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
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Nuveen Massachusetts Dividend Advantage Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: May 31
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Date of reporting period: May 31, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN Investments
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report
May 31, 2009
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NUVEEN CONNECTICUT NUVEEN CONNECTICUT NUVEEN CONNECTICUT NUVEEN CONNECTICUT
PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND 3
NTC NFC NGK NGO
------------------ -------------------- ------------------ ------------------
NUVEEN NUVEEN MASSACHUSETTS NUVEEN INSURED NUVEEN MISSOURI
MASSACHUSETTS DIVIDEND ADVANTAGE MASSACHUSETTS PREMIUM INCOME
PREMIUM INCOME MUNICIPAL FUND TAX-FREE ADVANTAGE MUNICIPAL FUND
MUNICIPAL FUND NMB MUNICIPAL FUND NOM
NMT NGX
[MAY 09]
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LOGO: NUVEEN Investments
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The problems in the U.S. financial system and the slowdown in global economic
activity continue to create a very difficult environment for the U.S. economy.
The administration, the Federal Reserve System and Congress have initiated a
variety of programs directed at restoring liquidity to the financial markets,
providing financial support for critical financial institutions and stimulating
economic activity. There are encouraging signs that these initiatives are
beginning to have a constructive impact. It is not possible to predict whether
the actions taken to date will be sufficient to restore more normal conditions
in the financial markets or enable the economy to stabilize and set a course
toward recovery. However, the speed and scope of the government's actions are
very encouraging and, more importantly, reflect a commitment to act decisively
to meet the economic challenges we face.
The performance information in the attached report reflects the impact of many
forces at work in the equity and fixed-income markets. The comments by the
portfolio managers describe the strategies being used to pursue your Fund's
long-term investment goals. Parts of the financial markets continue to
experience serious dislocations and thorough research and strong investment
disciplines have never been more important in identifying risks and
opportunities. I hope you will read this information carefully.
Your Board is particularly sensitive to our shareholders' concerns in these
uncertain times. We believe that frequent and thorough communication is
essential in this regard and encourage you to visit the Nuveen website:
www.nuveen.com, for recent developments in all Nuveen funds. We also encourage
you to communicate with your financial consultant for answers to your questions
and to seek advice on your long-term investment strategy in the current market
environment.
Nuveen continues to work on resolving the issues related to the auction rate
preferred shares situation, but the unsettled conditions in the credit markets
have slowed progress. Nuveen is actively pursuing a number of solutions, all
with the goal of providing liquidity for preferred shareholders while preserving
the potential benefits of leverage for common shareholders. We appreciate the
patience you have shown as we work through the many issues involved.
On behalf of myself and the other members of your Fund's Board, we look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
-------------------------
Robert P. Bremner
Chairman of the Nuveen Fund Board
July 23, 2009
Nuveen Investments 3
Portfolio Managers' Comments
Nuveen Investments Municipal Closed-End Funds NTC, NFC, NGK, NGO, NMT, NMB, NGX,
NOM
Portfolio managers Cathryn Steeves and Scott Romans review economic and
municipal market conditions at both the national and state levels, key
investment strategies and the twelve-month performance of these eight Nuveen
Funds. Cathryn, who joined Nuveen in 1996, has managed the Connecticut and
Massachusetts Funds since 2006. Scott, who has been with Nuveen since 2000,
assumed portfolio management responsibility for NOM in 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING
THE TWELVE-MONTH PERIOD ENDED MAY 31, 2009?
During this period, downward pressure on the economy continued. In an effort to
improve overall economic conditions, the Federal Reserve (Fed) continued to cut
interest rates, lowering the fed funds rate from 2.00% June 1, 2008, to a target
range of zero to 0.25% in December 2008, its lowest level on record. In March
2009, the Fed announced that, in addition to maintaining the current target
rate, it would buy $300 billion in long-term Treasury securities in an effort to
support private credit markets and up to an additional $750 billion (for a total
of $1.25 trillion) in agency mortgage-backed securities to bolster the housing
market. (At its June 2009 meeting, subsequent to the reporting period, the Fed
kept the target rate and bond purchase program unchanged.) Additionally, the
federal government passed a $700 billion financial industry rescue package in
October 2008, which was followed by a $787 billion stimulus package approved in
February 2009.
The Fed's efforts and the stimulus package were partly in response to the
decline in U.S. economic growth, as measured by the U.S. gross domestic product
(GDP), a closely watched gauge of economic performance. Since posting an annual
growth rate of 2.8% in the second quarter of 2008, the GDP has contracted at
annual rates of 0.5% in the third quarter of 2008, 6.3% in the fourth quarter of
2008, and 5.5% in the first quarter of 2009, all of which adds up to the worst
recession in 50 years. The ongoing housing slump also continued to trouble the
economy, with the average home price falling 18.1% nationally between April 2008
and April 2009, pushing home values to mid-2003 levels. In the labor markets,
May 2009 marked the 17th consecutive month of job losses, with a total of 6.0
million jobs lost since the economic recession began in December 2007. The
national unemployment rate for May 2009 was 9.4%, its highest point since 1983,
up from 5.5% in May 2008. At the same time, inflation remained subdued, as the
Consumer Price Index (CPI), reflecting a 27% drop in energy prices, fell 1.3%
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
4 Nuveen Investments
year-over-year as of May 2009, the largest twelve-month decline since 1950. The
core CPI (which excludes food and energy) rose 1.8% over this same period,
within the Fed's unofficial objective of 2.0% or lower for this measure.
During this period, the nation's financial institutions and markets--including
the municipal bond market--experienced significant turmoil and reductions in
demand for many types of securities, which decreased valuations. Stress in the
financial and credit markets led to reduced liquidity, increased price
volatility for most securities, and a general flight to quality, while reduction
in demand resulted in decreased valuations across many types of securities. In
the municipal market, this negative impact was felt across all credit ratings,
particularly lower-rated credits, reducing the net asset values of municipal
bond funds. In addition, some of the dealer firms that make markets in bonds
were unwilling to commit capital to purchase or continue serving as dealers.
Municipal bond prices were further negatively impacted by concerns that a supply
overhang (such as, a large backlog of new issues that had been postponed) would
cause selling pressure to persist. Additionally, greater price volatility,
including wider credit spreads (i.e., lower quality bonds fell in price more
than higher quality bonds); greatly reduced liquidity (i.e., the ability to sell
bonds at prices close to their carrying values), particularly for lower quality
bonds; and a lack of price transparency (i.e., the ability to accurately
determine the price at which a bond would likely trade) all weighed down the
market for much of this period. For the twelve-month period as a whole, bonds
with shorter and intermediate maturities generally outperformed longer maturity
bonds, and higher quality bonds tended to outperform lower quality credits.
Market conditions began to show some general signs of improvement in
mid-December 2008, and municipal bonds were on an improving trend during the
first five months of 2009. Another positive impact was the reduced supply of
tax-exempt municipal debt, in part because of the introduction of "Build
America" bonds in the final few months of the period. This new class of taxable
municipal debt - created as part of the February 2009 economic stimulus package
- provides municipal issuers with a 35% annual federal income tax credit on
their interest payments. For many borrowers, these bonds provided an attractive
alternative to issuing traditional tax-exempt debt. The Build America bond
program got off to a quick start and effectively diverted high-grade tax-exempt
new-issue supply into the taxable market. Therefore, a combination of lower
issuance along with higher demand provided additional support to municipal bond
prices.
Over the twelve months ended May 31, 2009, municipal bond issuance nationwide
totaled $410.3 billion, a drop of 12% compared with the twelve-month period
ended May 31, 2008. While market conditions during this period impacted the
demand for municipal bonds, investors, especially from the retail sector,
continued to be attracted by high tax-equivalent yields of the municipal bond
market relative to taxable bonds.
Nuveen Investments 5
HOW WERE THE ECONOMIC AND MARKET CONDITIONS IN CONNECTICUT, MASSACHUSETTS, AND
MISSOURI DURING THIS PERIOD?
Connecticut's economy continued to be led by manufacturing, financial services
and education/health services. Although down from 1980s levels, the defense
industry also remained an important factor in the state's economy, with 25% of
Connecticut's manufacturing jobs concentrated in that sector. The state ranked
ninth in total defense dollars awarded among the 50 states. In 2008,
Connecticut's economy contracted at a rate of 0.4%, which ranked the state 40th
in the nation in terms of state GDP growth, compared with national average
growth of 0.7%. Connecticut's economic contraction was due mainly to declines in
manufacturing, finance, construction, and insurance. As of May 2009, the
unemployment rate in Connecticut was 8.0%, up from 5.4% in May 2008. In February
and March 2009, Moody's and Standard & Poor's (S&P) confirmed their ratings on
Connecticut general obligation debt at Aa3 and AA, respectively, with stable
outlooks. Fitch continued to rate the state at AA. Issuance of municipal debt in
Connecticut during the twelve months ended May 31, 2009, totaled $6.4 billion, a
year-over-year decrease of 10%. According to Moody's, Connecticut's
tax-supported debt per capita was the second highest in the nation (following
Massachusetts) in 2008.
Massachusetts' economy remained diverse, with growth led by education/health
services, financial services and technology. The concentration of colleges and
universities in Massachusetts added some employment stability and provided a
source of well-educated workers for the commonwealth's service industries.
Education-related jobs accounted for approximately 5% of Massachusetts'
employment, twice the national average. As of May 2009, the jobless rate in
Massachusetts had risen to 8.2%, from 4.9% in May 2008. While many sectors of
the commonwealth's economy, especially financial services, have been under
pressure during the current recession, Massachusetts has fared better
economically than many other states. In February 2009, Moody's and Standard &
Poor's (S&P) confirmed their ratings on Massachusetts general obligation debt at
Aa2 and AA, respectively, while Fitch continued to rate Massachusetts at AA.
Both Moody's and S&P maintained their stable outlooks. For the twelve months
ended May 31, 2009, new municipal issuance in Massachusetts totaled $15.4
billion, a year-over-year increase of 17.4%.
Over the past twelve months, economic growth in Missouri was driven mainly by
the government sector, education/health services, and professional and business
services, followed by retail trade and manufacturing. While manufacturing as a
whole has been contracting for nearly a decade, the decline accelerated as the
global recession intensified. In May 2009, the jobless rate in Missouri was
9.0%, up from 5.8% in May 2008. As of May 2009, Moody's and Standard & Poor's
(S&P) maintained their ratings on Missouri general obligation debt at Aaa and
AAA, respectively, with stable outlooks, reflecting the state's conservative
debt and fiscal management practices. During the twelve months ended May 31,
2009, new municipal issuance in Missouri totaled $5.1 billion, a year-over-year
decrease of 18%.
6 Nuveen Investments
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS PERIOD?
During this period, as the municipal market remained under pressure from price
volatility, reduced liquidity and fundamental economic concerns, we continued to
focus on carefully monitoring liquidity and on finding bonds that offered
relative value while seeking to invest for the long term.
In view of the relatively volatile market situation over the past twelve months,
we believed that it was important to focus on managing and preserving liquidity.
As part of this effort, we monitored the types of credits and bond structures
that were attractive to the retail market and took advantage of strong bids to
sell bonds into relatively consistent retail demand. In the Connecticut and
Massachusetts Funds, these tended to be shorter maturity securities, while NOM
generally sold bonds with intermediate maturities. Overall, our objective was to
position the Funds somewhat more defensively by retaining slightly more cash
than usual in order to improve the Funds' liquidity profiles and have the
capital we needed to reinvest at opportune times.
On the whole, our investment activity during this volatile period was somewhat
limited. In addition, we believed that the Funds were already appropriately
structured in line with our long-term perspectives on credit and the yield
curve. As events unfolded, we sought to capitalize on the environment by
watching for attractive opportunities, many of which were created by market
conditions, to reallocate some cash into new purchases. Overall, our strategies
were selective and conservative, as we continued to take a bottom-up approach to
discovering undervalued sectors and individual credits with the potential to
perform well over the long term. This was true in both the new issuance and
secondary markets, where we were able to purchase bonds, especially lower-rated
issues, at discounted prices as the result of selling by some municipal market
participants, particularly during the last part of 2008. In general, our
emphasis was on purchasing bonds with longer maturities to take advantage of the
spreads offered by the extremely steep yield curve. In addition to the selling
mentioned previously, cash for new purchases was provided by bond calls in the
Connecticut Funds, while the majority of NOM's purchases were financed by
reinvesting the proceeds from matured and called bonds.
In NGX, which must invest at least 80% of its net assets in a portfolio of
insured municipal bonds, our investment activity was further limited by reduced
supply as the number of suitable insurers and issues continued to decline.
Insured securities comprised 18% of new supply in 2008, compared with 47% in
2007 and 12.4% in the first five months of 2009 versus 25.5% for the same period
in 2008.
We continued to use inverse floating rate securities(1) in all eight Funds. We
employ inverse floaters for a variety of reasons, including duration(2)
management, income enhancement and as a form of leverage. As of May 31, 2009,
all of the Funds continued to hold positions in inverse floaters.
(1) An inverse floating rate security, also known as inverse floaters is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
(2) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
Nuveen Investments 7
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Funds, as well as relevant index and peer
group information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED
5/31/09
1-YEAR 5-YEAR 10-YEAR
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Connecticut Funds
NTC 0.45% 4.04% 5.17%
NFC 1.50% 4.85% N/A
NGK 2.52% 4.70% N/A
NGO 0.89% 4.23% N/A
Massachusetts Funds
NMT -1.36% 3.77% 4.65%
NMB -0.70% 3.94% N/A
Missouri Fund
NOM -2.92% 2.81% 4.46%
Lipper Other States Municipal Debt Funds Average(3) -0.60% 3.80% 4.66%
Barclays Capital Municipal Bond Index(4) 3.57% 4.41% 4.95%
Standard & Poor's (S&P) National Municipal Bond
Index(5) 2.02% 4.21% 4.81%
Insured Massachusetts Fund
NGX 2.00% 4.72% N/A
Lipper Single State Insured Municipal Debt
Funds Average(6) -2.21% 3.76% 4.87%
Barclays Capital Insured Municipal Bond Index(4) 3.71% 4.44% 5.09%
Standard & Poor's (S&P) National Insured Municipal
Bond Index(5) 2.07% 4.18% 4.97%
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For the twelve months ended May 31, 2009, the total returns on common share net
asset value (NAV) for all four of the Connecticut Funds exceeded the average
return for the Lipper Other States Municipal Debt Funds Average, NMB performed
in line with this Lipper group, while NMT and NOM lagged the average. All of the
non-insured Funds underperformed the unleveraged Barclays Capital Municipal Bond
Index. For the same period, NGX outperformed the Lipper Single State Insured
Municipal Debt Funds Average, and underperformed the Barclays Capital Insured
Municipal Bond Index. The comparative benchmarks and averages shown in the
accompanying table include bonds from states in addition to Connecticut,
Massachusetts and Missouri, which may make direct comparisons between the Funds
and these benchmarks less meaningful.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, credit exposure and sector
allocations, and individual security selection. In addition, the use of leverage
was an important factor affecting
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(3) The Lipper Other States Municipal Debt Funds Average is calculated using
the returns of all closed-end funds in this category for each period as
follows: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 funds. Fund
and Lipper returns assume reinvestment of dividends.
(4) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds, while the Barclays Capital (formerly
Lehman Brothers) Insured Municipal Bond Index is an unleveraged, unmanaged
national index containing a broad range of insured municipal bonds.
Results for the Barclays Capital indexes do not reflect any expenses.
(5) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market, while the
S&P National Insured Municipal Bond Index is an unleveraged, market
value-weighted index designed to measure the performance of the insured
segment of the U.S. municipal bond market.
(6) The Lipper Single-State Insured Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 1-year, 44 funds; 5-year, 44 funds; and 10-year, 24 funds.
Fund and Lipper returns assume reinvestment of dividends.
8 Nuveen Investments
the Funds' performances over this period. The impact of leverage is discussed in
more detail on page 10.
Over the course of this twelve-month period, the municipal bond yield curve
remained steep. Bonds in the Barclays Capital Municipal Bond Index with
maturities of approximately two to twelve years, especially those maturing in
four to eight years, benefited the most from the interest rate environment.
Because they were less sensitive to interest rate changes, these bonds generally
outperformed credits with longer maturities, with bonds having the longest
maturities (22 years and longer) posting a loss for the period. For the most
part, duration and yield curve positioning were neutral for performance in the
Connecticut and Massachusetts Funds during this period. These Funds were
generally underexposed to the shorter maturity categories, more heavily weighted
in the intermediate part of the yield curve, and underweighted in the longer
part of the curve. In NOM, a healthy overexposure to bonds with intermediate
maturities made duration positioning modestly positive for this Fund's return.
While duration was an important factor impacting performance during this period,
it was generally outweighed in significance by credit quality and sector
allocations. Given the difficult economic environment and the disruptions in the
financial markets, risk-averse investors put a priority on quality investments
and bonds with higher credit quality exposure typically performed very well over
the past twelve months. Bonds rated BBB or below and non-rated bonds generally
posted poorer returns. On the whole, the Connecticut Funds benefited from their
overweightings in AAA rated bonds, predominately in the higher education sector.
However, NMT, NMB and NOM were negatively impacted by their overexposures to
lower-rated and non-rated bonds, and NMB was additionally impacted by its
exposure to the sub-investment grade category (bonds rated BB and lower). The
insured NGX, which can invest up to 20% of its assets in uninsured
investment-grade quality securities, held approximately 2% of its portfolio in
bonds rated BBB or non-rated bonds judged to be of investment-grade quality as
of May 31, 2009. Overall, the Fund benefited from its comparatively higher
credit quality.
As mentioned earlier, all of these Funds used inverse floating rate securities.
During this period, the impact of inverse floaters on performance varied, with
inverse floaters based on higher credit quality bonds outperforming those that
used lower-quality credits. All of these inverse floaters benefited the Funds by
helping to support their income streams.
Pre-refunded(7) bonds, which are backed by U.S. Treasury securities, were one of
the top performing segments of the municipal bond market, due primarily to their
shorter effective maturities, higher credit quality and perceived safety. NFC,
NGK, NGO, NGX and NOM were all overweighted in pre-refunded bonds relative to
the market, with NGX having the highest allocation. Additional sectors of the
market that generally made positive contributions to the Funds' returns included
general obligation and other tax-supported bonds, water and sewer, education,
and housing credits.
Holdings that generally detracted from the Funds' performances included
industrial development revenue (IDR) and health care bonds. All of the Funds
except NGX were negatively impacted by their exposure to IDRs, while the three
Massachusetts Funds also were comparatively overweight in health care. NOM had
relatively heavy allocations to the transportation sector, which underperformed
the municipal market as a whole for
(7) Pre-refundings, also known as advance refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
Nuveen Investments 9
the period, and to the "other revenue" category, including tax increment
financing (TIF) districts, which did not perform well. Zero coupon bonds also
performed poorly, as did lower-rated tobacco bonds.
Individual security selection was also a factor in the Funds' performances
during this period, In particular, the Fund's were impacted to varying degrees
by the downgrades of municipal bond issuers and the subsequent impact on the
returns and values of insured bonds.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In this unusual and volatile investment environment, another factor impacting
the returns of these Funds relative to the comparative indexes was the Funds'
use of financial leverage. The Funds use leverage because their managers believe
that, over time, leveraging provides opportunities for additional income and
total returns for common shareholders. However, use of leverage also can expose
common shareholders to additional risk--especially when market conditions are
unfavorable. For example, as the prices of securities held by a Fund decline,
the negative impact of these valuation changes on common share net asset value
and common shareholder total return is magnified by the use of leverage. During
this period, leverage had a mixed impact on the total return performance of
these Funds. Generally, leverage was a negative factor in the fall of 2008 and a
positive factor in the spring of 2009.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
As mentioned previously, NGX must invest at least 80% of its net assets in a
portfolio of insured municipal bonds. At the time this report was prepared,
there were no bond insurers rated AAA by all three of the major rating agencies
(Moody's Investor Service, S&P and Fitch) and at least one rating agency has
placed each insurer on "negative credit watch," "credit watch evolving," "credit
outlook developing," or "rating withdrawn," which may presage one or more rating
reductions in the future. At the end of this reporting period, most insured
bonds were being valued according to their fundamentals as if they were
uninsured. On the whole, the holdings of NGX continued to be well diversified,
and it is important to note that municipal bonds historically have had a very
low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
As noted in the last shareholder report, beginning in February 2008, more shares
were submitted for sale in the regularly scheduled auctions for the auction rate
preferred shares issued by these Funds than there were offers to buy. This meant
that these auctions "failed to clear," and that many, or all, of the Funds'
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This decline in liquidity in auction rate
preferred shares did not lower the credit quality
10 Nuveen Investments
of these shares, and auction rate preferred shareholders unable to sell their
shares received distributions at the "maximum rate" applicable to failed
auctions, as calculated in accordance with the pre-established terms of the
auction rate preferred shares.
