84) $-- $(.84)
2001 12.92 1.02 1.32 (.24) -- 2.10 (.82) -- (.82)
2000 14.44 1.06 (1.54) (.22) -- (.70) (.82) -- (.82)
1999 14.49 1.00 (.05) (.20) -- .75 (.80) -- (.80)
1998 13.63 1.00 .89 (.23) -- 1.66 (.80) -- (.80)
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) 13.88 1.00 .31 (.11) -- 1.20 (.84) -- (.84)
2001(a) 14.33 .21 (.23) (.05) -- (.07) (.21) -- (.21)
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) 14.33 .08 .30 -- -- .38 (.07) -- (.07)
GEORGIA PREMIUM INCOME (NPG)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) 14.15 1.02 .11 (.12) -- 1.01 (.85) -- (.85)
2001 12.80 1.06 1.35 (.26) -- 2.15 (.80) -- (.80)
2000 14.45 1.03 (1.65) (.23) -- (.85) (.80) -- (.80)
1999 14.58 1.01 (.13) (.21) -- .67 (.80) -- (.80)
1998 13.70 1.01 .90 (.24) -- 1.67 (.79) -- (.79)
GEORGIA DIVIDEND ADVANTAGE (NZX)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(c) 14.33 .58 (.19) (.06) -- .33 (.47) -- (.47)
=====================================================================================================================
Total Returns
----------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
================================================================================
CONNECTICUT PREMIUM INCOME (NTC)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) $ -- $14.46 $16.0500 5.01% 7.87%
2001 -- 14.20 16.1000 25.91 16.57
2000 -- 12.92 13.5000 (14.85) (4.87)
1999 -- 14.44 16.7500 13.50 5.22
1998 -- 14.49 15.5000 15.61 12.39
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) -- 14.24 15.7900 8.61 8.81
2001(a) (.17) 13.88 15.3400 3.71 (1.67)
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) (.16) 14.48 15.0500 .79 1.53
GEORGIA PREMIUM INCOME (NPG)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) -- 14.31 15.8300 8.98 7.32
2001 -- 14.15 15.3500 30.41 16.98
2000 -- 12.80 12.4375 (18.84) (5.87)
1999 -- 14.45 16.2500 13.42 4.64
1998 -- 14.58 15.0625 14.56 12.43
GEORGIA DIVIDEND ADVANTAGE (NZX)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(c) (.19) 14.00 14.7400 1.42 1.02
================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------- Municipal Auction Rate Cumulative
Before After Credit/ Preferred Stock at End of Period
Credit/Reimbursement Reimbursement*** ----------------------------------
----------------------- -------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets Aggregate Liquidation
Applicable Applicable Applicable Applicable Applicable Portfolio Amount and Market Asset
to Common to Common to Common to Common to Common Turnover Outstanding Value Coverage
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate (000) Per Share Per Share
==============================================================================================================================
CONNECTICUT PREMIUM INCOME (NTC)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) $76,327 1.34% 6.90% 1.34% 6.91% 12% $38,300 $25,000 $74,822
2001 74,642 1.33 7.36 1.31 7.39 8 38,300 25,000 73,722
2000 67,579 1.36 7.87 1.32 7.91 19 38,300 25,000 69,112
1999 75,165 1.32 6.83 1.30 6.84 7 38,300 25,000 74,063
1998 75,084 1.33 7.02 1.33 7.02 13 38,300 25,000 74,010
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) 36,233 1.38 6.56 .88 7.06 20 19,500 25,000 71,453
2001(a) 35,255 1.22* 4.10* .80* 4.52* 29 19,500 25,000 70,198
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) 33,408 1.06* 2.90* .73* 3.23* -- 17,500 25,000 72,726
GEORGIA PREMIUM INCOME (NPG)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) 53,909 1.37 7.12 1.35 7.13 37 27,800 25,000 73,480
2001 53,168 1.41 7.67 1.40 7.68 15 27,800 25,000 72,813
2000 47,991 1.43 7.73 1.40 7.76 17 27,800 25,000 68,157
1999 54,022 1.34 6.87 1.33 6.88 14 27,800 25,000 73,581
1998 54,352 1.33 7.10 1.33 7.10 17 27,800 25,000 73,878
GEORGIA DIVIDEND ADVANTAGE (NZX)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(c) 27,381 1.37* 5.70* .92* 6.16* 60 15,000 25,000 70,636
==============================================================================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Common Share Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in Common share net asset value per share.
Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a)For the period January 26, 2001 (commencement of operations) through May 31,
2001.
(b)For the period March 26, 2002 (commencement of operations) through May 31,
2002.
(c)For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(d)As required, effective June 1, 2001, the Funds have adopted the provisions
of the new AICPA Audit and Accounting Guide for Investment Companies and
began accreting taxable market discount on debt securities. The effect of
this change for the fiscal year ended May 31, 2002, was to increase net
investment income per share with a corresponding decrease in net
realized/unrealized investment gain (loss) per share and increase each ratio
of net investment income to average net assets as follows:
CONNECTICUT CONNECTICUT GEORGIA
PREMIUM DIVIDEND PREMIUM
INCOME (NTC) ADVANTAGE (NFC) INCOME (NPG)
----------------------------------------------
2002 per share impact ($) -- -- .01
2002 income ratio impact (%) .02 .02 .04
The Financial Highlights for the prior periods have not been restated to reflect
this change in presentation.
56-57
Financial Highlights (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------- ---------------------------
Distributions
from and From and
in Excess Distributions in Excess
of Net from of Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
=====================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) $14.26 $1.03 $ .13 $(.11) $-- $1.05 $(.83) $-- $(.83)
2001 13.17 1.05 1.10 (.24) -- 1.91 (.82) -- (.82)
2000 14.72 1.05 (1.54) (.21) -- (.70) (.85) -- (.85)
1999 14.91 1.02 (.16) (.20) -- .66 (.85) -- (.85)
1998 14.11 1.06 .83 (.24) -- 1.65 (.85) -- (.85)
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) 13.88 1.03 .25 (.12) -- 1.16 (.88) -- (.88)
2001(a) 14.33 .24 (.24) (.05) -- (.05) (.22) -- (.22)
MISSOURI PREMIUM INCOME (NOM)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) 13.97 1.01 .31 (.13) -- 1.19 (.81) -- (.81)
2001 12.77 1.02 1.18 (.26) -- 1.94 (.74) -- (.74)
2000 14.20 .99 (1.39) (.26) -- (.66) (.77) -- (.77)
1999 14.44 .97 (.22) (.22) -- .53 (.77) -- (.77)
1998 13.68 .99 .78 (.25) -- 1.52 (.76) -- (.76)
=====================================================================================================================
Total Returns
----------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) $ -- $14.48 $15.7000 8.04% 7.51%
2001 -- 14.26 15.3300 15.71 14.72
2000 -- 13.17 14.0000 (7.66) (4.79)
1999 -- 14.72 16.0625 2.48 4.47
1998 -- 14.91 16.5000 18.08 11.91
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) -- 14.16 15.9500 14.15 8.46
2001(a) (.18) 13.88 14.8000 .13 (1.61)
MISSOURI PREMIUM INCOME (NOM)
--------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) -- 14.35 15.4100 14.11 8.65
2001 -- 13.97 14.2500 17.41 15.48
2000 -- 12.77 12.8125 (4.35) (4.63)
1999 -- 14.20 14.1875 5.24 3.64
1998 -- 14.44 14.1875 14.53 11.31
================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------- Municipal Auction Rate Cumulative
Before After Credit/ Preferred Stock at End of Period
Credit/Reimbursement Reimbursement*** ----------------------------------
----------------------- -------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets Aggregate Liquidation
Applicable Applicable Applicable Applicable Applicable Portfolio Amount and Market Asset
to Common to Common to Common to Common to Common Turnover Outstanding Value Coverage
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate (000) Per Share Per Share
==============================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) $67,856 1.31% 7.11% 1.30% 7.12% 13% $34,000 $25,000 $74,894
2001 66,579 1.37 7.46 1.35 7.48 14 34,000 25,000 73,955
2000 61,323 1.32 7.71 1.31 7.73 11 34,000 25,000 70,091
1999 68,288 1.30 6.87 1.30 6.88 11 34,000 25,000 75,212
1998 68,936 1.31 7.22 1.31 7.22 17 34,000 25,000 75,688
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) 27,519 1.47 6.70 .94 7.24 9 15,000 25,000 70,865
2001(a) 26,951 1.28* 4.84* .84* 5.28* 18 15,000 25,000 69,919
MISSOURI PREMIUM INCOME (NOM)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(b) 31,619 1.38 7.08 1.36 7.10 8 16,000 25,000 74,405
2001 30,508 1.39 7.48 1.38 7.50 31 16,000 25,000 72,669
2000 27,701 1.48 7.49 1.47 7.51 23 16,000 25,000 68,282
1999 30,603 1.44 6.72 1.43 6.72 10 16,000 25,000 72,817
1998 30,935 1.47 7.03 1.47 7.03 25 16,000 25,000 73,336
==============================================================================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Common Share Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in Common share net asset value per share.
