UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09451
---------------------
Nuveen Massachusetts Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: May 31
------------------
Date of reporting period: November 30, 2004
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT November 30, 2004
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND
NTC
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND
NFC
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NGK
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NGO
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND
NMT
NUVEEN MASSACHUSETTS DIVIDEND ADVANTAGE MUNICIPAL FUND
NMB
NUVEEN INSURED MASSACHUSETTS TAX-FREE ADVANTAGE MUNICIPAL FUND
NGX
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND
NOM
Photo of: Man and woman sitting on porch.
Photo of: 2 children sitting in the grass.
DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU
KEEP.(R)
Logo: NUVEEN Investments
Photo of: Woman
Photo of: Man and child
Photo of: Woman
NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER.
NO MORE WAITING.
SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL.
It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive
an e-mail as soon as your Nuveen Investments Fund information is ready -- no
more waiting for delivery by regular mail. Just click on the link within the
e-mail to see the report, and save it on your computer if you wish.
------------------
DELIVERY DIRECT TO
YOUR E-MAIL INBOX
------------------
IT'S FAST, EASY & FREE:
WWW.INVESTORDELIVERY.COM
if you get your Nuveen Fund dividends
and statements from your financial
advisor or brokerage account.
OR
WWW.NUVEEN.COM/ACCOUNTACCESS
if you get your Nuveen Fund dividends
and statements directly from Nuveen.
(Be sure to have the address sheet that accompanied this report handy. You'll
need it to complete the enrollment process.)
Logo: NUVEEN Investments
Timothy R. Schwertfeger
Chairman of the Board
Photo of: Timothy R. Schwertfeger
Chairman's
LETTER TO SHAREHOLDERS
I am pleased to report that over the six-month period covered by this semiannual
report your Fund continued to provide you with monthly income free from federal,
state, and in some cases, local taxes, as well as an attractive total return.
For more details about the management strategy and performance of your Fund,
please see the Portfolio Managers' Comments and Performance Overview sections of
this report.
As I noted in my last letter to you, our conversations with financial advisors
and investors suggest that many of you may be wondering whether interest rates
will soon begin to rise, how high they might go, and whether that makes this a
good time to adjust your holdings of fixed-income investments. We can't answer
that question for you - no one knows what the future will bring.
"OUR MISSION CONTINUES TO BE TO ASSIST YOU AND YOUR FINANCIAL ADVISOR BY
OFFERING INVESTMENT SERVICES AND PRODUCTS THAT CAN HELP YOU TO SECURE YOUR
FINANCIAL OBJECTIVES."
From our experience, what we do know is that a well-balanced portfolio,
structured and carefully monitored with the help of a trusted investment
professional, can be an important component in achieving your long-term
financial goals. In fact, a well- diversified portfolio may actually help to
reduce your overall investment risk. That is one reason why we believe that a
municipal bond investment like your Nuveen Fund can be an important building
block in a comprehensive investment program designed to perform well in a
variety of market conditions.
As in past reports, I'd also like to direct your attention to the inside front
cover, which explains the quick and easy process to begin receiving these Fund
reports via e-mail and the internet. Thousands of Nuveen Fund shareholders
already have signed-up, and they are getting their Fund information faster and
more conveniently than ever. I urge you to consider joining them.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
January 14, 2005
Nuveen Municipal Closed-End Exchange-Traded Funds
NTC, NFC, NGK, NGO, NMT, NMB, NGX, NOM
Portfolio Managers'
COMMENTS
Portfolio managers Paul Brennan, Dan Solender and Scott Romans discuss the key
investment strategies and semiannual performance of these Nuveen Funds. Paul,
who has 13 years of investment experience, has managed NTC since 1999, NFC since
2001, NGK and NGO since 2002, and NMT and NMB since 2003. With 12 years of
investment experience, Dan assumed portfolio management responsibility for NGX
in May 2004. Scott, who joined Nuveen in 2000, has managed NOM since 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX MONTHS ENDED
NOVEMBER 30, 2004?
As the market continued to anticipate an eventual increase in interest rates,
our focus during this reporting period centered on finding bonds that we thought
had the potential to add value immediately and also perform well under a variety
of future market scenarios. This included purchasing bonds that would tend to
shorten the Funds' yield curve positioning, and thereby help to mitigate their
interest rate risk. (Interest rate risk is the risk that the value of a Fund's
portfolio will decline if market interest rates rise, since bond prices move in
the opposite direction of interest rates).
Given the individual portfolios of each Fund and the characteristics of each
state, we looked at different maturity ranges when making new purchases for
these Funds. In general, purchase activity in the Connecticut Funds emphasized
securities that mature between 2011 and 2014, as we found the majority of the
attractive opportunities in the Connecticut market in this part of the yield
curve. At the same time, the Massachusetts and Missouri Funds were investing in
bonds with 15 to 25 years to maturity, since we thought these bonds offered the
best risk-return profiles in these states. We also focused on adding
higher-coupon bonds that can help to position the Funds more defensively and
mitigate interest rate risk if rates rise from their current levels.
Over this six-month reporting period, municipal issuance in Connecticut declined
from the previous six-month period. This reduced supply was easily absorbed by
market demand. As a result, turnover in the Connecticut Funds was relatively
light, ranging from 3% to 9% during the period. When we found them, we took
advantage of opportunities to selectively trim some of our more concentrated
positions of BBB bonds, especially in NFC, and add new holdings in both the AAA
and AA credit categories. We believe this enhanced the overall diversification
and credit quality of the portfolios.
4
In Massachusetts, municipal supply also was down over this period, and the
turnover in these Funds also was below recent historical averages. As with the
Connecticut Funds, we modestly trimmed some of our BBB rated holdings in the two
noninsured Funds, particularly NMB, and reinvested the proceeds in higher
quality AAA and AA bonds. Because BBB bonds performed well in 2004, demand for
these bonds was strong and we were able to obtain attractive prices for the
bonds we sold. We also continued to work to improve the diversification of NGX,
which was introduced in late 2002, although our efforts were somewhat
constrained by the limited availability of appropriate issues in the
Massachusetts market.
Missouri saw the most substantial decline in issuance among these three states
during this reporting period, and this restricted the availability of bonds
offering the premium coupons that we sought. As in the other Funds, we worked to
reduce the Fund's credit risk by scaling back concentrated positions in
individual BBB and nonrated holdings. As in Connecticut and Massachusetts, we
tried to sell these lower-rated bonds at attractive prices. We continued to
balance our efforts in risk reduction against the goal of building and
maintaining income streams.
One of our longer-term goals is to position all of these Funds so that they
provide return variability and interest rate risk roughly comparable to the
variability and risk of the bond markets in which the Funds invest. As one
strategy to reach this goal, we attempted to reduce some of the interest rate
risk of NFC, NGK, NGO and NGX by hedging in the derivatives market. Our only
objective with these hedges was to reduce the duration of these Funds without
having a negative impact on their dividends. These hedges do not affect the
Funds' income streams or dividend-paying capabilities over the short-term.
Instead, the costs of the hedges are reflected as an addition or subtraction
from each Fund's net asset value as the value of the hedge fluctuates. Each of
the hedges had a negative impact on its Fund's NAV as of November 30, 2004,
because interest rates fell and bond prices rose during the period in which the
hedges were in place. In each case, this loss in value was at least partly
offset by the fact that the Fund's portfolio, because it had longer-than-target
duration, increased in value by more as a result of these interest rate
decreases than if the Fund had maintained a portfolio with the targeted
duration. (NMB also instituted a similar hedging program after the conclusion of
this reporting period.)
5
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Funds, as well as for relevant comparative
indexes, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 11/30/04
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NTC 5.80% 4.83% 8.77% 9.54%
--------------------------------------------------------------------------------
NFC 6.35% 5.19% NA NA
--------------------------------------------------------------------------------
NGK 5.50% 4.45% NA NA
--------------------------------------------------------------------------------
NGO 6.41% 4.94% NA NA
--------------------------------------------------------------------------------
NMT 5.97% 5.20% 7.88% 9.05%
--------------------------------------------------------------------------------
NMB 7.09% 6.20% NA NA
--------------------------------------------------------------------------------
NOM 6.45% 5.46% 8.64% 9.24%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index1 4.30% 4.08% 6.78% 7.16%
--------------------------------------------------------------------------------
INSURED MASSACHUSETTS
--------------------------------------------------------------------------------
NGX 5.82% 4.90% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Insured
Municipal Bond Index1 4.38% 4.09% 7.21% 7.43%
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds
Average2 6.58% 5.69% 8.71% 8.95%
--------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Returns do not reflect the
deduction of taxes that a shareholder may have to pay on Fund distributions or
upon the sale of Fund shares.
For additional information, see the individual Performance Overview for each
Fund in this report.
For the six months ended November 30, 2004, the cumulative returns on net asset
value (NAV) for all seven noninsured Funds in this report outperformed the
return on the Lehman Brothers Municipal Bond Index, while the insured
Massachusetts NGX outperformed the return on the Lehman Brothers Insured
Municipal Bond Index. NMB also outperformed the average return for its Lipper
Other State Municipal Debt Funds Category Average for this period, while the
other seven Funds trailed this measure. It should be noted that the performance
of the Lipper Other States category represents the overall average of returns
for Funds from 10 different states with a wide variety of municipal market
conditions, making direct comparisons between these Funds and that average less
meaningful.
1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds, while the Lehman Brothers Insured Municipal Bond Index is an
unleveraged, unmanaged national index containing a broad range of insured
municipal bonds. Results for the Lehman indexes do not reflect any
expenses.
2 The Lipper Other States Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 6 months, 44 funds; 1 year, 44 funds; 5 years,
19 funds; and 10 years, 17 funds. Fund and Lipper returns assume
reinvestment of dividends.
6
One of the primary factors benefiting the six-month performances of these Funds
relative to those of the two unmanaged Lehman Brothers indexes was the Funds'
use of financial leverage. While leveraging can add volatility to the Funds'
NAVs and share prices, especially during periods of rising interest rates, this
strategy can also provide opportunities for additional income and total returns
for common shareholders when short-term interest rates remain relatively low and
long-term rates fall or remain relatively constant, as they did during this
reporting period.
All of these Funds benefited from their holdings of lower-quality bonds, which
generally outperformed other credit quality sectors as the economy improved
during the reporting period. Among the lower-rated bonds making positive
contributions to the Funds' total returns during this period were those issued
by the healthcare sector, especially hospital bonds. All of the Connecticut
Funds' returns also were boosted by the strong performance of their holdings of
bonds backed by the 1998 master tobacco settlement agreement. The price
performance of these bonds was favorably affected by an improved litigation
environment and the lack of supply combined with continued demand. Over this
period, NFC and NGO maintained exposures of approximately 3% to tobacco bonds,
while NTC and NGK continued to allocate slightly more than 1% to this sector.
At the high end of the credit spectrum, each of the four Connecticut Funds had a
number of credits that were prerefunded or escrowed to maturity as of November
30, 2004. Generally, these bonds performed well during this period.
The two noninsured Massachusetts Funds benefited from their holdings of resource
recovery bonds issued by the Massachusetts Industrial Finance Agency for the
Ogden Haverhill project. This credit, which was negatively impacted when Ogden
Haverhill's parent company declared bankruptcy in 2002, has continued its
recovery and was one of the best performing holdings in NMT and NMB during this
period. During the period we trimmed our position in these bonds to take
advantage of their improved valuation. The performances of both NMT and NMB were
also helped by prerefundings during this period, one of which involved
Massachusetts general obligation debt. NMB also saw strong performance from its
holdings of higher education credits, and NGX's position in revenue bonds rated
A1 issued for Middlesex School was a top performer for the Fund.
7
In NOM, in addition to hospital bonds, we also had a significant position in
bonds issued in the long-term care sector. One holding that performed
particularly well was the $1.75 million of nonrated bonds issued by Cole County
for Lutheran Senior Living, which we purchased in July 2004.
One area of the market that did not perform well during this reporting period
was structured finance bonds, which includes the housing sector as well as
student loan bonds. While these types of bonds generally provide higher yields
and help to reduce volatility in a rising interest rate environment, their
underperformance during this six months stemmed largely from lower demand due to
concerns about prepayments and increased bond calls as interest rates remained
low. NGK's performance, in particular, was negatively affected during this
period by a number of calls on its holdings of higher-coupon housing bonds. The
six-month performance of all of the Connecticut Funds was impacted to some
degree by their housing exposure, which ranged from 1% in NGK to 4% in NTC and
NGO as of November 30, 2004. Among the Massachusetts Funds, NMT held a
significant position in student loan bonds, which detracted from this Fund's
performance, and all of the Massachusetts Funds had weightings in housing bonds,
ranging from 9% in NGX to 11% in NMT and NMB. In Missouri, where the
single-family housing market in particular did not perform well, NOM had a 6%
allocation to housing, approximately one-quarter of which was in single-family
housing bonds.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As short-term interest rates remained relatively low throughout this reporting
period, the leveraged structures of these eight Funds continued to support their
dividend-paying capabilities. The extent of this benefit is tied in part to the
short-term rates these Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. This strategy helped to maintain the dividends of these
Funds throughout the reporting period.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment
8
income actually earned by the Fund during the period. If a Fund has cumulatively
earned more than it has paid in dividends, it holds the excess in reserve as
undistributed net investment income (UNII) as part of the Fund's NAV.
Conversely, if a Fund has cumulatively paid dividends in excess of its earnings,
the excess constitutes negative UNII that is likewise reflected in the Fund's
NAV. Each Fund will, over time, pay all of its net investment income as
dividends to shareholders. As of November 30, 2004, NTC, NFC, NGK, NGO, NMT, NMB
and NOM had positive UNII balances for both financial statement and tax
purposes. NGX had a negative UNII balance for financial statement purposes and a
positive UNII balance for tax purposes.
As of November 30, 2004, the Funds were trading at premiums or discounts to
their net asset values as shown in the accompanying chart.
FUND 11/30 PREM/DISC PERIOD AVG. PREM/DISC
--------------------------------------------------------------------------------
NTC 3.60% 4.07%
--------------------------------------------------------------------------------
NFC 1.93% 2.07%
--------------------------------------------------------------------------------
NGK 2.01% 0.38%
--------------------------------------------------------------------------------
NGO - 6.57% - 3.46%
--------------------------------------------------------------------------------
NMT 9.42% 2.36%
--------------------------------------------------------------------------------
NMB 3.76% 1.65%
--------------------------------------------------------------------------------
NGX 13.25% 5.64%
--------------------------------------------------------------------------------
NOM 20.20% 12.11%
--------------------------------------------------------------------------------
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
NOVEMBER 30, 2004?
We continued to believe that, given the current geopolitical and economic
climate, maintaining strong credit quality was an important requirement. As of
November 30, 2004, the seven noninsured Funds continued to offer excellent
credit quality, with allocations of bonds rated AAA/U.S. Guaranteed and AA in
the Connecticut Funds ranging from 80% in NFC to 86% in NGO, 88% in NGK and NTC.
In the Massachusetts Funds, NMT and NMB had AAA/U.S. Guaranteed and AA
allocations of 82% and 88%, respectively, while NGX, which can invest up to 20%
of its assets in uninsured investment-grade quality securities, held 83% of its
portfolio in insured or U.S. Guaranteed bonds as of November 30, 2004. As of
that date, NOM's allocation of AAA/U.S. Guaranteed and AA bonds accounted for
81% of its portfolio.
9
As of November 30, 2004, potential call exposure during 2005 and 2006 ranged
from 0% in NMB to 2% in NGK, NGO, and NGX, and 5% in NFC. NOM's call exposure
was 6% over 2005-2006 as of the end of November 30, 2004, while NTC faced a call
exposure of 14% in 2005 - 2006, and NMT had 16% exposure. The number of actual
bond calls in all of these Funds depends largely on future market interest
rates.
10
Nuveen Connecticut Premium Income Municipal Fund
NTC
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 76%
AA 12%
A 2%
BBB 9%
N/R 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0735
Jan 0.0735
Feb 0.0735
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0735
Oct 0.0735
Nov 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 16.39
16.15
16.44
16.38
16.39
16.45
16.65
16.89
16.91
16.55
16.52
16.58
16.7
16.77
16.58
16.6
16.37
15.9
14.84
14.39
14.2
13.75
13.89
14.44
14.47
14.32
14.45
14.76
14.87
15.2
15
14.97
15.3
15.68
15.98
15.8
16.19
16.1
16.39
16
15.94
15.97
15.64
15.86
16
16.9
16.4
16.01
15.91
11/30/04 16
FUND SNAPSHOT
------------------------------------
Share Price $15.54
------------------------------------
Common Share
Net Asset Value $15.00
------------------------------------
Premium/(Discount) to NAV 3.60%
------------------------------------
Market Yield 5.68%
------------------------------------
Taxable-Equivalent Yield1 8.29%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $79,978
------------------------------------
Average Effective Maturity
on Securities (Years) 16.37
------------------------------------
Leverage-Adjusted Duration 7.36
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 10.46% 5.80%
------------------------------------
1-Year 1.16% 4.83%
------------------------------------
5-Year 6.33% 8.77%
------------------------------------
10-Year 9.12% 9.54%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 24.5%
------------------------------------
Tax Obligation/General 16.5%
------------------------------------
Tax Obligation/Limited 12.8%
------------------------------------
U.S. Guaranteed 11.7%
------------------------------------
Water and Sewer 9.2%
------------------------------------
Healthcare 7.7%
------------------------------------
Long-Term Care 5.0%
------------------------------------
Utilities 4.2%
------------------------------------
Other 8.4%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
11
Nuveen Connecticut Dividend Advantage Municipal Fund
NFC
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 16%
A 7%
BBB 12%
N/R 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0745
Jul 0.0745
Aug 0.0745
Sep 0.0745
Oct 0.0745
Nov 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 15.81
15.8
15.96
15.96
16.16
16.06
16.37
16.38
16.54
16.55
16.4
16.4
16.6
16.94
16.55
16.5
16.37
16.22
15.65
14.85
14.45
13.68
13.94
13.87
14.12
13.87
14.25
14.5
14.56
14.87
15.06
14.96
15.44
15.5
15.27
15.45
15.35
15.64
15.35
15.42
15.46
15.45
15.6
15.66
15.98
16.71
15.96
16
15.62
11/30/04 15.72
FUND SNAPSHOT
------------------------------------
Share Price $15.32
------------------------------------
Common Share
Net Asset Value $15.03
------------------------------------
Premium/(Discount) to NAV 1.93%
------------------------------------
Market Yield 5.84%
------------------------------------
Taxable-Equivalent Yield1 8.53%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $38,502
------------------------------------
Average Effective Maturity
on Securities (Years) 16.65
------------------------------------
Leverage-Adjusted Duration 6.82
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 11.69% 6.35%
------------------------------------
1-Year 0.59% 5.19%
------------------------------------
Since
Inception 6.08% 7.18%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 20.9%
------------------------------------
Tax Obligation/General 19.5%
------------------------------------
U.S. Guaranteed 18.3%
------------------------------------
Tax Obligation/Limited 11.5%
------------------------------------
Utilities 7.8%
------------------------------------
Water and Sewer 5.9%
------------------------------------
Transportation 4.5%
------------------------------------
Consumer Staples 3.1%
------------------------------------
Other 8.5%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
12
Nuveen Connecticut Dividend Advantage Municipal Fund 2
NGK
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 21%
A 4%
BBB 8%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0735
Jan 0.0735
Feb 0.0735
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0735
Oct 0.0735
Nov 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 15.5
15.59
15.66
15.75
15.57
16.25
16.42
16.43
16.6
16.19
16.35
16.38
16.3
16.4
16.43
16.71
16.46
16.28
15.25
14.69
14.39
13.7
13.37
14.15
14.14
14.45
14.72
14.79
15.05
15
14.98
14.68
15.33
15.55
15.34
15.49
15.53
15.7
15.82
15.8
15.57
15.94
15.7
16
16.05
16.59
16.22
15.75
15.85
11/30/04 15.65
FUND SNAPSHOT
------------------------------------
Share Price $15.70
------------------------------------
Common Share
Net Asset Value $15.39
------------------------------------
Premium/(Discount) to NAV 2.01%
------------------------------------
Market Yield 5.62%
------------------------------------
Taxable-Equivalent Yield1 8.20%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $35,527
------------------------------------
Average Effective Maturity
on Securities (Years) 15.42
------------------------------------
Leverage-Adjusted Duration 7.57
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 14.18% 5.50%
------------------------------------
1-Year 7.81% 4.45%
------------------------------------
Since
Inception 7.67% 8.77%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 31.8%
------------------------------------
Education and Civic
Organizations 24.2%
------------------------------------
U.S. Guaranteed 14.1%
------------------------------------
Water and Sewer 6.5%
------------------------------------
Tax Obligation/Limited 5.8%
------------------------------------
Utilities 4.5%
------------------------------------
Transportation 4.2%
------------------------------------
Other 8.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1161 per share.