These developments generally have not affected the portfolio management or
investment policies of these Funds. However, one continuing implication for
common shareholders of these auction failures is that the Funds' cost of
leverage will likely be higher, at least temporarily, than it otherwise would
have been had the auctions continued to be successful. As a result, the Funds'
future common share earnings may be lower than they otherwise might have been.
As noted in the last shareholder report, the Funds' Board of Trustees authorized
a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. The amount of TOBs that a Fund may use varies according to the
composition of each Fund's portfolio. Some Funds have a greater ability to use
TOBs than others. As of May 31, 2009, the amount of auction rate preferred
securities redeemed and/or noticed for redemption, at par, by the Funds are as
shown in the accompanying table.
AUCTION RATE
PREFERRED SHARES % OF ORIGINAL
REDEEMED AND/OR AUCTION RATE
FUND NOTICED FOR REDEMPTION PREFERRED SHARES
--------------------------------------------------------------------------------
NTC $ 4,850,000 12.7%
NFC $ 2,250,000 11.5%
NGK $ 2,050,000 11.7%
NGO $ 3,725,000 11.6%
NMB $ 750,000 5.0%
--------------------------------------------------------------------------------
While the Funds' Board of Trustees and management continue to work to resolve
this situation, the Funds cannot provide any assurance on when the remaining
outstanding auction rate preferred shares might be redeemed.
As of May 31, 2009, sixty-eight Nuveen closed-end municipal funds have redeemed
and/or noticed for redemption, at par, a portion of their outstanding auction
rate preferred shares. These redemptions bring the total amount of Nuveen's
municipal closed-end funds' auction rate preferred share redemptions to
approximately $2.1 billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Nuveen Investments 11
Common Share Dividend and Share Price Information
During the twelve-month reporting period ended May 31, 2009, NMT had three
monthly dividend increases, NTC, NGO, NMB and NGX each had two increases, NFC
and NGK each had one increase, and NOM's dividend remained stable throughout the
reporting period.
Due to normal portfolio activity, common shareholders of the following Funds
received capital gains and net ordinary income distributions at the end of
December 2008 as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME
FUND (PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NTC $ 0.0083 $ 0.0664
NFC $ 0.0422 $ 0.0637
NGK $ 0.0362 $ 0.0884
NMT $ 0.0230 $ 0.0184
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of May 31, 2009, all of the
Funds in this report had positive UNII balances for both tax and financial
statement purposes.
12 Nuveen Investments
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
The Funds' Board of Trustees approved an open-market share repurchase program on
July 30, 2008, under which each Fund may repurchase an aggregate of up to 10% of
its outstanding common shares. Since the inception of this program, the Funds
have not repurchased any of their outstanding common shares.
As of May 31, 2009, the Funds' common share prices were trading at premiums or
discounts to their common share NAVs as shown in the accompanying table.
5/31/09 TWELVE-MONTH AVERAGE
FUND +PREMIUM/-DISCOUNT +PREMIUM/-DISCOUNT
--------------------------------------------------------------------------------
NTC -1.77% - 8.41%
NFC -2.34% - 3.02%
NGK +0.14% - 4.27%
NGO -3.91% - 8.14%
NMT -0.08% - 8.51%
NMB +2.29% + 0.77%
NGX -5.12% - 1.76%
NOM +3.70% + 4.06%
--------------------------------------------------------------------------------
Nuveen Investments 13
NTC Performance OVERVIEW | Nuveen Connecticut Premium Income Municipal Fund
as of May 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.35
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.59
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.77%
--------------------------------------------------------------------------------
Market Yield 4.81%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.03%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 72,901
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.66
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.96
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 0.32% 0.45%
--------------------------------------------------------------------------------
5-Year 3.91% 4.04%
--------------------------------------------------------------------------------
10-Year 3.20% 5.17%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 25.3%
--------------------------------------------------------------------------------
Tax Obligation/General 15.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.4%
--------------------------------------------------------------------------------
Health Care 10.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 8.6%
--------------------------------------------------------------------------------
Water and Sewer 7.8%
--------------------------------------------------------------------------------
Housing/Single Family 5.1%
--------------------------------------------------------------------------------
Other 13.0%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 42%
AA 30%
A 9%
BBB 16%
BB or Lower 1%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(2)
[BAR CHART]
Jun $ 0.049
Jul 0.049
Aug 0.049
Sep 0.05
Oct 0.05
Nov 0.05
Dec 0.05
Jan 0.05
Feb 0.05
Mar 0.05
Apr 0.05
May 0.0535
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 14.06
14.03
14.0899
14.17
14.22
14.156
14.06
13.82
13.5
13.75
13.77
13.68
13.7
13.65
13.68
13.767
13.77
13.63
13.48
13.52
13.54
13.54
13.57
13.572
13.46
13.62
13.66
13.56
13.47
13.46
13.31
13.28
13.33
13.28
13.25
13.33
13.37
13.32
13.32
13.33
13.32
13.35
13.46
13.49
13.4601
13.51
13.56
13.61
13.59
13.8
13.85
13.86
13.87
14.0501
14.04
14.01
13.836
13.76
13.7
13.7
13.82
13.78
13.84
13.84
13.84
13.75
13.74
13.74
13.71
13.77
13.69
13.59
13.48
13.4
13.3
13.17
12.6
12.36
12.67
12.44
12.29
12.45
12.4
12.34
12
11.75
11.74
11.68
11.23
10.51
10.38
10.2
9.18
9.02
10.07
10.22
9.89
9.89
10.25
10.65
10.75
10.99
11.43
11.38
11.4201
11.3
11.6
11.68
11.77
11.59
12.04
12.29
12.15
11.89
11.76
11.85
11.5
11.28
11.072
10.64
10.64
10.95
10.95
10.41
10.45
10.22
10.21
10.39
10.39
10.14
10.118
10.1239
10.26
10.25
10.28
10.45
10.43
9.46
9.25
8.8501
9.3
9.884
10
10.3
10.4
10.14
10.39
10.79
10.69
10.5
10.54
10.73
10.82
11.1
10.95
11.1
11.62
11.3499
11.59
11.198
11.4
11.48
11.17
11.21
11.11
11.09
11.4
11.62
11.83
11.75
11.91
11.91
11.75
12.1
11.86
11.87
11.88
11.88
11.91
11.93
12
11.934
11.79
11.68
11.77
11.56
11.28
11.35
11.39
11.312
11.39
11.39
11.15
10.96
11.0899
11.04
11.05
10.8
10.75
10.85
10.75
10.7
10.9
10.86
10.9
11.07
11.17
11.26
11.1
11.1799
11.24
11.28
11.28
11.41
11.52
11.61
11.62
11.63
11.63
11.63
11.776
11.75
11.65
11.65
11.65
11.93
11.9199
11.91
11.95
11.98
11.98
11.83
11.94
12.02
12.38
12.42
12.42
12.5976
12.64
12.7299
12.6
12.5
13.1
12.87
13.1185
13.15
13.18
13.15
13.46
13.3
13.36
13.44
13.34
13.37
13.3501
5/31/09 13.3501
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0747 per share.
14 Nuveen Investments
NFC Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal Fund
as of May 31, 2009
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 50%
AA 27%
A 7%
BBB 12%
BB or Lower 2%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(2)
[BAR CHART]
Jun $ 0.0555
Jul 0.0555
Aug 0.0555
Sep 0.0555
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.0555
Apr 0.0555
May 0.057
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 14.94
15.65
15.841
16.24
16.2
15.57
15.46
15.3
15.25
15.2
15.27
15.12
15.12
15.04
14.67
14.64
14.64
14.4
14.32
14.32
14.32
14.33
14.33
14.46
14.5
14.5
14.76
15
14.83
14.68
14.55
14.55
14.8
14.7
14.64
14.45
14.6
14.53
14.38
14.35
14.35
14.48
14.64
14.8
14.87
15.06
14.87
15.14
15.14
15.33
15.3
15.24
15.3
15.27
15.27
15.1
15.1
15.04
15.04
14.8
14.8
14.81
14.59
14.4
14.4
14.49
14.53
15.16
14.99
14.89
14.8
14.7
14.51
14.52
14.52
14.63
14.94
14.55
14.65
14.65
14.51
14.2501
14.21
14.13
14.0001
14.35
14
13.82
14.46
13.94
13.46
11.14
10.5
9.6
11.44
14.27
14.27
13.32
12.32
11.93
12.56
11.6
12.315
12.15
12.8
11.94
12
11.74
12.05
12.362
12.49
13.06
12.77
12.9
13.02
12.57
12.53
12.5
12.18
12.1
12.1
11.94
11.69
11.42
11.44
11.45
11.49
11.67
11.67
11.62
11.77
11.85
11.75
11
11.2999
10.97
10.8299
10.609
10.63
10.31
10.21
10.08
10.28
10.63
10.59
10.62
10.65
10.7
10.65
10.76
10.94
11.4
11.7
11.88
11.86
12.14
12.34
12.43
12.316
12.25
12.25
12.38
12.44
12.8
12.64
12.48
12.55
12.6
12.68
12.73
12.73
12.73
12.8199
12.82
12.7199
12.6975
12.94
12.92
13.5
13.5
13.7
13.51
12.89
12.731
12.5001
12.28
12.0999
12.18
12.38
12.34
12.54
12.54
12.4
12.261
12.16
11.9
11.9
11.45
11.74
11.76
11.9
11.89
11.84
11.84
11.94
12.02
12.07
12.39
12.39
12.309
12.309
12.35
12.4799
12.5999
12.5999
12.468
12.7503
13.12
13
13.05
13.22
13.08
12.96
12.92
12.92
12.9799
12.9799
13.74
13.5823
13.22
13.22
13.11
13.25
13.25
13.45
13.8001
14
14
13.8701
14
14
13.9
13.9
13.9
14
14
13.95
13.79
13.7
13.65
13.618
13.7
13.9
13.98
13.7501
5/31/09 13.7501
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.75
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.08
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.34%
--------------------------------------------------------------------------------
Market Yield 4.97%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.27%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 36,329
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.96
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.04
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -2.10% 1.50%
--------------------------------------------------------------------------------
5-Year 4.90% 4.85%
--------------------------------------------------------------------------------
Since
Inception 4.36% 5.44%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 23.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 20.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.2%
--------------------------------------------------------------------------------
Water and Sewer 8.4%
--------------------------------------------------------------------------------
Tax Obligation/General 7.6%
--------------------------------------------------------------------------------
Health Care 7.0%
--------------------------------------------------------------------------------
Housing/Single Family 4.8%
--------------------------------------------------------------------------------
Other 10.8%
--------------------------------------------------------------------------------
(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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1059 per share.
Nuveen Investments 15
NGK Performance OVERVIEW | Nuveen Connecticut Dividend Advantage
Municipal Fund 2 as of May 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.30
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.28
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 0.14%
--------------------------------------------------------------------------------
Market Yield 4.95%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.24%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 33,092
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.77
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.83
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 1.40% 2.52%
--------------------------------------------------------------------------------
5-Year 5.91% 4.70%
--------------------------------------------------------------------------------
Since
Inception 5.04% 5.75%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 22.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 19.3%
--------------------------------------------------------------------------------
Tax Obligation/General 14.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.9%
--------------------------------------------------------------------------------
Health Care 8.2%
--------------------------------------------------------------------------------
Water and Sewer 6.6%
--------------------------------------------------------------------------------
Transportation 4.3%
--------------------------------------------------------------------------------
Other 13.4%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 49%
AA 23%
A 12%
BBB 12%
BB or Lower 2%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(2)
[BAR CHART]
Jun $ 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
May 0.059
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 15.18
15.42
15.78
16.232
16.484
16.18
16.23
16.23
15.64
15.64
15.64
15.24
14.51
14.5079
14.5079
14.45
14.46
14.46
14.401
14.37
14.37
14.78
15.02
15.02
15.02
15.02
15.55
15.8
16.09
15.74
15.47
15.33
15.3
15.3
15.1
15
15.57
15.57
15.32
15.32
15.32
15.32
15.32
15.6
15.42
15.42
15.42
15.9
15.64
15.58
15.47
15.18
15.02
15.02
14.76
14.72
14.76
14.78
14.78
14.82
14.82
14.82
14.97
15
15
14.9301
15.16
15.16
15.03
14.98
14.88
14.82
14.7799
14.7799
14.6
14.82
14.86
14.69
14.69
14.69
14.75
14.75
14.06
13.95
13.2
13
12.6
12.3901
12.06
12.19
11.24
10.83
10.73
8.3
9.45
10.59
10.65
11.08
11.26
11.76
11.9499
12.29
12.29
11.22
11.4
12.1
12.18
12.06
12.06
12.51
12.75
13.23
13.195
12.98
12.88
12.88
12.7899
12.2915
12.29
12.27
12.3
11.69
12.16
11.78
11.51
11.48
11.5
11.8
11.8
11.89
12.39
12
11.92
11.49
11.6966
11.16
10.7399
9.75
9.39
9.35
8.82
9.26
9.96
10.48
10.702
10.75
10.57
11.19
10.9853
10.89
11.016
11.15
11.8
11.96
11.7
11.85
12
12.11
12.2
12.2
11.7408
11.99
12.184
12.6
12.43
12.44
12.94
12.94
12.75
12.75
12.97
12.97
12.8999
12.985
13
13.8
13.2501
13.3708
13.4
13.39
13.39
13.5225
13.5
13.26
12.85
12.41
11.79
11.7
11.85
11.85
11.88
11.88
11.66
11.54
11.67
11.41
11.55
11.4199
11.59
11.35
11.27
11.23
11.36
11.4799
11.4
11.35
11.49
11.6
11.93
11.9201
12.1
12.08
12.0799
12.104
12.17
12.66
12.56
12.4999
12.76
12.76
12.75
12.86
12.86
12.9
12.8
12.81
13.1
13.1
13.15
13.15
13.15
12.88
12.88
13.0631
13.4
13.9
14.1
14.2
14.002
14.1001
14.2
13.9
13.9
13.8
13.85
13.85
13.9
14.1
14.45
14.53
14.5
14.5
14.5
14.5
14.3
5/31/09 14.3
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1246 per share.
16 Nuveen Investments
NGO Performance OVERVIEW | Nuveen Connecticut Dividend Advantage
Municipal Fund 3 as of May 31, 2009
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 40%
AA 30%
A 10%
BBB 16%
BB or Lower 2%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
Jun $ 0.0485
Jul 0.0485
Aug 0.0485
Sep 0.05
Oct 0.05
Nov 0.05
Dec 0.05
Jan 0.05
Feb 0.05
Mar 0.05
Apr 0.05
May 0.051
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 13.66
13.7
13.8
14.01
13.82
14.014
14.11
13.81
14.02
14.04
14.05
13.88
13.55
13.4701
13.43
13.517
13.55
13.4
13.49
13.6
13.6
13.68
13.57
13.34
13.44
13.32
13.32
13.45
13.35
13.4
13.31
13.25
13.4
13.36
13.71
13.58
13.58
13.58
13.17
13.2
13.2
13.29
13.45
13.4
13.38
13.38
13.366
13.592
13.73
13.73
13.88
13.65
13.49
13.32
13.27
13.26
13.199
13.45
13.35
13.5
13.4
13.4
13.3
13.46
13.46
13.29
13.27
13.25
13.23
13.37
13.37
13.2001
13.2
13.2
13.2
12.99
12.81
12.71
13.02
12.67
12.98
12.52
12.66
12.89
12.12
12.01
12
11.82
12
11.4
10.1501
9.8
9.55
8.7
11.47
11.15
11.15
10.93
11.1
11.4
11.4
11.1
11.38
11.7
11.1901
11.14
10.99
11.438
11.5
11.66
11.66
12.1
12
12
11.73
11.9999
11.58
11.02
10.884
10.856
10.65
10.6
10.5
11.05
11.5
11.29
11.25
11.5
11.5
10.81
10.43
10.2099
10.11
10.1999
10.2
10.1
10
9.5
9.15
9
9.0104
9.54
9.71
9.94
9.76
9.75
9.89
9.84
9.9
10.1
10.09
10.4
10.75
11.05
11.12
11.29
11.48
11.45
11.21
11.1
11.15
11.242
11.1699
11.3
11.27
11.06
11.27
11.51
11.62
11.67
11.67
11.67
11.6
11.6999
11.8
11.87
11.9705
11.96
11.98
11.98
12.25
12.25
12.13
11.9
11.85
11.5
11.78
11.57
11.7
11.58
11.54
11.54
11.69
11.1501
11.23
11.12
10.96
10.7448
10.73
10.7999
11.0199
10.86
10.94
10.75
10.7799
10.8973
10.8565
11.0699
11.11
11.2704
11.2
11.2399
11.2299
11.13
11.22
11.45
11.5
11.53
11.6
11.62
11.67
11.67
11.67
11.67
11.53
11.75
11.7
11.828
11.89
11.97
11.97
11.9
11.91
11.9761
12.25
12.21
12.27
12.38
12.28
12.5199
12.72
12.51
12.36
12.39
12.4601
12.642
12.9
12.8801
13.19
12.9
13.05
13.16
13.11
13.2
13.04
5/31/09 13.04
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.04
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.57
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.91%
--------------------------------------------------------------------------------
Market Yield 4.69%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.86%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 59,244
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.63
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.98
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/26/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 0.53% 0.89%
--------------------------------------------------------------------------------
5-Year 5.06% 4.23%
--------------------------------------------------------------------------------
Since
Inception 2.88% 4.08%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 18.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.9%
--------------------------------------------------------------------------------
Tax Obligation/General 14.9%
--------------------------------------------------------------------------------
Water and Sewer 9.9%
--------------------------------------------------------------------------------
Long-Term Care 7.9%
--------------------------------------------------------------------------------
Health Care 6.2%
--------------------------------------------------------------------------------
Other 12.7%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 17
NMT Performance OVERVIEW | Nuveen Massachusetts Premium Income Municipal Fund
as of May 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.28
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.29
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -0.08%
--------------------------------------------------------------------------------
Market Yield 5.51%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.08%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 63,321
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.26
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.45
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 3.54% -1.36%
--------------------------------------------------------------------------------
5-Year 3.77% 3.77%
--------------------------------------------------------------------------------
10-Year 3.57% 4.65%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 20.2%
--------------------------------------------------------------------------------
Health Care 15.8%
--------------------------------------------------------------------------------
Tax Obligation/General 12.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.6%
--------------------------------------------------------------------------------
Water and Sewer 7.8%
--------------------------------------------------------------------------------
Transportation 6.1%
--------------------------------------------------------------------------------
Housing/Multifamily 5.1%
--------------------------------------------------------------------------------
Other 10.4%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 40%
AA 37%
A 8%
BBB 10%
BB or Lower 2%
N/R 3%
2008-2009 Monthly Tax-Free Dividends Per Common Share(2)
[BAR CHART]
Jun $ 0.0515
Jul 0.0515
Aug 0.0515
Sep 0.0535
Oct 0.0535
Nov 0.0535
Dec 0.0535
Jan 0.0535
Feb 0.0535
Mar 0.0555
Apr 0.0555
May 0.061
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 13.56
13.754
13.838
13.69
13.58
13.52
13.44
13.2
13.2
13.234
13.24
13.26
13.12
13.11
12.74
12.77
12.7
12.806
12.84
12.85
12.83
12.83
12.89
12.89
13.1
12.97
12.93
13.04
12.96
12.961
12.94
13.26
13.21
13.22
13.1301
12.91
12.9
12.89
12.89
13.08
12.71
12.72
12.75
12.83
12.8799
12.85
12.77
12.617
12.76
12.697
12.8
12.88
12.95
13.124
13.124
13.124
13.124
13.142
13.142
13.35
12.89
12.9
12.99
13.01
13.01
13.05
13.03
12.94
13.07
12.9
12.93
12.96
12.91
12.9
12.8
12.97
12.97
12.596
12.58
12.4701
12.5
12.36
12.409
12.42
11.93
11.8231
11.78
11.57
11.5901
10.47
10.66
9.95
9.538
8.82
10
10.027
9.59
9.46
9.62
9.93
10.05
10.25
10.42
10.39
10.89
10.7
10.85
10.5
10.4
10.59
10.8
10.95
10.82
10.88
11
10.9
10.98
10.6
10.4401
10.48
10.0599
9.85
9.75
9.4
9.77
9.61
9.6
10
10
10.257
10.16
10.33
9.97
9.3301
9.53
9.55
9.34
9.51
9.15
9.1
9.03
9.07
9.35
9.32
9.48
9.25
9.176
9.26
9.24
9.41
9.706
10.02
10.51
10.87
10.74
11
11.21
11.21
11.31
10.98
11.09
11.25
11.65
11.49
11.19
11.74
11.688
11.4124
11.58
11.7
11.7257
11.7257
11.77
11.7
11.9799
11.82
12
12
11.89
12
12.23
12.08
12.49
12.21
12.2
12.15
12.19
12.05
12.2
12.41
12.38
12.38
11.662
11.6
11.6499
11.57
11.5
11.4
11.54
11.48
11.87
12.1501
11.924
11.78
11.83
11.64
11.73
11.792
12.09
12.12
12.3796
12.65
12.38
12.49
12.36
12.39
12.41
12.32
12.3
12.278
12.26
12.0999
12.08
12.21
12.21
12.07
11.97
11.95
11.87
11.938
12.07
12.14
12.21
12.19
12.342
12.46
12.63
12.44
12.5
12.582
12.8044
12.85
12.85
12.59
12.65
12.65
12.94
13.003
12.95
13.14
12.96
12.97
12.91
13.02
13.28
5/31/09 13.28
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0414 per share.