Total returns are not annualized.
***After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a)For the period January 31, 2001 (commencement of operations) through May 31,
2001.
(b)As required, effective June 1, 2001, the Funds have adopted the provisions
of the new AICPA Audit and Accounting Guide for Investment Companies and
began accreting taxable market discount on debt securities. The effect of
this change for the fiscal year ended May 31, 2002, was to increase net
investment income per share with a corresponding decrease in net
realized/unrealized investment gain (loss) per share and increase each ratio
of net investment income to average net assets as follows:
MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND PREMIUM
INCOME (NMT) ADVANTAGE (NMB) INCOME (NOM)
----------------------------------------------
2002 per share impact ($) .01 -- --
2002 income ratio impact (%) .06 .03 .01
The Financial Highlights for the prior periods have not been restated to reflect
this change in presentation.
58-59
Trustees
and Officers
The management of the Funds, including general supervision of the duties
performed for the Funds under the Management Agreement, is the responsibility of
the Board of Trustees of the Funds. The number of trustees of the Funds is
currently set at seven, one of whom is an "interested person" (as the term is
defined in the Investment Company Act of 1940) and six of whom are not
interested persons. None of the trustees who are not interested persons of the
Funds have ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the trustees and officers of the
Funds, their principal occupations and other affiliations during the past five
years, the number of portfolios each oversees and other directorships they hold
are set forth below.
The Funds' Statement of Additional Information ("SAI") includes more information
about the Trustees. To request a free copy, call Nuveen Investments at (800)
257-8787.
YEAR FIRST PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR APPOINTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX
AND ADDRESS WITH THE FUND AND TERM OF OFFICE DURING PAST 5 YEARS OVERSEEN BY TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
TRUSTEE WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger Chairman of the 1994 Chairman and Director (since July 1996) 130
(1) Board, President Term of The John Nuveen Company, Nuveen
3/28/1949 and Trustee Indefinite (2) Investments, Nuveen Advisory Corp. and
333 West Wacker Drive Nuveen Institutional Advisory Corp.;
Chicago, IL 60606 prior thereto, Executive Vice President
and Director of The John Nuveen Company
and Nuveen Investments; Director (since
1992) and Chairman (since 1996) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.; Chairman and Director (since
January 1997) of Nuveen Asset Management, Inc.;
Director (since 1996) of Institutional Capital
Corporation; Chairman and Director (since 1999)
of Rittenhouse Financial Services Inc.; Chief
Executive Officer (since September 1999) of
Nuveen Senior Loan Asset Management Inc.
TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
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ROBERT P. BREMNER Trustee 1997 Private Investor and Management Consultant. 112
8/22/1940 Term
333 W. Wacker Drive Indefinite (2)
Chicago, IL 60606
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LAWRENCE H. BROWN Trustee 1993 Retired (August 1989) as Senior Vice President 112
7/29/1934 Term of The Northern Trust Company.
333 W. Wacker Drive Indefinite (2)
Chicago, IL 60606
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ANNE E. IMPELLIZZERI Trustee 1994 Retired (2002); formerly, Executive Director 112
1/26/1933 Term (since 1998) of Manitoga (Center for Russel
333 W. Wacker Drive Indefinite (2) Wright's Design with Nature); prior thereto,
Chicago, IL 60606 President and Chief Executive Officer of
Blanton-Peale Institutes of Religion and
Health (since December 1990); prior thereto,
Vice President, Metropolitan Life Insurance Co.