13
Nuveen Connecticut Dividend Advantage Municipal Fund 3
NGO
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 12%
A 5%
BBB 9%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.065
Jan 0.065
Feb 0.065
Mar 0.065
Apr 0.065
May 0.065
Jun 0.065
Jul 0.065
Aug 0.065
Sep 0.065
Oct 0.065
Nov 0.065
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 13.56
13.62
13.76
13.8
13.85
14.18
14.36
14.43
14.39
14.48
14.89
14.81
14.91
14.86
14.99
15.12
14.92
14.92
13.88
13.33
13.22
12.68
12.6
12.69
13
13.25
13.44
13.24
13.82
14.04
14.17
13.79
13.86
14.02
14.29
14.1
13.97
14.34
14.11
13.93
13.82
13.85
14.17
14.4
14.04
14
14.27
14.23
13.9
11/30/04 13.92
FUND SNAPSHOT
------------------------------------
Share Price $13.52
------------------------------------
Common Share
Net Asset Value $14.47
------------------------------------
Premium/(Discount) to NAV -6.57%
------------------------------------
Market Yield 5.77%
------------------------------------
Taxable-Equivalent Yield1 8.42%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $62,948
------------------------------------
Average Effective Maturity
on Securities (Years) 16.46
------------------------------------
Leverage-Adjusted Duration 6.91
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/26/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 6.94% 6.41%
------------------------------------
1-Year 4.65% 4.94%
------------------------------------
Since
Inception 0.47% 5.77%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.1%
------------------------------------
Tax Obligation/Limited 16.8%
------------------------------------
U.S. Guaranteed 15.4%
------------------------------------
Education and Civic
Organizations 12.5%
------------------------------------
Water and Sewer 8.4%
------------------------------------
Long-Term Care 8.1%
------------------------------------
Utilities 5.6%
------------------------------------
Other 10.1%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
14
Nuveen Massachusetts Premium Income Municipal Fund
NMT
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 15%
A 9%
BBB 7%
N/R 2%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0735
Jan 0.0735
Feb 0.0735
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0735
Oct 0.0735
Nov 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 15.88
15.56
15.33
15.36
15.5
15.55
15.73
16.08
15.85
16.1
16.15
16.05
15.93
15.92
16.25
16.01
16.04
16.08
14.75
15.01
14.47
14.82
14.2
14.08
14.35
14.29
14
14.04
14.15
14.42
14.81
14.61
14.85
15
14.79
14.88
15.25
15.15
15.28
15.19
15.39
15.34
15.38
15.61
15.44
16.28
16.11
15.9
16.3
11/30/04 16.21
FUND SNAPSHOT
------------------------------------
Share Price $16.14
------------------------------------
Common Share
Net Asset Value $14.75
------------------------------------
Premium/(Discount) to NAV 9.42%
------------------------------------
Market Yield 5.46%
------------------------------------
Taxable-Equivalent Yield1 8.03%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $69,856
------------------------------------
Average Effective Maturity
on Securities (Years) 16.90
------------------------------------
Leverage-Adjusted Duration 8.59
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 15.74% 5.97%
------------------------------------
1-Year 9.21% 5.20%
------------------------------------
5-Year 7.67% 7.88%
------------------------------------
10-Year 9.41% 9.05%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 23.1%
------------------------------------
Tax Obligation/General 18.1%
------------------------------------
Housing/Multifamily 11.1%
------------------------------------
Healthcare 11.0%
------------------------------------
U.S. Guaranteed 9.1%
------------------------------------
Tax Obligation/Limited 8.7%
------------------------------------
Transportation 6.0%
------------------------------------
Water and Sewer 5.1%
------------------------------------
Other 7.8%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
15
Nuveen Massachusetts Dividend Advantage Municipal Fund
NMB
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 20%
A 3%
BBB 8%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0775
Jan 0.0775
Feb 0.0775
Mar 0.0775
Apr 0.0775
May 0.0775
Jun 0.0775
Jul 0.0775
Aug 0.0775
Sep 0.0775
Oct 0.0775
Nov 0.0775
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 16.11
16.27
16.43
16.3
16.52
16.88
16.77
16.83
16.74
16.65
16.65
16.62
16.69
16.45
16.53
16.73
16.58
16.31
16.55
15.76
15.55
15.05
15.25
14.63
14.88
14.98
14.66
14.68
15
15.04
15.07
15.09
15.3
15.6
15.21
15.71
15.88
16
16.1
16.12
16.15
16.02
15.85
15.87
16.09
16
16.11
16.15
16.25
11/30/04 16.2
FUND SNAPSHOT
------------------------------------
Share Price $16.00
------------------------------------
Common Share
Net Asset Value $15.42
------------------------------------
Premium/(Discount) to NAV 3.76%
------------------------------------
Market Yield 5.81%
------------------------------------
Taxable-Equivalent Yield1 8.54%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $30,049
------------------------------------
Average Effective Maturity
on Securities (Years) 19.06
------------------------------------
Leverage-Adjusted Duration 9.17
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/30/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 10.74% 7.09%
------------------------------------
1-Year 7.17% 6.20%
------------------------------------
Since
Inception 7.62% 8.23%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.1%
------------------------------------
Education and Civic
Organizations 20.5%
------------------------------------
Tax Obligation/Limited 13.7%
------------------------------------
Healthcare 9.3%
------------------------------------
Housing/Multifamily 9.0%
------------------------------------
U.S. Guaranteed 7.3%
------------------------------------
Water and Sewer 5.6%
------------------------------------
Other 11.5%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains distributions in December
2003 of $0.0789 per share.
16
Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund
NGX
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 83%
AAA (Uninsured) 3%
AA (Uninsured) 9%
A (Uninsured) 4%
BBB (Uninsured) 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.072
Apr 0.072
May 0.072
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 15.9
16.05
16
16.05
16.42
16.77
16.4
16.5
16.52
16.19
16.83
16.79
16.8
16.5
16.58
16.83
16.83
16.93
15.16
15.33
15.1
14
13.15
13.51
13.9
13.85
14.1
14.2
14.48
14.51
14.81
14.8
14.49
14.87
14.59
15.25
15.25
15.7
16.3
15.85
16.15
15.88
15.7
15.87
15.74
16.31
16.48
15.87
16
11/30/04 16.3
FUND SNAPSHOT
------------------------------------
Share Price $16.33
------------------------------------
Common Share
Net Asset Value $14.42
------------------------------------
Premium/(Discount) to NAV 13.25%
------------------------------------
Market Yield 5.29%
------------------------------------
Taxable-Equivalent Yield1 7.78%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $39,189
------------------------------------
Average Effective Maturity
on Securities (Years) 21.31
------------------------------------
Leverage-Adjusted Duration 7.54
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 20.79% 5.82%
------------------------------------
1-Year 9.52% 4.90%
------------------------------------
Since
Inception 9.95% 6.17%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.2%
------------------------------------
Tax Obligation/General 21.1%
------------------------------------
Education and Civic
Organizations 17.2%
------------------------------------
U.S. Guaranteed 11.7%
------------------------------------
Housing/Multifamily 8.8%
------------------------------------
Water and Sewer 7.8%
------------------------------------
Healthcare 6.0%
------------------------------------
Other 5.2%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2003 of $0.0148 per share.
17
Nuveen Missouri Premium Income Municipal Fund
NOM
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 17%
A 3%
BBB 6%
N/R 10%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0735
Jan 0.0735
Feb 0.0735
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0735
Oct 0.0735
Nov 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 17.25
17.1
17.33
17.15
17.13
17.04
16.89
17.15
16.81
17.2
17.26
17.88
17.8
17.73
18
18.5
18.23
18.25
16.65
16.4
16.15
15.8
14.9
14.9
15.15
15.6
15.2
15.17
15.55
15.54
15.95
16
16.2
16.95
16.85
17.15
17.21
17.49
17.23
17.05
17
16.72
16.7
17.07
17.2
17.4
17.35
17.5
17.52
11/30/04 17.85
FUND SNAPSHOT
------------------------------------
Share Price $17.85
------------------------------------
Common Share
Net Asset Value $14.85
------------------------------------
Premium/(Discount) to NAV 20.20%
------------------------------------
Market Yield 4.94%
------------------------------------
Taxable-Equivalent Yield1 7.32%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $33,463
------------------------------------
Average Effective Maturity
on Securities (Years) 16.36
------------------------------------
Leverage-Adjusted Duration 8.22
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 20.95% 6.45%
------------------------------------
1-Year 10.64% 5.46%
------------------------------------
5-Year 12.42% 8.64%
------------------------------------
10-Year 11.58% 9.24%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 22.2%
------------------------------------
Healthcare 21.4%
------------------------------------
Tax Obligation/Limited 20.6%
------------------------------------
U.S. Guaranteed 8.1%
------------------------------------
Housing/Multifamily 5.0%
------------------------------------
Education and Civic
Organizations 4.2%
------------------------------------
Utilities 3.9%
------------------------------------
Long-Term Care 3.7%
------------------------------------
Other 10.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
18
Shareholder
MEETING REPORT
The Shareholder Meeting was held November 17, 2004, at 8:30 a.m. (Pacific time)
in the Embassy Room of the Mandarin Oriental Hotel, 222 Sansome Street, San
Francisco, CA 94104-2792.
NTC NFC NGK
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 4,890,636 -- 2,467,709 -- 2,238,260 --
Withhold 30,576 -- 7,725 -- 4,881 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,921,212 -- 2,475,434 -- 2,243,141 --
====================================================================================================================================
Lawrence H. Brown
For 4,886,036 -- 2,466,207 -- 2,238,260 --
Withhold 35,176 -- 9,227 -- 4,881 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,921,212 -- 2,475,434 -- 2,243,141 --
====================================================================================================================================
Jack B. Evans
For 4,889,236 -- 2,467,709 -- 2,238,260 --
Withhold 31,976 -- 7,725 -- 4,881 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,921,212 -- 2,475,434 -- 2,243,141 --
====================================================================================================================================
William C. Hunter
For 4,890,636 -- 2,467,709 -- 2,238,260 --
Withhold 30,576 -- 7,725 -- 4,881 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,921,212 -- 2,475,434 -- 2,243,141 --
====================================================================================================================================
William J. Schneider
For -- 1,479 -- 751 -- 700
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,479 -- 751 -- 700
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,479 -- 751 -- 700
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,479 -- 751 -- 700
====================================================================================================================================
Judith M. Stockdale
For 4,891,705 -- 2,467,709 -- 2,238,260 --
Withhold 29,507 -- 7,725 -- 4,881 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,921,212 -- 2,475,434 -- 2,243,141 --
====================================================================================================================================
19
Shareholder
MEETING REPORT (continued)
NGO NMT NMB
-----------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 4,245,804 -- 4,443,962 -- 1,916,493 --
Withhold 32,053 -- 58,963 -- 4,146 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,277,857 -- 4,502,925 -- 1,920,639 --
====================================================================================================================================
Lawrence H. Brown
For 4,245,804 -- 4,440,462 -- 1,916,493 --
Withhold 32,053 -- 62,463 -- 4,146 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,277,857 -- 4,502,925 -- 1,920,639 --
====================================================================================================================================
Jack B. Evans
For 4,245,804 -- 4,443,962 -- 1,916,128 --
Withhold 32,053 -- 58,963 -- 4,511 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,277,857 -- 4,502,925 -- 1,920,639 --
====================================================================================================================================
William C. Hunter
For 4,244,138 -- 4,442,583 -- 1,916,128 --
Withhold 33,719 -- 60,342 -- 4,511 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,277,857 -- 4,502,925 -- 1,920,639 --
====================================================================================================================================
William J. Schneider
For -- 1,244 -- 1,283 -- 565
Withhold -- -- -- 5 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,244 -- 1,288 -- 565
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,244 -- 1,283 -- 565
Withhold -- -- -- 5 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,244 -- 1,288 -- 565
====================================================================================================================================
Judith M. Stockdale
For 4,240,205 -- 4,442,908 -- 1,916,128 --
Withhold 37,652 -- 60,017 -- 4,511 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,277,857 -- 4,502,925 -- 1,920,639 --
====================================================================================================================================
20
NGX NOM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 2,676,759 -- 2,039,983 --
Withhold 11,956 -- 25,035 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,688,715 -- 2,065,018 --
====================================================================================================================================
Lawrence H. Brown
For 2,676,759 -- 2,036,886 --
Withhold 11,956 -- 28,132 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,688,715 -- 2,065,018 --
====================================================================================================================================
Jack B. Evans
For 2,676,759 -- 2,040,183 --
Withhold 11,956 -- 24,835 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,688,715 -- 2,065,018 --
====================================================================================================================================
William C. Hunter
For 2,676,659 -- 2,040,183 --
Withhold 12,056 -- 24,835 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,688,715 -- 2,065,018 --
====================================================================================================================================
William J. Schneider
For -- 815 -- 542
Withhold -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 815 -- 542
====================================================================================================================================
Timothy R. Schwertfeger
For -- 815 -- 542
Withhold -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 815 -- 542
====================================================================================================================================
Judith M. Stockdale
For 2,676,759 -- 2,039,650 --
Withhold 11,956 -- 25,368 --
------------------------------------------------------------------------------------------------------------------------------------
Total 2,688,715 -- 2,065,018 --
====================================================================================================================================
21
Nuveen Connecticut Premium Income Municipal Fund (NTC)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9% (1.3% OF TOTAL INVESTMENTS)
$ 1,620 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,497,074
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 35.6% (24.5% OF TOTAL INVESTMENTS)
Connecticut Higher Education Supplemental Loan Authority,
Revenue Bonds, Family Education Loan Program, Series 1996A:
800 5.800%, 11/15/14 (Alternative Minimum Tax) - AMBAC Insured 11/06 at 102.00 AAA 801,680
505 5.875%, 11/15/17 (Alternative Minimum Tax) - AMBAC Insured 11/06 at 102.00 AAA 506,076
470 Connecticut Higher Education Supplemental Loan Authority, 11/09 at 102.00 AAA 481,186
Revenue Bonds, Family Education Loan Program, Series 1999A,
6.000%, 11/15/18 (Alternative Minimum Tax) -
AMBAC Insured
900 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 Aaa 940,743
Revenue Bonds, Family Education Loan Program, Series 2001A,
5.250%, 11/15/18 (Alternative Minimum Tax) - MBIA Insured
1,500 Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 AAA 1,580,445
Revenue Bonds, Loomis Chaffee School, Series 1996C,
5.500%, 7/01/16 - MBIA Insured
1,900 Connecticut Health and Educational Facilities Authority, 7/08 at 102.00 AAA 1,967,165
Revenue Bonds, Fairfield University, Series 1998H,
5.000%, 7/01/23 - MBIA Insured
2,920 Connecticut Health and Educational Facilities Authority, 7/07 at 102.00 AAA 3,158,155
Revenue Bonds, Connecticut College, Series 1997C-1,
5.500%, 7/01/20 - MBIA Insured
2,525 Connecticut Health and Educational Facilities Authority, 11/12 at 100.00 AAA 2,725,081
Revenue Bonds, Connecticut State University System,
Series 2003E, 5.000%, 11/01/15 - FGIC Insured
1,250 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 AAA 1,319,013
Revenue Bonds, Fairfield University, Series 1999I,
5.250%, 7/01/25 - MBIA Insured
750 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 815,408
Revenue Bonds, Horace Bushnell Memorial Hall, Series 1999A,
5.625%, 7/01/29 - MBIA Insured
1,000 Connecticut Health and Educational Facilities Authority, No Opt. Call AAA 1,104,200
Revenue Bonds, Connecticut State University System,
Series 2003F, 5.000%, 11/01/13 - FSA Insured
500 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 509,240
Revenue Bonds, Trinity College, Series 2001G,
5.000%, 7/01/31 - AMBAC Insured
650 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 697,470
Revenue Bonds, Loomis Chaffee School, Series 2001D,
5.500%, 7/01/23
450 Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 457,159
Revenue Bonds, Greenwich Academy, Series 2001B,
5.000%, 3/01/32 - FSA Insured
2,000 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 2,045,260
Revenue Bonds, University of Hartford, Series 2002E,
5.250%, 7/01/32 - RAAI Insured
1,500 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,536,645
Revenue Bonds, Yale University, Series 2002W,
5.125%, 7/01/27
1,500 Connecticut Health and Educational Facilities Authority, 7/13 at 100.00 AAA 1,509,720
Revenue Bonds, Yale University, Series 2003X-1,
5.000%, 7/01/42
925 Connecticut Health and Educational Facilities Authority, 7/13 at 100.00 AAA 941,437
Revenue Bonds, Brunswick School, Series 2003B,
5.000%, 7/01/33 - MBIA Insured
1,000 University of Connecticut, Student Fee Revenue Refunding 11/12 at 101.00 AAA 1,089,260
Bonds, Series 2002A, 5.250%, 11/15/19 - FGIC Insured
1,100 University of Connecticut, General Obligation Bonds, 2/13 at 100.00 AAA 1,168,937
Series 2003A, 5.125%, 2/15/21 - MBIA Insured
University of Connecticut, General Obligation Bonds,
Series 2004A:
1,000 5.000%, 1/15/18 - MBIA Insured 1/14 at 100.00 AAA 1,073,800
2,000 5.000%, 1/15/19 - MBIA Insured 1/14 at 100.00 AAA 2,138,140
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.2% (7.7% OF TOTAL INVESTMENTS)
$ 2,000 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa $ 2,052,940
Revenue Bonds, Stamford Hospital, Series 1999G,
5.000%, 7/01/24 - MBIA Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/07 at 102.00 AAA 1,087,480
Revenue Bonds, William W. Backus Hospital, Series 1997D,
5.750%, 7/01/27 - AMBAC Insured
3,000 Connecticut Health and Educational Facilities Authority, 7/07 at 101.00 Aaa 3,055,650
Revenue Refunding Bonds, Middlesex Health Services,
Series 1997H, 5.125%, 7/01/27 - MBIA Insured
2,000 Connecticut Health and Educational Facilities Authority, 7/10 at 101.00 AA 2,187,200
Revenue Bonds, Eastern Connecticut Health Network,
Series 2000A, 6.000%, 7/01/25 - RAAI Insured
500 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 536,045
Revenue Bonds, Bristol Hospital, Series 2002B,
5.500%, 7/01/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5% (3.1% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Housing Mortgage 12/09 at 100.00 AAA 1,037,790
Finance Program Bonds, Series 1999D-2, 6.200%, 11/15/41
(Alternative Minimum Tax)