18 Nuveen Investments
NMB Performance OVERVIEW | Nuveen Massachusetts Dividend
Advantage Municipal Fund
as of May 31, 2009
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 43%
AA 28%
A 12%
BBB 12%
BB or Lower 3%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
Jun $ 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.058
Oct 0.058
Nov 0.058
Dec 0.058
Jan 0.058
Feb 0.058
Mar 0.058
Apr 0.058
May 0.06
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 14.66
14.91
14.91
14.91
14.81
14.81
14.76
14.71
14.71
14.94
14.94
15.15
15
15
14.9563
14.9
14.74
14.74
14.69
14.69
14.36
14.29
14.31
14.31
14.31
14.31
14.21
14.31
14.21
14.21
14.11
14.01
14.01
13.91
14.01
13.95
13.95
14.2
14.25
13.92
13.84
13.84
13.74
13.74
13.71
13.71
13.75
13.59
13.59
13.43
13.48
13.38
13.49
13.45
13.45
13.45
13.5
13.55
13.5
13.51
13.51
13.5
13.5
13.55
13.55
13.5899
13.77
13.67
13.75
13.7
13.89
13.89
13.89
13.81
13.64
13.75
13.6
13.44
13.32
13.3
13.3
13.5
13.5
13.6
12.62
12.86
12.85
12.85
12.85
12.143
12.143
11.83
10.81
8.68
9.32
10.01
10.63
11.8
12.15
11.95
11.95
11.95
12.24
12.24
12.43
12.21
12.43
12.9
12.8
12.8
12.8
12.8
13
13
13.02
13.05
12.94
12.32
13.25
12.55
12.3
11.95
11.01
11
11.01
11.26
11.05
11.0919
11.0919
11.1099
10.84
11.3
11.3
11.15
11.15
11.5
10.898
10.87
10.99
10.6915
10.6915
10.7
11.2
11.064
11.19
10.9301
10.9301
10.65
10.62
10.49
10.59
10.81
11.07
11.2001
11.25
11.78
11.84
11.85
11.9799
12.0137
13.05
13.19
13.6
13.8
13.8
13.798
13.8
13.05
13.5
13.75
14
14
13.8
13.95
14
14.89
14.44
14.8
14.3701
14.4
14.49
14.5
14.9
14.3
13.99
13.25
12.6
12.41
12.45
12.45
12.45
12.45
12.23
12.29
12.5
12.5
12.57
12.57
12.8
12.75
13.78
13.85
13.52
13.59
13.59
13.06
13.11
13.236
13.236
13.236
13.3899
13.1
13.1
12.92
13.12
13.9
13.89
13.51
13.7992
13.94
13.94
13.9
13.42
13.3701
13.178
14
14
14.0786
14.0786
14.0786
14.25
13.94
14.23
14.23
14.12
14
13.803
13.803
13.349
13.39
14.14
13.85
13.85
13.7
13.9899
14.36
14.4999
14.5416
14.21
13.9701
13.94
13.83
13.8799
13.78
13.83
5/31/09 13.83
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.83
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.52
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 2.29%
--------------------------------------------------------------------------------
Market Yield 5.21%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.64%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 26,530
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.29
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.28
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/30/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -0.04% -0.70%
--------------------------------------------------------------------------------
5-Year 4.20% 3.94%
--------------------------------------------------------------------------------
Since
Inception 4.73% 5.27%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 24.8%
--------------------------------------------------------------------------------
Health Care 16.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 10.1%
--------------------------------------------------------------------------------
Tax Obligation/General 9.5%
--------------------------------------------------------------------------------
Water and Sewer 9.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.0%
--------------------------------------------------------------------------------
Housing/Multifamily 7.9%
--------------------------------------------------------------------------------
Long-Term Care 5.2%
--------------------------------------------------------------------------------
Other 8.6%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 19
NGX Performance OVERVIEW | Nuveen Insured Massachusetts Tax-Free
Advantage Municipal Fund
as of May 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.15
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.86
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.12%
--------------------------------------------------------------------------------
Market Yield 5.16%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 7.57%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 37,754
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.77
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.82
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -2.11% 2.00%
--------------------------------------------------------------------------------
5-Year 3.83% 4.72%
--------------------------------------------------------------------------------
Since
Inception 2.97% 4.63%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 24.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 15.3%
--------------------------------------------------------------------------------
Water and Sewer 11.6%
--------------------------------------------------------------------------------
Tax Obligation/General 11.3%
--------------------------------------------------------------------------------
Health Care 8.7%
--------------------------------------------------------------------------------
Housing/Multifamily 6.6%
--------------------------------------------------------------------------------
Other 5.4%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
MBIA 32.7%
--------------------------------------------------------------------------------
AMBAC 21.1%
--------------------------------------------------------------------------------
FGIC 15.8%
--------------------------------------------------------------------------------
FSA 11.8%
--------------------------------------------------------------------------------
AGC 10.4%
--------------------------------------------------------------------------------
SYNCORA 8.2%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1,2)
[PIE CHART]
Insured 60%
U.S. Guaranteed* 25%
GNMA Guaranteed 3%
AAA (Uninsured) 2%
AA (Uninsured) 6%
A (Uninsured) 2%
BBB (Uninsured) 1%
BB (Uninsured) 1%
* U.S. Guaranteed includes 22.5% (as a % of total investments) of insured
securities.
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
Jun $ 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0555
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.0555
Apr 0.0555
May 0.0565
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 14.1
14.25
14.25
14.25
14.17
14.3422
14.3
14.26
14.26
14.17
14.17
14.16
13.85
13.7
14.23
14.119
13.86
13.86
14
14
13.9
13.85
14.07
14.1
14
14
14.07
14.1
13.96
14.04
14
14
14.0001
14.37
14.15
14.186
14.1599
13.88
13.9
13.9
13.7699
13.73
13.85
13.44
13.52
13.52
13.4399
13.42
13.49
13.49
13.52
13.66
13.66
13.8099
13.75
13.95
13.78
13.78
13.7401
13.92
13.92
13.92
13.83
14.17
14.17
14.3
14.36
14.46
14.42
14.55
14.32
14.33
14.2
14.4
14.4
14.18
14.14
13.55
13.51
13.5
13.03
12.72
13.15
13.55
12.2
12.7
12.7
12.9
13.65
12.53
12.46
12.024
12.01
11.06
11.99
11.5
11.5
11
11.705
11.9269
11.9269
12.2
13.21
13.45
13.5001
13.85
13.05
13.02
12.81
12.728
12.81
12.6001
12.52
13.41
13
13.3
13.232
13.34
13
13.1
12.26
11.9
11.13
11.4
11.722
11.75
11.55
11.59
11.59
11.7
12.2
12.32
12.15
12.09
12.46
12.22
11.9699
11.1701
10.9999
10.91
10.14
10.2
10.38
10.65
10.6
10.45
10.59
10.92
10.61
10.9
11.4
11.41
12.19
12.3501
12.4
12.59
12.78
12.95
13.01
12.76
12.82
13.192
13.25
12.99
12.7901
12.73
12.93
12.91
13.0225
12.91
12.91
12.91
12.93
12.97
13.2
13.3
13.45
13.38
13.5301
13.42
13.42
13.4
13.4
13.4
13.4
13.3
13.65
13.2
13.2
13.2
13.06
13.06
13.08
13.1
13.45
13.35
13.25
12.98
12.95
12.948
12.75
12.75
12.95
12.95
13.1903
13.01
13.01
13.1999
13.2
13.36
13.36
13.8
13.76
13.82
13.8
13.99
14
13.87
13.95
14
14
14
14
13.69
13.62
13.773
13.74
13.77
13.73
13.88
13.88
13.93
13.93
13.7201
13.39
13.33
13.585
13.31
13.27
13.18
12.97
13
12.9772
12.87
12.91
12.91
13.04
13.0598
13.0999
13.06
13.05
13.03
13.0999
13.15
13.15
5/31/09 13.15
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(2) At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(3) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
20 Nuveen Investments
NOM Performance OVERVIEW | Nuveen Missouri Premium Income Municipal Fund
as of May 31, 2009
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 45%
AA 17%
A 16%
BBB 5%
N/R 17%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
Jun $ 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.0545
Common Share Price Performance -- Weekly Closing Price
[LINE GRAPH]
6/01/08 $ 15.09
14.48
14.48
14.14
14.14
14.15
14.15
13.9
13.99
14.35
14.3
13.91
14.23
14.05
13.59
13.74
13.74
13.74
14
13.9
13.9
13.9
14
14
14
14
13.95
13.95
14
13.7
13.7
13.7
13.7
13.59
13.5
13.5
13.78
13.89
14.09
14.09
13.52
13.55
13.56
13.61
13.7
13.62
13.8
14.3
14.3
14.15
14.4
14.34
14.38
14.16
14.18
13.88
13.88
13.9
13.9
13.9
13.9
13.8799
13.98
13.65
13.65
13.52
13.6
13.7
13.68
13.8
13.8
13.56
13.46
13.46
13.46
13.6501
13.75
13.48
13.8
13.8
13.8
13.8
13
12.2
12.2
12.25
12.3
12.4
12.41
12.252
11.55
11.55
11.55
11.3501
12
12
12
12
11.6
11.25
11.25
11.15
11.29
10.81
12.06
12.07
12.0792
11.52
12.5
12.9
12.7999
12.8
12.3201
12.3201
12.0686
11.7
11.7
11.45
11.6
11.24
11.09
11
10.6
10.5
10.75
10.99
11
11
11
11
10.96
10.7999
11
11
11.072
10.9
10.6
10.08
9.6799
9.5
9.6
9.37
10.557
10.42
9.9001
10.27
10.8
10.6
10.5
10.87
12.08
12.1501
12.25
12.1501
11.9
11.9
12.05
12.1
12.49
12.44
12.73
12.5
12.49
12.47
12.47
12.65
12.7701
12.5438
13
12.8099
12.6
12.6
13
12.85
13.1916
13.17
13.2
13.25
12.85
12.85
13
13
12.3001
12.0101
12.12
11.95
11.98
12.4
12.16
12.16
12.35
12.35
12.11
12.8
13.2
13.2
13.14
13
13
13.17
13.3101
13.3101
13.4099
13.28
12.9
12.9
12.9
12.74
12.73
12.55
12
11.9999
11.9999
11.9999
11.9999
12.192
12.19
12.23
12.41
12.66
12.66
12.48
13.05
13.05
13.0399
13.35
13.29
13.29
13.2901
13.2901
13.2901
13.48
13.2
13.85
13.5501
13.65
13.55
13.36
13.285
13.15
13
13.44
13.31
13.31
13.2
13.2
13.2614
13.6
13.6
13.5
13.25
13.25
13.25
13.25
12.9
5/31/09 12.9
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.90
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 12.44
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 3.70%
--------------------------------------------------------------------------------
Market Yield 5.07%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.49%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 28,734
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 12.23
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.51
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -7.83% -2.92%
--------------------------------------------------------------------------------
5-Year 2.02% 2.81%
--------------------------------------------------------------------------------
10-Year 4.45% 4.46%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 24.8%
--------------------------------------------------------------------------------
Tax Obligation/General 17.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.4%
--------------------------------------------------------------------------------
Health Care 13.9%
--------------------------------------------------------------------------------
Water and Sewer 6.2%
--------------------------------------------------------------------------------
Housing/Multifamily 4.8%
--------------------------------------------------------------------------------
Long-Term Care 4.7%
--------------------------------------------------------------------------------
Other 11.7%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.3%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 21
NTC | Shareholder MEETING REPORT
NFC |
The annual meeting of shareholders was held in the offices of Nuveen Investments
on November 18, 2008; at this meeting the shareholders were asked to vote on the
election of Board Members, the elimination of Fundamental Investment Policies
and the approval of new Fundamental Investment Policies. The meeting was
subsequently adjourned to January 13, 2009, and additionally adjourned to March
17, 2009.
NTC NFC
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW
INVESTMENT GRADE SECURITIES.
For 2,777,559 176 1,283,556 60
Against 182,388 21 103,421 2
Abstain 105,809 21 40,000 2
Broker Non-Votes 969,482 1,046 357,183 420
-----------------------------------------------------------------------------------------------------------------------------
Total 4,035,238 1,264 1,784,160 484
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN MUNICIPAL SECURITIES FOR THE FUND.
For 2,783,076 176 1,270,601 60
Against 165,450 21 110,671 2
Abstain 117,230 21 45,705 2
Broker Non-Votes 969,482 1,046 357,183 420
-----------------------------------------------------------------------------------------------------------------------------
Total 4,035,238 1,264 1,784,160 484
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT COMPANIES.
For 2,774,232 176 -- --
Against 186,289 21 -- --
Abstain 105,235 21 -- --
Broker Non-Votes 969,482 1,046 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 4,035,238 1,264 -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICIES RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN INSURED MUNICIPAL SECURITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For 2,753,043 176 -- --
Against 198,420 21 -- --
Abstain 114,293 21 -- --
Broker Non-Votes 969,482 1,046 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 4,035,238 1,264 -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 2,766,311 176 -- --
Against 181,910 21 -- --
Abstain 117,535 21 -- --
Broker Non-Votes 969,482 1,046 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 4,035,238 1,264 -- --
=============================================================================================================================
22 Nuveen Investments
NTC NFC
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For 2,763,484 176 -- --
Against 164,494 21 -- --
Abstain 137,778 21 -- --
Broker Non-Votes 969,482 1,046 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 4,035,238 1,264 -- --
=============================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 3,861,860 -- 1,716,387 --
Withhold 168,336 -- 67,581 --
-----------------------------------------------------------------------------------------------------------------------------
Total 4,030,196 -- 1,783,968 --
=============================================================================================================================
William C. Hunter
For -- 1,208 -- 482
Withhold -- 50 -- 2
-----------------------------------------------------------------------------------------------------------------------------
Total -- 1,258 -- 484
=============================================================================================================================
David J. Kundert
For 3,862,871 -- 1,716,387 --
Withhold 167,325 -- 67,581 --
-----------------------------------------------------------------------------------------------------------------------------
Total 4,030,196 -- 1,783,968 --
=============================================================================================================================
William J. Schneider
For -- 1,208 -- 482
Withhold -- 50 -- 2
-----------------------------------------------------------------------------------------------------------------------------
Total -- 1,258 -- 484
=============================================================================================================================
Terence J. Toth
For 3,859,653 -- 1,713,387 --
Withhold 170,543 -- 70,581 --
-----------------------------------------------------------------------------------------------------------------------------
Total 4,030,196 -- 1,783,968 --
=============================================================================================================================
Nuveen Investments 23
NGK | Shareholder MEETING REPORT (continued)
NGO |
NGK NGO
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
For 1,115,703 102 2,134,426 292
Against 70,483 16 145,727 3
Abstain 26,914 17 53,451 29
Broker Non-Votes 425,065 396 754,908 679
-----------------------------------------------------------------------------------------------------------------------------
Total 1,638,165 531 3,088,512 1,003
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN MUNICIPAL SECURITIES FOR THE FUND.
For 1,127,811 102 2,144,811 292
Against 61,468 16 124,434 3
Abstain 23,821 17 64,359 29
Broker Non-Votes 425,065 396 754,908 679
-----------------------------------------------------------------------------------------------------------------------------
Total 1,638,165 531 3,088,512 1,003
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT COMPANIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES
RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN INSURED MUNICIPAL SECURITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
24 Nuveen Investments
NGK NGO
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 1,582,803 -- 2,981,576 --
Withhold 55,359 -- 106,935 --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,638,162 -- 3,088,511 --
=============================================================================================================================
William C. Hunter
For -- 503 -- 983
Withhold -- 25 -- 19
-----------------------------------------------------------------------------------------------------------------------------
Total -- 528 -- 1,002
=============================================================================================================================
David J. Kundert
For 1,582,472 -- 2,981,576 --
Withhold 55,690 -- 106,935 --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,638,162 -- 3,088,511 --
=============================================================================================================================
William J. Schneider
For -- 503 -- 983
Withhold -- 25 -- 19
-----------------------------------------------------------------------------------------------------------------------------
Total -- 528 -- 1,002
=============================================================================================================================
Terence J. Toth
For 1,582,472 -- 2,975,119 --
Withhold 55,690 -- 113,392 --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,638,162 -- 3,088,511 --
=============================================================================================================================
Nuveen Investments 25
NMT | Shareholder MEETING REPORT (continued)
NMB |
NMT NMB
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW
INVESTMENT GRADE SECURITIES.
For 2,257,685 178 904,009 71
Against 96,009 43 22,014 37
Abstain 78,806 9 63,599 12
Broker Non-Votes 657,813 663 274,341 351
-----------------------------------------------------------------------------------------------------------------------------
Total 3,090,313 893 1,263,963 471
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN MUNICIPAL SECURITIES FOR THE FUND.
For 2,287,842 186 907,505 71
Against 77,371 35 17,341 37
Abstain 67,287 9 64,776 12
Broker Non-Votes 657,813 663 274,341 351
-----------------------------------------------------------------------------------------------------------------------------
Total 3,090,313 893 1,263,963 471
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT COMPANIES.
For 2,217,380 183 -- --
Against 153,160 38 -- --
Abstain 61,960 9 -- --
Broker Non-Votes 657,813 663 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 3,090,313 893 -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES
RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN INSURED MUNICIPAL SECURITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For 2,227,203 186 -- --
Against 126,088 35 -- --
Abstain 79,209 9 -- --
Broker Non-Votes 657,813 663 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 3,090,313 893 -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 2,252,099 178 -- --
Against 103,791 43 -- --
Abstain 76,610 9 -- --
Broker Non-Votes 657,813 663 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 3,090,313 893 -- --
=============================================================================================================================
26 Nuveen Investments
NMT NMB
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For 2,231,151 186 -- --
Against 121,469 35 -- --
Abstain 79,880 9 -- --
Broker Non-Votes 657,813 663 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 3,090,313 893 -- --
=============================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 3,002,921 -- 1,194,165 --
Withhold 86,598 -- 69,798 --
-----------------------------------------------------------------------------------------------------------------------------
Total 3,089,519 -- 1,263,963 --
=============================================================================================================================
William C. Hunter
For -- 791 -- 364
Withhold -- 67 -- 107
-----------------------------------------------------------------------------------------------------------------------------
Total -- 858 -- 471
=============================================================================================================================
David J. Kundert
For 3,003,521 -- 1,196,308 --
Withhold 85,998 -- 67,655 --
-----------------------------------------------------------------------------------------------------------------------------
Total 3,089,519 -- 1,263,963 --
=============================================================================================================================
William J. Schneider
For -- 791 -- 364
Withhold -- 67 -- 107
-----------------------------------------------------------------------------------------------------------------------------
Total -- 858 -- 471
=============================================================================================================================
Terence J. Toth
For 3,003,521 -- 1,196,349 --
Withhold 85,998 -- 67,614 --
-----------------------------------------------------------------------------------------------------------------------------
Total 3,089,519 -- 1,263,963 --
=============================================================================================================================
Nuveen Investments 27
NGX | Shareholder MEETING REPORT (continued)
NOM |
NGX NOM
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW
INVESTMENT GRADE SECURITIES.
For -- -- 1,299,823 81
Against -- -- 88,579 15
Abstain -- -- 12,251 --
Broker Non-Votes -- -- 197,388 474
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,598,041 570
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN MUNICIPAL SECURITIES FOR THE FUND.
For -- -- 1,304,835 81
Against -- -- 79,668 15
Abstain -- -- 16,150 --
Broker Non-Votes -- -- 197,388 474
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,598,041 570
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT COMPANIES.
For -- -- 1,270,890 81
Against -- -- 110,602 15
Abstain -- -- 19,161 --
Broker Non-Votes -- -- 197,388 474
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,598,041 570
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES
RELATING TO INVESTMENTS IN INSURED MUNICIPAL SECURITIES.