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PETER R. SAWERS Trustee 1991 Adjunct Professor of Business and Economics, 112
4/3/1933 Term University of Dubuque, Iowa; Director, Executive
333 W. Wacker Drive Indefinite (2) Service Corps of Chicago (not-for-profit); Director,
Chicago, IL 60606 Hadley School for the Blind (not-for-profit);
formerly (1991-2000) Adjunct Professor,
Lake Forest Graduate School of Management,
Lake Forest, Illinois; prior thereto,
Executive Director, Towers Perrin Australia, a
management consulting firm; Chartered
Financial Analyst; Certified Management Consultant.
60
YEAR FIRST PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR APPOINTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX
AND ADDRESS WITH THE FUND AND TERM OF OFFICE DURING PAST 5 YEARS OVERSEEN BY TRUSTEE
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TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
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WILLIAM J. SCHNEIDER Trustee 1997 Senior Partner and Chief Operating Officer, 112
9/24/1944 Term Miller-Valentine Group, Vice President,
333 W. Wacker Drive Indefinite (2) Miller-Valentine Realty, a development and
Chicago, IL 60606 contract company; Chair, Miami Valley Hospital;
Vice Chair, Miami Valley Economic Development
Coalition; formerly, Member, Community Advisory
Board, National City Bank, Dayton, Ohio; and
Business Advisory Council, Cleveland
Federal Reserve Bank.
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JUDITH M. STOCKDALE Trustee 1997 Executive Director, Gaylord and Dorothy 112
12/29/1947 Term Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Indefinite (2) thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX
AND ADDRESS WITH THE FUND OR APPOINTED (3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
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OFFICERS OF THE FUNDS:
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MICHAEL T. ATKINSON Vice President 2002 Vice President (since January 2002), formerly, 130
2/3/1966 Assistant Vice President (since 2000), previously,
333 W. Wacker Drive Associate of Nuveen Investments.
Chicago, IL 60606
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PAUL L. BRENNAN Vice President 2002 Vice President (since January 2002), formerly, 126
11/10/1966 Assistant Vice President, of Nuveen
333 W. Wacker Drive Advisory Corp.
Chicago, IL 60606
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PETER H. D'ARRIGO Vice President 1999 Vice President of Nuveen Investments (since 130
11/28/1967 and Treasurer January 1999), prior thereto, Assistant Vice
333 W. Wacker Drive President (from January 1997); formerly,
Chicago, IL 60606 Associate of Nuveen Investments; Vice President
and Treasurer (since September 1999) of Nuveen
Senior Loan Asset Management Inc.; Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
MICHAEL S. DAVERN Vice President 1997 Vice President of Nuveen Advisory Corp. 126
6/26/1957
333 W. Wacker Drive
Chicago, IL 60606
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SUSAN M. DESANTO Vice President 2001 Vice President of Nuveen Advisory Corp. (since 130
9/8/1954 August 2001); previously, Vice President of
333 W. Wacker Drive Van Kampen Investment Advisory Corp.
Chicago, IL 60606 (since 1998); prior thereto, Assistant Vice
President of Van Kampen Investment
Advisory Corp.
61
Trustees
and Officers (continued)
PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX
AND ADDRESS WITH THE FUND OR APPOINTED (3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
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JESSICA R. DROEGER Vice President 2002 Vice President (since January 2002) and Assistant 130
9/24/1964 General Counsel (since May 1998), formerly
333 W. Wacker Drive Assistant Vice President of Nuveen Investments;
Chicago, IL 60606 Assistant Vice President and Assistant Secretary
(since 1998) of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.; prior thereto,
Associate at the law firm D'Ancona Partners LLC
------------------------------------------------------------------------------------------------------------------------------------
LORNA C. FERGUSON Vice President 1998 Vice President of Nuveen Investments; Vice 130
10/24/1945 President (since January 1998) of Nuveen
333 W. Wacker Drive Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.
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WILLIAM M. FITZGERALD Vice President 1995 Managing Director of Nuveen Advisory Corp. and 130
3/2/1964 Nuveen Institutional Advisory Corp. (since February
333 W. Wacker Drive 2001); prior thereto, Vice President of Nuveen
Chicago, IL 60606 Advisory Corp.; Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
STEPHEN D. FOY Vice President 1998 Vice President of Nuveen Investments and 130
5/31/1954 and Controller (since May 1998) The John Nuveen Company; Vice
333 W. Wacker Drive President (since September 1999) of Nuveen
Chicago, IL 60606 Senior Loan Asset Management Inc.; Certified Public
Accountant.