605 Waterbury Nonprofit Housing Corporation, Connecticut, 1/05 at 100.00 AAA 606,555
FHA-Insured Section 8 Mortgage Revenue Bonds, Fairmount
Heights Project, Series 1993A, 6.500%, 7/01/07 -
MBIA Insured
1,875 Williamantic Housing Authority, Connecticut, GNMA 10/05 at 105.00 AAA 1,992,694
Collateralized Multifamily Housing Mortgage Revenue
Bonds, Village Heights Apartments, Series 1995A,
8.000%, 10/20/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA 1,011,110
Finance Program Bonds, Series 2001C, 5.300%, 11/15/33
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.3% (1.6% OF TOTAL INVESTMENTS)
1,750 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 1,815,380
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.3% (5.0% OF TOTAL INVESTMENTS)
1,300 Connecticut Health and Educational Facilities Authority, 8/08 at 102.00 AAA 1,325,324
FHA-Insured Mortgage Revenue Bonds, Hebrew Home and
Hospital, Series 1999B, 5.200%, 8/01/38
750 Connecticut Development Authority, First Mortgage Gross 4/07 at 102.00 BBB- 758,190
Revenue Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.700%, 4/01/12
615 Connecticut Development Authority, First Mortgage Gross 9/09 at 102.00 AA 665,442
Revenue Refunding Healthcare Bonds, Connecticut Baptist
Homes Inc., Series 1999, 5.500%, 9/01/15 - RAAI Insured
Connecticut Development Authority, Revenue Refunding
Bonds, Duncaster Inc., Series 1999A:
1,000 5.250%, 8/01/19 - RAAI Insured 2/10 at 102.00 AA 1,048,020
1,000 5.375%, 8/01/24 - RAAI Insured 2/10 at 102.00 AA 1,045,760
1,000 Connecticut Development Authority, Health Facilities Revenue 2/05 at 102.00 N/R 1,005,430
Refunding Bonds, Alzheimer's Resource Center of
Connecticut Inc., Series 1994A, 7.000%, 8/15/09
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.9% (15.7% OF TOTAL INVESTMENTS)
500 Bridgeport, Connecticut, General Obligation Bonds, No Opt. Call AAA 557,340
Series 2004C, 5.250%, 8/15/14 - MBIA Insured
750 Bridgeport, Connecticut, General Obligation Refunding Bonds, 8/12 at 100.00 Aaa 819,338
Series 2002A, 5.375%, 8/15/19 - FGIC Insured
1,000 Bridgeport, Connecticut, General Obligation Bonds, 9/13 at 100.00 AAA 1,062,480
Series 2003A, 5.250%, 9/15/23 - FSA Insured
2,000 Connecticut, General Obligation Bonds, Series 2002B, 6/12 at 100.00 AA 2,197,440
5.500%, 6/15/21
1,500 Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,622,070
5.375%, 4/15/19
1,110 Connecticut, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AAA 1,160,905
5.000%, 4/01/23 - FGIC Insured
1,000 Hartford, Connecticut, General Obligation Bonds, Series 2000, 6/10 at 102.00 AAA 1,106,070
5.500%, 6/15/20 - FGIC Insured
400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 424,260
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,500 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 1,733,460
Refunding Bonds, Series 2001A, 5.500%, 7/01/20 -
MBIA Insured
23
Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Regional School District 16, Beacon Falls and Prospect,
Connecticut, General Obligation Bonds, Series 2000:
$ 350 5.500%, 3/15/18 - FSA Insured 3/10 at 101.00 Aaa $ 384,678
350 5.625%, 3/15/19 - FSA Insured 3/10 at 101.00 Aaa 388,143
350 5.700%, 3/15/20 - FSA Insured 3/10 at 101.00 Aaa 389,795
1,420 Regional School District 16, Connecticut, General Obligation 3/13 at 101.00 Aaa 1,542,617
Bonds, Series 2003, 5.000%, 3/15/16 - AMBAC Insured
2,105 Stratford, Connecticut, General Obligation Bonds, Series 2002, 2/12 at 100.00 AAA 2,130,576
4.000%, 2/15/15 - FSA Insured
1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2004B, No Opt. Call AAA 1,095,850
5.000%, 4/01/13 - FSA Insured
1,630 Westport, Connecticut, General Obligation Bonds, Series 2003, 2/12 at 100.00 Aaa 1,691,565
4.750%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.7% (12.8% OF TOTAL INVESTMENTS)
1,900 Capitol Region Education Council, Connecticut, Revenue Bonds, 10/05 at 102.00 BBB 1,977,805
Series 1995, 6.700%, 10/15/10
2,000 Connecticut Health and Educational Facilities Authority, 7/09 at 102.00 AAA 2,174,480
Revenue Bonds, Child Care Facilities Program, Series 1999C,
5.625%, 7/01/29 - AMBAC Insured
Connecticut, Special Tax Obligation Transportation Infrastructure
Purpose Bonds, Series 2002B:
2,000 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AAA 2,113,640
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AAA 1,049,390
500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AAA 520,920
Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured
1,700 Connecticut, Special Tax Obligation Transportation Infrastructure No Opt. Call AA- 1,996,395
Purpose Bonds, Series 1991B, 6.500%, 10/01/10
625 Connecticut, Special Obligation Rate Reduction Bonds, No Opt. Call AAA 688,756
Series 2004A, 5.000%, 6/30/11
2,000 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,174,760
5.250%, 8/01/21 - FSA Insured
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 1,150,590
Loan Notes, Series 1999A, 6.500%, 10/01/24
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AAA 1,096,080
Loan Notes, Series 2003, 5.250%, 10/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.3% (1.5% OF TOTAL INVESTMENTS)
750 Connecticut, General Airport Revenue Bonds, Bradley 4/11 at 101.00 AAA 759,503
International Airport, Series 2001A, 5.125%, 10/01/26
(Alternative Minimum Tax) - FGIC Insured
1,000 Hartford, Connecticut, Parking System Revenue Bonds, 7/10 at 100.00 Baa2 1,041,940
Series 2000A, 6.400%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 17.0% (11.7% OF TOTAL INVESTMENTS)
1,500 Bridgeport, Connecticut, General Obligation Bonds, 7/10 at 101.00 AAA 1,733,835
Series 2000A, 6.000%, 7/15/19 (Pre-refunded to 7/15/10) -
FGIC Insured
Cheshire, Connecticut, General Obligation Bonds, Series 1999:
660 5.625%, 10/15/16 (Pre-refunded to 10/15/09) 10/09 at 101.00 Aa3*** 747,087
660 5.625%, 10/15/17 (Pre-refunded to 10/15/09) 10/09 at 101.00 Aa3*** 747,087
1,060 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,144,789
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
40 Connecticut, General Obligation Bonds, Series 1993E, No Opt. Call AA*** 46,563
6.000%, 3/15/12
1,000 Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 AAA 1,076,270
Revenue Bonds, Trinity College, Series 1996E,
5.875%, 7/01/26 (Pre-refunded to 7/01/06) - MBIA Insured
1,000 Connecticut, Special Tax Obligation Transportation Infrastructure 7/12 at 100.00 AAA 1,096,430
Purpose Bonds, Series 2002A, 5.375%, 7/01/19 (Pre-refunded
to 7/01/12) - FSA Insured
1,000 Connecticut, Special Tax Obligation Transportation Infrastructure 12/09 at 101.00 AAA 1,134,960
Purpose Bonds, Series 1999A, 5.625%, 12/01/19
(Pre-refunded to 12/01/09) - FGIC Insured
1,000 Connecticut, Special Assessment Revenue Bonds, Second 1/11 at 101.00 AAA 1,120,470
Injury Fund, Series 2000A, 5.250%, 1/01/14 (Pre-refunded to
1/01/11) - FSA Insured
1,000 Connecticut, Clean Water Fund Revenue Bonds, Series 2001, 10/11 at 100.00 AAA 1,134,590
5.500%, 10/01/20 (Pre-refunded to 10/01/11)
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 300 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA $ 334,890
Series 2001, 5.125%, 7/01/30 (Pre-refunded to 7/01/11) -
FSA Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,078,490
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,000 Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,124,810
Series 2002A, 5.375%, 4/01/17 (Pre-refunded to 4/01/12) -
FSA Insured
965 Waterbury, Connecticut, General Obligation Tax Revenue 2/09 at 101.00 AA*** 1,093,374
Intercept Bonds, Series 2000, 6.000%, 2/01/19
(Pre-refunded to 2/01/09) - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.1% (4.2% OF TOTAL INVESTMENTS)
1,000 Connecticut Development Authority, Pollution Control 10/08 at 102.00 A3 1,066,980
Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1993A, 5.850%, 9/01/28
2,045 Connecticut Resource Recovery Authority, Revenue Bonds, 5/05 at 100.00 AAA 2,054,489
American Ref-Fuel Company of Southeastern Connecticut,
Series 1989A, 7.700%, 11/15/11 - MBIA Insured
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
395 5.500%, 1/01/14 (Alternative Minimum Tax) 1/05 at 100.00 BBB 403,512
1,290 5.500%, 1/01/20 (Alternative Minimum Tax) 1/05 at 100.00 BBB 1,315,800
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.4% (9.2% OF TOTAL INVESTMENTS)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 1,281,115
Series 2003A, 5.000%, 10/01/16
1,500 Connecticut, State Revolving Fund General Revenue Bonds, No Opt. Call AAA 1,660,005
Series 2003B, 5.000%, 10/01/12
1,400 Connecticut Development Authority, Water Facilities Revenue 12/04 at 101.00 AAA 1,417,233
Refunding Bonds, Bridgeport Hydraulic Company, Series 1993B,
5.500%, 6/01/28 - MBIA Insured
2,550 Connecticut Development Authority, Water Facilities Revenue 9/06 at 102.00 AAA 2,723,630
Bonds, Bridgeport Hydraulic Company, Series 1996,
6.000%, 9/01/36 (Alternative Minimum Tax) - AMBAC Insured
South Central Connecticut Regional Water Authority,
Water System Revenue Bonds, Eighteenth Series 2003A:
1,000 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 1,061,680
1,525 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 1,555,530
1,000 Stamford, Connecticut, Water Pollution Control System 11/13 at 100.00 AA+ 1,013,380
and Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32
------------------------------------------------------------------------------------------------------------------------------------
$ 108,675 Total Long-Term Investments (cost $110,348,327) - 144.5% 115,512,149
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1% (0.8% OF TOTAL INVESTMENTS)
900 Puerto Rico Government Development Bank, Adjustable A-1 900,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 900 Total Short-Term Investments (cost $900,000) 900,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $111,248,327) - 145.6% 116,412,149
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 1,865,465
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.9)% (38,300,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 79,977,614
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ 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.
25
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5% (3.1% OF TOTAL INVESTMENTS)
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 125 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 125,793
500 5.400%, 5/15/31 5/11 at 100.00 Baa3 462,315
1,270 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 1,153,884
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 30.8% (20.9% OF TOTAL INVESTMENTS)
705 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 Aaa 736,915
Revenue Bonds, Family Education Loan Program, Series 2001A,
5.250%, 11/15/18 (Alternative Minimum Tax) - MBIA Insured
50 Connecticut Health and Educational Facilities Authority, 7/08 at 101.00 AA 50,143
Revenue Bonds, Sacred Heart University, Series 1998E,
5.000%, 7/01/28 - RAAI Insured
500 Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- 515,245
Revenue Bonds, University of New Haven, Series 1996D,
6.700%, 7/01/26
750 Connecticut Health and Educational Facilities Authority, 11/12 at 100.00 AAA 809,430
Revenue Bonds, Connecticut State University System,
Series 2003E, 5.000%, 11/01/15 - FGIC Insured
500 Connecticut Health and Educational Facilities Authority, No Opt. Call AAA 552,100
Revenue Bonds, Connecticut State University System,
Series 2003F, 5.000%, 11/01/13 - FSA Insured
1,500 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 1,527,720
Revenue Bonds, Trinity College, Series 2001G,
5.000%, 7/01/31 - AMBAC Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 1,073,030
Revenue Bonds, Loomis Chaffee School, Series 2001D,
5.500%, 7/01/23
350 Connecticut Health and Educational Facilities Authority, 4/14 at 100.00 AAA 376,908
Revenue Bonds, Trinity College, Series 2004H,
5.000%, 7/01/17 (Alternative Minimum Tax) - MBIA Insured
625 Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 634,944
Revenue Bonds, Greenwich Academy, Series 2001B,
5.000%, 3/01/32 - FSA Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,022,630
Revenue Bonds, University of Hartford, Series 2002E,
5.250%, 7/01/32 - RAAI Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,024,430
Revenue Bonds, Yale University, 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,
Series 1999:
125 5.375%, 2/01/19 2/09 at 101.00 BBB 129,375
270 5.375%, 2/01/29 2/09 at 101.00 BBB 274,010
University of Connecticut, General Obligation Bonds,
Series 2001A:
1,000 4.750%, 4/01/20 4/11 at 101.00 AA 1,030,220
1,000 5.250%, 4/01/20 4/11 at 101.00 AA 1,071,560
1,000 4.750%, 4/01/21 4/11 at 101.00 AA 1,025,150
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 3.1% (2.1% OF TOTAL INVESTMENTS)
125 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 128,309
Revenue Bonds, Stamford Hospital, Series 1999G,
5.000%, 7/01/24 - MBIA Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,051,650
Revenue Bonds, Bristol Hospital, Series 2002B,
5.500%, 7/01/32 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.0% (1.4% OF TOTAL INVESTMENTS)
750 Stamford Housing Authority, Connecticut, Multifamily No Opt. Call BBB+ 769,635
Housing Revenue Bonds, Fairfield Apartments, Series 1998,
4.750%, 12/01/28 (Alternative Minimum Tax)
(Mandatory put 12/01/08)
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.6% (1.8% OF TOTAL INVESTMENTS)
$ 1,000 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA $ 1,011,110
Finance Program Bonds, Series 2001C, 5.300%, 11/15/33
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.7% (1.8% OF TOTAL INVESTMENTS)
1,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 1,037,360
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.1% (1.4% OF TOTAL INVESTMENTS)
300 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 310,347
Revenue Healthcare Bonds, Elim Park Baptist Home Inc.,
Series 2003, 5.750%, 12/01/23
500 Connecticut Development Authority, Health Facilities Revenue 2/05 at 102.00 N/R 487,845
Refunding Bonds, Alzheimer's Resource Center of Connecticut
Inc., Series 1994A, 7.250%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.9% (17.6% OF TOTAL INVESTMENTS)
500 Bridgeport, Connecticut, General Obligation Bonds, No Opt. Call AAA 557,340
Series 2004C, 5.250%, 8/15/14 - MBIA Insured
750 Connecticut, General Obligation Bonds, Series 2002B, 6/12 at 100.00 AA 824,040
5.500%, 6/15/21
1,000 Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,081,380
5.375%, 4/15/19
560 Connecticut, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AAA 585,682
5.000%, 4/01/23 - FGIC Insured
500 East Lyme, Connecticut, General Obligation Bonds, 7/11 at 102.00 Aaa 537,535
Series 2001, 5.125%, 7/15/20 - FGIC Insured
1,000 Hartford, Connecticut, General Obligation Bonds, 1/08 at 102.00 AAA 1,042,220
Series 1998, 4.700%, 1/15/15 - FGIC Insured
400 Hartford, Connecticut, General Obligation Bonds, No Opt. Call AAA 453,140
Series 2004, 5.500%, 8/15/11 - MBIA Insured
375 New Haven, Connecticut, General Obligation Bonds, 2/08 at 101.00 AAA 386,584
Series 1999, 4.700%, 2/01/15 - FGIC Insured
1,000 New Haven, Connecticut, General Obligation Bonds, 11/10 at 101.00 AAA 1,044,820
Series 2001A, 5.000%, 11/01/20 - FGIC Insured
250 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 265,163
Series 2000A, 6.000%, 6/01/20 - ACA Insured
Norwich, Connecticut, General Obligation Bonds, Series 2001A:
585 5.000%, 4/01/15 - FGIC Insured 4/09 at 100.00 Aaa 626,927
575 5.000%, 4/01/17 - FGIC Insured 4/09 at 100.00 Aaa 613,784
475 5.000%, 4/01/18 - FGIC Insured 4/09 at 100.00 Aaa 504,963
575 5.000%, 4/01/19 - FGIC Insured 4/09 at 100.00 Aaa 610,702
275 5.000%, 4/01/20 - FGIC Insured 4/09 at 100.00 Aaa 291,676
500 Waterbury, Connecticut, General Obligation Bonds, No Opt. Call AAA 547,925
Series 2004B, 5.000%, 4/01/13 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.9% (11.5% OF TOTAL INVESTMENTS)
1,000 Connecticut Health and Educational Facilities Authority, 7/08 at 105.00 A 1,089,570
Revenue Bonds, New Opportunities for Waterbury Inc.,
Series 1998A, 6.750%, 7/01/28
1,475 Connecticut, Special Tax Obligation Transportation No Opt. Call AAA 1,681,618
Infrastructure Purpose Bonds, Series 1998B,
5.500%, 11/01/12 - FSA Insured
625 Connecticut, Special Obligation Rate Reduction Bonds, No Opt. Call AAA 688,756
Series 2004A, 5.000%, 6/30/11
Connecticut, Certificates of Participation, Juvenile Training
School, Series 2001:
600 5.000%, 12/15/20 12/11 at 101.00 AA- 628,494
1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 1,009,540
500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 531,925
Refunding Bonds, Matching Fund Loan Notes, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
750 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 859,050
Taxes Loan Notes, Series 1999A, 6.375%, 10/01/19
27
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.5% (4.5% OF TOTAL INVESTMENTS)
$ 2,500 Connecticut, General Airport Revenue Bonds, Bradley 4/11 at 101.00 AAA $ 2,531,675
International Airport, Series 2001A, 5.125%, 10/01/26
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 27.0% (18.3% OF TOTAL INVESTMENTS)
515 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 556,195
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
500 Connecticut, Special Tax Obligation Transportation 7/12 at 100.00 AAA 550,115
Infrastructure Purpose Bonds, Series 2002A,
5.375%, 7/01/18 (Pre-refunded to 7/01/12) - FSA Insured
2,000 Connecticut, Clean Water Fund Revenue Bonds, 10/11 at 100.00 AAA 2,269,180
Series 2001, 5.500%, 10/01/20 (Pre-refunded to 10/01/11)
700 Farmington, Connecticut, General Obligation Bonds, 3/11 at 101.00 Aa1*** 769,685
Series 2001, 4.875%, 3/15/20 (Pre-refunded to 3/15/11)
Hamden, Connecticut, General Obligation Bonds, Series 2001:
640 5.250%, 8/15/18 (Pre-refunded to 8/15/11) - MBIA Insured 8/11 at 102.00 AAA 726,042
635 5.000%, 8/15/19 (Pre-refunded to 8/15/11) - MBIA Insured 8/11 at 102.00 AAA 710,876
300 5.000%, 8/15/20 (Pre-refunded to 8/15/11) - MBIA Insured 8/11 at 102.00 AAA 335,847
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,425 5.500%, 10/01/32 10/10 at 101.00 AAA 1,539,941
1,300 5.500%, 10/01/40 10/10 at 101.00 AAA 1,402,037
1,000 Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 1,124,810
Series 2002A, 5.375%, 4/01/17 (Pre-refunded to 4/01/12) -
FSA Insured
370 Windsor, Connecticut, General Obligation Bonds, 7/09 at 100.00 Aa2*** 401,391
Series 2001, 5.000%, 7/15/20 (Pre-refunded to 7/15/09)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5% (7.8% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Pollution Control 10/08 at 102.00 A3 533,490
Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1993A, 5.850%, 9/01/28
1,000 Eastern Connecticut Resource Recovery Authority, 1/05 at 100.00 BBB 1,021,550
Solid Waste 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 2,058,088
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
790 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/05 at 100.00 A- 800,112
Bonds, Series 1995Z, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.7% (5.9% OF TOTAL INVESTMENTS)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 1,281,115
Series 2003A, 5.000%, 10/01/16
500 Connecticut, State Revolving Fund General Revenue Bonds, No Opt. Call AAA 553,335
Series 2003B, 5.000%, 10/01/12
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 796,260
720 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 734,411
------------------------------------------------------------------------------------------------------------------------------------
$ 52,520 Total Long-Term Investments (cost $53,320,862) - 144.3% 55,551,047
=============-----------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.7% (1.9% OF TOTAL INVESTMENTS)
$ 1,050 Puerto Rico Government Development Bank, Adjustable A-1 $ 1,050,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,050 Total Short-Term Investments (cost $1,050,000) 1,050,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $54,370,862) - 147.0% 56,601,047
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 1,400,901
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.6)% (19,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 38,501,948
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated July 1, 2004, to pay semi-annually the notional
amount multiplied by 5.805% (annualized) and receive quarterly the notional
amount multiplied by the three-month USD-LIBOR (United States Dollar-London
Inter-Bank Offered Rates). $500,000 2/02/05 2/02/25 $ (29,118)
Agreement with Morgan Stanley dated July 15, 2004, to pay semi-annually the
notional amount multiplied by 5.717% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 900,000 1/14/05 1/14/35 (41,419)
Agreement with JPMorgan dated July 28, 2004, to pay quarterly the notional
amount multiplied by 4.495% (annualized) and receive quarterly the notional
amount multiplied by the one-week BMA (Bond Market Association) Municipal
Swap Index for the quarter. 900,000 12/13/04 12/13/24 (30,433)
------------------------------------------------------------------------------------------------------------------------------------
$(100,970)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ 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.