For 1,223,437 132 -- --
Against 72,884 30 -- --
Abstain 44,108 14 -- --
Broker Non-Votes 384,450 554 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,724,879 730 -- --
=============================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN INSURED MUNICIPAL SECURITIES.
For 1,236,238 132 -- --
Against 47,741 30 -- --
Abstain 56,450 14 -- --
Broker Non-Votes 384,450 554 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,724,879 730 -- --
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For -- -- 1,277,942 81
Against -- -- 104,155 15
Abstain -- -- 18,556 --
Broker Non-Votes -- -- 197,388 474
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,598,041 570
=============================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For -- -- 1,300,430 63
Against -- -- 78,909 33
Abstain -- -- 21,314 --
Broker Non-Votes -- -- 197,388 474
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,598,041 570
=============================================================================================================================
28 Nuveen Investments
NGX NOM
-----------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-----------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For -- -- 1,298,429 78
Against -- -- 81,715 15
Abstain -- -- 20,509 3
Broker Non-Votes -- -- 197,388 474
-----------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,598,041 570
=============================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 1,673,360 -- 1,541,566 --
Withhold 51,518 -- 53,436 --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,724,878 -- 1,595,002 --
=============================================================================================================================
William C. Hunter
For -- 692 -- 506
Withhold -- 38 -- 25
-----------------------------------------------------------------------------------------------------------------------------
Total -- 730 -- 531
=============================================================================================================================
David J. Kundert
For 1,672,401 -- 1,540,816 --
Withhold 52,477 -- 54,186 --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,724,878 -- 1,595,002 --
=============================================================================================================================
William J. Schneider
For -- 692 -- 506
Withhold -- 38 -- 25
-----------------------------------------------------------------------------------------------------------------------------
Total -- 730 -- 531
=============================================================================================================================
Terence J. Toth
For 1,675,004 -- 1,541,916 --
Withhold 49,874 -- 53,086 --
-----------------------------------------------------------------------------------------------------------------------------
Total 1,724,878 -- 1,595,002 --
=============================================================================================================================
Nuveen Investments 29
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND
NUVEEN MASSACHUSETTS DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN INSURED MASSACHUSETTS TAX-FREE ADVANTAGE MUNICIPAL FUND
NUVEEN MISSOURI PREMIUM INCOME MUNICIPAL FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Connecticut Premium Income Municipal
Fund, Nuveen Connecticut Dividend Advantage Municipal Fund, Nuveen Connecticut
Dividend Advantage Municipal Fund 2, Nuveen Connecticut Dividend Advantage
Municipal Fund 3, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen
Massachusetts Dividend Advantage Municipal Fund, Nuveen Insured Massachusetts
Tax-Free Advantage Municipal Fund and Nuveen Missouri Premium Income Municipal
Fund (the Funds) as of May 31, 2009, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of May 31, 2009, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend
Advantage Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund
2, Nuveen Connecticut Dividend Advantage Municipal Fund 3, Nuveen Massachusetts
Premium Income Municipal Fund, Nuveen Massachusetts Dividend Advantage Municipal
Fund, Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund and Nuveen
Missouri Premium Income Municipal Fund at May 31, 2009, the results of their
operations for the year then ended, the changes in their net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended in conformity with US generally accepted
accounting principles.
Ernst & Young LLP
Chicago, Illinois
July 23, 2009
30 Nuveen Investments
NTC | Nuveen Connecticut Premium Income Municipal Fund
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 1,350 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,124,874
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 38.0% (25.3% OF TOTAL
INVESTMENTS)
1,595 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AA- 1,633,295
Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 -
MBIA Insured
1,050 Connecticut Health and Education Facilities Authority, University of 7/16 at 100.00 BBB- 889,581
Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI
Insured
925 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AA- 886,233
Bonds, Brunswick School, Series 2003B, 5.000%, 7/01/33 - MBIA
Insured
200 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 163,080
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI
Insured
305 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 265,814
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 -
RAAI Insured
725 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 AA- 722,789
Bonds, Fairfield University, Series 1998H, 5.000%, 7/01/23 - MBIA
Insured
750 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Baa1 751,050
Bonds, Horace Bushnell Memorial Hall, Series 1999A, 5.625%,
7/01/29 - MBIA Insured
800 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 878,136
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 -
AMBAC Insured
270 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 252,250
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
1,375 Connecticut Health and Educational Facilities Authority, Revenue 7/14 at 100.00 AA- 1,453,581
Bonds, Trinity College, Series 2004H, 5.000%, 7/01/21 - MBIA
Insured
2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 1,748,340
Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32 -
RAAI Insured
1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,501,470
Bonds, Yale University, Series 2002W, 5.125%, 7/01/27
1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 1,522,635
Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB)
3,550 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,632,786
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
6,150 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 6,339,113
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
250 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/09 at 102.00 AAA 253,280
Bonds, Family Education Loan Program, Series 1999A, 6.000%,
11/15/18 - AMBAC Insured (Alternative Minimum Tax)
615 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aa3 607,239
Bonds, Family Education Loan Program, Series 2001A, 5.250%,
11/15/18 - MBIA Insured (Alternative Minimum Tax)
1,000 University of Connecticut, General Obligation Bonds, Series 2004A, 1/14 at 100.00 AA 1,066,130
5.000%, 1/15/18 - MBIA Insured
1,220 University of Connecticut, General Obligation Bonds, Series 2005A, 2/15 at 100.00 AAA 1,351,321
5.000%, 2/15/17 - FSA Insured
Nuveen Investments 31
NTC | Nuveen Connecticut Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 685 University of Connecticut, General Obligation Bonds, Series 2006A, 2/16 at 100.00 AA $ 736,868
5.000%, 2/15/23 - FGIC Insured
1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AA- 1,082,110
Series 2002A, 5.250%, 11/15/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,465 Total Education and Civic Organizations 27,737,101
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.4% (10.2% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Bristol Hospital, Series 2002B:
500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 BBB- 489,185
700 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 BBB- 597,590
645 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 BBB- 592,587
Bonds, Eastern Connecticut Health Network, Series 2000A, 6.000%,
7/01/25 - RAAI Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Griffin Hospital, Series 2005B:
800 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 N/R 689,352
500 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 403,775
385 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 295,052
Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 -
RAAI Insured
2,620 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 2,563,693
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA
Insured
2,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Baa1 1,736,740
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 - MBIA
Insured
1,395 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A1 1,292,928
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 -
AMBAC Insured
3,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 A3 2,536,500
Refunding Bonds, Middlesex Health Services, Series 1997H, 5.125%,
7/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,545 Total Health Care 11,197,402
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.7% (1.8% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 12/09 at 100.00 AAA 1,002,940
Program Bonds, Series 1999D-2, 6.200%, 11/15/41 (Alternative
Minimum Tax)
1,000 Connecticut Housing Finance Authority, Multifamily Housing Mortgage 11/15 at 100.00 AAA 932,410
Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Housing/Multifamily 1,935,350
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.6% (5.1% OF TOTAL INVESTMENTS)
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2001C:
1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 965,440
500 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 484,880
1,675 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,689,723
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
205 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 188,901
220 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 198,959
2,100 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 2,035,173
Program Bonds, Series 2006D, 4.650%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
5,700 Total Housing/Single Family 5,563,076
------------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.2% (1.4% OF TOTAL INVESTMENTS)
$ 1,750 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 $ 1,587,845
Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I,
5.500%, 11/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.8% (3.9% OF TOTAL INVESTMENTS)
470 Connecticut Development Authority, First Mortgage Gross Revenue 10/09 at 100.00 BBB- 465,183
Refunding Healthcare Bonds, Church Homes Inc. - Congregational
Avery Heights, Series 1997, 5.700%, 4/01/12
615 Connecticut Development Authority, First Mortgage Gross Revenue 9/09 at 102.00 BBB- 600,437
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 BBB 971,550
1,000 5.375%, 8/01/24 - RAAI Insured 2/10 at 102.00 BBB 944,880
1,300 Connecticut Health and Educational Facilities Authority, FHA-Insured 8/09 at 101.00 N/R 1,258,218
Mortgage Revenue Bonds, Hebrew Home and Hospital, Series 1999B,
5.200%, 8/01/38
------------------------------------------------------------------------------------------------------------------------------------
4,385 Total Long-Term Care 4,240,268
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.5% (15.6% OF TOTAL INVESTMENTS)
750 Bridgeport, Connecticut, General Obligation Refunding Bonds, Series 8/12 at 100.00 Baa1 746,558
2002A, 5.375%, 8/15/19 - FGIC Insured
760 Capitol Region Education Council, Connecticut, Revenue Bonds, Series 10/09 at 100.00 BBB 761,558
1995, 6.700%, 10/15/10
1,110 Connecticut State, General Obligation Bonds, Series 2004C, 5.000%, 4/14 at 100.00 AA 1,177,033
4/01/23 - FGIC Insured
2,000 Connecticut State, General Obligation Bonds, Series 2006A, 4.750%, 12/16 at 100.00 AA 2,119,680
12/15/24
1,300 Connecticut State, General Obligation Bonds, Series 2006C, 5.000%, 6/16 at 100.00 AAA 1,414,998
6/01/23 - FSA Insured
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
775 5.000%, 8/01/20 - FSA Insured 8/15 at 100.00 AAA 834,714
525 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 525,058
500 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A 550,800
5.000%, 11/01/17 - AMBAC Insured
500 North Haven, Connecticut, General Obligation Bonds, Series 2006, No Opt. Call Aa2 569,770
5.000%, 7/15/24
1,860 Puerto Rico, General Obligation and Public Improvement Bonds, Series No Opt. Call AA- 1,860,670
2001A, 5.500%, 7/01/20 - MBIA Insured
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 Aa3 362,646
350 5.625%, 3/15/19 - FSA Insured 3/10 at 101.00 Aa3 363,269
350 5.700%, 3/15/20 - FSA Insured 3/10 at 101.00 Aa3 363,647
1,420 Regional School District 16, Connecticut, General Obligation Bonds, 3/13 at 101.00 A3 1,569,114
Series 2003, 5.000%, 3/15/16 - AMBAC Insured
Suffield, Connecticut, General Obligation Bonds, Series 2005:
465 5.000%, 6/15/17 No Opt. Call AA 543,729
460 5.000%, 6/15/19 No Opt. Call AA 537,749
1,000 5.000%, 6/15/21 No Opt. Call AA 1,166,520
1,500 West Hartford, Connecticut, General Obligation Bonds, Series 2005B, 10/15 at 100.00 AAA 1,683,735
5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
15,975 Total Tax Obligation/General 17,151,248
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.7% (14.4% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Child
Care Facilities Program Revenue Bonds, Series 2006F:
1,300 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 1,296,490
1,000 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 978,170
1,945 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 102.00 A 1,947,723
Bonds, Child Care Facilities Program, Series 1999C, 5.625%,
7/01/29 - AMBAC Insured
Nuveen Investments 33
NTC | Nuveen Connecticut Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Connecticut, Special Tax Obligation Transportation Infrastructure
Purpose Bonds, Series 2002B:
$ 2,000 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AA $ 2,089,900
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 1,040,240
500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 517,995
Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured
1,750 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 1,817,655
Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC
Insured
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue
Bonds, Series 2005A:
960 0.000%, 7/01/32 - FGIC Insured No Opt. Call BBB+ 171,744
2,615 0.000%, 7/01/33 - FGIC Insured No Opt. Call BBB+ 432,024
2,000 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/01/21 8/12 at 100.00 AAA 2,017,920
- FSA Insured
2,400 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/01/16 8/15 at 100.00 AAA 2,447,424
- FSA Insured
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan 10/14 at 100.00 AAA 1,039,990
Note, Series 2003, 5.250%, 10/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,470 Total Tax Obligation/Limited 15,797,275
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.0% (0.6% OF TOTAL INVESTMENTS)
750 Connecticut, General Airport Revenue Bonds, Bradley International 4/11 at 101.00 AA- 697,373
Airport, Series 2001A, 5.125%, 10/01/26 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.9% (8.6% OF TOTAL INVESTMENTS) (4)
50 Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101.00 BBB- (4) 53,426
Bonds, Eastern Connecticut Health Network, Series 2000A, 6.000%,
7/01/25 (Pre-refunded 7/01/10) - RAAI Insured
650 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 N/R (4) 715,033
Bonds, Loomis Chaffee School, Series 2001D, 5.500%, 7/01/23
(Pre-refunded 7/01/11)
40 Connecticut, General Obligation Bonds, Series 1993E, 6.000%, 3/15/12 No Opt. Call AA (4) 45,084
(ETM)
1,500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/15/21 6/12 at 100.00 AA (4) 1,684,815
(Pre-refunded 6/15/12)
600 Guam Economic Development Authority, Tobacco Settlement Asset-Backed 5/11 at 100.00 N/R (4) 648,270
Bonds, Series 2001B, 5.500%, 5/15/41 (Pre-refunded 5/15/11)
1,000 Hartford, Connecticut, Parking System Revenue Bonds, Series 2000A, 7/10 at 100.00 Baa2 (4) 1,062,450
6.400%, 7/01/20 (Pre-refunded 7/01/10)
400 Northern Mariana Islands, General Obligation Bonds, Series 2000A, 6/10 at 100.00 AAA 422,084
6.000%, 6/01/20 (Pre-refunded 6/01/10) - ACA Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,050,530
Bonds, Series 2000A, 5.500%, 10/01/40
300 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 311,184
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded
7/01/10)
1,100 University of Connecticut, General Obligation Bonds, Series 2003A, 2/13 at 100.00 AA (4) 1,243,385
5.125%, 2/15/21 (Pre-refunded 2/15/13) - MBIA Insured
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan 10/10 at 101.00 BBB+ (4) 1,087,690
Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10)
1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 1,111,570
5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,640 Total U.S. Guaranteed 9,435,521
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.5% (4.3% OF TOTAL INVESTMENTS)
1,150 Bristol Resource Recovery Facility Operating Committee, Connecticut, No Opt. Call A1 1,251,741
Solid Waste Revenue Bonds, Covanta Bristol Inc., Series 2005,
5.000%, 7/01/12 - AMBAC Insured
1,000 Connecticut Development Authority, Pollution Control Revenue 10/09 at 101.50 Baa1 998,180
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,070 Connecticut Development Authority, Solid Waste Disposal Facilities 11/12 at 100.00 Baa1 $ 917,536
Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%,
11/01/37 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
Bonds, Wheelabrator Lisbon Project, Series 1993A:
310 5.500%, 1/01/14 (Alternative Minimum Tax) 7/09 at 100.00 BBB 305,366
1,290 5.500%, 1/01/20 (Alternative Minimum Tax) 7/09 at 100.00 BBB 1,232,608
------------------------------------------------------------------------------------------------------------------------------------
4,820 Total Utilities 4,705,431
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.8% (7.8% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 383,655
Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,295,087
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority, Connecticut,
Regional Wastewater System Revenue Bonds, Series 2005A:
1,520 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA- 1,512,050
2,260 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA- 2,198,686
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 AA- 1,039,850
1,075 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA- 1,077,333
1,100 Stamford, Connecticut, Water Pollution Control System and Facility 11/13 at 100.00 AA+ 1,102,585
Revenue Bonds, Series 2003A, 5.000%, 11/15/32
------------------------------------------------------------------------------------------------------------------------------------
8,640 Total Water and Sewer 8,609,246
------------------------------------------------------------------------------------------------------------------------------------
$ 112,490 Total Investments (cost $111,852,764) - 150.6% 109,782,010
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.9)% (7,965,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.2% 4,534,344
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (45.9)% (5) (33,450,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 72,901,354
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 30.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 35
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 36.4% (23.8% OF TOTAL INVESTMENTS)
$ 795 Connecticut Health and Education Facilities Authority, Revenue Bonds, 7/17 at 100.00 AA- $ 814,088
Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 - MBIA
Insured
500 Connecticut Health and Education Facilities Authority, University of 7/16 at 100.00 BBB- 423,610
Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI
Insured
100 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 81,540
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI
Insured
150 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 130,728
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 -
RAAI Insured
440 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 486,138
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/18 -
AMBAC Insured
130 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 121,454
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
50 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.50 BBB- 42,640
Bonds, Sacred Heart University, Series 1998E, 5.000%, 7/01/28 -
RAAI Insured
350 Connecticut Health and Educational Facilities Authority, Revenue 7/14 at 100.00 AA- 381,679
Bonds, Trinity College, Series 2004H, 5.000%, 7/01/17 - MBIA
Insured
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 874,170
Bonds, University of Hartford, Series 2002E, 5.250%, 7/01/32 -
RAAI Insured
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,000,980
Bonds, Yale University, Series 2002W, 5.125%, 7/01/27
500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 507,545
Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB)
1,800 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,841,976
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
3,050 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 3,143,788
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
480 Connecticut Higher Education Supplemental Loan Authority, Revenue 11/11 at 100.00 Aa3 473,942
Bonds, Family Education Loan Program, Series 2001A, 5.250%,
11/15/18 - MBIA Insured (Alternative Minimum Tax)
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System, Series 1999:
125 5.375%, 2/01/19 8/09 at 101.00 BBB- 107,293
270 5.375%, 2/01/29 8/09 at 101.00 BBB- 197,027
University of Connecticut, General Obligation Bonds, Series 2001A:
1,000 4.750%, 4/01/20 4/11 at 101.00 AA 1,033,950
1,000 4.750%, 4/01/21 - MBIA Insured 4/11 at 101.00 AA 1,030,600
485 University of Connecticut, General Obligation Bonds, Series 2006A, 2/16 at 100.00 AA 521,724
5.000%, 2/15/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,225 Total Education and Civic Organizations 13,214,872
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.6% (7.0% OF TOTAL INVESTMENTS)
1,400 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 1,195,180
Bonds, Bristol Hospital, Series 2002B, 5.500%, 7/01/32 - RAAI
Insured
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Griffin Hospital, Series 2005B:
$ 500 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 N/R $ 430,845
250 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 201,888
185 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 141,778
Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 -
RAAI Insured
60 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 58,711
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA
Insured
125 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Baa1 108,546
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/24 - MBIA
Insured
1,870 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A1 1,733,172
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,390 Total Health Care 3,870,120
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.3% (0.8% OF TOTAL INVESTMENTS)
500 Connecticut Housing Finance Authority, Multifamily Housing Mortgage 11/15 at 100.00 AAA 466,205
Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.4% (4.8% OF TOTAL INVESTMENTS)
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2001C:
1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 965,440
250 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 242,440
800 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 807,032
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
700 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 678,391
Program Bonds, Series 2006D, 4.650%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
2,750 Total Housing/Single Family 2,693,303
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.5% (1.6% OF TOTAL INVESTMENTS)
1,000 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 907,340
Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I,
5.500%, 11/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS)
300 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 257,493
Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003,
5.750%, 12/01/23
110 Connecticut Development Authority, First Mortgage Gross Revenue 10/09 at 100.00 BBB- 100,058
Refunding Healthcare Bonds, Church Homes Inc. - Congregational
Avery Heights, Series 1997, 5.800%, 4/01/21
250 Connecticut State Development Authority, Health Facilities Revenue 8/17 at 100.00 N/R 176,893
Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series
2007, 5.500%, 8/15/27
------------------------------------------------------------------------------------------------------------------------------------
660 Total Long-Term Care 534,444
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.6% (7.6% OF TOTAL INVESTMENTS)
560 Connecticut State, General Obligation Bonds, Series 2004C, 5.000%, 4/14 at 100.00 AA 593,818
4/01/23 - FGIC Insured
700 Connecticut State, General Obligation Bonds, Series 2006A, 4.750%, 12/16 at 100.00 AA 741,888
12/15/24
100 Connecticut State, General Obligation Bonds, Series 2006C, 5.000%, 6/16 at 100.00 AAA 108,846
6/01/23 - FSA Insured
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
360 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 383,224
240 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 240,026
400 North Haven, Connecticut, General Obligation Bonds, Series 2006, No Opt. Call Aa2 455,816
5.000%, 7/15/24
Nuveen Investments 37
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Suffield, Connecticut, General Obligation Bonds, Series 2005:
$ 335 5.000%, 6/15/17 No Opt. Call AA $ 391,719
335 5.000%, 6/15/19 No Opt. Call AA 391,622
810 West Hartford, Connecticut, General Obligation Bonds, Series 2005B, 10/15 at 100.00 AAA 909,217
5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
3,840 Total Tax Obligation/General 4,216,176
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.3% (17.2% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Child
Care Facilities Program Revenue Bonds, Series 2006F:
650 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 648,245
500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 489,085
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 104.00 A 1,041,810
Bonds, New Opportunities for Waterbury Inc., Series 1998A, 6.750%,
7/01/28
Connecticut, Certificates of Participation, Juvenile Training School,
Series 2001:
600 5.000%, 12/15/20 12/11 at 101.00 AA- 625,632
1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 1,010,640
1,475 Connecticut, Special Tax Obligation Transportation Infrastructure No Opt. Call AAA 1,672,827
Purpose Bonds, Series 1998B, 5.500%, 11/01/12 - FSA Insured
900 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 934,794
Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC
Insured
600 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 550,776
Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
470 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call BBB+ 84,083
Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
1,200 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/01/16 - 8/15 at 100.00 AAA 1,223,712
FSA Insured
750 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan 10/10 at 101.00 BBB+ 763,493
Note, Series 1999A, 6.375%, 10/01/19
500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/09 at 100.50 Baa2 500,120
Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.500%,
10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
9,645 Total Tax Obligation/Limited 9,545,217
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.4% (4.2% OF TOTAL INVESTMENTS)
2,500 Connecticut, General Airport Revenue Bonds, Bradley International 4/11 at 101.00 AA- 2,324,571
Airport, Series 2001A, 5.125%, 10/01/26 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.3% (20.4% OF TOTAL INVESTMENTS) (4)
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 N/R (4) 1,100,050
Bonds, Loomis Chaffee School, Series 2001D, 5.500%, 7/01/23
(Pre-refunded 7/01/11)
2,000 Connecticut, Clean Water Fund Revenue Bonds, Series 2001, 5.500%, 10/11 at 100.00 AAA 2,206,280
10/01/20 (Pre-refunded 10/01/11)
500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/15/21 6/12 at 100.00 AA (4) 561,605
(Pre-refunded 6/15/12)
500 East Lyme, Connecticut, General Obligation Bonds, Series 2001, 7/11 at 102.00 Aa3 (4) 552,985
5.125%, 7/15/20 (Pre-refunded 7/15/11) - FGIC Insured
Guam Economic Development Authority, Tobacco Settlement Asset-Backed
Bonds, Series 2001A:
25 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 26,770
500 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 539,260
1,270 Guam Economic Development Authority, Tobacco Settlement Asset-Backed 5/11 at 100.00 N/R (4) 1,372,172
Bonds, Series 2001B, 5.500%, 5/15/41 (Pre-refunded 5/15/11)
220 New Haven, Connecticut, General Obligation Bonds, Series 2001A, 11/11 at 100.00 A- (4) 234,307
5.000%, 11/01/20 (Pre-refunded 11/01/11) - FGIC Insured
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 250 Northern Mariana Islands, General Obligation Bonds, Series 2000A, 6/10 at 100.00 AAA $ 263,803
6.000%, 6/01/20 (Pre-refunded 6/01/10) - ACA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation
Bonds, Series 2000A:
1,425 5.500%, 10/01/32 10/10 at 101.00 AAA 1,497,005
1,300 5.500%, 10/01/40 10/10 at 101.00 AAA 1,365,689
145 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 150,406
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded
7/01/10)
1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 1,111,570
5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured
370 Windsor, Connecticut, General Obligation Bonds, Series 2001, 5.000%, 7/09 at 100.00 Aa2 (4) 372,153
7/15/20 (Pre-refunded 7/15/09)
------------------------------------------------------------------------------------------------------------------------------------
10,505 Total U.S. Guaranteed 11,354,055
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.8% (3.2% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Pollution Control Revenue 10/09 at 101.50 Baa1 499,090
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
560 Connecticut Development Authority, Solid Waste Disposal Facilities 11/12 at 100.00 Baa1 480,206
Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%,
11/01/37 (Alternative Minimum Tax)
790 Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue 7/09 at 100.00 BBB 778,190
Bonds, Wheelabrator Lisbon Project, Series 1993A, 5.500%, 1/01/14
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Utilities 1,757,486
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.8% (8.4% OF TOTAL INVESTMENTS)
255 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 195,664
Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,295,087
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority, Connecticut,
Regional Wastewater System Revenue Bonds, Series 2005A:
720 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA- 716,234
1,110 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA- 1,079,886
140 Guam Government Waterworks Authority, Water and Wastewater System 7/15 at 100.00 Ba2 120,565
Revenue Bonds, Series 2005, 6.000%, 7/01/25
Nuveen Investments 39
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
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 AA- $ 779,888
470 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA- 471,020
------------------------------------------------------------------------------------------------------------------------------------
4,630 Total Water and Sewer 4,658,344
------------------------------------------------------------------------------------------------------------------------------------
$ 55,495 Total Investments (cost $55,995,788) - 152.9% 55,542,133
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.5)% (3,820,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.1% 1,856,602
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.5)% (5) (17,250,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 36,328,735
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 31.1%.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
40 Nuveen Investments
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7% (1.1% OF TOTAL INVESTMENTS)
$ 680 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 566,603
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 34.4% (22.5% OF TOTAL INVESTMENTS)
715 Connecticut Health and Education Facilities Authority, Revenue Bonds, 7/17 at 100.00 AA- 732,167
Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 - MBIA
Insured
500 Connecticut Health and Education Facilities Authority, University of 7/16 at 100.00 BBB- 423,610
Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI
Insured
100 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 81,540
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI
Insured
135 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 117,655
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 -
RAAI Insured
95 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 AA- 94,710
Bonds, Fairfield University, Series 1998H, 5.000%, 7/01/23 - MBIA
Insured
500 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.50 A 501,130
Bonds, Hopkins School, Series 1998A, 5.000%, 7/01/20 - AMBAC
Insured
310 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 340,278
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 -
AMBAC Insured
120 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 112,111
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, University of Hartford, Series 2002E:
590 5.500%, 7/01/22 - RAAI Insured 7/12 at 101.00 BBB- 572,312
1,000 5.250%, 7/01/32 - RAAI Insured 7/12 at 101.00 BBB- 874,170
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,000,980
Bonds, Yale University, Series 2002W, 5.125%, 7/01/27
500 Connecticut Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 507,545
Bonds, Yale University, Series 2003X-1, 5.000%, 7/01/42 (UB)
1,600 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,637,312
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
2,750 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 2,834,563
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
University of Connecticut, General Obligation Bonds, Series 2006A:
450 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 499,928
490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 527,103
500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AA- 528,490
Series 2002A, 5.250%, 11/15/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,355 Total Education and Civic Organizations 11,385,604
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.6% (8.2% OF TOTAL INVESTMENTS)
$ 300 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- $ 256,110
Bonds, Bristol Hospital, Series 2002B, 5.500%, 7/01/32 - RAAI
Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Eastern Connecticut Health Network, Series 2000A:
20 6.125%, 7/01/20 - RAAI Insured 7/10 at 101.00 BBB- 19,832
65 6.000%, 7/01/25 - RAAI Insured 7/10 at 101.00 BBB- 59,718
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Griffin Hospital, Series 2005B:
300 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 N/R 258,507
300 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 N/R 242,265
170 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 130,283
Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 -
RAAI Insured
1,190 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 1,164,427
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA
Insured
1,000 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 924,680
Bonds, St. Francis Hospital and Medical Center, Series 2002D,
5.000%, 7/01/22 - RAAI Insured
25 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Baa1 23,728
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 - MBIA
Insured
1,170 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A1 1,084,391
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,540 Total Health Care 4,163,941
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
500 Connecticut Housing Finance Authority, Multifamily Housing Mortgage 11/15 at 100.00 AAA 466,205
Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.4% (4.2% OF TOTAL INVESTMENTS)
250 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 242,440
Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative Minimum
Tax)
700 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 706,153
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
305 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 281,048
330 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 298,439
600 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 581,478
Program Bonds, Series 2006D, 4.650%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
2,185 Total Housing/Single Family 2,109,558
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.7% (1.8% OF TOTAL INVESTMENTS)
1,000 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 907,340
Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-II,
5.500%, 11/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.3% (2.2% OF TOTAL INVESTMENTS)
320 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 274,659
Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003,
5.750%, 12/01/23
205 Connecticut Development Authority, First Mortgage Gross Revenue 10/09 at 100.00 BBB- 202,899
Refunding Healthcare Bonds, Church Homes Inc. - Congregational
Avery Heights, Series 1997, 5.700%, 4/01/12
450 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 A 426,888
Bonds, Village for Families and Children Inc., Series 2002A,
5.000%, 7/01/19 - AMBAC Insured
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 250 Connecticut State Development Authority, Health Facilities Revenue 8/17 at 100.00 N/R $ 176,893
Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series
2007, 5.500%, 8/15/27
------------------------------------------------------------------------------------------------------------------------------------
1,225 Total Long-Term Care 1,081,339
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.6% (14.8% OF TOTAL INVESTMENTS)
600 Connecticut State, General Obligation Bonds, Series 2006A, 4.750%, 12/16 at 100.00 AA 635,904
12/15/24
400 Connecticut State, General Obligation Bonds, Series 2006C, 5.000%, 6/16 at 100.00 AAA 435,384
6/01/23 - FSA Insured
Farmington, Connecticut, General Obligation Bonds, Series 2002:
1,000 5.000%, 9/15/20 9/12 at 101.00 Aa1 1,124,180
1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,630,061
1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,379,398
Obligation Bonds, Series 2002, 5.000%, 4/01/22
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
360 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 383,224
140 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 140,015
650 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A 716,040
5.000%, 11/01/17 - AMBAC Insured
400 Suffield, Connecticut, General Obligation Bonds, Series 2005, 5.000%, No Opt. Call AA 466,608
6/15/21
500 West Hartford, Connecticut, General Obligation Bonds, Series 2005B, 10/15 at 100.00 AAA 562,540
5.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
6,805 Total Tax Obligation/General 7,473,354
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.7% (10.9% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Child Care
Facilities Program Revenue Bonds, Series 2006F:
575 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 573,448
500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 489,085
500 Connecticut, Special Tax Obligation Transportation Infrastructure 10/11 at 100.00 AAA 541,250
Purpose Bonds, Series 2001B, 5.375%, 10/01/13 - FSA Insured
1,625 Connecticut, Special Tax Obligation Transportation Infrastructure 7/12 at 100.00 AAA 1,742,471
Purpose Bonds, Series 2002A, 5.375%, 7/01/20 - FSA Insured
850 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 882,861
Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC
Insured
500 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 458,980
Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
430 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call BBB+ 76,927
Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
750 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/01/16 - 8/15 at 100.00 AAA 764,820
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,730 Total Tax Obligation/Limited 5,529,842
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.6% (4.3% OF TOTAL INVESTMENTS)
1,950 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights Parking No Opt. Call A 2,175,128
Facility, Series 2002, 5.375%, 12/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.4% (19.3% OF TOTAL INVESTMENTS) (4)
2,250 Connecticut Health and Educational Facilities Authority, Revenue 11/11 at 100.00 AAA 2,455,805
Bonds, Connecticut State University System, Series 2002D-2,
5.000%, 11/01/21 (Pre-refunded 11/01/11) - FSA Insured
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Eastern Connecticut Health Network, Series 2000A:
100 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 BBB- (4) 107,032
30 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 BBB- (4) 32,096
5 6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 BBB- (4) 5,343
Nuveen Investments 43
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 400 Connecticut Health and Educational Facilities Authority, Revenue 3/11 at 101.00 AAA $ 431,232
Bonds, Greenwich Academy, Series 2001B, 5.000%, 3/01/32
(Pre-refunded 3/01/11) - FSA Insured
250 Guam Economic Development Authority, Tobacco Settlement Asset-Backed 5/11 at 100.00 N/R (4) 270,113
Bonds, Series 2001B, 5.500%, 5/15/41 (Pre-refunded 5/15/11)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 1,060,040
2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured
Puerto Rico Infrastructure Financing Authority, Special Obligation
Bonds, Series 2000A:
1,000 5.500%, 10/01/32 10/10 at 101.00 AAA 1,050,530
2,000 5.500%, 10/01/40 10/10 at 101.00 AAA 2,101,060
1,535 Regional School District 8, Andover, Hebron and Marlborough, 5/11 at 101.00 Aa3 (4) 1,667,117
Connecticut, General Obligation Bonds, Series 2002, 5.000%, 5/01/22
(Pre-refunded 5/01/11) - FSA Insured
500 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 555,785
5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,070 Total U.S. Guaranteed 9,736,153
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9% (3.2% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Pollution Control Revenue Refunding 10/09 at 101.50 Baa1 499,090
Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%,
9/01/28
470 Connecticut Development Authority, Solid Waste Disposal Facilities 11/12 at 100.00 Baa1 403,030
Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%,
11/01/37 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
Bonds, Wheelabrator Lisbon Project, Series 1993A:
250 5.500%, 1/01/15 (Alternative Minimum Tax) 7/09 at 100.00 BBB 244,993
510 5.500%, 1/01/20 (Alternative Minimum Tax) 7/09 at 100.00 BBB 487,310
------------------------------------------------------------------------------------------------------------------------------------
1,730 Total Utilities 1,634,423
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.1% (6.6% OF TOTAL INVESTMENTS)
220 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 168,808
Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
785 Connecticut, State Revolving Fund General Revenue Bonds, Series 2003A, 10/13 at 100.00 AAA 857,927
5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority, Connecticut,
Regional Wastewater System Revenue Bonds, Series 2005A:
690 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA- 686,391
320 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA- 311,318
130 Guam Government Waterworks Authority, Water and Wastewater System 7/15 at 100.00 Ba2 111,953
Revenue Bonds, Series 2005, 6.000%, 7/01/25
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
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 AA- $ 779,888
410 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA- 410,890
------------------------------------------------------------------------------------------------------------------------------------
3,305 Total Water and Sewer 3,327,175
------------------------------------------------------------------------------------------------------------------------------------
$ 50,075 Total Investments (cost $50,443,963) - 152.8% 50,556,665
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.5)% (3,460,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.4% 1,445,245
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.7)% (5) (15,450,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,091,910
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 30.6%.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 45
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.0% (2.1% OF TOTAL INVESTMENTS)
$ 2,170 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,808,131
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.4% (18.6% OF TOTAL INVESTMENTS)
1,000 Connecticut Health and Education Facilities Authority, Revenue Bonds, 7/17 at 100.00 AA- 857,740
Connecticut College, Series 2007G, 4.500%, 7/01/37 - MBIA Insured
1,300 Connecticut Health and Education Facilities Authority, Revenue Bonds, 7/17 at 100.00 AA- 1,331,213
Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 - MBIA
Insured
650 Connecticut Health and Education Facilities Authority, University of 7/16 at 100.00 BBB- 550,693
Hartford Revenue Bonds, Series 2006G, 5.250%, 7/01/36 - RAAI
Insured
150 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 BBB- 122,310
Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 - RAAI
Insured
250 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 217,880
Bonds, Chase Collegiate School, Series 2007A, 5.000%, 7/01/27 -
RAAI Insured
400 Connecticut Health and Educational Facilities Authority, Revenue No Opt. Call A2 439,068
Bonds, Loomis Chaffee School, Series 2005F, 5.250%, 7/01/19 -
AMBAC Insured
215 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 A 200,866
Bonds, Renbrook School, Series 2007A, 5.000%, 7/01/37 - AMBAC
Insured
750 Connecticut Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB- 727,515
Bonds, University of Hartford, Series 2002E, 5.500%, 7/01/22 -
RAAI Insured
1,500 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AAA 1,501,470
Bonds, Yale University, Series 2002W, 5.125%, 7/01/27
3,000 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 3,069,960
Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 (UB)
5,050 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 AAA 5,205,288
Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 (UB)
University of Connecticut, General Obligation Bonds, Series 2006A:
850 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 944,308
490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 527,103
500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AA- 528,490
Series 2002A, 5.250%, 11/15/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,105 Total Education and Civic Organizations 16,223,904