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J. THOMAS FUTRELL Vice President 1992 Vice President of Nuveen Advisory Corp.; 126
7/5/1955 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
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RICHARD A. HUBER Vice President 1997 Vice President of Nuveen Institutional Advisory 126
3/26/1963 Corp. (since March 1998) and Nuveen
333 W. Wacker Drive Advisory Corp.
Chicago, IL 60606
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STEVEN J. KRUPA Vice President 1990 Vice President of Nuveen Advisory Corp. 126
8/21/1957
333 W. Wacker Drive
Chicago, IL 60606
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DAVID J. LAMB Vice President 2000 Vice President (since March 2000) of Nuveen 130
3/22/1963 Investments, previously Assistant Vice
333 W. Wacker Drive President (since January 1999); prior thereto,
Chicago, IL 60606 Associate of Nuveen Investments; Certified
Public Accountant.
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TINA M. LAZAR Vice President 2002 Vice President (since 1999), previously, 130
8/27/1961 Assistant Vice President (since 1993) of
333 W. Wacker Drive Nuveen Investments.
Chicago, IL 60606
62
PRINCIPAL OCCUPATION(S) NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS IN FUND COMPLEX
AND ADDRESS WITH THE FUND OR APPOINTED (3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
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LARRY W. MARTIN Vice President 1992 Vice President, Assistant Secretary and 130
7/27/1951 and Assistant Assistant General Counsel of Nuveen
333 W. Wacker Drive Secretary Investments; Vice President and Assistant
Chicago, IL 60606 Secretary of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.; Vice President and
Assistant Secretary of The John Nuveen
Company and Nuveen Asset Management, Inc.;
Vice President and Assistant Secretary (since
September 1999) of Nuveen Senior Loan Asset
Management Inc.
------------------------------------------------------------------------------------------------------------------------------------
EDWARD F. NEILD, IV Vice President 1996 Managing Director (since September 1997), previously 130
7/7/1965 Vice President of Nuveen Advisory Corp. and
333 W. Wacker Drive Nuveen Institutional Advisory Corp.; Chartered
Chicago, IL 60606 Financial Analyst.
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THOMAS J. O'SHAUGHNESSY Vice President 2002 Vice President (since January 2002), formerly, 126
9/4/1960 Assistant Vice President (1998), of Nuveen
333 W. Wacker Drive Advisory Corp.; prior thereto, Portfolio Manager.
Chicago, IL 60606
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THOMAS C. SPALDING, JR. Vice President 1982 Vice President of Nuveen Advisory Corp. and 126
7/31/1951 Nuveen Institutional Advisory Corp.; Chartered
333 W. Wacker Drive Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
GIFFORD R. ZIMMERMAN Vice President 1992 Managing Director (since January 2002), 130
9/9/1956 and Secretary Assistant Secretary and Associate General
333 W. Wacker Drive Counsel, formerly Assistant General Counsel
Chicago, IL 60606 and Vice President of Nuveen Investments;
Managing Director (since January 2002), General
Counsel and Assistant Secretary, formerly Vice
President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.; Vice President and
Assistant Secretary of The John Nuveen Company;
Managing Director (since January 2002), and
Assistant Secretary (since September 1999),
formerly Vice President of Nuveen Senior
Loan Asset Management Inc.; Managing Director
(since January 2002), Assistant Secretary and
Associate General Counsel, formerly Vice President
(since 2000), of Nuveen Asset Management Inc.;
Chartered Financial Analyst.
(1)Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and director of
Nuveen Advisory Corp.
(2)Trustees serve an indefinite term until his/her successor is elected.
(3)Officers serve one year terms through July of each year.
63
Build Your Wealth
Automatically
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distrib utions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
64
Fund
Information
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
JPMorgan Chase Bank
P.O. Box 660086
Dallas, TX 75266-0086
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period ended May 31, 2002. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
65
Serving Investors
for Generations
Photo of: John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products
and services can help you preserve your financial security, talk with your
financial advisor, or call us at (800) 257-8787 for more information, including
a prospectus where applicable. Please read that information carefully before you
invest.
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com FAN-C-0502