29
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 810 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 748,537
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 35.6% (24.2% OF TOTAL INVESTMENTS)
500 Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- 515,245
Revenue Bonds, University of New Haven, Series 1996D,
6.700%, 7/01/26
500 Connecticut Health and Educational Facilities Authority, 7/08 at 101.00 AAA 527,545
Revenue Bonds, Hopkins School, Series 1998A,
5.000%, 7/01/20 - AMBAC Insured
250 Connecticut Health and Educational Facilities Authority, 7/08 at 102.00 AAA 258,838
Revenue Bonds, Fairfield University, Series 1998H,
5.000%, 7/01/23 - MBIA Insured
500 Connecticut Health and Educational Facilities Authority, 11/07 at 101.00 AAA 538,785
Revenue Bonds, State University System, Series 1997B,
5.250%, 11/01/17 - AMBAC Insured
500 Connecticut Health and Educational Facilities Authority, No Opt. Call AAA 552,100
Revenue Bonds, Connecticut State University System,
Series 2003F, 5.000%, 11/01/13 - FSA Insured
215 Connecticut Health and Educational Facilities Authority, 1/15 at 100.00 Aaa 234,464
Revenue Bonds, Kent School, Series 2004D,
5.000%, 7/01/15 - MBIA Insured
1,500 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A2 1,551,585
Revenue Bonds, Loomis Chaffee School, Series 2001D,
5.250%, 7/01/31
1,000 Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 1,015,910
Revenue Bonds, Greenwich Academy, Series 2001B,
5.000%, 3/01/32 - FSA Insured
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, University of Hartford, Series 2002E:
590 5.500%, 7/01/22 - RAAI Insured 7/12 at 101.00 AA 632,533
1,000 5.250%, 7/01/32 - RAAI Insured 7/12 at 101.00 AA 1,022,630
2,250 Connecticut Health and Educational Facilities Authority, 11/11 at 100.00 AAA 2,344,005
Revenue Bonds, Connecticut State University System,
Series 2002D-2, 5.000%, 11/01/21 - FSA Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,024,430
Revenue Bonds, Yale University, Series 2002W,
5.125%, 7/01/27
500 University of Connecticut, Student Fee Revenue Refunding 11/12 at 101.00 AAA 538,610
Bonds, Series 2002A, 5.250%, 11/15/22 - FGIC Insured
1,230 University of Connecticut, General Obligation Bonds, 4/12 at 100.00 AA 1,341,598
Series 2002A, 5.375%, 4/01/19
500 University of Connecticut, General Obligation Bonds, No Opt. Call AAA 551,580
Series 2004A, 5.000%, 1/15/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 3.6% (2.3% OF TOTAL INVESTMENTS)
25 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 26,131
Revenue Bonds, Stamford Hospital, Series 1999G,
5.000%, 7/01/18 - MBIA Insured
200 Connecticut Health and Educational Facilities Authority, 7/10 at 101.00 AA 218,720
Revenue Bonds, Eastern Connecticut Health Network,
Series 2000A, 6.000%, 7/01/25 - RAAI Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 1,028,780
Revenue Bonds, St. Francis Hospital and Medical Center,
Series 2002D, 5.000%, 7/01/22 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (1.0% OF TOTAL INVESTMENTS)
500 Stamford Housing Authority, Connecticut, Multifamily No Opt. Call BBB+ 513,090
Housing Revenue Bonds, Fairfield Apartments, Series 1998,
4.750%, 12/01/28 (Alternative Minimum Tax)
(Mandatory put 12/01/08)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.9% (2.0% OF TOTAL INVESTMENTS)
1,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 1,030,040
American Ref-Fuel Company of Southeastern Connecticut LP
Series 1998A-II, 5.500%, 11/15/15 (Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.2% (2.2% OF TOTAL INVESTMENTS)
$ 450 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AAA $ 476,208
Revenue Bonds, Village for Families and Children Inc.,
Series 2002A, 5.000%, 7/01/19 - AMBAC Insured
325 Connecticut Development Authority, First Mortgage 4/07 at 102.00 BBB- 328,549
Gross Revenue Refunding Healthcare Bonds, Church Homes
Inc. - Congregational Avery Heights, Series 1997,
5.700%, 4/01/12
320 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 331,037
Revenue Healthcare Bonds, Elim Park Baptist Home Inc.,
Series 2003, 5.750%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 46.4% (31.4% OF TOTAL INVESTMENTS)
875 Bridgeport, Connecticut, General Obligation Bonds, No Opt. Call AAA 975,345
Series 2004C, 5.250%, 8/15/14 - MBIA Insured
1,500 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 1,708,440
5.500%, 12/15/12
1,000 Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,081,380
5.375%, 4/15/19
2,105 Fairfield, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 2,304,070
5.000%, 4/01/16 (Pre-refunded to4/01/12)
Farmington, Connecticut, General Obligation Bonds, Series 2002:
1,000 5.000%, 9/15/20 9/12 at 101.00 Aa1 1,065,700
1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,537,305
400 Hartford, Connecticut, General Obligation Bonds, Series 2004, No Opt. Call AAA 453,140
5.500%, 8/15/11 - MBIA Insured
1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,369,323
Obligation Bonds, Series 2002, 5.000%, 4/01/22
Regional School District 8, Andover, Hebron and Marlborough,
Connecticut, General Obligation Bonds, Series 2002:
1,390 5.000%, 5/01/20 - FSA Insured 5/11 at 101.00 Aaa 1,467,923
1,535 5.000%, 5/01/22 - FSA Insured 5/11 at 101.00 Aaa 1,605,073
2,105 Stamford, Connecticut, General Obligation Bonds, Series 2002, 8/12 at 100.00 AAA 2,327,078
5.000%, 8/15/16 (Pre-refunded to 8/15/12)
500 Waterbury, Connecticut, General Obligation Bonds, No Opt. Call AAA 547,925
Series 2004B, 5.000%, 4/01/13 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.5% (5.8% OF TOTAL INVESTMENTS)
1,625 Connecticut, Special Tax Obligation Transportation 7/12 at 100.00 AAA 1,781,374
Infrastructure Purpose Bonds, Series 2002A,
5.375%, 7/01/20 - FSA Insured
500 Connecticut, Special Tax Obligation Transportation 10/11 at 100.00 AAA 555,060
Infrastructure Purpose Bonds, Series 2001B,
5.375%, 10/01/13 - FSA Insured
625 Connecticut, Special Obligation Rate Reduction Bonds, No Opt. Call AAA 688,756
Series 2004A, 5.000%, 6/30/11
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.2% (4.2% OF TOTAL INVESTMENTS)
1,950 New Haven, Connecticut, Revenue Refunding Bonds, No Opt. Call AAA 2,206,269
Air Rights Parking Facility, Series 2002, 5.375%, 12/01/15 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 20.7% (14.1% OF TOTAL INVESTMENTS)
1,000 Bridgeport, Connecticut, General Obligation Bonds, 8/11 at 100.00 AAA 1,113,080
Series 2001C, 5.375%, 8/15/18 (Pre-refunded to 8/15/11) -
FGIC Insured
East Hartford, Connecticut, General Obligation Bonds, Series 2002:
750 4.875%, 5/01/20 (Pre-refunded to 5/01/10) - FGIC Insured 5/10 at 100.00 Aaa 815,850
750 5.000%, 5/01/21 (Pre-refunded to 5/01/10) - FGIC Insured 5/10 at 100.00 Aaa 820,882
750 5.000%, 5/01/22 (Pre-refunded to 5/01/10) - FGIC Insured 5/10 at 100.00 Aaa 820,882
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,000 5.500%, 10/01/32 10/10 at 101.00 AAA 1,080,660
2,000 5.500%, 10/01/40 10/10 at 101.00 AAA 2,156,980
500 Waterbury, Connecticut, General Obligation Bonds, 4/12 at 100.00 AAA 562,405
Series 2002A, 5.375%, 4/01/17 (Pre-refunded to 4/01/12) -
FSA Insured
31
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.6% (4.5% OF TOTAL INVESTMENTS)
$ 500 Connecticut Development Authority, Pollution Control 10/08 at 102.00 A3 $ 533,490
Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1993A, 5.850%, 9/01/28
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
250 5.500%, 1/01/15 (Alternative Minimum Tax) 1/05 at 100.00 BBB 255,413
510 5.500%, 1/01/20 (Alternative Minimum Tax) 1/05 at 100.00 BBB 520,200
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,042,070
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.6% (6.5% OF TOTAL INVESTMENTS)
785 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 848,671
Series 2003A, 5.000%, 10/01/16
1,000 Connecticut, State Revolving Fund General Revenue Bonds, No Opt. Call AAA 1,106,670
Series 2003B, 5.000%, 10/01/12
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 796,260
660 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 673,213
------------------------------------------------------------------------------------------------------------------------------------
$ 48,735 Total Long-Term Investments (cost $49,710,340) - 146.8% 52,171,837
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6% (0.4% OF TOTAL INVESTMENTS)
200 Puerto Rico Government Development Bank, Adjustable A-1 200,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 200 Total Short-Term Investments (cost $200,000) 200,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $49,910,340) - 147.4% 52,371,837
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 655,051
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.3)% (17,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 35,526,888
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated July 1, 2004, to pay semi-annually the notional
amount multiplied by 5.805% (annualized) and receive quarterly the notional
amount multiplied by the three-month USD-LIBOR (United States Dollar-London
Inter-Bank Offered Rates). $ 500,000 2/02/05 2/02/25 $ (29,118)
Agreement with Morgan Stanley dated July 15, 2004, to pay semi-annually the
notional amount multiplied by 5.717% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 800,000 1/14/05 1/14/35 (36,817)
Agreement with JPMorgan dated July 28, 2004, to pay quarterly the notional
amount multiplied by 4.495% (annualized) and receive quarterly the notional
amount multiplied by the one-week BMA (Bond Market Association) Municipal
Swap Index for the quarter. 1,100,000 12/13/04 12/13/24 (37,196)
------------------------------------------------------------------------------------------------------------------------------------
$(103,131)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
32
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.8% (2.6% OF TOTAL INVESTMENTS)
$ 2,590 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,393,471
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.6% (12.5% OF TOTAL INVESTMENTS)
1,000 Connecticut Health and Educational Facilities Authority, 11/07 at 101.00 AAA 1,077,570
Revenue Bonds, State University System, Series 1997B,
5.250%, 11/01/17 - AMBAC Insured
1,000 Connecticut Health and Educational Facilities Authority, 11/12 at 100.00 AAA 1,079,240
Revenue Bonds, Connecticut State University System,
Series 2003E, 5.000%, 11/01/15 - FGIC Insured
285 Connecticut Health and Educational Facilities Authority, 1/15 at 100.00 Aaa 310,801
Revenue Bonds, Kent School, Series 2004D,
5.000%, 7/01/15 - MBIA Insured
3,100 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 AAA 3,260,301
Revenue Bonds, Trinity College, Series 2001G,
5.000%, 7/01/21 - AMBAC Insured
1,595 Connecticut Health and Educational Facilities Authority, 11/11 at 100.00 AAA 1,661,639
Revenue Bonds, Connecticut State University System,
Series 2002D-2, 5.000%, 11/01/21 - FSA Insured
1,500 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,536,645
Revenue Bonds, Yale University, Series 2002W,
5.125%, 7/01/27
500 University of Connecticut, Student Fee Revenue Refunding 11/12 at 101.00 AAA 538,610
Bonds, Series 2002A, 5.250%, 11/15/22 - FGIC Insured
1,100 University of Connecticut, General Obligation Bonds, 2/13 at 100.00 AAA 1,168,937
Series 2003A, 5.125%, 2/15/21 - MBIA Insured
1,000 University of Connecticut, General Obligation Bonds, No Opt. Call AAA 1,103,160
Series 2004A, 5.000%, 1/15/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 1.2% (0.8% OF TOTAL INVESTMENTS)
200 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Aaa 209,050
Revenue Bonds, Stamford Hospital, Series 1999G,
5.000%, 7/01/18 - MBIA Insured
500 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 536,045
Revenue Bonds, Bristol Hospital, Series 2002B,
5.500%, 7/01/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
750 Stamford Housing Authority, Connecticut, Multifamily No Opt. Call BBB+ 769,635
Housing Revenue Bonds, Fairfield Apartments, Series 1998,
4.750%, 12/01/28 (Alternative Minimum Tax)
(Mandatory put 12/01/08)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.9% (3.3% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Housing Mortgage 11/12 at 100.00 AAA 1,007,410
Finance Program Bonds, Series 2002F-3, 5.250%, 5/15/33
(Alternative Minimum Tax)
2,000 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA 2,047,200
Finance Program Bonds, Series 2001D-2, 5.150%, 11/15/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.3% (2.2% OF TOTAL INVESTMENTS)
2,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Baa2 2,074,720
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 12.0% (8.1% OF TOTAL INVESTMENTS)
Connecticut Housing Finance Authority, Special Needs Housing
Mortgage Finance Program Special Obligation Bonds, Series
2002SNH-1:
1,000 5.000%, 6/15/22 - AMBAC Insured 6/12 at 101.00 AAA 1,045,130
1,500 5.000%, 6/15/32 - AMBAC Insured 6/12 at 101.00 AAA 1,514,700
33
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Village for Families and Children Inc.,
Series 2002A:
$ 430 5.000%, 7/01/18 - AMBAC Insured 7/12 at 101.00 AAA $ 456,957
475 5.000%, 7/01/20 - AMBAC Insured 7/12 at 101.00 AAA 500,565
260 5.000%, 7/01/23 - AMBAC Insured 7/12 at 101.00 AAA 270,007
1,000 5.000%, 7/01/32 - AMBAC Insured 7/12 at 101.00 AAA 1,011,090
600 Connecticut Development Authority, First Mortgage Gross 4/07 at 102.00 BBB- 606,552
Revenue Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.700%, 4/01/12
500 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 517,245
Revenue Healthcare Bonds, Elim Park Baptist Home Inc.,
Series 2003, 5.750%, 12/01/23
Connecticut Development Authority, Revenue Bonds,
Duncaster Inc., Series 2002:
650 5.125%, 8/01/22 - RAAI Insured 8/12 at 101.00 AA 677,242
1,000 4.750%, 8/01/32 - RAAI Insured 8/12 at 101.00 AA 962,680
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.4% (21.6% OF TOTAL INVESTMENTS)
Bethel, Connecticut, General Obligation Bonds, Series 2002:
525 5.000%, 11/01/18 - FGIC Insured 11/12 at 100.00 Aaa 557,209
525 5.000%, 11/01/19 - FGIC Insured 11/12 at 100.00 Aaa 555,387
525 5.000%, 11/01/20 - FGIC Insured 11/12 at 100.00 Aaa 553,208
525 5.000%, 11/01/21 - FGIC Insured 11/12 at 100.00 Aaa 550,326
525 5.000%, 11/01/22 - FGIC Insured 11/12 at 100.00 Aaa 547,460
1,000 Bridgeport, Connecticut, General Obligation Bonds, No Opt. Call AAA 1,114,680
Series 2004C, 5.250%, 8/15/14 - MBIA Insured
500 Bridgeport, Connecticut, General Obligation Bonds, 9/13 at 100.00 AAA 531,240
Series 2003A, 5.250%, 9/15/23 - FSA Insured
2,500 Connecticut, General Obligation Bonds, Series 2002D, 11/12 at 100.00 AA 2,717,550
5.375%, 11/15/21
1,000 Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,043,340
5.000%, 4/15/21
450 Farmington, Connecticut, General Obligation Bonds, 9/12 at 101.00 Aa1 479,565
Series 2002, 5.000%, 9/15/20
1,000 Hartford, Connecticut, General Obligation Bonds, Series 2004, No Opt. Call AAA 1,132,850
5.500%, 8/15/11 - MBIA Insured
New Canaan, Connecticut, General Obligation Bonds,
Series 2002A:
950 4.500%, 5/01/19 5/11 at 100.00 Aaa 967,737
900 4.600%, 5/01/20 5/11 at 100.00 Aaa 917,757
500 4.700%, 5/01/21 5/11 at 100.00 Aaa 510,900
1,445 New Haven, Connecticut, General Obligation Bonds, 11/11 at 101.00 AAA 1,562,811
Series 2002A, 5.250%, 11/01/17 - AMBAC Insured
Southbury, Connecticut, General Obligation Bonds, Series 2002:
500 4.250%, 12/15/14 12/11 at 101.00 Aa3 517,455
500 4.375%, 12/15/15 12/11 at 101.00 Aa3 517,825
500 4.375%, 12/15/16 12/11 at 101.00 Aa3 513,990
500 4.500%, 12/15/17 12/11 at 101.00 Aa3 515,130
500 4.625%, 12/15/18 12/11 at 101.00 Aa3 516,260
500 4.625%, 12/15/19 12/11 at 101.00 Aa3 513,850
500 4.875%, 12/15/20 12/11 at 101.00 Aa3 520,570
500 4.875%, 12/15/21 12/11 at 101.00 Aa3 517,815
500 5.000%, 12/15/22 12/11 at 101.00 Aa3 522,710
Stratford, Connecticut, General Obligation Bonds, Series 2002:
1,375 4.000%, 2/15/19 - FSA Insured 2/12 at 100.00 AAA 1,352,230
630 4.125%, 2/15/20 - FSA Insured 2/12 at 100.00 AAA 620,172
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.0% (16.8% OF TOTAL INVESTMENTS)
Connecticut, Special Tax Obligation Transportation Infrastructure
Purpose Bonds, Series 2002B:
2,810 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AAA 2,969,664
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AAA 1,049,390
1,000 5.000%, 12/01/22 - AMBAC Insured 12/12 at 100.00 AAA 1,042,500
500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AAA 520,920
Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 60 Connecticut, Special Tax Obligation Transportation Infrastructure No Opt. Call AA- $ 69,519
Purpose Bonds, Series 1992B, 6.125%, 9/01/12
1,245 Connecticut, Special Obligation Rate Reduction Bonds, No Opt. Call AAA 1,372,002
Series 2004A, 5.000%, 6/30/11
3,500 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA 3,571,295
Revenue Bonds, Series 1997A, 5.000%, 7/01/28 -
AMBAC Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
890 5.250%, 7/01/17 7/12 at 100.00 A- 946,568
1,000 5.250%, 7/01/20 7/12 at 100.00 A- 1,054,940
1,045 5.250%, 7/01/21 7/12 at 100.00 A- 1,096,916
1,010 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,097,577
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
195 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 204,027