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 9.2% (6.2% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Bristol Hospital, Series 2002B:
500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 BBB- 489,185
600 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 BBB- 512,220
800 Connecticut Health and Educational Facilities Authority, Revenue 7/15 at 100.00 N/R 689,352
Bonds, Griffin Hospital, Series 2005B, 5.000%, 7/01/20 - RAAI
Insured
310 Connecticut Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 237,575
Bonds, Hospital For Special Care, Series 2007C, 5.250%, 7/01/32 -
RAAI Insured
2,130 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 2,084,226
Bonds, Middlesex Hospital, Series 2006, 5.000%, 7/01/32 - FSA
Insured
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 200 Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101.00 Baa1 $ 189,826
Bonds, Stamford Hospital, Series 1999G, 5.000%, 7/01/18 - MBIA
Insured
1,325 Connecticut Health and Educational Facilities Authority, Revenue 7/16 at 100.00 A1 1,228,050
Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,865 Total Health Care 5,430,434
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Multifamily Housing Mortgage 11/15 at 100.00 AAA 932,410
Finance Program Bonds, Series 2006G-2, 4.800%, 11/15/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.8% (4.0% OF TOTAL INVESTMENTS)
750 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 727,320
Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative Minimum
Tax)
1,300 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,311,427
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
435 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 400,839
465 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 420,527
600 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 581,478
Program Bonds, Series 2006D, 4.650%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
3,550 Total Housing/Single Family 3,441,591
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.1% (2.1% OF TOTAL INVESTMENTS)
2,000 Connecticut Resource Recovery Authority, Revenue Bonds, American 12/11 at 102.00 Ba1 1,814,680
Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-I,
5.500%, 11/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.7% (7.9% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 429,155
Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003,
5.750%, 12/01/23
380 Connecticut Development Authority, First Mortgage Gross Revenue 10/09 at 100.00 BBB- 376,105
Refunding Healthcare Bonds, Church Homes Inc. - Congregational
Avery Heights, Series 1997, 5.700%, 4/01/12
Connecticut Development Authority, Revenue Bonds, Duncaster Inc.,
Series 2002:
650 5.125%, 8/01/22 - RAAI Insured 8/12 at 101.00 BBB 608,218
1,025 4.750%, 8/01/32 - RAAI Insured 8/12 at 101.00 BBB 812,661
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 A 414,017
475 5.000%, 7/01/20 - AMBAC Insured 7/12 at 101.00 A 444,766
260 5.000%, 7/01/23 - AMBAC Insured 7/12 at 101.00 A 232,643
1,000 5.000%, 7/01/32 - AMBAC Insured 7/12 at 101.00 A 798,640
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 A 1,011,520
1,500 5.000%, 6/15/32 - AMBAC Insured 6/12 at 101.00 A 1,432,815
500 Connecticut State Development Authority, Health Facilities Revenue 8/17 at 100.00 N/R 353,785
Bonds, Alzheimer's Resource Center of Connecticut, Inc., Series
2007, 5.500%, 8/15/27
------------------------------------------------------------------------------------------------------------------------------------
7,720 Total Long-Term Care 6,914,325
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.8% (14.9% OF TOTAL INVESTMENTS)
Bethel, Connecticut, General Obligation Bonds, Series 2002:
$ 525 5.000%, 11/01/18 - FGIC Insured 11/12 at 100.00 Aa3 $ 558,721
525 5.000%, 11/01/19 - FGIC Insured 11/12 at 100.00 Aa3 558,721
525 5.000%, 11/01/20 - FGIC Insured 11/12 at 100.00 Aa3 557,440
525 5.000%, 11/01/21 - FGIC Insured 11/12 at 100.00 Aa3 552,825
525 5.000%, 11/01/22 - FGIC Insured 11/12 at 100.00 Aa3 545,811
1,200 Connecticut State, General Obligation Bonds, Series 2006A, 4.750%, 12/16 at 100.00 AA 1,271,808
12/15/24
450 Farmington, Connecticut, General Obligation Bonds, Series 2002, 9/12 at 101.00 Aa1 505,881
5.000%, 9/15/20
600 Hartford, Connecticut, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 638,706
5.000%, 8/01/21 - FSA Insured
New Canaan, Connecticut, General Obligation Bonds, Series 2002A:
950 4.500%, 5/01/19 5/11 at 100.00 Aaa 1,004,815
900 4.600%, 5/01/20 5/11 at 100.00 Aaa 923,220
500 4.700%, 5/01/21 5/11 at 100.00 Aaa 512,535
1,000 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A 1,101,600
5.000%, 11/01/17 - AMBAC Insured
Southbury, Connecticut, General Obligation Bonds, Series 2002:
500 4.875%, 12/15/20 12/11 at 101.00 Aa3 523,585
500 4.875%, 12/15/21 12/11 at 101.00 Aa3 522,075
500 5.000%, 12/15/22 12/11 at 101.00 Aa3 525,925
Stratford, Connecticut, General Obligation Bonds, Series 2002:
1,375 4.000%, 2/15/19 - FSA Insured 2/12 at 100.00 AAA 1,411,149
630 4.125%, 2/15/20 - FSA Insured 2/12 at 100.00 AAA 644,484
500 West Hartford, Connecticut, General Obligation Bonds, Series 2005B, 10/15 at 100.00 AAA 561,245
5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
12,230 Total Tax Obligation/General 12,920,546
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.9% ( 14.9% OF TOTAL INVESTMENTS)
930 Connecticut Health and Educational Facilities Authority, Child Care 7/16 at 100.00 AAA 909,698
Facilities Program Revenue Bonds, Series 2006F, 5.000%, 7/01/36 -
AGC Insured
60 Connecticut, Special Tax Obligation Transportation Infrastructure No Opt. Call AA 65,168
Purpose Bonds, Series 1992B, 6.125%, 9/01/12
Connecticut, Special Tax Obligation Transportation Infrastructure
Purpose Bonds, Series 2002B:
2,810 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AA 2,936,309
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 1,040,240
1,000 5.000%, 12/01/22 - AMBAC Insured 12/12 at 100.00 AA 1,036,540
500 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 517,995
Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - FGIC Insured
1,500 Connecticut, Special Tax Obligation Transportation Infrastructure 8/17 at 100.00 AA 1,557,990
Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/27 - AMBAC
Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 917,960
Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue
Bonds, Series 2005A:
780 0.000%, 7/01/32 - FGIC Insured No Opt. Call BBB+ 139,542
2,120 0.000%, 7/01/33 - FGIC Insured No Opt. Call BBB+ 350,245
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
890 5.250%, 7/01/17 7/12 at 100.00 BBB- 864,849
1,000 5.250%, 7/01/20 7/12 at 100.00 BBB- 955,810
1,045 5.250%, 7/01/21 7/12 at 100.00 BBB- 989,845
750 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/09 at 100.50 BBB 723,368
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
15,385 Total Tax Obligation/Limited 13,005,559
------------------------------------------------------------------------------------------------------------------------------------
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 415 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights Parking No Opt. Call A $ 462,912
Facility, Series 2002, 5.375%, 12/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.9% (14.9% OF TOTAL INVESTMENTS) (4)
500 Bridgeport, Connecticut, General Obligation Bonds, Series 2003A, 9/13 at 100.00 AAA 575,485
5.250%, 9/15/23 (Pre-refunded 9/15/13) - FSA Insured
3,100 Connecticut Health and Educational Facilities Authority, Revenue 7/11 at 101.00 A (4) 3,378,255
Bonds, Trinity College, Series 2001G, 5.000%, 7/01/21
(Pre-refunded 7/01/11) - AMBAC Insured
40 New Haven, Connecticut, General Obligation Bonds, Series 2002A, 11/11 at 101.00 A (4) 43,940
5.250%, 11/01/17 - AMBAC Insured (ETM)
3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 3,233,121
2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured
3,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 3,151,589
Bonds, Series 2000A, 5.500%, 10/01/40
1,010 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call AAA 1,129,503
Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured (ETM)
195 Puerto Rico Public Finance Corporation, Commonwealth Appropriation 2/12 at 100.00 AAA 214,085
Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12)
1,100 University of Connecticut, General Obligation Bonds, Series 2003A, 2/13 at 100.00 AA (4) 1,243,385
5.125%, 2/15/21 (Pre-refunded 2/15/13) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,995 Total U.S. Guaranteed 12,969,363
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.2% (2.9% OF TOTAL INVESTMENTS)
720 Connecticut Development Authority, Pollution Control Revenue 10/09 at 101.50 Baa1 718,690
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
860 Connecticut Development Authority, Solid Waste Disposal Facilities 11/12 at 100.00 Baa1 737,459
Revenue Bonds, PSEG Power LLC Project, Series 2007A, 5.750%,
11/01/37 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
Bonds, Wheelabrator Lisbon Project, Series 1993A:
790 5.500%, 1/01/14 (Alternative Minimum Tax) 7/09 at 100.00 BBB 778,190
305 5.500%, 1/01/20 (Alternative Minimum Tax) 7/09 at 100.00 BBB 291,431
------------------------------------------------------------------------------------------------------------------------------------
2,675 Total Utilities 2,525,770
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.5% (9.9% OF TOTAL INVESTMENTS)
400 Connecticut Development Authority, Water Facility Revenue Bonds, 9/17 at 100.00 N/R 306,924
Aquarion Water Company Project, Series 200.7, 5.100%, 9/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,295,087
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority, Connecticut,
Regional Wastewater System Revenue Bonds, Series 2005A:
1,230 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA- 1,223,567
640 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA- 622,637
230 Guam Government Waterworks Authority, Water and Wastewater System 7/15 at 100.00 Ba2 198,071
Revenue Bonds, Series 2005, 6.000%, 7/01/25
Nuveen Investments 49
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
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 AA- $ 2,131,692
590 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA- 591,280
1,840 South Central Connecticut Regional Water Authority, Water System 8/16 at 100.00 AA- 1,867,563
Revenue Bonds, Twentieth Series, 2007A, 5.000%, 8/01/30 - MBIA
Insured
350 Stamford, Connecticut, Water Pollution Control System and Facility 11/13 at 100.00 AA+ 350,823
Revenue Bonds, Series 2003A, 5.000%, 11/15/32
------------------------------------------------------------------------------------------------------------------------------------
8,515 Total Water and Sewer 8,587,644
------------------------------------------------------------------------------------------------------------------------------------
$ 89,625 Total Investments (cost $89,136,791) - 146.9% 87,037,269
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.8)% (5,780,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 10.6% 6,262,172
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.7)% (5) (28,275,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 59,244,441
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 32.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
50 Nuveen Investments
NMT | Nuveen Massachusetts Premium Income Municipal Fund
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 1,445 Boston Industrial Development Financing Authority, Massachusetts, 9/12 at 102.00 B3 $ 965,477
Senior Revenue Bonds, Crosstown Center Project, Series 2002,
6.500%, 9/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 31.0% (20.2% OF TOTAL INVESTMENTS)
1,045 Massachusetts Development Finance Agency, Revenue Bonds, Worcester 9/17 at 100.00 AA- 1,000,734
Polytechnic Institute, Series 2007, 5.000%, 9/01/37 - MBIA Insured
890 Massachusetts Development Finance Authority, Revenue Bonds, Curry 9/09 at 101.00 BBB 887,116
College, Series 2000A, 6.000%, 3/01/20 - ACA Insured
1,745 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,795,622
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2005D, 5.000%, 7/01/27 - AGC Insured
750 Massachusetts Development Finance Authority, Revenue Bonds, Milton 9/13 at 100.00 AA- 796,305
Academy, Series 2003A, 5.000%, 9/01/19
4,900 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 4,769,317
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC Insured
(UB)
1,090 Massachusetts Development Finance Authority, Revenue Refunding Bonds, No Opt. Call A2 1,197,474
Boston University, Series 1999P, 6.000%, 5/15/29
1,550 Massachusetts Educational Finance Authority, Educational Loan Revenue 1/12 at 100.00 AA 1,580,055
Bonds, Series 2002E, 5.000%, 1/01/13 - AMBAC Insured (Alternative
Minimum Tax)
2,000 Massachusetts Health and Educational Facilities Authority, Revenue 6/13 at 100.00 AA- 2,154,540
Bonds, Boston College, Series 2003N, 5.250%, 6/01/18
500 Massachusetts Health and Educational Facilities Authority, Revenue 9/09 at 100.00 BBB- 457,505
Bonds, Hebrew College, Series 1999A, 0.800%, 7/01/31 - RAAI Insured
(4)
500 Massachusetts Health and Educational Facilities Authority, Revenue 7/13 at 100.00 Aaa 520,395
Bonds, Wellesley College, Series 2003H, 5.000%, 7/01/26
555 Massachusetts Health and Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 600,066
Bonds, Williams College, Series 2003H, 5.000%, 7/01/21
1,380 Massachusetts Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 1,429,901
Bonds, Williams College, Series 2007L, 5.000%, 7/01/31
500 Massachusetts Health and Educational Facilities Authority, Revenue 11/12 at 100.00 A 475,485
Bonds, Worcester State College, Series 2002, 5.000%, 11/01/32 -
AMBAC Insured
1,645 Massachusetts Industrial Finance Agency, Revenue Bonds, Whitehead 7/09 at 100.00 Aa1 1,645,954
Institute for Biomedical Research, Series 1993, 5.125%, 7/01/26
375 Puerto Rico Industrial, Tourist, Educational, Medical and 8/09 at 101.00 BBB- 321,878
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System, Series
1999, 5.375%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
19,425 Total Education and Civic Organizations 19,632,347
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.3% (15.8% OF TOTAL INVESTMENTS)
1,250 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 101.00 BBB+ 1,105,050
Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 11/11 at 101.00 BBB- 740,930
Bonds, Cape Cod Health Care Inc., Series 2001C, 5.250%, 11/15/31 -
RAAI Insured
Nuveen Investments 51
NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Capital Asset Program, Series 1998B-1:
$ 1,800 5.375%, 2/01/26 - MBIA Insured 8/18 at 100.00 AA- $ 1,726,218
770 5.375%, 2/01/28 - MBIA Insured 8/18 at 100.00 AA- 722,891
1,500 Massachusetts Health and Educational Facilities Authority, Revenue 8/18 at 100.00 AA- 1,423,620
Bonds, Capital Asset Program, Series 1998B-2, 5.375%, 2/01/27 -
MBIA Insured
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/12 at 101.00 BBB 920,650
Bonds, Caritas Christi Obligated Group, Series 2002B, 6.250%,
7/01/22
935 Massachusetts Health and Educational Facilities Authority, Revenue 8/15 at 100.00 BBB- 661,110
Bonds, Emerson Hospital, Series 2005E, 5.000%, 8/15/35 - RAAI
Insured
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 8/15 at 100.00 A 957,930
Bonds, Lahey Clinic Medical Center, Series 2005C, 5.000%, 8/15/21 -
FGIC Insured
2,000 Massachusetts Health and Educational Facilities Authority, Revenue 8/17 at 100.00 A 1,918,080
Bonds, Lahey Medical Center, Series 2007D, 5.250%, 8/15/28
585 Massachusetts Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 394,705
Bonds, Milford Regional Medical Center, Series 2007E, 5.000%,
7/15/32
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/15 at 100.00 BB- 573,870
Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30
750 Massachusetts Health and Educational Facilities Authority, Revenue 7/09 at 100.00 AA- 707,400
Bonds, New England Medical Center Hospitals, Series 1993G-1,
5.375%, 7/01/24 - MBIA Insured
75 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AA 76,223
Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%,
7/01/32
375 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 100.00 BBB 363,146
Bonds, UMass Memorial Health Care, Series 2001C, 6.625%, 7/01/32
1,445 Massachusetts Health and Educational Facilities Authority, Revenue 7/15 at 100.00 BBB 1,119,066
Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33
2,000 Massachusetts State, Health and Educational Facilities Authority, 7/17 at 100.00 AA 1,970,280
Partners HealthCare System Inc., Series 2007G, 5.000%, 7/01/32
------------------------------------------------------------------------------------------------------------------------------------
17,485 Total Health Care 15,381,169
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.8% (5.1% OF TOTAL INVESTMENTS)
1,335 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 1,209,003
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48
1,815 Massachusetts Development Financing Authority, Assisted Living Revenue 12/09 at 102.00 N/R 1,575,474
Bonds, Prospect House Apartments, Series 1999, 7.000%, 12/01/31
335 Massachusetts Housing Finance Agency, Housing Bonds, Series 2006A, 6/15 at 100.00 AA- 310,388
5.100%, 12/01/37 (Alternative Minimum Tax)
500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, Series 6/13 at 100.00 AA- 486,470
2003S, 5.050%, 12/01/23 (Alternative Minimum Tax)
320 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue 7/10 at 101.00 A 327,981
Bonds, Series 1999D, 5.500%, 7/01/13 - AMBAC Insured (Alternative
Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA Collateralized 5/12 at 103.00 AAA 1,040,870
Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002, 5.200%,
11/20/22
------------------------------------------------------------------------------------------------------------------------------------
5,305 Total Housing/Multifamily 4,950,186
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.6% (2.4% OF TOTAL INVESTMENTS)
1,500 Massachusetts Housing Finance Agency, Single Family Housing Revenue 6/16 at 100.00 AA 1,294,740
Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative Minimum Tax)
985 Massachusetts Housing Finance Agency, Single Family Housing Revenue 6/18 at 100.00 AA 1,010,049
Bonds, Series 2008, Trust 3145, 14.149%, 12/01/28 (IF)
------------------------------------------------------------------------------------------------------------------------------------
2,485 Total Housing/Single Family 2,304,789
------------------------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 345 Massachusetts Development Finance Agency, Pioneer Valley Resource No Opt. Call N/R $ 300,274
Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006,
5.875%, 7/01/14 (Alternative Minimum Tax)
400 Massachusetts Development Finance Agency, Solid Waste Disposal Revenue No Opt. Call BBB 391,872
Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14
------------------------------------------------------------------------------------------------------------------------------------
745 Total Industrials 692,146
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.8% (4.4% OF TOTAL INVESTMENTS)
1,270 Boston, Massachusetts, FHA-Insured Mortgage Revenue Bonds, Deutsches 10/09 at 104.00 AAA 1,308,545
Altenheim Inc., Series 1998A, 6.125%, 10/01/31
1,685 Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, 10/12 at 102.00 N/R 1,151,512
Series 2007, 5.250%, 10/01/26
1,500 Massachusetts Development Finance Authority, GNMA Collateralized 3/12 at 105.00 AAA 1,483,245
Assisted Living Facility Revenue Bonds, Arbors at Chicopee, Series
2001A, 6.250%, 9/20/42 (Alternative Minimum Tax)
5 Massachusetts Industrial Finance Agency, FHA-Insured Project Revenue 8/09 at 100.00 AA+ 5,004
Bonds, Heights Crossing LP, Series 1995, 6.000%, 2/01/15
(Alternative Minimum Tax)
400 Massachusetts Industrial Finance Agency, First Mortgage Revenue Bonds, 1/11 at 101.00 BBB- 366,380
Berkshire Retirement Community, Series 1994B, 4.750%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
4,860 Total Long-Term Care 4,314,686
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 19.3% (12.6% OF TOTAL INVESTMENTS)
500 Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5.250%, 5/15 at 100.00 A1 531,215
5/15/23 - AMBAC Insured
1,250 Boston, Massachusetts, General Obligation Bonds, Series 2005A, 5.000%, 1/15 at 100.00 AA+ 1,392,700
1/01/17
1,000 Fall River, Massachusetts, General Obligation Bonds, Series 2003, 2/13 at 101.00 AAA 1,012,050
5.000%, 2/01/21 - FSA Insured
2,500 Massachusetts Bay Transportation Authority, General Obligation No Opt. Call AAA 3,072,721
Transportation System Bonds, Series 1991A, 7.000%, 3/01/21
1,275 Massachusetts, General Obligation Bonds, Consolidated Loan, Series No Opt. Call AA 1,491,737
2001D, 6.000%, 11/01/13 - MBIA Insured
980 Monson, Massachusetts, General Obligation Bonds, Series 2002, 5.250%, 5/12 at 101.00 A3 1,034,116
5/15/22 - AMBAC Insured
1,260 Norwell, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, No Opt. Call AAA 1,471,012
11/15/20 - FGIC Insured
1,000 Puerto Rico, General Obligation and Public Improvement Bonds, Series No Opt. Call Baa3 918,000
2001A, 5.500%, 7/01/29 - FGIC Insured
1,220 Worcester, Massachusetts, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AA- 1,284,636
5.000%, 7/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,985 Total Tax Obligation/General 12,208,187
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.8% (9.6% OF TOTAL INVESTMENTS)
210 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, Series 5/14 at 100.00 A 216,170
2004, 5.000%, 5/01/26 - AMBAC Insured
385 Massachusetts Bay Transportation Authority, Senior Lien Sales Tax No Opt. Call AAA 454,269
Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21
975 Massachusetts Bay Transportation Authority, Senior Sales Tax Revenue 7/18 at 100.00 AAA 1,049,422
Bonds, Series 2006, 5.000%, 7/01/26
550 Massachusetts College Building Authority, Project Revenue Bonds, 5/14 at 100.00 AA- 582,472
Series 2004A, 5.000%,5/01/19 - MBIA Insured
325 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 A1 311,217
Series 2006A, 5.000%, 5/01/31 - AMBAC Insured
Nuveen Investments 53
NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,200 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA $ 1,213,728
Series 2008A, 5.000%, 5/01/33 - AGC Insured
1,000 Massachusetts College Building Authority, Project Revenue Refunding No Opt. Call A1 1,097,380
Bonds, Series 2003B, 5.375%, 5/01/23 - SYNCORA GTY Insured
1,300 Massachusetts School Building Authority, Dedicated Sales Tax Revenue 8/15 at 100.00 AAA 1,418,703
Bonds, Series 2005A, 5.000%, 8/15/20 - FSA Insured
540 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series No Opt. Call AA- 575,176
2005, 5.000%, 1/01/20 - FGIC Insured
1,000 Massachusetts, Special Obligation Refunding Notes, Federal Highway No Opt. Call Aa3 1,108,020
Grant Anticipation Note Program, Series 2003A, 5.000%, 12/15/13 -
FSA Insured
240 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue No Opt. Call A 18,617
Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured
1,300 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA- 1,303,419
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,025 Total Tax Obligation/Limited 9,348,593
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.3% (6.1% OF TOTAL INVESTMENTS)
2,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 AA- 1,924,060
7/01/33 - MBIA Insured
1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 AA- 853,660
BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC Insured
(Alternative Minimum Tax)
225 Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta 1/11 at 101.00 A 119,745