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
750 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 BBB 770,813
Refunding Bonds, Matching Fund Loan Notes, Series 1998A,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.7% (0.5% OF TOTAL INVESTMENTS)
415 New Haven, Connecticut, Revenue Refunding Bonds, No Opt. Call AAA 469,539
Air Rights Parking Facility, Series 2002,
5.375%, 12/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 22.9% (15.4% OF TOTAL INVESTMENTS)
3,510 Bridgeport, Connecticut, General Obligation Bonds, 8/11 at 100.00 AAA 3,906,911
Series 2001C, 5.375%, 8/15/18 (Pre-refunded to 8/15/11) -
FGIC Insured
500 Connecticut, Special Tax Obligation Transportation Infrastructure 7/12 at 100.00 AAA 550,115
Purpose Bonds, Series 2002A, 5.375%, 7/01/18
(Pre-refunded to 7/01/12) - FSA Insured
400 Connecticut, Special Tax Obligation Transportation Infrastructure 10/11 at 100.00 AAA 435,896
Purpose Bonds, Series 2001A, 4.800%, 10/01/18
(Pre-refunded to 10/01/11) - FSA Insured
2,910 Puerto Rico, General Obligation and Public Improvement 7/08 at 101.00 AAA 3,186,188
Refunding Bonds, Series 1998B, 5.000%, 7/01/24
(Pre-refunded to 7/01/08) - MBIA Insured
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,313,960
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
570 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+*** 642,008
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded to 2/01/12)
1,220 University of Connecticut, General Obligation Bonds, 4/12 at 100.00 AA*** 1,372,268
Series 2002A, 5.375%, 4/01/17 (Pre-refunded to 4/01/12)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.4% (5.6% OF TOTAL INVESTMENTS)
720 Connecticut Development Authority, Pollution Control 10/08 at 102.00 A3 768,226
Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1993A, 5.850%, 9/01/28
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
1,000 5.500%, 1/01/14 (Alternative Minimum Tax) 1/05 at 100.00 BBB 1,021,550
305 5.500%, 1/01/20 (Alternative Minimum Tax) 1/05 at 100.00 BBB 311,100
3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,178,313
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
35
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.5% (8.4% OF TOTAL INVESTMENTS)
$ 1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA $ 1,281,115
Series 2003A, 5.000%, 10/01/16
2,000 Connecticut, State Revolving Fund General Revenue Bonds, No Opt. Call AAA 2,213,340
Series 2003B, 5.000%, 10/01/12
765 Connecticut Development Authority, Water Facilities Revenue 9/06 at 102.00 A 794,162
Bonds, Bridgeport Hydraulic Company, Series 1996,
6.000%, 9/01/36 (Alternative Minimum Tax)
South Central Connecticut Regional Water Authority,
Water System Revenue Bonds, Eighteenth Series 2003A:
2,050 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 2,176,444
1,140 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 1,162,823
250 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ 253,343
Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32
------------------------------------------------------------------------------------------------------------------------------------
$ 87,905 Total Long-Term Investments (cost $90,820,389) - 146.9% 92,510,061
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.1% (1.4% OF TOTAL INVESTMENTS)
1,300 Puerto Rico Government Development Bank, Adjustable A-1 1,300,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,300 Total Short-Term Investments (cost $1,300,000) 1,300,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $92,120,389) - 149.0% 93,810,061
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 1,138,148
------------------------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (32,000,000)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 62,948,209
====================================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated July 1, 2004, to pay semi-annually the notional
amount multiplied by 5.805% (annualized) and receive quarterly the notional
amount multiplied by the three-month USD-LIBOR (United States Dollar-London
Inter-Bank Offered Rates). $ 900,000 2/02/05 2/02/25 $ (52,413)
Agreement with Morgan Stanley dated July 15, 2004, to pay semi-annually
the notional amount multiplied by 5.717% (annualized) and receive quarterly
the notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 1,400,000 1/14/05 1/14/35 (64,429)
Agreement with JPMorgan dated July 28, 2004, to pay quarterly the notional
amount multiplied by 4.495% (annualized) and receive quarterly the notional
amount multiplied by the one-week BMA (Bond Market Association) Municipal Swap
Index for the quarter. 5,200,000 12/13/04 12/13/24 (175,834)
------------------------------------------------------------------------------------------------------------------------------------
$(292,676)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
36
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 1,500 Boston Industrial Development Financing Authority, 9/12 at 102.00 Baa3 $ 1,474,350
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 33.0% (22.6% OF TOTAL INVESTMENTS)
280 Massachusetts Education Loan Authority, Student Loan 1/05 at 101.50 AAA 284,626
Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10
(Alternative Minimum Tax) - AMBAC Insured
1,680 Massachusetts Educational Finance Authority, Educational 1/12 at 100.00 AAA 1,750,594
Loan Revenue Bonds, Series 2002E, 5.000%, 1/01/13
(Alternative Minimum Tax) - AMBAC Insured
1,090 Massachusetts Development Finance Authority, Revenue No Opt. Call A3 1,177,396
Refunding Bonds, Boston University, Series 1999P,
6.000%, 5/15/29
1,000 Massachusetts Development Finance Authority, Revenue 7/13 at 101.00 BBB 1,032,140
Bonds, Massachusetts College of Pharmacy and Allied
Health Sciences, Series 2003C, 5.750%, 7/01/33
890 Massachusetts Development Finance Authority, Revenue 3/09 at 101.00 A 938,897
Bonds, Curry College, Series 2000A, 6.000%, 3/01/20 -
ACA Insured
750 Massachusetts Development Finance Authority, Revenue 9/13 at 100.00 AA- 801,450
Bonds, Milton Academy, Series 2003A, 5.000%, 9/01/19
500 Massachusetts Development Finance Authority, Revenue 9/11 at 101.00 A 528,000
Bonds, Belmont Hills School, Series 2001, 5.375%, 9/01/23
2,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 2,148,120
Revenue Bonds, Boston College, Series 2003N,
5.250%, 6/01/18
1,500 Massachusetts Health and Educational Facilities Authority, 10/11 at 100.00 AAA 1,561,275
Revenue Bonds, University of Massachusetts - Worcester
Campus, Series 2001B, 5.250%, 10/01/31 - FGIC Insured
555 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AA+ 582,828
Revenue Bonds, Williams College, Series 2003H,
5.000%, 7/01/21
500 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AA+ 512,075
Revenue Bonds, Wellesley College, Series 2003H,
5.000%, 7/01/26
1,000 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 1,126,770
Revenue Bonds, Massachusetts Institute of Technology,
Series 2004M, 5.250%, 7/01/15
1,645 Massachusetts Industrial Finance Agency, Revenue Bonds, 1/05 at 101.00 Aa1 1,664,115
Whitehead Institute for Biomedical Research, Series 1993,
5.125%, 7/01/26
2,300 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 101.00 A 2,331,119
Belmont Hill School, Series 1998, 5.250%, 9/01/28
4,000 New England Education Loan Marketing Corporation, No Opt. Call A3 4,264,120
Massachusetts, Student Loan Revenue Bonds, Subordinate
Series 1992H, 6.900%, 11/01/09 (Alternative Minimum Tax)
1,200 University of Massachusetts Building Authority, Senior Lien 11/13 at 100.00 AAA 1,301,712
Project Revenue Bonds, Series 2003-1, 5.250%, 11/01/18 -
AMBAC Insured
1,000 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 AAA 1,067,280
Project Revenue Bonds, Series 2004-1, 5.250%, 11/01/24 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.0% (11.0% OF TOTAL INVESTMENTS)
3,000 Massachusetts Health and Educational Facilities Authority, 1/05 at 102.00 AAA 3,065,670
Revenue Bonds, New England Medical Center Hospitals,
Series 1993G-1, 5.375%, 7/01/24 - MBIA Insured
1,000 Massachusetts Health and Educational Facilities Authority, 1/05 at 101.00 AAA 1,012,420
Revenue Bonds, Lahey Clinic Medical Center, Series 1993B,
5.625%, 7/01/15 - MBIA Insured
600 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 644,214
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.375%, 5/15/19 - FGIC Insured
37
Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 2,500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- $ 2,699,400
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 5.750%, 7/01/32
375 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 397,388
Revenue Bonds, UMass Memorial Health Care,
Series 2001C, 6.625%, 7/01/32
1,000 Massachusetts Health and Educational Facilities Authority, 11/11 at 101.00 AA 1,020,020
Revenue Bonds, Cape Cod Health Care Inc., Series 2001C,
5.250%, 11/15/31 - RAAI Insured
1,250 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 1,300,113
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
1,000 Massachusetts Health and Educational Facilities Authority, 7/12 at 101.00 BBB 1,056,680
Revenue Bonds, Caritas Christi Obligated Group, Series 2002B,
6.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 16.2% (11.1% OF TOTAL INVESTMENTS)
2,500 Massachusetts Development Finance Authority, GNMA 10/11 at 105.00 AAA 2,801,000
Collateralized Revenue Bonds, VOA Concord Assisted
Living Inc., Series 2000A, 6.900%, 10/20/41
1,940 Massachusetts Development Financing Authority, Assisted 12/09 at 102.00 N/R 1,857,492
Living Revenue Bonds, Prospect House Apartments,
Series 1999, 7.000%, 12/01/31
1,500 Massachusetts Development Finance Authority, GNMA 3/12 at 105.00 AAA 1,626,135
Collateralized Assisted Living Facility Revenue Bonds,
Arbors at Chicopee, Series 2001A, 6.250%, 9/20/42
(Alternative Minimum Tax)
65 Massachusetts Housing Finance Agency, Housing Project 4/05 at 100.00 A+ 65,347
Revenue Refunding Bonds, Series 1993A, 6.300%, 10/01/13
1,425 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 101.00 AAA 1,511,184
Mortgage Revenue Bonds, Series 1999D, 5.500%, 7/01/13
(Alternative Minimum Tax) - AMBAC Insured
1,835 Massachusetts Housing Finance Agency, FHA-Insured Rental 1/05 at 102.00 AAA 1,873,884
Housing Mortgage Revenue Bonds, Series 1995A,
7.350%, 1/01/35 (Alternative Minimum Tax) (Pre-refunded
to 1/01/05) - AMBAC Insured
500 Massachusetts Housing Finance Agency, Housing Revenue 6/13 at 100.00 AA- 503,195
Bonds, Series 2003S, 5.050%, 12/01/23 (Alternative
Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA 5/12 at 103.00 AAA 1,053,490
Collateralized Mortgage Revenue Bonds, Clarendon Hill
Towers, Series 2002, 5.200%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
400 Massachusetts Development Finance Agency, Solid Waste No Opt. Call BBB 421,588
Disposal Revenue Bonds, Waste Management Inc.,
Series 2003, 5.450%, 6/01/14
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.8% (4.0% OF TOTAL INVESTMENTS)
1,270 Boston, Massachusetts, FHA-Insured Mortgage Revenue 10/08 at 105.00 AAA 1,379,499
Bonds, Deutsches Altenheim Inc., Series 1998A,
6.125%, 10/01/31
2,000 Massachusetts Industrial Finance Agency, Healthcare 5/07 at 102.00 A-1+ 2,027,920
Facilities Revenue Bonds, Jewish Geriatric Services Inc.
Obligated Group, Series 1997B, 5.500%, 5/15/27
645 Massachusetts Industrial Finance Agency, FHA-Insured 2/06 at 102.00 AAA 675,328
Project Revenue Bonds, Heights Crossing LP, Series 1995,
6.000%, 2/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.5% (18.1% OF TOTAL INVESTMENTS)
500 Ashland, Massachusetts, General Obligation Bonds, 5/15 at 100.00 Aaa 537,260
Series 2004, 5.250%, 5/15/23 - AMBAC Insured
1,180 Boston, Massachusetts, General Obligation Bonds, 8/11 at 100.00 AA 1,266,270
Series 2001B, 5.000%, 8/01/15
645 East Longmeadow, Massachusetts, General Obligation Bonds, 8/11 at 101.00 Aaa 701,812
Series 2001, 5.000%, 8/01/14 - AMBAC Insured
1,000 Fall River, Massachusetts, General Obligation Bonds, 2/13 at 101.00 AAA 1,058,350
Series 2003, 5.000%, 2/01/21 - FSA Insured
2,500 Massachusetts Bay Transportation Authority, General No Opt. Call AAA 3,163,000
Obligation Transportation System Bonds, Series 1991A,
7.000%, 3/01/21
3,275 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 3,831,324
Series 2001D, 6.000%, 11/01/13 - MBIA Insured
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,865 Massachusetts, General Obligation Bonds, Consolidated 1/13 at 100.00 Aa2 $ 2,033,727
Loan, Series 2003A, 5.000%, 1/01/22 (Pre-refunded to
1/01/13)
980 Monson, Massachusetts, General Obligation Bonds, 5/12 at 101.00 Aaa 1,045,052
Series 2002, 5.250%, 5/15/22 - AMBAC Insured
1,000 Narragansett Regional School District, Massachusetts, 6/10 at 101.00 Aaa 1,165,710
General Obligation Bonds, Series 2000, 6.500%, 6/01/16 -
AMBAC Insured
1,260 Norwell, Massachusetts, General Obligation Bonds, No Opt. Call AAA 1,378,654
Series 2003, 5.000%, 11/15/20 - FGIC Insured
Springfield, Massachusetts, General Obligation Bonds,
Series 2003:
530 5.250%, 1/15/15 - MBIA Insured 1/13 at 100.00 AAA 583,069
1,615 5.250%, 1/15/23 - MBIA Insured 1/13 at 100.00 AAA 1,723,189
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.8% (8.7% OF TOTAL INVESTMENTS)
210 Martha's Vineyard Land Bank, Massachusetts, Revenue 5/14 at 100.00 AAA 216,275
Bonds, Series 2004, 5.000%, 5/01/26 - AMBAC Insured
385 Massachusetts Bay Transportation Authority, Senior Lien No Opt. Call AAA 428,286
Sales Tax Revenue Bonds, Series 2004C, 5.250%, 7/01/21
1,000 Massachusetts College Building Authority, Project Revenue No Opt. Call AAA 1,113,410
Refunding Bonds, Series 2003B, 5.375%, 5/01/23 -
XLCA Insured
550 Massachusetts College Building Authority, Project Revenue 5/14 at 100.00 AAA 585,019
Bonds, Series 2004A, 5.000%, 5/01/19 - MBIA Insured
1,500 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 1,588,245
Bonds, Series 2004, 5.250%, 1/01/25 - FGIC Insured
3,000 Massachusetts, Special Obligation Refunding Notes, No Opt. Call Aaa 3,260,790
Federal Highway Grant Anticipation Note Program,
Series 2003A, 5.000%, 12/15/13 - FSA Insured
1,500 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,733,250
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.8% (6.0% OF TOTAL INVESTMENTS)
2,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,021,480
5.000%, 7/01/33 - MBIA Insured
4,000 Massachusetts Port Authority, Special Facilities Revenue 9/06 at 102.00 AAA 4,122,240
Bonds, US Airways Group Inc., Series 1996A,
5.750%, 9/01/16 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 13.3% (9.1% OF TOTAL INVESTMENTS)
1,250 Massachusetts, General Obligation Bonds, Consolidated 2/10 at 101.00 AAA 1,423,388
Loan, Series 2000A, 6.000%, 2/01/14 (Pre-refunded
to 2/01/10)
1,250 Massachusetts, General Obligation Bonds, Consolidated 8/14 at 100.00 Aa2*** 1,366,975
Loan, Series 2004B, 5.000%, 8/01/24 (Pre-refunded
to 8/01/14)
2,500 Massachusetts Health and Educational Facilities Authority, 8/10 at 100.00 AAA 2,674,625
FHA-Insured Revenue Bonds, Malden Hospital,
Series 1982A, 5.000%, 8/01/16 (Pre-refunded to 8/01/10)
2,000 Massachusetts Health and Educational Facilities Authority, 7/06 at 100.00 Aaa 2,060,160
Revenue Bonds, Daughters of Charity National Health
System - Carney Hospital, Series 1994D, 6.100%, 7/01/14
(Pre-refunded to 7/01/06)
410 Massachusetts Health and Educational Facilities Authority, 7/21 at 100.00 AAA 442,505
Revenue Bonds, CareGroup Inc., Series 1998A,
5.000%, 7/01/25 (Pre-refunded to 7/01/21) - MBIA Insured
905 Massachusetts Port Authority, Revenue Bonds, 1/05 at 100.00 AAA 1,308,250
Series 1982, 13.000%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.0% (2.0% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Agency, Resource 1/12 at 101.00 AAA 1,098,160
Recovery Revenue Bonds, SEMASS System, Series 2001A,
5.625%, 1/01/16 - MBIA Insured
1,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 992,890
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
39
Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.4% (5.1% OF TOTAL INVESTMENTS)
$ 2,000 Boston Water and Sewerage Commission, Massachusetts, 11/14 at 100.00 AA $ 2,068,700
General Revenue Bonds, Senior Series 2004A,
5.000%, 11/01/25
1,500 Massachusetts Water Pollution Abatement Trust, Pooled 8/13 at 100.00 AAA 1,561,455
Loan Program Bonds, Series 9, 5.000%, 8/01/22
1,500 Massachusetts Water Pollution Abatement Trust, Pooled 8/14 at 100.00 AAA 1,539,820
Loan Program Bonds, Series 10, 5.000%, 8/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 95,005 Total Long-Term Investments (cost $97,428,751) - 145.5% 101,632,174
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7% (0.5% OF TOTAL INVESTMENTS)
500 Massachusetts Development Finance Authority, Revenue A-1+ 500,000
Bonds, Boston University, Variable Rate Demand Obligations,
Series 2002R-4, 1.650%, 10/01/42 - XLCA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $97,928,751) - 146.2% 102,132,174
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,723,679
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.7)% (34,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 69,855,853
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ 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.