Air Lines Inc., Series 2001A, 5.000%, 1/01/27 - AMBAC Insured
(Alternative Minimum Tax)
4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, US 9/09 at 100.00 AA- 3,009,080
Airways Group Inc., Series1996A, 5.750%, 9/01/16 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,225 Total Transportation 5,906,545
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.0% (12.4% OF TOTAL INVESTMENTS) (5)
550 Guam Economic Development Authority, Tobacco Settlement Asset-Backed 5/11 at 100.00 N/R (5) 594,248
Bonds, Series 2001B, 5.500%, 5/15/41 (Pre-refunded 5/15/11)
25 Massachusetts Bay Transportation Authority, Senior Sales Tax Revenue 7/18 at 100.00 Aa2 (5) 29,529
Bonds, Series 2006, 5.000%, 7/01/26 (Pre-refunded 7/01/18)
2,500 Massachusetts Development Finance Authority, GNMA Collateralized 10/11 at 105.00 N/R (5) 2,965,800
Revenue Bonds, VOA Concord Assisted Living Inc., Series 2000A,
6.900%, 10/20/41 (Pre-refunded 10/20/11)
500 Massachusetts Development Finance Authority, Revenue Bonds, Belmont 9/11 at 101.00 A (5) 553,130
Hills School, Series 2001, 5.375%, 9/01/23 (Pre-refunded 9/01/11)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (5) 1,176,680
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2003C, 5.750%, 7/01/33 (Pre-refunded 7/01/13)
410 Massachusetts Health and Educational Facilities Authority, Revenue 7/21 at 100.00 AAA 457,745
Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25 (Pre-refunded
7/01/21) - MBIA Insured
600 Massachusetts Health and Educational Facilities Authority, Revenue 5/12 at 100.00 N/R (5) 661,668
Bonds, New England Medical Center Hospitals, Series 2002H, 5.375%,
5/15/19 (Pre-refunded 5/15/12) - FGIC Insured
1,925 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 2,131,745
Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%,
7/01/32 (Pre-refunded 7/01/11)
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 100.00 A+ (5) 1,086,450
Bonds, University of Massachusetts - Worcester Campus, Series
2001B, 5.250%, 10/01/31 (Pre-refunded 10/01/11) - FGIC Insured
525 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 7/09 at 100.00 AAA 653,903
7/01/13 (ETM)
1,500 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 1/14 at 100.00 A (5) 1,695,480
2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,535 Total U.S. Guaranteed 12,006,378
------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.9% (1.9% OF TOTAL INVESTMENTS)
$ 1,000 Massachusetts Development Finance Agency, Resource Recovery Revenue 1/12 at 101.00 AA- $ 999,130
Bonds, SEMass System, Series 2001A, 5.625%, 1/01/16 - MBIA Insured
1,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 6/09 at 102.00 BBB 813,430
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Utilities 1,812,560
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.0% (7.8% OF TOTAL INVESTMENTS)
2,000 Boston Water and Sewerage Commission, Massachusetts, General Revenue 11/14 at 100.00 AA+ 2,107,720
Bonds, Senior Series 2004A, 5.000%, 11/01/25
60 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program 8/13 at 100.00 AAA 63,594
Bonds, Series 2003-9, 5.000%, 8/01/22
285 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program 8/14 at 100.00 AAA 299,404
Bonds, Series 2004-10, 5.000%, 8/01/26
750 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program 8/15 at 100.00 AAA 757,208
Bonds, Series 2005-11, 4.500%, 8/01/29
1,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program 8/16 at 100.00 AAA 984,450
Bonds, Series 2006-12, 4.375%, 8/01/31
1,250 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, MWRA 8/12 at 100.00 AAA 1,349,000
Loan Program, Series 2002A, 5.250%, 8/01/20
1,500 Massachusetts Water Resources Authority, General Revenue Bonds, Series 8/17 at 100.00 AA+ 1,570,575
2005A, 5.000%, 8/01/28 - MBIA Insured
625 Massachusetts Water Resources Authority, General Revenue Bonds, Series 8/16 at 100.00 AA+ 489,575
2006A, 4.000%, 8/01/46
------------------------------------------------------------------------------------------------------------------------------------
7,470 Total Water and Sewer 7,621,526
------------------------------------------------------------------------------------------------------------------------------------
$ 98,990 Total Investments (cost $100,505,662) - 153.4% 97,144,589
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.9)% (2,450,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.2% 2,625,987
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.7)% (6) (34,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 63,320,576
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Investment valued at fair value using methods determined in good faith by,
or at the discretion of, the Board of Trustees.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 35.0%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 55
NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.2% (0.8% OF TOTAL INVESTMENTS)
$ 485 Boston Industrial Development Financing Authority, Massachusetts, 9/12 at 102.00 B3 $ 324,053
Senior Revenue Bonds, Crosstown Center Project, Series 2002,
6.500%, 9/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 38.4% (24.8% OF TOTAL INVESTMENTS)
450 Massachusetts Development Finance Agency, Revenue Bonds, Worcester 9/17 at 100.00 AA- 430,938
Polytechnic Institute, Series 2007, 5.000%, 9/01/37 - MBIA Insured
495 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 509,360
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2005D, 5.000%, 7/01/27 - AGC Insured
500 Massachusetts Development Finance Authority, Revenue Bonds, Milton 9/13 at 100.00 AA- 530,870
Academy, Series 2003A, 5.000%, 9/01/19
2,100 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 2,043,993
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC Insured
(UB)
1,000 Massachusetts Development Finance Authority, Revenue Refunding Bonds, 5/29 at 105.00 A2 1,054,790
Boston University, Series 1999P, 6.000%, 5/15/59
990 Massachusetts Educational Finance Authority, Educational Loan Revenue 7/10 at 100.00 AA 994,831
Bonds, Series 2001E, 5.300%, 1/01/16 - AMBAC Insured (Alternative
Minimum Tax)
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 6/13 at 100.00 AA- 1,077,270
Bonds, Boston College, Series 2003N, 5.250%, 6/01/18
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 9/09 at 100.00 BBB- 915,010
Bonds, Hebrew College, Series 1999A, 0.800%, 7/01/31 - RAAI Insured
(4)
2,000 Massachusetts Health and Educational Facilities Authority, Revenue 2/11 at 100.00 Aa2 2,020,940
Bonds, Tufts University, Series 2001I, 5.500%, 2/15/36
590 Massachusetts Health and Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 611,334
Bonds, Williams College, Series 2007L, 5.000%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
10,125 Total Education and Civic Organizations 10,189,336
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.0% (16.8% OF TOTAL INVESTMENTS)
500 Massachusetts Health and Educational Facilities Authority Revenue 1/18 at 100.00 N/R 363,405
Bonds, Quincy Medical Center Issue, Series A (2008), 6.500%,
1/15/38
500 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 101.00 BBB+ 442,020
Bonds, Berkshire Health System, Series 2001E, 6.250%, 10/01/31
775 Massachusetts Health and Educational Facilities Authority, Revenue 8/18 at 100.00 AA- 743,233
Bonds, Capital Asset Program, Series 1998B-1, 5.375%, 2/01/26 -
MBIA Insured
500 Massachusetts Health and Educational Facilities Authority, Revenue 8/18 at 100.00 AA- 474,540
Bonds, Capital Asset Program, Series 1998B-2, 5.375%, 2/01/27 -
MBIA Insured
250 Massachusetts Health and Educational Facilities Authority, Revenue 1/11 at 100.00 BBB 222,093
Bonds, Caritas Christi Obligated Group, Series 1999A, 5.625%,
7/01/20
295 Massachusetts Health and Educational Facilities Authority, Revenue 1/12 at 101.00 A 295,799
Bonds, Covenant Health Systems Obligated Group, Series 2002,
6.000%, 7/01/31
315 Massachusetts Health and Educational Facilities Authority, Revenue 8/15 at 100.00 BBB- 222,727
Bonds, Emerson Hospital, Series 2005E, 5.000%, 8/15/35 - RAAI
Insured
600 Massachusetts Health and Educational Facilities Authority, Revenue 8/15 at 100.00 A 574,758
Bonds, Lahey Clinic Medical Center, Series 2005C, 5.000%, 8/15/21 -
FGIC Insured
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,000 Massachusetts Health and Educational Facilities Authority, Revenue 8/17 at 100.00 A $ 959,040
Bonds, Lahey Medical Center, Series 2007D, 5.250%, 8/15/28
290 Massachusetts Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 195,666
Bonds, Milford Regional Medical Center, Series 2007E, 5.000%,
7/15/32
500 Massachusetts Health and Educational Facilities Authority, Revenue 7/15 at 100.00 BB- 286,935
Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30
500 Massachusetts Health and Educational Facilities Authority, Revenue 7/14 at 100.00 BB 367,620
Bonds, Northern Berkshire Community Services Inc., Series 2004B,
6.375%, 7/01/34
1,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/09 at 101.00 AA 1,010,770
Bonds, Partners HealthCare System Inc., Series 1999B, 5.125%,
7/01/19
35 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AA 35,571
Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%,
7/01/32
500 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 100.00 BBB 484,195
Bonds, UMass Memorial Health Care, Series 2001C, 6.625%, 7/01/32
285 Massachusetts Health and Educational Facilities Authority, Revenue 7/15 at 100.00 BBB 220,715
Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
7,845 Total Health Care 6,899,087
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.2% (7.9% OF TOTAL INVESTMENTS)
570 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 516,203
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48
135 Massachusetts Housing Finance Agency, Housing Bonds, Series 2006A, 6/15 at 100.00 AA- 125,082
5.100%, 12/01/37 (Alternative Minimum Tax)
500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, Series 6/13 at 100.00 AA- 486,470
2003S, 5.050%, 12/01/23 (Alternative Minimum Tax)
1,135 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue 1/11 at 100.00 A 1,081,065
Bonds, Series 2001A, 5.850%, 7/01/35 - AMBAC Insured (Alternative
Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA Collateralized 5/12 at 103.00 AAA 1,040,870
Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002, 5.200%,
11/20/22
------------------------------------------------------------------------------------------------------------------------------------
3,340 Total Housing/Multifamily 3,249,690
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0% (2.6% OF TOTAL INVESTMENTS)
650 Massachusetts Housing Finance Agency, Single Family Housing Revenue 6/16 at 100.00 AA 561,054
Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative Minimum Tax)
480 Massachusetts Housing Finance Agency, Single Family Housing Revenue 6/18 at 100.00 AA 490,498
Bonds, Series 2008, Trust 3145, 15.203%, 12/01/33 (IF)
------------------------------------------------------------------------------------------------------------------------------------
1,130 Total Housing/Single Family 1,051,552
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.8% OF TOTAL INVESTMENTS)
160 Massachusetts Development Finance Agency, Pioneer Valley Resource No Opt. Call N/R 139,258
Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006, 5.875%,
7/01/14 (Alternative Minimum Tax)
200 Massachusetts Development Finance Agency, Solid Waste Disposal Revenue No Opt. Call BBB 195,936
Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14
------------------------------------------------------------------------------------------------------------------------------------
360 Total Industrials 335,194
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 8.0% (5.2% OF TOTAL INVESTMENTS)
725 Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, 10/12 at 102.00 N/R 495,458
Series 2007, 5.250%, 10/01/26
655 Massachusetts Development Finance Authority, First Mortgage Revenue 7/11 at 102.00 BBB- 628,617
Bonds, Berkshire Retirement Community - Edgecombe Project, Series
2001A, 6.750%, 7/01/21
Nuveen Investments 57
NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31. 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 1,000 Massachusetts Development Finance Authority, GNMA Collateralized 3/12 at 105.00 AAA $ 988,830
Assisted Living Facility Revenue Bonds, Arbors at Chicopee, Series
2001A, 6.250%, 9/20/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,380 Total Long-Term Care 2,112,905
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.7% (9.5% OF TOTAL INVESTMENTS)
310 Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5.250%, 5/15 at 100.00 A1 329,353
5/15/23 - AMBAC Insured
2,000 Brookline, Massachusetts, General Obligation Bonds, Series 2000, 4/10 at 101.00 Aaa 2,084,637
5.375%, 4/01/17
440 Fall River, Massachusetts, General Obligation Bonds, Series 2003, 2/13 at 101.00 AAA 445,302
5.000%, 2/01/21 - FSA Insured
500 Norwell, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, No Opt. Call AAA 583,735
11/15/20 - FGIC Insured
500 Puerto Rico, General Obligation and Public Improvement Bonds, Series No Opt. Call Baa3 459,000
2001A, 5.500%, 7/01/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,750 Total Tax Obligation/General 3,902,027
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.4% (8.0% OF TOTAL INVESTMENTS)
395 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, Series 5/14 at 100.00 A 406,605
2004, 5.000%, 5/01/26 - AMBAC Insured
85 Massachusetts Bay Transportation Authority, Assessment Bonds, Series 7/10 at 100.00 AAA 85,343
2000A, 5.250%, 7/01/30
385 Massachusetts Bay Transportation Authority, Senior Lien Sales Tax No Opt. Call AAA 454,269
Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21
230 Massachusetts College Building Authority, Project Revenue Bonds, 5/14 at 100.00 AA- 243,579
Series 2004A, 5.000%, 5/01/19 - MBIA Insured
250 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 A1 239,398
Series 2006A, 5.000%, 5/01/31 - AMBAC Insured
550 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 556,292
Series 2008A, 5.000%, 5/01/33 - AGC Insured
500 Massachusetts School Building Authority, Dedicated Sales Tax Revenue 8/15 at 100.00 AAA 545,655
Bonds, Series 2005A, 5.000%, 8/15/20 - FSA Insured
230 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series No Opt. Call AA- 244,982
2005, 5.000%, 1/01/20 - FGIC Insured
500 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan 10/10 at 101.00 BBB+ 508,995
Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
3,125 Total Tax Obligation/Limited 3,285,118
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.3% (0.8% OF TOTAL INVESTMENTS)
400 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 AA- 341,464
BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.7% (10.1% OF TOTAL INVESTMENTS) (5)
1,000 Boston, Massachusetts, General Obligation Bonds, Series 2001A, 5.000%, 2/11 at 100.00 AA+ (5) 1,067,610
2/01/20 (Pre-refunded 2/01/11)
1,675 Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 2/11 at 100.00 Aa3 (5) 1,788,247
5.000%, 2/01/21 (Pre-refunded 2/01/11) - AMBAC Insured
125 Massachusetts Bay Transportation Authority, Assessment Bonds, Series 7/10 at 100.00 Aa1 (5) 131,404
2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
80 Massachusetts Health and Educational Facilities Authority, Revenue 1/12 at 101.00 A (5) 90,150
Bonds, Covenant Health Systems Obligated Group, Series 2002,
6.000%, 7/01/31 (Pre-refunded 1/01/12)
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (5) (continued)
$ 215 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101.00 AAA $ 238,091
Bonds, Partners HealthCare System Inc., Series 2001C, 5.750%,
7/01/32 (Pre-refunded 7/01/11)
750 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 1/14 at 100.00 A (5) 847,740
2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,845 Total U.S. Guaranteed 4,163,242
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6% (3.6% OF TOTAL INVESTMENTS)
1,070 Massachusetts Development Finance Agency, Resource Recovery Revenue 1/12 at 101.00 AA- 1,074,933
Bonds, SEMass , System Series 2001A, 5.625%, 1/01/14 - MBIA Insured
500 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 6/09 at 102.00 BBB 406,715
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%,
12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,570 Total Utilities 1,481,648
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.0% (9.1% OF TOTAL INVESTMENTS)
530 Boston Water and Sewerage Commission, Massachusetts, General Revenue 11/14 at 100.00 AA+ 558,546
Bonds, Senior Series 2004A, 5.000%, 11/01/25
125 Guam Government Waterworks Authority, Water and Wastewater System 7/15 at 100.00 Ba2 107,648
Revenue Bonds, Series 2005, 6.000%, 7/01/25
500 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program 8/15 at 100.00 AAA 504,805
Bonds, Series 2005-11, 4.500%, 8/01/29
400 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program 8/16 at 100.00 AAA 393,780
Bonds, Series 2006-12, 4.375%, 8/01/31
500 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, MWRA 8/12 at 100.00 AAA 539,600
Loan Program, Series 2002A, 5.250%, 8/01/20
1,405 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, MWRA 8/09 at 101.00 AAA 1,423,096
Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29
250 Massachusetts Water Resources Authority, General Revenue Bonds, Series 8/16 at 100.00 AA+ 195,830
2006A, 4.000%, 8/01/46
------------------------------------------------------------------------------------------------------------------------------------
3,710 Total Water and Sewer 3,723,305
------------------------------------------------------------------------------------------------------------------------------------
$ 42,065 Total Investments (cost $42,518,129) - 154.8% 41,058,621
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.0)% (1,050,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 771,364
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.7)% (6) (14,250,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 26,529,985
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Investment valued at fair value using methods determined in good faith by,
or at the discretion of, the Board of Trustees.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 34.7%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 59
NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 23.7% (15.3% OF TOTAL INVESTMENTS)
$ 1,135 Massachusetts Development Finance Agency, Revenue Bonds, Boston 10/15 at 100.00 A $ 1,052,100
University, Series 2005T-1, 5.000%, 10/01/39 - AMBAC Insured
600 Massachusetts Development Finance Agency, Revenue Bonds, Worcester 9/17 at 100.00 AA- 574,584
Polytechnic Institute, Series 2007, 5.000%, 9/01/37 - MBIA Insured
1,250 Massachusetts Development Finance Authority, Revenue Bonds, Middlesex 9/13 at 100.00 A1 1,203,988
School, Series 2003, 5.000%, 9/01/33
3,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 2,919,990
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC Insured
(UB)
1,750 Massachusetts Health and Educational Facilities Authority, Revenue 6/13 at 100.00 AA- 1,769,863
Bonds, Boston College, Series 2003N, 5.125%, 6/01/37
1,500 Massachusetts Health and Educational Facilities Authority, Revenue 11/12 at 100.00 A 1,426,455
Bonds, Worcester State College, Series 2002, 5.000%, 11/01/32 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,235 Total Education and Civic Organizations 8,946,980
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.5% (8.7% OF TOTAL INVESTMENTS)
600 Massachusetts Health and Educational Facilities Authority, Revenue 8/18 at 100.00 AA- 569,448
Bonds, Capital Asset Program, Series 1998B-1, 5.375%, 2/01/27 -
MBIA Insured
1,500 Massachusetts Health and Educational Facilities Authority, Revenue 8/18 at 100.00 AA- 1,408,230
Bonds, Capital Asset Program, Series 1998B-2, 5.375%, 2/01/28 -
MBIA Insured
455 Massachusetts Health and Educational Facilities Authority, Revenue 7/09 at 101.00 AA- 401,574
Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25 - MBIA Insured
585 Massachusetts Health and Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 394,705
Bonds, Milford Regional Medical Center, Series 2007E, 5.000%,
7/15/32
200 Massachusetts Health and Educational Facilities Authority, Revenue 7/15 at 100.00 BB- 114,774
Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30
2,400 Massachusetts Health and Educational Facilities Authority, Revenue 5/12 at 100.00 N/R 2,009,880
Bonds, New England Medical Center Hospitals, Series 2002H, 5.000%,
5/15/25 - FGIC Insured
250 Massachusetts Health and Educational Facilities Authority, Revenue 7/15 at 100.00 BBB 193,610
Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
5,990 Total Health Care 5,092,221
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.2% (6.6% OF TOTAL INVESTMENTS)
775 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 701,856
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48
2,000 Massachusetts Housing Finance Agency, Housing Bonds, Series 2003H, 12/12 at 100.00 AA- 1,917,780
5.125%, 6/01/43
1,265 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue 7/12 at 100.00 AAA 1,232,970
Bonds, Series 2002H, 5.200%, 7/01/42 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,040 Total Housing/Multifamily 3,852,606
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.8% (3.1% OF TOTAL INVESTMENTS)
1,750 Massachusetts Development Finance Authority, GNMA Collateralized 12/12 at 105.00 AAA 1,801,555
Revenue Bonds, Neville Communities, Series 2002A, 6.000%, 6/20/44
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.5% (11.3% OF TOTAL INVESTMENTS)
$ 1,280 Littleton, Massachusetts, General Obligation Bonds, Series 2003, 1/13 at 101.00 A+ $ 1,324,198
5.000%, 1/15/21 - FGIC Insured
1,500 Massachusetts, General Obligation Bonds, Consolidated Loan, Series No Opt. Call AAA 1,770,540
2004B, 5.250%, 8/01/21 - FSA Insured
1,705 North Attleborough, Massachusetts, General Obligation Bonds, Series 7/14 at 101.00 A1 1,935,652
2004, 5.000%, 7/15/15 - FGIC Insured
1,500 Pittsfield, Massachusetts, General Obligation Bonds, Series 2002, 4/12 at 101.00 AA- 1,585,005
5.000%, 4/15/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,985 Total Tax Obligation/General 6,615,395
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.6% (16.5% OF TOTAL INVESTMENTS)
3,000 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, Series 5/13 at 100.00 A 3,011,520
2002, 5.000%, 5/01/32 - AMBAC Insured
750 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 758,580
Series 2008A, 5.000%, 5/01/33 - AGC Insured
2,790 Massachusetts College Building Authority, Project Revenue Refunding 5/13 at 100.00 A1 2,878,945
Bonds, Series 2003A, 5.250%, 5/01/22 - SYNCORA GTY 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 AA- 1,365,393
1,500 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AA- 1,309,395
300 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series No Opt. Call AA- 319,542
2005, 5.000%, 1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,815 Total Tax Obligation/Limited 9,643,375
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.6% (2.3% OF TOTAL INVESTMENTS)
1,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 AA- 962,030
7/01/33 - MBIA Insured
500 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue 7/09 at 101.00 A 414,415
Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Transportation 1,376,445
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 38.1% (24.6% OF TOTAL INVESTMENTS) (4)
2,000 Massachusetts Bay Transportation Authority, Senior Sales Tax Revenue 7/12 at 100.00 AAA 2,216,580
Refunding Bonds, Series 2002A, 5.000%, 7/01/27 (Pre-refunded
7/01/12) - FGIC Insured
500 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (4) 600,685
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2003C, 6.375%, 7/01/23 (Pre-refunded 7/01/13)