40
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 500 Boston Industrial Development Financing Authority, 9/12 at 102.00 Baa3 $ 491,450
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.7% (20.5% OF TOTAL INVESTMENTS)
1,200 Massachusetts Educational Finance Authority, Educational 7/10 at 100.00 AAA 1,222,512
Loan Revenue Bonds, Series 2001E, 5.300%, 1/01/16
(Alternative Minimum Tax) - AMBAC Insured
1,000 Massachusetts Development Finance Authority, Revenue 5/29 at 105.00 A3 1,127,290
Refunding Bonds, Boston University, Series 1999P,
6.000%, 5/15/59
500 Massachusetts Development Finance Authority, Revenue 9/13 at 100.00 AA- 534,300
Bonds, Milton Academy, Series 2003A, 5.000%, 9/01/19
1,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,074,060
Revenue Bonds, Boston College, Series 2003N,
5.250%, 6/01/18
2,000 Massachusetts Health and Educational Facilities Authority, 2/11 at 100.00 AA- 2,138,740
Revenue Bonds, Tufts University, Series 2001I,
5.500%, 2/15/36
500 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 563,385
Revenue Bonds, Massachusetts Institute of Technology,
Series 2004M, 5.250%, 7/01/15
1,250 University of Massachusetts Building Authority, Senior Lien 11/10 at 100.00 AAA 1,354,125
Project Revenue Bonds, Series 2000-2, 5.250%, 11/01/20 -
AMBAC Insured
600 University of Massachusetts Building Authority, Senior 11/13 at 100.00 AAA 650,856
Lien Project Revenue Bonds, Series 2003-1,
5.250%, 11/01/18 - AMBAC Insured
250 University of Massachusetts Building Authority, Senior 11/14 at 100.00 AAA 266,820
Lien Project Revenue Bonds, Series 2004-1,
5.250%, 11/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 13.5% (9.3% OF TOTAL INVESTMENTS)
1,000 Massachusetts Health and Educational Facilities Authority, 7/09 at 101.00 AA- 1,040,080
Revenue Bonds, Partners HealthCare System Inc.,
Series 1999B, 5.125%, 7/01/19
1,000 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 1,079,760
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 5.750%, 7/01/32
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 529,850
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.625%, 7/01/32
375 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A- 394,838
Revenue Bonds, Covenant Health Systems Obligated Group,
Series 2002, 6.000%, 7/01/31
500 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 520,045
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
500 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 489,420
Revenue Bonds, Northern Berkshire Community Services
Inc., Series 2004B, 6.375%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.1% (9.0% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Authority, GNMA 3/12 at 105.00 AAA 1,084,090
Collateralized Assisted Living Facility Revenue Bonds,
Arbors at Chicopee, Series 2001A, 6.250%, 9/20/42
(Alternative Minimum Tax)
1,250 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 1,292,325
Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35
(Alternative Minimum Tax) - AMBAC Insured
500 Massachusetts Housing Finance Agency, Housing Revenue 6/13 at 100.00 AA- 503,195
Bonds, Series 2003S, 5.050%, 12/01/23 (Alternative
Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA 5/12 at 103.00 AAA 1,053,490
Collateralized Mortgage Revenue Bonds, Clarendon Hill
Towers, Series 2002, 5.200%, 11/20/22
41
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.9% (2.0% OF TOTAL INVESTMENTS)
$ 840 Massachusetts Housing Finance Agency, Single Family 6/10 at 100.00 AAA $ 869,266
Housing Revenue Bonds, Series 82, 5.375%, 12/01/20
(Alternative Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
200 Massachusetts Development Finance Agency, Solid Waste No Opt. Call BBB 210,794
Disposal Revenue Bonds, Waste Management Inc.,
Series 2003, 5.450%, 6/01/14
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.6% OF TOTAL INVESTMENTS)
655 Massachusetts Development Finance Authority, First 7/11 at 102.00 BBB- 684,370
Mortgage Revenue Bonds, Berkshire Retirement Community -
Edgecombe Project, Series 2001A, 6.750%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.5% (23.1% OF TOTAL INVESTMENTS)
310 Ashland, Massachusetts, General Obligation Bonds, 5/15 at 100.00 Aaa 333,101
Series 2004, 5.250%, 5/15/23 - AMBAC Insured
1,000 Boston, Massachusetts, General Obligation Bonds, 2/11 at 100.00 AA 1,052,240
Series 2001A, 5.000%, 2/01/20
2,000 Brookline, Massachusetts, General Obligation Bonds, 4/10 at 101.00 Aaa 2,208,620
Series 2000, 5.375%, 4/01/17
500 East Longmeadow, Massachusetts, General Obligation 8/11 at 101.00 Aaa 544,040
Bonds, Series 2001, 5.000%, 8/01/14 - AMBAC Insured
440 Fall River, Massachusetts, General Obligation Bonds, 2/13 at 101.00 AAA 465,674
Series 2003, 5.000%, 2/01/21 - FSA Insured
1,675 Lawrence, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aaa 1,758,482
Series 2001, 5.000%, 2/01/21 - AMBAC Insured
1,095 Lynn, Massachusetts, General Obligation Bonds, 8/11 at 101.00 Aaa 1,227,166
Series 2001, 5.375%, 8/15/12 - FGIC Insured
750 Massachusetts, General Obligation Bonds, Consolidated No Opt. Call Aa2 849,315
Loan, Series 2002D, 5.500%, 8/01/19
500 Norwell, Massachusetts, General Obligation Bonds, No Opt. Call AAA 547,085
Series 2003, 5.000%, 11/15/20 - FGIC Insured
Springfield, Massachusetts, General Obligation Bonds,
Series 2003:
500 5.250%, 1/15/15 - MBIA Insured 1/13 at 100.00 AAA 550,065
500 5.250%, 1/15/23 - MBIA Insured 1/13 at 100.00 AAA 533,495
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.9% (13.7% OF TOTAL INVESTMENTS)
395 Martha's Vineyard Land Bank, Massachusetts, Revenue 5/14 at 100.00 AAA 406,803
Bonds, Series 2004, 5.000%, 5/01/26 - AMBAC Insured
1,000 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 1,036,840
Bonds, Series 2000A, 5.250%, 7/01/30
385 Massachusetts Bay Transportation Authority, Senior Lien No Opt. Call AAA 428,286
Sales Tax Revenue Bonds, Series 2004C, 5.250%, 7/01/21
230 Massachusetts College Building Authority, Project Revenue 5/14 at 100.00 AAA 244,644
Bonds, Series 2004A, 5.000%, 5/01/19 - MBIA Insured
750 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 794,123
Bonds, Series 2004, 5.250%, 1/01/25 - FGIC Insured
1,250 Massachusetts, Special Obligation Refunding Notes, No Opt. Call Aaa 1,358,663
Federal Highway Grant Anticipation Note Program,
Series 2003A, 5.000%, 12/15/13 - FSA Insured
1,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 1,131,680
6.000%, 8/01/16 - FSA Insured
500 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 572,700
Loan Notes, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.5% (2.4% OF TOTAL INVESTMENTS)
1,000 Massachusetts Port Authority, Special Facilities Revenue 7/07 at 102.00 AAA 1,065,880
Bonds, BOSFUEL Corporation, Series 1997, 5.500%, 7/01/18
(Alternative Minimum Tax) - MBIA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 10.5% (7.3% OF TOTAL INVESTMENTS)
$ 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 1,143,530
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
500 Massachusetts, General Obligation Bonds, Consolidated 8/14 at 100.00 Aa2*** 546,790
Loan, Series 2004B, 5.000%, 8/01/24 (Pre-refunded
to 8/01/14)
345 Massachusetts Water Pollution Abatement Trust, Revenue 8/09 at 101.00 AAA 391,220
Bonds, MWRA Loan Program, Subordinate Series 1999A,
5.750%, 8/01/29 (Pre-refunded to 8/01/09)
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,078,490
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6% (3.9% OF TOTAL INVESTMENTS)
1,070 Massachusetts Development Finance Agency, Resource 1/12 at 101.00 AAA 1,191,060
Recovery Revenue Bonds, SEMASS System, Series 2001A,
5.625%, 1/01/14 - MBIA Insured
500 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 496,445
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.1% (5.6% OF TOTAL INVESTMENTS)
530 Boston Water and Sewerage Commission, Massachusetts, 11/14 at 100.00 AA 548,206
General Revenue Bonds, Senior Series 2004A,
5.000%, 11/01/25
1,405 Massachusetts Water Pollution Abatement Trust, Revenue 8/09 at 101.00 AAA 1,546,090
Bonds, MWRA Loan Program, Subordinate Series 1999A,
5.750%, 8/01/29
300 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 329,862
Bonds, Series 2000A, 5.750%, 8/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 40,550 Total Long-Term Investments (cost $41,654,187) - 144.9% 43,555,656
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.0% 1,493,792
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (15,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 30,049,448
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
43
Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 26.1% (17.2% OF TOTAL INVESTMENTS)
$ 500 Massachusetts Development Finance Authority, Revenue 7/13 at 101.00 BBB $ 552,975
Bonds, Massachusetts College of Pharmacy and Allied
Health Sciences, Series 2003C, 6.375%, 7/01/23
2,250 Massachusetts Development Finance Authority, Revenue 9/13 at 100.00 A1 2,259,338
Bonds, Middlesex School, Series 2003, 5.000%, 9/01/33
3,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 3,042,300
Revenue Bonds, Boston College, Series 2003N,
5.125%, 6/01/37
2,000 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 AAA 2,029,580
Revenue Bonds, Worcester State College, Series 2002,
5.000%, 11/01/32 - AMBAC Insured
2,140 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 AAA 2,334,034
Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.1% (6.0% OF TOTAL INVESTMENTS)
2,500 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,555,350
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
1,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 102.00 AAA 1,017,000
Revenue Bonds, CareGroup Inc., Series 1998A,
5.000%, 7/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.3% (8.8% OF TOTAL INVESTMENTS)
1,750 Massachusetts Development Finance Authority, GNMA 12/12 at 105.00 AAA 1,896,650
Collateralized Revenue Bonds, Neville Communities,
Series 2002A, 6.000%, 6/20/44
55 Massachusetts Housing Finance Agency, Housing Project 4/05 at 100.00 AAA 55,320
Revenue Refunding Bonds, Series 1993A, 6.150%, 10/01/15 -
AMBAC Insured
1,265 Massachusetts Housing Finance Agency, Rental Housing 7/12 at 100.00 AAA 1,276,613
Mortgage Revenue Bonds, Series 2002H, 5.200%, 7/01/42 -
FSA Insured
2,000 Massachusetts Housing Finance Agency, Housing Bonds, 12/12 at 100.00 AA- 2,001,940
Series 2003H, 5.125%, 6/01/43
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 31.9% (21.1% OF TOTAL INVESTMENTS)
1,280 Littleton, Massachusetts, General Obligation Bonds, 1/13 at 101.00 AAA 1,356,672
Series 2003, 5.000%, 1/15/21 - FGIC Insured
3,000 Massachusetts, General Obligation Bonds, Consolidated No Opt. Call AAA 3,327,000
Loan, Series 2004B, 5.250%, 8/01/21 - FSA Insured (PLG)
1,025 Maynard, Massachusetts, General Obligation Bonds, 2/13 at 101.00 Aaa 1,136,407
Series 2003, 5.500%, 2/01/19 - MBIA Insured
1,705 North Attleborough, Massachusetts, General Obligation 7/14 at 101.00 Aaa 1,878,262
Bonds, Series 2004, 5.000%, 7/15/15 - FGIC Insured
1,500 Pittsfield, Massachusetts, General Obligation Bonds, 4/12 at 101.00 AAA 1,596,720
Series 2002, 5.000%, 4/15/18 - MBIA Insured
3,000 Springfield, Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 3,213,720
Series 2003, 5.250%, 1/15/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 33.5% (22.2% OF TOTAL INVESTMENTS)
3,000 Martha's Vineyard Land Bank, Massachusetts, Revenue 5/13 at 100.00 AAA 3,035,220
Bonds, Series 2002, 5.000%, 5/01/32 - AMBAC Insured
3,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 3,051,210
Tax Revenue Refunding Bonds, Series 2002A,
5.000%, 7/01/27 - FGIC Insured
2,790 Massachusetts College Building Authority, Project Revenue 5/13 at 100.00 AAA 2,954,247
Refunding Bonds, Series 2003A, 5.250%, 5/01/22 -
XLCA Insured
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, Series 2002A:
1,475 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA 1,505,208
1,500 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 1,523,535
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA $ 1,075,080
Bonds, Series 2004, 5.250%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 1,010,740
5.000%, 7/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 17.8% (11.7% OF TOTAL INVESTMENTS)
3,000 Massachusetts, General Obligation Bonds, Consolidated 11/11 at 100.00 AAA 3,277,230
Loan, Series 2001D, 5.000%, 11/01/20 (Pre-refunded to
11/01/11) - MBIA Insured
2,145 Massachusetts, General Obligation Bonds, Consolidated 1/13 at 100.00 AAA 2,376,252
Loan, Series 2003A, 5.250%, 1/01/18 (Pre-refunded to
1/01/13) - AMBAC Insured
905 Massachusetts Port Authority, Revenue Bonds, 1/05 at 100.00 AAA 1,308,250
Series 1982, 13.000%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.3% (3.5% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,563,105
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 522,865
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.8% (7.8% OF TOTAL INVESTMENTS)
1,900 Lynn Water and Sewer Commission, Massachusetts, 12/13 at 100.00 AAA 1,922,800
General Revenue Bonds, Series 2003A, 5.000%, 12/01/32 -
MBIA Insured
1,000 Massachusetts Water Resources Authority, General Revenue 8/13 at 100.00 AAA 1,034,410
Bonds, Series 2004D, 5.000%, 8/01/24 - MBIA Insured
1,000 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 1,116,980
Bonds, Series 2002J, 5.250%, 8/01/19 - FSA Insured
495 Springfield Water and Sewerage Commission, Massachusetts, 7/14 at 100.00 AAA 534,689
General Revenue Bonds, Series 2003A, 5.000%, 7/01/16 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 56,180 Total Long-Term Investments (cost $57,893,864) - 151.4% 59,341,702
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 347,350
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.3)% (20,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 39,189,052
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with Morgan Stanely dated June 9, 2004, to pay semi-annually the
notional amount multiplied by 6.009% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). $3,000,000 12/13/04 12/13/24 $(265,333)
Agreement with JPMorgan dated June 23, 2004, to pay semi-annually the
notional amount multiplied by 5.932% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 2,500,000 1/14/05 1/14/25 (189,578)
------------------------------------------------------------------------------------------------------------------------------------
$(454,911)
------------------------------------------------------------------------------------------------------------------------------------
At least 80% of the Fund's net assets are invested in
municipal securities that are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance which ensures the timely payment of
principal and interest. Up to 20% of the Fund's net
assets may be invested in municipal securities that are
(i) either backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities (also ensuring the timely payment of
principal and interest), or (ii) municipal bonds that
are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or
Fitch) or unrated but judged to be of comparable
quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
(PLG) Portion of security, with an aggregate marke value of
$332,700 has been pledged to collateralize the net
payment obligations under forward swap contracts.
See accompanying notes to financial statements.
45
Nuveen Missouri Premium Income Municipal Fund (NOM)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.1% (2.1% OF TOTAL INVESTMENTS)
$ 1,000 Missouri Development Finance Board, Solid Waste Disposal No Opt. Call AA- $ 1,035,750
Revenue Bonds, Procter and Gamble Inc., Series 1999,
5.200%, 3/15/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.3% (4.2% OF TOTAL INVESTMENTS)
625 Missouri Health and Educational Facilities Authority, Revenue 6/10 at 100.00 Baa2 663,550
Bonds, Maryville University of St. Louis, Series 2000,
6.750%, 6/15/30
500 Missouri Health and Educational Facilities Authority, Revenue 2/08 at 101.00 A3 520,515
Bonds, St. Louis Priory School, Series 2000, 5.650%, 2/01/25
365 Missouri Health and Educational Facilities Authority, Revenue 4/11 at 100.00 Aaa 403,307
Bonds, Webster University, Series 2001, 5.500%, 4/01/18 -
MBIA Insured
500 St. Louis County Industrial Development Authority, Missouri, 12/04 at 100.00 N/R 510,750
Revenue Bonds, Kiel Center Multipurpose Arena, Series 1992,
7.875%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 31.6% (21.4% OF TOTAL INVESTMENTS)
1,800 Johnson County, Missouri, Hospital Revenue Bonds, 6/10 at 100.00 AA 1,973,826
Western Missouri Medical Center, Series 2000,
6.000%, 6/01/20 - RAAI Insured
750 Joplin Industrial Development Authority, Missouri, 2/15 at 102.00 BBB+ 758,250
Health Facilities Revenue Bonds, Freeman Health System,
Series 2004, 5.500%, 2/15/29
2,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 2,581,300
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/28 - AMBAC Insured
500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 518,980
Bonds, St. Luke's Health System, Series 2001,
5.250%, 12/01/26 - FSA Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, BJC Health System, Series 2003:
1,500 5.125%, 5/15/25 5/13 at 100.00 AA 1,545,090
1,155 5.250%, 5/15/32 5/13 at 100.00 AA 1,184,302
500 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ 514,635
Bonds, Lake Regional Health System, Series 2003,
5.700%, 2/15/34
425 Missouri Health and Educational Facilities Authority, Revenue 2/06 at 102.00 BBB+ 439,310
Bonds, Lake Regional Health System, Series 1996,
6.500%, 2/15/21
1,000 Missouri Health and Educational Facilities Authority, Revenue 12/10 at 101.00 A 1,061,160
Bonds, St. Anthony's Medical Center, Series 2000,
6.250%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.4% (5.0% OF TOTAL INVESTMENTS)
720 Missouri Housing Development Commission, Multifamily 12/11 at 100.00 AA 763,214
Housing Revenue Bonds, Series 2001II, 5.250%, 12/01/16
500 St. Charles County Industrial Development Authority, 4/08 at 102.00 AAA 505,860
Missouri, FHA-Insured Multifamily Housing Revenue Bonds,
Ashwood Apartments, Series 1998A, 5.600%, 4/01/30
(Alternative Minimum Tax) - FSA Insured
545 St. Louis County Industrial Development Authority, 4/07 at 102.00 AAA 572,250
Missouri, GNMA Collateralized Multifamily Housing
Revenue Refunding Bonds, South Summit Apartments,
Series 1997A, 5.950%, 4/20/17
600 St. Louis County Industrial Development Authority, Missouri, 4/07 at 102.00 AAA 624,666
GNMA Collateralized Multifamily Housing Revenue Refunding
Bonds, South Summit Apartments, Series 1997B,
6.000%, 10/20/15 (Alternative Minimum Tax)
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 190 Missouri Housing Development Commission, Single Family 3/06 at 105.00 AAA $ 190,253
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1995C, 7.250%, 9/01/26 (Alternative Minimum Tax)
285 Missouri Housing Development Commission, Single Family 9/06 at 105.00 AAA 288,138
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1996B, 7.550%, 9/01/27 (Alternative Minimum Tax)
215 Missouri Housing Development Commission, Single Family 3/10 at 100.00 AAA 223,787
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 2000B-1, 6.250%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.5% (3.7% OF TOTAL INVESTMENTS)
1,750 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,790,967
Revenue Bonds, Lutheran Senior Services - Heisinger Project,
Series 2004, 5.500%, 2/01/35
50 Lees Summit Industrial Development Authority, Missouri, 8/09 at 101.00 N/R 53,200
Health Facilities Revenue Bonds, John Knox Village,
Series 1999, 6.000%, 8/15/17
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.3% (1.5% OF TOTAL INVESTMENTS)
750 Sugar Creek, Missouri, Industrial Development Revenue 6/13 at 101.00 BBB 754,268
Bonds, Lafarge North America Inc., Series 2003A,
5.650%, 6/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.7% (22.2% OF TOTAL INVESTMENTS)
500 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 540,875
General Obligation Refunding and Improvement Bonds,
Series 2002, 5.250%, 3/01/18 - FSA Insured
1,630 North Kansas City School District, Missouri, General Obligation 3/13 at 100.00 AA+ 1,692,951
Bonds, Series 2003A, 5.000%, 3/01/23
1,500 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 1,733,460
Refunding Bonds, Series 2001A, 5.500%, 7/01/20 -
MBIA Insured
2,020 Ritenour Consolidated School District, St. Louis County, No Opt. Call AAA 2,468,359
Missouri, General Obligation Bonds, Series 1995,
7.375%, 2/01/12 - FGIC Insured
1,500 St. Charles County Francis Howell School District, Missouri, No Opt. Call AAA 1,639,905
General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08 - FGIC Insured
350 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 379,449
General Obligation Refunding Bonds, Series 2004,
5.250%, 3/01/20 - FSA Insured
895 St. Louis Board of Education, Missouri, General Obligation No Opt. Call AAA 1,016,944
Refunding Bonds, Series 1993A, 8.500%, 4/01/07 -
FGIC Insured
1,405 St. Louis Board of Education, Missouri, General Obligation 4/13 at 100.00 AAA 1,488,864
Refunding Bonds, Series 2003A, 5.000%, 4/01/19 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.4% (20.6% OF TOTAL INVESTMENTS)
750 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R 769,133
Bonds, Gravois Bluffs Project, Series 2002, 6.125%, 10/01/21
750 Howard Bend Levee District, St. Louis County, Missouri, Levee 3/09 at 101.00 N/R 787,958
District Improvement Bonds, Series 1999, 5.850%, 3/01/19
1,000 Kansas City Land Clearance Redevelopment Authority, 12/05 at 102.00 AAA 1,053,740
Missouri, Lease Revenue Bonds, Municipal Auditorium and
Muehlebach Hotel Redevelopment Projects, Series 1995A,
5.900%, 12/01/18 - FSA Insured
2,000 Missouri Development Finance Board, Kansas City, 4/10 at 100.00 AAA 2,217,200
Infrastructure Facilities Revenue Bonds, Midtown
Redevelopment Project, Series 2000A, 5.750%, 4/01/22 -
MBIA Insured
450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AAA 503,186
Missouri, Levee District Improvement Bonds, Series 1999,
5.750%, 3/01/19 - MBIA Insured
1,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold 2/12 at 100.00 Aaa 1,129,960
Revenue Bonds, Carnahan Courthouse, Series 2002A,
5.750%, 2/15/16 - FGIC Insured
2,000 Springfield Public Building Corporation, Missouri, Lease 6/10 at 100.00 AAA 2,269,280
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
6.125%, 6/01/21 - AMBAC Insured
1,380 Springfield Center City Development Corporation, Missouri, 11/11 at 100.00 Aaa 1,432,633
Lease Revenue Bonds, Jordan Valley Park Parking Garage,
Series 2002D, 5.000%, 11/01/22 - AMBAC Insured
47
Nuveen Missouri Premium Income Municipal Fund (NOM) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7% (3.2% OF TOTAL INVESTMENTS)
$ 500 Kansas City, Missouri, Passenger Facility Charge Revenue 4/11 at 101.00 AAA $ 507,630
Bonds, Kansas City International Airport, Series 2001,
5.000%, 4/01/23 (Alternative Minimum Tax) - AMBAC Insured
1,000 St. Louis Land Clearance Redevelopment Authority, Missouri, 9/09 at 102.00 N/R 1,077,980
Revenue Refunding and Improvement Bonds, LCRA Parking
Facilities, Series 1999C, 7.000%, 9/01/19
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 12.0% (8.1% OF TOTAL INVESTMENTS)
675 Missouri Health and Educational Facilities Authority, Revenue 2/06 at 102.00 BBB+*** 720,934
Bonds, Lake Regional Health System, Series 1996,
6.500%, 2/15/21 (Pre-refunded to 2/15/06)
1,000 St. Louis County, Missouri, GNMA Collateralized Mortgage No Opt. Call AAA 1,134,420
Revenue Bonds, Series 1993D, 5.650%, 7/01/20
(Alternative Minimum Tax)
900 St. Louis County Pattonville School District R3, Missouri, 3/10 at 101.00 AAA 1,023,903
General Obligation Bonds, Series 2000, 5.750%, 3/01/17
(Pre-refunded to 3/01/10) - FGIC Insured
950 Texas County, Missouri, Hospital Revenue Bonds, Texas 6/10 at 100.00 N/R*** 1,133,778
County Memorial Hospital, Series 2000, 7.250%, 6/15/25
(Pre-refunded to 6/15/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.7% (3.9% OF TOTAL INVESTMENTS)
1,800 Springfield Public Utilities Board, Missouri, Certificates 12/09 at 100.00 AAA 1,913,670
of Participation, Series 2001, 5.000%, 12/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.9% (2.7% OF TOTAL INVESTMENTS)
640 Metropolitan St. Louis Sewerage District, Missouri, Revenue 5/14 at 100.00 AAA 679,211
Bonds, Wastewater System, Series 2004A, 5.000%, 5/01/20 -
MBIA Insured
350 Missouri Environmental Improvement and Energy Resources No Opt. Call Aaa 422,170
Authority, Water Pollution Control Revenue Bonds, State
Revolving Fund Program - Kansas City Project, Series 1997C,
6.750%, 1/01/12
210 Missouri Environmental Improvement and Energy Resources 1/06 at 101.00 Aaa 219,760
Authority, Water Pollution Control Revenue Bonds, State
Revolving Fund Program - Multi-Participants, Series 1996D,
5.875%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 45,880 Total Long-Term Investments (cost $46,443,534) - 147.7% 49,434,681
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.1% 27,826
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.8)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,462,507
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
48
Statement of
ASSETS AND LIABILITIES November 30, 2004 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $111,248,327, $54,370,862,
$49,910,340 and $92,120,389, respectively) $116,412,149 $56,601,047 $52,371,837 $ 93,810,061
Cash 239,633 814,106 130,862 191,627
Receivables:
Interest 1,723,588 716,377 649,975 1,288,208
Investments sold -- -- -- --
Other assets 2,100 4,794 5,232 775
------------------------------------------------------------------------------------------------------------------------------------
Total assets 118,377,470 58,136,324 53,157,906 95,290,671
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Forward swaps, at value -- 100,970 103,131 292,676
Accrued expenses:
Management fees 62,861 16,426 15,040 25,342
Other 34,084 13,618 11,518 23,127
Preferred share dividends payable 2,911 3,362 1,329 1,317
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 99,856 134,376 131,018 342,462
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 38,300,000 19,500,000 17,500,000 32,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 79,977,614 $38,501,948 $35,526,888 $ 62,948,209
====================================================================================================================================
Common shares outstanding 5,332,742 2,561,096 2,308,421 4,348,855
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.00 $ 15.03 $ 15.39 $ 14.47
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 53,327 $ 25,611 $ 23,084 $ 43,489
Paid-in surplus 74,044,124 36,300,062 32,674,964 61,361,590
Undistributed (Over-distribution of) net investment income 596,375 331,187 305,752 269,214
Accumulated net realized gain (loss) from investments 119,966 (284,127) 164,722 (123,080)
Net unrealized appreciation (depreciation) of investments
and forward swap transactions 5,163,822 2,129,215 2,358,366 1,396,996
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 79,977,614 $38,501,948 $35,526,888 $ 62,948,209
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
ASSETS AND LIABILITIES November 30, 2004 (Unaudited) (continued)
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $97,928,751, $41,654,187,
$57,893,864 and $46,443,534, respectively) $102,132,174 $43,555,656 $59,341,702 $49,434,681
Cash 235,052 246,760 -- --
Receivables:
Interest 1,552,971 704,675 910,468 844,138
Investments sold 10,000 571,463 -- 30,000
Other assets 7,650 3,075 1,534 699
------------------------------------------------------------------------------------------------------------------------------------
Total assets 103,937,847 45,081,629 60,253,704 50,309,518
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 68,964 798,023
Forward swaps, at value -- -- 454,911 --
Accrued expenses:
Management fees 55,211 12,787 15,944 26,281
Other 23,150 19,394 18,663 20,403
Preferred share dividends payable 3,633 -- 6,170 2,304
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 81,994 32,181 564,652 847,011
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 34,000,000 15,000,000 20,500,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 69,855,853 $30,049,448 $39,189,052 $33,462,507
====================================================================================================================================
Common shares outstanding 4,735,779 1,949,194 2,716,781 2,253,615
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.75 $ 15.42 $ 14.42 $ 14.85
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 47,358 $ 19,492 $ 27,168 $ 22,536
Paid-in surplus 65,707,322 27,587,886 38,274,309 30,050,439
Undistributed (Over-distribution of) net investment income 798,882 265,645 (80,955) 395,529
Accumulated net realized gain (loss) from investments (901,132) 274,956 (24,397) 2,856
Net unrealized appreciation (depreciation) of investments
and forward swap transactions 4,203,423 1,901,469 992,927 2,991,147
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 69,855,853 $30,049,448 $39,189,052 $33,462,507
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
50
Statement of
OPERATIONS Six Months Ended November 30, 2004 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $2,812,848 $1,384,430 $1,223,433 $2,116,361
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 382,204 187,003 171,566 306,358
Preferred shares - auction fees 48,006 24,441 21,934 40,110
Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 8,957 933 691 741
Custodian's fees and expenses 15,497 8,909 8,327 13,071
Trustees' fees and expenses 1,733 798 931 1,509
Professional fees 5,851 4,749 4,718 5,309
Shareholders' reports - printing and mailing expenses 9,912 4,665 4,612 7,547
Stock exchange listing fees 5,506 109 98 186
Investor relations expense 7,055 1,722 1,599 5,525
Other expenses 6,044 5,030 6,009 5,197
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 495,779 243,373 225,499 390,567
Custodian fee credit (916) (1,252) (1,543) (1,761)
Expense reimbursement -- (86,856) (79,686) (151,779)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 494,863 155,265 144,270 237,027
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,317,985 1,229,165 1,079,163 1,879,334
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 165,562 171,667 44,858 154,432
Change in net unrealized appreciation (depreciation) of investments 2,124,967 1,148,731 944,698 2,281,023
Change in net unrealized appreciation (depreciation) of forward
swap transactions -- (100,970) (103,131) (292,676)
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 2,290,529 1,219,428 886,425 2,142,779
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (163,753) (84,348) (73,938) (151,678)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (163,753) (84,348) (73,938) (151,678)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $4,444,761 $2,364,245 $1,891,650 $3,870,435
====================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
OPERATIONS Six Months Ended November 30, 2004 (Unaudited) (continued)
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $2,625,024 $1,080,843 $1,412,476 $1,268,514
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 335,597 145,314 193,150 159,441
Preferred shares - auction fees 42,617 18,801 25,695 20,055
Preferred shares - dividend disbursing agent fees 5,014 6,654 5,426 5,014
Shareholders' servicing agent fees and expenses 4,379 317 392 2,935
Custodian's fees and expenses 13,865 7,075 7,155 8,222
Trustees' fees and expenses 1,755 672 854 884
Professional fees 5,688 4,782 5,031 4,749
Shareholders' reports - printing and mailing expenses 10,120 3,624 4,690 5,007
Stock exchange listing fees 5,500 79 116 95
Investor relations expense 3,981 2,775 4,185 2,993
Other expenses 7,243 7,783 4,710 4,842
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 435,759 197,876 251,404 214,237
Custodian fee credit (1,824) (1,634) (1,593) (2,275)
Expense reimbursement -- (67,494) (95,692) --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 433,935 128,748 154,119 211,962
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,191,089 952,095 1,258,357 1,056,552
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 224,128 142,899 (8,274) 66,888
Change in net unrealized appreciation (depreciation) of investments 1,731,984 988,863 1,502,047 989,481
Change in net unrealized appreciation (depreciation) of forward
swap transactions -- -- (454,911) --
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 1,956,112 1,131,762 1,038,862 1,056,369
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (138,479) (52,588) (93,061) (69,370)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (138,479) (52,588) (93,061) (69,370)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $4,008,722 $2,031,269 $2,204,158 $2,043,551
====================================================================================================================================
See accompanying notes to financial statements.
52
Statement of
CHANGES IN NET ASSETS (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK)
--------------------------------- ---------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,317,985 $ 4,932,014 $ 1,229,165 $ 2,476,158 $ 1,079,163 $ 2,220,362
Net realized gain (loss)
from investments 165,562 722,872 171,667 (74,861) 44,858 241,031
Change in net unrealized
appreciation (depreciation)
of investments 2,124,967 (5,838,457) 1,148,731 (2,514,188) 944,698 (2,843,481)
Change in net unrealized
appreciation (depreciation)
of forward swap
transactions -- -- (100,970) -- (103,131) --
Distributions to Preferred
Shareholders:
From net investment income (163,753) (249,202) (84,348) (129,979) (73,938) (101,342)
From accumulated net realized
gains from investments -- -- -- -- -- (23,516)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 4,444,761 (432,773) 2,364,245 (242,870) 1,891,650 (506,946)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,349,597) (4,686,749) (1,144,190) (2,261,395) (1,017,894) (2,004,077)
From accumulated net realized gains
from investments -- -- -- -- -- (267,884)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,349,597) (4,686,749) (1,144,190) (2,261,395) (1,017,894) (2,271,961)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 1,664 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 157,321 352,597 44,356 115,496 6,653 12,077
Preferred shares offering costs -- -- -- -- -- (27,909)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions 157,321 352,597 44,356 117,160 6,653 (15,832)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 2,252,485 (4,766,925) 1,264,411 (2,387,105) 880,409 (2,794,739)
Net assets applicable to Common
shares at the beginning
of period 77,725,129 82,492,054 37,237,537 39,624,642 34,646,479 37,441,218
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $79,977,614 $77,725,129 $38,501,948 $37,237,537 $35,526,888 $34,646,479
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 596,375 $ 791,740 $ 331,187 $ 330,560 $ 305,752 $ 318,421
====================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
CONNECTICUT MASSACHUSETTS PREMIUM MASSACHUSETTS
DIVIDEND ADVANTAGE 3 (NGO) INCOME (NMT) DIVIDEND ADVANTAGE (NMB)
--------------------------------- --------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,879,334 $ 3,820,097 $ 2,191,089 $ 4,450,255 $ 952,095 $ 1,948,056
Net realized gain (loss)
from investments 154,432 (13,145) 224,128 942,951 142,899 254,529
Change in net unrealized
appreciation (depreciation)
of investments 2,281,023 (4,885,233) 1,731,984 (5,525,901) 988,863 (2,448,042)
Change in net unrealized appreciation
(depreciation) of forward swap
transactions (292,676) -- -- -- -- --
Distributions to Preferred
Shareholders:
From net investment income (151,678) (232,209) (138,479) (217,866) (52,588) (75,765)
From accumulated net realized
gains from investments -- -- -- -- -- (12,018)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,870,435 (1,310,490) 4,008,722 (350,561) 2,031,269 (333,240)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,696,054) (3,390,125) (2,086,805) (4,161,260) (906,029) (1,786,931)
From accumulated net realized gains
from investments -- -- -- -- -- (153,574)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,696,054) (3,390,125) (2,086,805) (4,161,260) (906,029) (1,940,505)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- 1,664
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 165,098 128,247 314,919 20,620 41,277
Preferred shares offering costs -- (14,584) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions -- 150,514 128,247 314,919 20,620 42,941
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,174,381 (4,550,101) 2,050,164 (4,196,902) 1,145,860 (2,230,804)
Net assets applicable to Common
shares at the beginning
of period 60,773,828 65,323,929 67,805,689 72,002,591 28,903,588 31,134,392
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $62,948,209 $60,773,828 $69,855,853 $67,805,689 $30,049,448 $28,903,588
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 269,214 $ 237,612 $ 798,882 $ 833,077 $ 265,645 $ 272,167
====================================================================================================================================
See accompanying notes to financial statements.
54
INSURED MASSACHUSETTS MISSOURI PREMIUM
TAX-FREE ADVANTAGE (NGX) INCOME (NOM)
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,258,357 $ 2,548,725 $ 1,056,552 $ 2,142,759
Net realized gain (loss) from investments (8,274) (16,228) 66,888 444,042
Change in net unrealized appreciation
(depreciation) of investments 1,502,047 (3,274,453) 989,481 (2,836,623)
Change in net unrealized appreciation
(depreciation) of forward swap
transactions (454,911) -- -- --
Distributions to Preferred Shareholders:
From net investment income (93,061) (154,434) (69,370) (122,983)
From accumulated net realized
gains from investments -- (4,012) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 2,204,158 (900,402) 2,043,551 (372,805)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,173,157) (2,342,674) (991,879) (1,963,048)
From accumulated net realized gains
from investments -- (39,926) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,173,157) (2,382,600) (991,879) (1,963,048)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 36,969 100,710 180,119 339,007
Preferred shares offering costs -- 6,822 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions 36,969 107,532 180,119 339,007
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,067,970 (3,175,470) 1,231,791 (1,996,846)
Net assets applicable to Common
shares at the beginning of period 38,121,082 41,296,552 32,230,716 34,227,562
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $39,189,052 $38,121,082 $33,462,507 $32,230,716
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (80,955) $ (73,094) $ 395,529 $ 400,226
====================================================================================================================================
See accompanying notes to financial statements.
55
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Connecticut Premium Income Municipal
Fund (NTC), Nuveen Connecticut Dividend Advantage Municipal Fund (NFC), Nuveen
Connecticut Dividend Advantage Municipal Fund 2 (NGK), Nuveen Connecticut
Dividend Advantage Municipal Fund 3 (NGO), Nuveen Massachusetts Premium Income
Municipal Fund (NMT), Nuveen Massachusetts Dividend Advantage Municipal Fund
(NMB), Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX) and
Nuveen Missouri Premium Income Municipal Fund (NOM). Common shares of
Connecticut Premium Income (NTC) and Massachusetts Premium Income (NMT) are
traded on the New York Stock Exchange while Common shares of Connecticut
Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK), Connecticut
Dividend Advantage 3 (NGO), Massachusetts Dividend Advantage (NMB), Insured
Massachusetts Tax-Free Advantage (NGX) and Missouri Premium Income (NOM) are
traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end management investment
companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes, and in the case of Insured Massachusetts Tax-Free
Advantage (NGX) the alternative minimum tax applicable to individuals, by
investing primarily in a diversified portfolio of municipal obligations issued
by state and local government authorities within a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
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, evaluations of anticipated
cash flows or collateral and general market conditions. If it is determined that
market prices for a security are unavailable or inappropriate, the Board of
Trustees of the Funds, or its designee, may establish a fair value for the
security. Temporary investments in securities that have variable rate and demand
features qualifying them as short-term securities are valued at amortized cost,
which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At November 30, 2004,
there were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all net investment income and net capital gains to
shareholders and to otherwise comply with the requirements of Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
Therefore, no federal income tax provision is required. Furthermore, each Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal and designated state income
taxes, and in the case of Insured Massachusetts Tax-Free Advantage (NGX) the
alternative minimum tax applicable to individuals, to retain such tax-exempt
status when distributed to shareholders of the Funds. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
56
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one Series. The dividend rate on each Series is determined every
seven days, pursuant to a dutch auction process overseen by the auction agent,
and is payable weekly at the end of each rate period. The number of Preferred
shares outstanding for each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
--------------------------------------------------------------------------------
Number of shares:
Series T -- 780 -- --
Series W -- -- 700 --
Series TH 1,532 -- -- --
Series F -- -- -- 1,280
================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Number of shares:
Series T -- 600 -- --
Series W -- -- 820 --
Series TH 1,360 -- -- 640
Series F -- -- -- --
================================================================================
Insurance
Insured Massachusetts Tax-Free Advantage (NGX) invests at least 80% of its net
assets (including net assets applicable to Preferred shares) in municipal
securities that are covered by insurance. The Fund may also invest up to 20% of
its net assets (including net assets applicable to Preferred shares) in
municipal securities which are either (i) backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government agency securities, or
(ii) municipal bonds that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but
judged to be of comparable quality by the Adviser.
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Fund's Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Fund
ultimately disposes of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Fund. Accordingly, neither the prices used in determining the market
value of the underlying municipal securities nor the Common share net asset
value of the Fund includes value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Fund
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
Forward Swap Transactions
The Funds may invest in certain derivative financial instruments. The Funds' use
of forward interest rate swap transactions is intended to mitigate the negative
impact that an increase in long-term interest rates could have on Common share
net asset value. Forward interest rate swap transactions involve each Fund's
agreement with the counterparty to pay, in the future, a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment. The
amount of the payment obligation is based on the notional amount of the forward
swap contract. The Funds may close out a contract prior to the effective date at
which point a realized gain
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
or loss would be recognized. When a forward swap is terminated, it does not
involve the delivery of securities or other underlying assets or principal, but
rather is settled in cash. Each Fund intends, but is not obligated to, terminate
its forward swaps before the effective date. Accordingly, the risk of loss with
respect to the swap counterparty on such transactions is limited to the credit
risk associated with a counterparty failing to honor its commitment to pay any
realized gain to the Fund upon termination. To minimize such credit risk, all
counterparties are required to pledge collateral daily (based on the daily
valuation of each swap) on behalf of each Fund with a value approximately equal
to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the pre-determined threshold amount.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
CONNECTICUT CONNECTICUT DIVIDEND CONNECTICUT DIVIDEND
PREMIUM INCOME (NTC) ADVANTAGE (NFC) ADVANTAGE 2 (NGK)
----------------------- ---------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 10,051 21,447 2,882 7,211 413 748
---------------------------------------------------------------------------------------------------------
10,051 21,447 2,882 7,211 413 748
=========================================================================================================
58
CONNECTICUT DIVIDEND MASSACHUSETTS MASSACHUSETTS DIVIDEND
ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) ADVANTAGE (NMB)
----------------------- ---------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions -- 11,300 8,438 20,346 1,298 2,552
---------------------------------------------------------------------------------------------------------
-- 11,300 8,438 20,346 1,298 2,552
=========================================================================================================
INSURED
MASSACHUSETTS TAX-FREE MISSOURI
ADVANTAGE (NGX) PREMIUM INCOME (NOM)
------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 2,414 6,392 11,016 20,100
---------------------------------------------------------------------------------------------------------
2,414 6,392 11,016 20,100
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended November 30, 2004, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
--------------------------------------------------------------------------------
Purchases $ 3,531,268 $ 3,220,337 $ 4,614,004 $ 5,228,946
Sales and maturities 4,329,573 4,856,718 4,638,740 6,029,381
================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Purchases $ 6,259,865 $ 2,524,219 $1,039,430 $ 6,798,933
Sales and maturities 5,860,085 3,128,848 489,425 5,263,556
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At November 30, 2004, the cost of investments was as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
--------------------------------------------------------------------------------
Cost of investments $111,235,332 $54,348,463 $49,898,012 $92,108,789
================================================================================
59
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Cost of investments $97,813,397 $41,640,236 $57,893,840 $46,423,242
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2004, the Funds' last fiscal year end, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------
Gross unrealized:
Appreciation $5,422,065 $2,451,024 $2,612,151 $2,024,253
Depreciation (245,248) (198,440) (138,326) (322,981)
--------------------------------------------------------------------------------
Net unrealized appreciation
of investments $5,176,817 $2,252,584 $2,473,825 $1,701,272
================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $4,534,062 $1,939,725 $1,535,613 $3,042,073
Depreciation (215,285) (24,305) (87,751) (30,634)
--------------------------------------------------------------------------------
Net unrealized appreciation
of investments $4,318,777 $1,915,420 $1,447,862 $3,011,439
================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2004, the Funds' last fiscal year end, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $1,173,557 $502,475 $478,530 $512,881
Undistributed net ordinary income ** -- -- -- 4,435
Undistributed net long-term capital gains -- -- 119,864 --
=======================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $998,406 $406,831 $123,850 $547,030
Undistributed net ordinary income ** 52,706 -- -- --
Undistributed net long-term capital gains -- 132,057 -- --
=======================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced
for the dividend declared on May 3, 2004, paid on June 1, 2004.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
60
The tax character of distributions paid during the fiscal year ended May 31,
2004, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $4,933,954 $2,378,343 $2,093,729 $3,619,201
Distributions from net ordinary income ** -- -- 85,538 --
Distributions from net long-term capital gains -- -- 205,862 --
==========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $4,376,698 $1,853,471 $2,496,989 $2,082,426
Distributions from net ordinary income ** -- -- 44,352 --
Distributions from net long-term capital gains -- 165,592 -- --
==========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2004, the Funds' last fiscal year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
INSURED
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND DIVIDEND PREMIUM TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE 3 INCOME ADVANTAGE INCOME
(NTC) (NFC) (NGO) (NMT) (NGX) (NOM)
-------------------------------------------------------------------------------------------------------------
Expiration year:
2005 $ -- $ -- $ -- $ 195,761 $ -- $ --
2006 -- -- -- -- -- --
2007 -- -- -- -- -- --
2008 -- -- -- 210,990 -- 57,433
2009 45,596 30,535 -- 718,509 -- --
2010 -- 42,027 -- -- -- 6,599
2011 -- -- 172,070 -- -- --
2012 -- 383,232 106,107 -- 16,123 --
-------------------------------------------------------------------------------------------------------------
Total $45,596 $455,794 $278,177 $1,125,260 $16,123 $64,032
=============================================================================================================
61
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and
its affiliates. This fee structure separates each fund's management fee into two
components - a complex-level component, based on the aggregate amount of all
funds assets managed by the Adviser and its affiliates, and a specific
fund-level component, based only on the amount of assets within each individual
fund. This pricing structure enables Nuveen fund shareholders to benefit from
growth in the assets within each individual fund as well as from growth in the
amount of complex-wide assets managed by the Adviser and its affiliates. Under
no circumstances will this pricing structure result in a fund paying management
fees at a rate higher than would otherwise have been applicable had the
complex-wide management fee structure not been implemented. As a consequence of
this new management fee structure, the funds' effective management fees were
reduced by approximately .007% as of December 31, 2004.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
CONNECTICUT PREMIUM INCOME (NTC)
AVERAGE DAILY NET ASSETS MASSACHUSETTS PREMIUM INCOME (NMT)
(INCLUDING NET ASSETS MISSOURI PREMIUM INCOME (NOM)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
AVERAGE DAILY NET ASSETS MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
(INCLUDING NET ASSETS INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
62
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
CONNECTICUT PREMIUM INCOME (NTC)
AVERAGE DAILY NET ASSETS MASSACHUSETTS PREMIUM INCOME (NMT)
(INCLUDING NET ASSETS MISSOURI PREMIUM INCOME (NOM)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
AVERAGE DAILY NET ASSETS MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
(INCLUDING NET ASSETS INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
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.
63
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 eight years of Connecticut Dividend Advantage 3's (NGO)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (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,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 3 (NGO)
for any portion of its fees and expenses beyond September 30, 2010.
For the first eight years of Insured Massachusetts Tax-Free Advantage's (NGX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (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
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Massachusetts Tax-Free Advantage
(NGX) for any portion of its fees and expenses beyond November 30, 2010.
64
6. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 30, 2004, to shareholders of
record on December 15, 2004, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
--------------------------------------------------------------------------------
Dividend per share $.0735 $.0745 $.0735 $.0650
================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Dividend per share $.0735 $.0775 $.0695 $.0735
================================================================================
At the same time, the following Funds declared capital gains and ordinary income
distributions as follows:
CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE 2 INCOME ADVANTAGE
(NTC) (NGK) (NMT) (NMB)
-----------------------------------------------------------------------------------------------------
Capital gains distributions per share $.0114 $.0657 $ -- $.1149
Ordinary income distributions per share* -- .0006 .0107 .0028
=====================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
Swap Transactions
Massachusetts Dividend Advantage (NMB) entered into forward starting swap
transactions for the purpose of hedging its portfolio duration. The swap
transactions will be valued daily with the corresponding unrealized gain or loss
reflected in the Fund's NAV.
The Fund entered into forward starting swap transactions on the dates and in the
notional amounts as follows:
--------------------------------------------------------------------------------
Trade Date December 2, 2004 December 8, 2004
--------------------------------------------------------------------------------
Notional Amount $450,000 $300,000
================================================================================
Adviser Merger
Effective January 1, 2005, the Adviser and its affiliate, Nuveen Institutional
Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), also
a wholly owned subsidiary of Nuveen Investments, Inc. As a result of the merger,
NAM is now the adviser to all funds previously advised by either NIAC or the
Adviser.
65
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from From Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
CONNECTICUT PREMIUM
INCOME (NTC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) $14.60 $ .43 $ .44 $(.03) $ -- $ .84 $(.44) $ -- $(.44)
2004 15.56 .93 (.96) (.05) -- (.08) (.88) -- (.88)
2003 14.46 .98 1.07 (.07) -- 1.98 (.88) -- (.88)
2002 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)
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) 14.56 .48 .47 (.03) -- .92 (.45) -- (.45)
2004 15.53 .97 (1.00) (.05) -- (.08) (.89) -- (.89)
2003 14.24 1.00 1.19 (.07) -- 2.12 (.84) -- (.84)
2002 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:
2005(d) 15.01 .47 .38 (.03) -- .82 (.44) -- (.44)
2004 16.23 .96 (1.13) (.04) (.01) (.22) (.87) (.12) (.99)
2003 14.48 .98 1.74 (.07) (.01) 2.64 (.83) (.06) (.89)
2002(b) 14.33 .08 .30 -- -- .38 (.07) -- (.07)
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) 13.97 .43 .49 (.03) -- .89 (.39) -- (.39)
2004 15.06 .88 (1.14) (.05) -- (.31) (.78) -- (.78)
2003(c) 14.33 .51 .93 (.04) -- 1.40 (.46) -- (.46)
====================================================================================================================================
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:
2005(d) $ -- $15.00 $15.5400 10.46% 5.80%
2004 -- 14.60 14.4700 (10.80) (.51)
2003 -- 15.56 17.1400 12.63 14.08
2002 -- 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)
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
--------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) -- 15.03 15.3200 11.69 6.35
2004 -- 14.56 14.1200 (8.64) (.56)
2003 .01 15.53 16.3500 9.19 15.38
2002 -- 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:
2005(d) -- 15.39 15.7000 14.18 5.50
2004 (.01) 15.01 14.1400 (4.65) (1.48)
2003 -- 16.23 15.8000 11.16 18.77
2002(b) (.16) 14.48 15.0500 .79 1.53
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
--------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) -- 14.47 13.5200 6.94 6.41
2004 -- 13.97 13.0000 (8.92) (2.08)
2003(c) (.21) 15.06 15.0900 3.71 8.46
======================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=======================================================================================================================
CONNECTICUT PREMIUM
INCOME (NTC)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) $79,978 1.24%* 5.79%* 1.24%* 5.80%* 3%
2004 77,725 1.23 6.16 1.23 6.16 15
2003 82,492 1.27 6.57 1.26 6.58 23
2002 76,327 1.34 6.90 1.34 6.91 12
2001 74,642 1.33 7.36 1.31 7.39 8
2000 67,579 1.36 7.87 1.32 7.91 19
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) 38,502 1.27* 5.95* .81* 6.41* 6
2004 37,238 1.26 5.97 .80 6.44 4
2003 39,625 1.27 6.29 .81 6.76 7
2002 36,233 1.38 6.56 .88 7.06 20
2001(a) 35,255 1.22* 4.10* .80* 4.52* 29
CONNECTICUT DIVIDEND
ADVANTAGE 2 (NGK)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) 35,527 1.27* 5.61* .81* 6.06* 9
2004 34,646 1.25 5.73 .80 6.18 10
2003 37,441 1.31 5.94 .82 6.43 13
2002(b) 33,408 1.06* 2.90* .73* 3.23* --
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(d) 62,948 1.24* 5.50* .75* 5.98* 6
2004 60,774 1.24 5.58 .74 6.08 14
2003(c) 65,324 1.19* 4.72* .71* 5.20* 18
=======================================================================================================================
Preferred Shares at End of Period
-----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===============================================================
CONNECTICUT PREMIUM
INCOME (NTC)
---------------------------------------------------------------
Year Ended 5/31:
2005(d) $38,300 $25,000 $77,205
2004 38,300 25,000 75,734
2003 38,300 25,000 78,846
2002 38,300 25,000 74,822
2001 38,300 25,000 73,722
2000 38,300 25,000 69,112
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
---------------------------------------------------------------
Year Ended 5/31:
2005(d) 19,500 25,000 74,361
2004 19,500 25,000 72,740
2003 19,500 25,000 75,801
2002 19,500 25,000 71,453
2001(a) 19,500 25,000 70,198
CONNECTICUT DIVIDEND
ADVANTAGE 2 (NGK)
----------------------------------------------------------------
Year Ended 5/31:
2005(d) 17,500 25,000 75,753
2004 17,500 25,000 74,495
2003 17,500 25,000 78,487
2002(b) 17,500 25,000 72,726
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
---------------------------------------------------------------
Year Ended 5/31:
2005(d) 32,000 25,000 74,178
2004 32,000 25,000 72,480
2003(c) 32,000 25,000 76,034
===============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period January 26, 2001 (commencement of operations) through May
31, 2001.
(b) For the period March 25, 2002 (commencement of operations) through May 31,
2002.
(c) For the period September 26, 2002 (commencement of operations) through May
31, 2003.
(d) For the six months ended November 30, 2004.
See accompanying notes to financial statements.
66-67 spread
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from From Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM
INCOME (NMT)
Year Ended 5/31:
2005(c) $14.34 $ .46 $ .42 $(.03) $ -- $ .85 $(.44) $ -- $ (.44)
2004 15.30 .94 (.97) (.05) -- (.08) (.88) -- (.88)
2003 14.48 .98 .78 (.07) -- 1.69 (.87) -- (.87)
2002 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)
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) 14.84 .49 .59 (.03) -- 1.05 (.47) -- (.47)
2004 16.00 1.00 (1.11) (.04) (.01) (.16) (.92) (.08) (1.00)
2003 14.16 1.04 1.74 (.07) -- 2.71 (.88) -- (.88)
2002 13.88 1.03 .25 (.12) -- 1.16 (.88) -- (.88)
2001(a) 14.33 .24 (.24) (.05) -- (.05) (.22) -- (.22)
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE
(NGX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) 14.04 .46 .38 (.03) -- .81 (.43) -- (.43)
2004 15.25 .94 (1.22) (.06) -- (.34) (.86) (.01) (.87)
2003(b) 14.33 .35 1.21 (.03) -- 1.53 (.37) -- (.37)
MISSOURI PREMIUM
INCOME (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) 14.37 .47 .48 (.03) -- .92 (.44) -- (.44)
2004 15.40 .96 (1.05) (.06) -- (.15) (.88) -- (.88)
2003 14.35 .97 1.02 (.07) -- 1.92 (.87) -- (.87)
2002 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)
====================================================================================================================================
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:
2005(c) $ -- $14.75 $16.1400 15.74% 5.97%
2004 -- 14.34 14.3500 (9.51) (.51)
2003 -- 15.30 16.8000 12.98 12.02
2002 -- 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)
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) -- 15.42 16.0000 10.74 7.09
2004 -- 14.84 14.8800 (3.74) (1.03)
2003 .01 16.00 16.4500 8.76 19.74
2002 -- 14.16 15.9500 14.15 8.46
2001(a) (.18) 13.88 14.8000 .13 (1.61)
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE
(NGX)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) -- 14.42 16.3300 20.79 5.82
2004 -- 14.04 13.9000 (6.83) (2.18)
2003(b) (.24) 15.25 15.7800 7.69 9.07
MISSOURI PREMIUM
INCOME (NOM)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) -- 14.85 17.8500 20.95 6.45
2004 -- 14.37 15.1500 (5.35) (1.00)
2003 -- 15.40 16.8700 15.39 13.75
2002 -- 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)
========================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==========================================================================================================================
--------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM
INCOME (NMT)
Year Ended 5/31:
2005(c) $69,856 1.25%* 6.27%* 1.24%* 6.27%* 6%
2004 67,806 1.24 6.37 1.23 6.38 22
2003 72,003 1.28 6.61 1.27 6.63 18
2002 67,856 1.31 7.11 1.30 7.12 13
2001 66,579 1.37 7.46 1.35 7.48 14
2000 61,323 1.32 7.71 1.31 7.73 11
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) 30,049 1.32* 5.89* .86* 6.35* 6
2004 28,904 1.27 6.05 .81 6.51 26
2003 31,134 1.29 6.49 .83 6.95 8
2002 27,519 1.47 6.70 .94 7.24 9
2001(a) 26,951 1.28* 4.84* .84* 5.28* 18
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE
(NGX)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) 39,189 1.28* 5.91* .78* 6.41* 1
2004 38,121 1.28 5.94 .75 6.46 97
2003(b) 41,297 1.14* 4.17* .68* 4.64* 19
MISSOURI PREMIUM
INCOME (NOM)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(c) 33,463 1.29* 6.32* 1.27* 6.34* 11
2004 32,231 1.27 6.44 1.26 6.45 24
2003 34,228 1.34 6.56 1.32 6.58 15
2002 31,619 1.38 7.08 1.36 7.10 8
2001 30,508 1.39 7.48 1.38 7.50 31
2000 27,701 1.48 7.49 1.47 7.51 23
==========================================================================================================================
Preferred Shares at End of Period
-----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===================================================================
-------------------------------------------------------------------
MASSACHUSETTS PREMIUM
INCOME (NMT)
Year Ended 5/31:
2005(c) $34,000 $25,000 $76,365
2004 34,000 25,000 74,857
2003 34,000 25,000 77,943
2002 34,000 25,000 74,894
2001 34,000 25,000 73,955
2000 34,000 25,000 70,091
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
-------------------------------------------------------------------
Year Ended 5/31:
2005(c) 15,000 25,000 75,082
2004 15,000 25,000 73,173
2003 15,000 25,000 76,891
2002 15,000 25,000 70,865
2001(a) 15,000 25,000 69,919
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE
(NGX)
-------------------------------------------------------------------
Year Ended 5/31:
2005(c) 20,500 25,000 72,792
2004 20,500 25,000 71,489
2003(b) 20,500 25,000 75,362
MISSOURI PREMIUM
INCOME (NOM)
-------------------------------------------------------------------
Year Ended 5/31:
2005(c) 16,000 25,000 77,285
2004 16,000 25,000 75,360
2003 16,000 25,000 78,481
2002 16,000 25,000 74,405
2001 16,000 25,000 72,669
2000 16,000 25,000 68,282
===================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the period January 30, 2001 (commencement of operations) through May
31, 2001.
(b) For the period November 21, 2002 (commencement of operations) through May
31, 2003.
(c) For the six months ended November 30, 2004.
See accompanying notes to financial statements.
68-69 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit,nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
the dividends or distributions awaiting reinvestment. Because the market price
may increase before purchases are completed, the average purchase price per
share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
70
Other Useful
INFORMATION
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments and (ii) information
regarding how the Funds voted proxies relating to portfolio securities held
during the most recent 12-month period ended June 30, 2004, are available
without charge, upon request, by calling Nuveen Investments toll-free at (800)
257-8787 or on Nuveen's web site at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the sensitivity of a bond
or bond Fund's value to changes when interest rates change. Generally, the
longer a bond or Fund's duration, the more the price of the bond or Fund will
change as interest rates change. Leverage-adjusted duration takes into account
the leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six month period ended November 30, 2004. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
71
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $100 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-1104D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Schedule I in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Massachusetts Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: February 8, 2005
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: February 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.