100 Massachusetts Health and Educational Facilities Authority, Revenue 5/12 at 100.00 N/R (4) 109,202
Bonds, New England Medical Center Hospitals, Series 2002H, 5.000%,
5/15/25 (Pre-refunded 5/15/12) - FGIC Insured
525 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 7/09 at 100.00 AAA 653,903
7/01/13 (ETM)
2,000 Massachusetts, General Obligation Bonds, Consolidated Loan, Series 11/11 at 100.00 AA (4) 2,171,420
2001D, 5.000%, 11/01/20 (Pre-refunded 11/01/11) - MBIA Insured
1,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 1/14 at 100.00 A (4) 1,130,320
2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 1,590,060
2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured
3,000 Springfield, Massachusetts, General Obligation Bonds, Series 2003, 1/13 at 100.00 AA- (4) 3,403,350
5.250%, 1/15/22 (Pre-refunded 1/15/13) - MBIA Insured
2,140 University of Massachusetts Building Authority, Senior Lien Project 11/14 at 100.00 A+ (4) 2,518,737
Revenue Bonds, Series 2004-1, 5.375%, 11/01/21 (Pre-refunded
11/01/14) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,765 Total U.S. Guaranteed 14,394,257
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 61
NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31. 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.9% (11.6% OF TOTAL INVESTMENTS)
$ 1,900 Lynn Water and Sewer Commission, Massachusetts, General Revenue Bonds, 12/13 at 100.00 AA- $ 1,806,748
Series 2003A, 5.000%, 12/01/32 - MBIA Insured
600 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program 8/16 at 100.00 AAA 590,670
Bonds, Series 2006-12, 4.375%, 8/01/31
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, Series No Opt. Call AAA 1,170,310
2002J, 5.250%, 8/01/19 - FSA Insured
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, Series 8/13 at 100.00 AA+ 1,028,730
2004D, 5.000%, 8/01/24 - MBIA Insured
Massachusetts Water Resources Authority, General Revenue Bonds, Series
2006A:
1,500 5.000%, 8/01/31 - AMBAC Insured 8/16 at 100.00 AA+ 1,535,280
125 4.000%, 8/01/46 8/16 at 100.00 AA+ 97,915
495 Springfield Water and Sewerage Commission, Massachusetts, General 7/14 at 100.00 AA- 532,907
Revenue Bonds, Series 2003A, 5.000%, 7/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,620 Total Water and Sewer 6,762,560
------------------------------------------------------------------------------------------------------------------------------------
$ 57,700 Total Investments (cost $58,588,830) - 154.9% 58,485,394
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.0)% (1,500,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.4% 1,269,083
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (5) (20,500,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 37,754,477
=====================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 35.1%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
62 Nuveen Investments
NOM | Nuveen Missouri Premium Income Municipal Fund
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS)
$ 1,000 Missouri Development Finance Board, Solid Waste Disposal Revenue No Opt. Call AA- $ 951,270
Bonds, Procter and Gamble Inc., Series 1999, 5.200%, 3/15/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.1% (1.4% OF TOTAL INVESTMENTS)
250 Lincoln University, Missouri, Auxiliary System Revenue Bonds, Series 6/17 at 100.00 AAA 245,800
2007, 5.125%, 6/01/37 - AGC Insured
365 Missouri Health and Educational Facilities Authority, Revenue Bonds, 4/11 at 100.00 Baa1 369,537
Webster University, Series 2001, 5.500%, 4/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
615 Total Education and Civic Organizations 615,337
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.8% (13.9% OF TOTAL INVESTMENTS)
710 Cape Girardeau County Industrial Development Authority, Missouri, 6/17 at 100.00 N/R 599,268
Health Facilities Revenue Bonds, Southeast Missouri Hospital
Association, Series 2007, 5.000%, 6/01/27
930 Cass County, Missouri, Hospital Revenue Bonds, Series 2007, 5.625%, 11/16 at 100.00 N/R 727,781
5/01/38
480 Clinton County Industrial Development Authority, Missouri, Revenue 12/17 at 100.00 N/R 283,214
Bonds, Cameron Regional Medical Center, Series 2007, 5.000%,
12/01/37
750 Joplin Industrial Development Authority, Missouri, Health Facilities 2/15 at 102.00 BBB+ 647,093
Revenue Bonds, Freeman Health System, Series 2004, 5.500%, 2/15/29
500 Missouri Health & Educational Facilities Authority, St. Luke's 6/11 at 101.00 AAA 504,835
Episcopal- Presbyterian Hospitals Revenue Bonds, 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 1,510,905
1,155 5.250%, 5/15/32 5/13 at 100.00 AA 1,141,313
425 Missouri Health and Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 N/R 411,107
Lake Regional Health System, Series 1996, 6.500%, 2/15/21
500 Missouri Health and Educational Facilities Authority, Revenue Bonds, 2/14 at 100.00 BBB+ 429,775
Lake Regional Health System, Series 2003, 5.700%, 2/15/34
------------------------------------------------------------------------------------------------------------------------------------
6,950 Total Health Care 6,255,291
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.5% (4.8% OF TOTAL INVESTMENTS)
400 Jefferson County Industrial Development Authority, Missouri, 12/11 at 100.00 N/R 368,256
Multifamily Housing Revenue Bonds, Lakewood Apartments Project,
Series 2001B, 5.750%, 11/01/34 (Mandatory put 11/01/16)
(Alternative Minimum Tax)
275 Missouri Housing Development Commission, Multifamily Housing Revenue 12/11 at 100.00 AA 285,819
Bonds, Series 2001II, 5.250%, 12/01/16
500 St. Charles County Industrial Development Authority, Missouri, 10/09 at 101.00 AAA 500,365
FHA-Insured Multifamily Housing Revenue Bonds, Ashwood Apartments,
Series 1998A, 5.600%, 4/01/30 - FSA Insured (Alternative
Minimum Tax)
410 St. Louis County Industrial Development Authority, Missouri, GNMA 10/09 at 100.00 AAA 410,795
Collateralized Multifamily Housing Revenue Refunding Bonds,
South Summit Apartments, Series 1997A, 5.950%, 4/20/17
Nuveen Investments 63
NOM | Nuveen Missouri Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 600 St. Louis County Industrial Development Authority, Missouri, GNMA 10/09 at 100.00 AAA $ 601,356
Collateralized Multifamily Housing Revenue Refunding Bonds, South
Summit Apartments, Series 1997B, 6.000%, 10/20/15 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,185 Total Housing/Multifamily 2,166,591
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.3% (4.0% OF TOTAL INVESTMENTS)
80 Missouri Housing Development Commission, Single Family Mortgage 3/10 at 100.00 AAA 82,154
Revenue Bonds, Homeownership Loan Program, Series 2000B-1, 6.250%,
3/01/31 (Alternative Minimum Tax)
920 Missouri Housing Development Commission, Single Family Mortgage 9/16 at 100.00 AAA 847,762
Revenue Bonds, Homeownership Loan Program, Series 2007A-1, 4.700%,
9/01/27 (Alternative Minimum Tax)
1,000 Missouri Housing Development Commission, Single Family Mortgage 3/17 at 100.00 AAA 889,250
Revenue Bonds, Homeownership Loan Program, Series 2007C-1, 4.800%,
9/01/38 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Housing/Single Family 1,819,166
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.5% (4.7% OF TOTAL INVESTMENTS)
1,750 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 1,375,028
Bonds, Lutheran Senior Services - Heisinger Project, Series 2004,
5.500%, 2/01/35
475 Lees Summit Industrial Development Authority, Missouri, Revenue 8/17 at 100.00 N/R 351,348
Bonds, John Knox Village Obligated Group, Series 2007A, 5.125%,
8/15/32
500 St. Louis County Industrial Development Authority, Missouri, Revenue 9/17 at 100.00 N/R 414,840
Bonds, Friendship Village of West County, Series 2007A, 5.500%,
9/01/28
------------------------------------------------------------------------------------------------------------------------------------
2,725 Total Long-Term Care 2,141,216
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
750 Sugar Creek, Missouri, Industrial Development Revenue Bonds, Lafarge 6/13 at 101.00 BBB- 491,048
North America Inc., Series 2003A, 5.650%, 6/01/37 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.5% (17.5% OF TOTAL INVESTMENTS)
1,500 Camdenton Reorganized School District R3, Camden County, Missouri, No Opt. Call AAA 1,568,130
General Obligation Bonds, Series 2005, 5.250%, 3/01/24 - FSA
Insured
500 Jackson County School District R-7, Lees Summit, Missouri, General 3/12 at 100.00 AAA 543,580
Obligation Refunding and Improvement Bonds, Series 2002, 5.250%,
3/01/18 - FSA Insured
500 Missouri School Boards Association, Lease Participation Certificates, 3/17 at 100.00 AAA 528,985
Clay County School District 53 Liberty, Series 2007, 5.250%,
3/01/27 - FSA Insured
1,630 North Kansas City School District, Missouri, General Obligation 3/13 at 100.00 AA+ 1,715,265
Bonds, Series 2003A, 5.000%, 3/01/23
1,000 Puerto Rico, General Obligation and Public Improvement Bonds, Series No Opt. Call AA- 1,000,360
2001A, 5.500%, 7/01/20 - MBIA Insured
2,020 Ritenour Consolidated School District, St. Louis County, Missouri, No Opt. Call A1 2,243,715
General Obligation Bonds, Series 1995, 7.375%, 2/01/12 - FGIC
Insured
270 St. Louis County Pattonville School District R3, Missouri, General 3/14 at 100.00 AAA 292,502
Obligation Bonds, Series 2004, 5.250%, 3/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,420 Total Tax Obligation/General 7,892,537
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.7% (17.7% OF TOTAL INVESTMENTS)
600 Chesterfield, Missouri, Certificates of Participation, Series 2005, 12/15 at 100.00 Aa1 607,974
5.000%, 12/01/24 - FGIC Insured
80 Cottleville, Missouri, Certificates of Participation, Series 2006, 8/14 at 100.00 N/R 64,880
5.250%, 8/01/31
400 Fenton, Missouri, Tax Increment Revenue Bonds, Gravois Bluffs 4/14 at 100.00 N/R 363,812
Redevelopment Project, Series 2006, 4.500%, 4/01/21
315 Fulton, Missouri, Tax Increment Revenue Bonds, Fulton Commons 6/16 at 100.00 N/R 213,403
Redevelopment Project, Series 2006, 5.000%, 6/01/28
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 475 Kansas City Tax Increment Financing District, Missouri, Tax Increment 6/14 at 102.00 N/R $ 358,183
Revenue Bonds, Briarcliff West Project, Series 2006A, 5.400%,
6/01/24
415 Missouri Development Finance Board, Independence, Infrastructure 3/16 at 100.00 A+ 394,603
Facilities Revenue Bonds, Crackerneck Creek Project, Series 2006C,
5.000%, 3/01/28
360 Missouri Development Finance Board, Infrastructure Facilities Revenue 6/15 at 100.00 BBB+ 287,723
Bonds, Branson Landing Project, Series 2005A, 5.000%, 6/01/35
450 Monarch-Chesterfield Levee District, St. Louis County, Missouri, 3/10 at 101.00 AA- 465,255
Levee District Improvement Bonds, Series 1999, 5.750%, 3/01/19 -
MBIA Insured
500 Osage Beach, Missouri, Tax Increment Revenue Bonds, Prewitts Point 5/12 at 102.00 N/R 347,440
Transportation Development District, Series 2006, 5.000%, 5/01/23
600 Riverside, Missouri, L-385 Levee Redevelopment Plan Tax Increment 5/15 at 100.00 A 569,358
Revenue Bonds, Series 2004, 5.250%, 5/01/20
1,380 Springfield Center City Development Corporation, Missouri, Lease 11/11 at 100.00 A1 1,502,075
Revenue Bonds, Jordan Valley Park Parking Garage, Series 2002D,
5.000%, 11/01/22 - AMBAC Insured
2,000 Springfield Public Building Corporation, Missouri, Lease Revenue 6/10 at 100.00 A 2,071,940
Bonds, Jordan Valley Park Projects, Series 2000A, 6.125%, 6/01/21
- AMBAC Insured
St. Joseph Industrial Development Authority, Missouri, Tax
Increment Bonds, Shoppes at North Village Project, Series 2005A:
340 5.375%, 11/01/24 11/14 at 100.00 N/R 261,814
400 5.500%, 11/01/27 11/14 at 100.00 N/R 300,848
200 St. Joseph Industrial Development Authority, Missouri, Tax Increment 11/14 at 100.00 N/R 147,372
Bonds, Shoppes at North Village Project, Series 2005B, 5.500%,
11/01/27
------------------------------------------------------------------------------------------------------------------------------------
8,515 Total Tax Obligation/Limited 7,956,680
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.8% (3.1% OF TOTAL INVESTMENTS)
500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 A 471,795
Kansas City International Airport, Series 2001, 5.000%, 4/01/23 -
AMBAC Insured (Alternative Minimum Tax)
1,000 St. Louis Land Clearance Redevelopment Authority, Missouri, Revenue 9/09 at 102.00 N/R 905,780
Refunding and Improvement Bonds, LCRA Parking Facilities, Series
1999C, 7.000%, 9/01/19
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Transportation 1,377,575
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 25.7% (16.4% OF TOTAL INVESTMENTS) (4)
685 Fenton, Missouri, Tax Increment Refunding and Improvement Revenue 10/12 at 100.00 N/R (4) 780,927
Bonds, Gravois Bluffs Redevelopment Project, Series 2002, 6.125%,
10/01/21 (Pre-refunded 10/01/12)
2,500 Missouri Health and Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AA- (4) 2,727,125
SSM Healthcare System, Series 2001A, 5.250%, 6/01/28 (Pre-refunded
6/01/11) - AMBAC Insured (5)
1,000 Missouri Health and Educational Facilities Authority, Revenue Bonds, 12/10 at 101.00 A (4) 1,087,440
St. Anthony's Medical Center, Series 2000, 6.250%, 12/01/30
(Pre-refunded 12/01/10)
80 St. Louis County Pattonville School District R3, Missouri, General 3/14 at 100.00 AAA 92,519
Obligation Bonds, Series 2004, 5.250%, 3/01/20 (Pre-refunded
3/01/14) - FSA Insured
500 St. Louis County, Missouri, GNMA Collateralized Mortgage Revenue No Opt. Call N/R (4) 572,325
Bonds, Series 1993D, 5.650%, 7/01/20 (Alternative Minimum Tax)
(ETM)
1,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold Revenue 2/12 at 100.00 N/R (4) 1,117,010
Bonds, Carnahan Courthouse, Series 2002A, 5.750%, 2/15/16
(Pre-refunded 2/15/12) - FGIC Insured
950 Texas County, Missouri, Hospital Revenue Bonds, Texas County Memorial 6/10 at 100.00 N/R (4) 1,014,572
Hospital, Series 2000, 7.250%, 6/15/25 (Pre-refunded 6/15/10)
------------------------------------------------------------------------------------------------------------------------------------
6,715 Total U.S. Guaranteed 7,391,918
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 65
NOM | Nuveen Missouri Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.8% (6.2% OF TOTAL INVESTMENTS)
$ 2,965 Missouri Environmental Improvement and Energy Resources Authority, 12/16 at 100.00 AAA $ 2,408,974
Water Facility Revenue Bonds, Missouri-American Water Company,
Series 2006, 4.600%, 12/01/36 - AMBAC Insured (Alternative Minimum
Tax) (UB)
350 Missouri Environmental Improvement and Energy Resources Authority, No Opt. Call Aaa 393,717
Water Pollution Control Revenue Bonds, State Revolving Fund
Program - Kansas City Project, Series 1997C, 6.750%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
3,315 Total Water and Sewer 2,802,691
------------------------------------------------------------------------------------------------------------------------------------
$ 43,690 Total Long-Term Investments (cost $43,905,790) - 145.7% 41,861,320
============------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 11.1% (7.1% OF TOTAL INVESTMENTS)
TAX OBLIGATION/LIMITED -11.1% (7.1% OF TOTAL INVESTMENTS)
$ 3,200 Kansas City, Missouri, Special Obligation Bonds, H. Roe Bartle 9/09 at 100.00 VMIG-1 3,200,000
Convention Center Refunding, Variable Rate Demand Obligations,
Series 2008F, 0.650%, 4/15/25 (6)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,200,000) 3,200,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $47,105,790) - 156.8% 45,061,320
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.7)% (2,225,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.6% 1,897,535
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.7)% (7) (16,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 28,733,855
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Portion of investment has been pledged as collateral for inverse floating
rate transactions.
(6) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(7) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 35.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
66 Nuveen Investments
| Statement of ASSETS & LIABILITIES
May 31, 2009
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Long-term investments, at value (cost $111,852,764, $55,995,788,
$50,443,963 and $89,136,791, respectively) $ 109,782,010 $ 55,542,133 $ 50,556,665 $ 87,037,269
Short-term investments (at cost, which approximates value) -- -- -- --
Cash 4,451,447 1,896,265 1,536,211 6,904,003
Receivables:
Interest 1,759,174 793,168 727,950 1,371,155
Investments sold 185,000 90,000 -- --
Other assets 18,097 12,898 29,871 13,053
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 116,195,728 58,334,464 52,850,697 95,325,480
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 7,965,000 3,820,000 3,460,000 5,780,000
Payables:
Preferred shares noticed for redemption, at liquidation value 1,525,000 750,000 675,000 1,750,000
Common share dividends 256,848 136,977 130,672 204,298
Preferred share dividends 1,486 1,429 995 2,859
Accrued expenses:
Management fees 59,456 25,326 20,806 37,056
Other 36,584 21,997 21,314 31,826
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 9,844,374 4,755,729 4,308,787 7,806,039
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 33,450,000 17,250,000 15,450,000 28,275,000
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 72,901,354 $ 36,328,735 $ 33,091,910 $ 59,244,441
===================================================================================================================================
Common shares outstanding 5,363,976 2,580,654 2,317,030 4,365,873
===================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 13.59 $ 14.08 $ 14.28 $ 13.57
===================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 53,640 $ 25,807 $ 23,170 $ 43,659
Paid-in surplus 74,524,660 36,607,532 32,808,667 61,611,912
Undistributed (Over-distribution of) net investment income 474,468 196,527 211,796 191,277
Accumulated net realized gain (loss) from investments
and derivative transactions (80,660) (47,476) (64,425) (502,885)
Net unrealized appreciation (depreciation) of investments (2,070,754) (453,655) 112,702 (2,099,522)
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 72,901,354 $ 36,328,735 $ 33,091,910 $ 59,244,441
-----------------------------------------------------------------------------------------------------------------------------------
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
===================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 67
| Statement of ASSETS & LIABILITIES (continued)
May 31, 2009
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Long-term investments, at value (cost $100,505,662, $42,518,129,
$58,588,830 and $43,905,790, respectively) $ 97,144,589 $ 41,058,621 $ 58,485,394 $ 41,861,320
Short-term investments (at cost, which approximates value) -- -- -- 3,200,000
Cash 1,153,796 190,588 424,349 1,317,808
Receivables:
Interest 1,700,578 720,389 910,345 730,629
Investments sold 110,000 -- 95,000 --
Other assets 15,268 11,653 36,556 6,987
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 100,124,231 41,981,251 59,951,644 47,116,744
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 2,450,000 1,050,000 1,500,000 2,225,000
Payables:
Preferred shares noticed for redemption, at liquidation value -- -- -- --
Common share dividends 262,478 112,824 149,235 113,550
Preferred share dividends 1,383 1,132 1,265 680
Accrued expenses:
Management fees 53,461 18,939 24,202 24,595
Other 36,333 18,371 22,465 19,064
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,803,655 1,201,266 1,697,167 2,382,889
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 34,000,000 14,250,000 20,500,000 16,000,000
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 63,320,576 $ 26,529,985 $ 37,754,477 $ 28,733,855
===================================================================================================================================
Common shares outstanding 4,764,710 1,961,755 2,724,191 2,309,862
===================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 13.29 $ 13.52 $ 13.86 $ 12.44
===================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 47,647 $ 19,618 $ 27,242 $ 23,099
Paid-in surplus 66,159,071 27,773,450 38,386,923 30,967,232
Undistributed (Over-distribution of) net investment income 495,820 137,815 129,654 152,639
Accumulated net realized gain (loss) from investments
and derivative transactions (20,889) 58,610 (685,906) (364,645)
Net unrealized appreciation (depreciation) of investments (3,361,073) (1,459,508) (103,436) (2,044,470)
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 63,320,576 $ 26,529,985 $ 37,754,477 $ 28,733,855
===================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
===================================================================================================================================
See accompanying notes to financial statements.
68 Nuveen Investments
| Statement of OPERATIONS
Year Ended May 31, 2009
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,518,490 $ 2,787,085 $ 2,479,643 $ 4,309,110
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 699,899 351,769 317,433 573,137
Preferred shares -- auction fees 92,202 46,958 42,145 77,129
Preferred shares -- dividend disbursing agent fees 10,000 10,000 10,000 10,000
Shareholders' servicing agent fees and expenses 9,489 1,465 1,295 1,338
Interest expense on floating rate obligations 79,864 39,269 35,445 63,690
Custodian's fees and expenses 27,982 16,134 15,701 22,893
Trustees' fees and expenses 3,398 1,743 1,577 2,772
Professional fees 16,495 13,238 12,826 15,849
Shareholders' reports -- printing and mailing expenses 29,457 15,993 14,520 23,079
Stock exchange listing fees 9,215 364 327 616
Investor relations expense 12,060 5,904 5,409 9,662
Other expenses 17,524 15,689 14,479 15,770
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,007,585 518,526 471,157 815,935
Custodian fee credit (2,981) (1,085) (4,987) (9,243)
Expense reimbursement -- (72,819) (94,286) (166,769)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,004,604 444,622 371,884 639,923
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,513,886 2,342,463 2,107,759 3,669,187
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (65,422) (52,277) (53,947) (124,826)
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (3,446,470) (1,392,610) (903,421) (2,451,332)
Forward swaps -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (3,511,892) (1,444,887) (957,368) (2,576,158)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (772,216) (377,309) (335,215) (720,819)
From accumulated net realized gains (147,930) (97,695) (99,314) --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (920,146) (475,004) (434,529) (720,819)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 81,848 $ 422,572 $ 715,862 $ 372,210
===================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 69
| Statement of OPERATIONS (continued)
Year Ended May 31, 2009
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,187,446 $ 2,208,851 $ 2,896,217 $ 2,406,431
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 616,101 260,498 367,635 285,782
Preferred shares -- auction fees 82,393 35,806 49,677 38,773
Preferred shares -- dividend disbursing agent fees 10,000 10,000 10,000 10,000
Shareholders' servicing agent fees and expenses 5,743 652 611 3,783
Interest expense on floating rate obligations 56,807 24,341 34,772 37,244
Custodian's fees and expenses 26,129 14,576 18,886 12,772
Trustees' fees and expenses 2,894 1,221 1,770 1,328
Professional fees 15,569 12,167 13,158 11,618
Shareholders' reports -- printing and mailing expenses 27,912 14,203 17,991 16,556
Stock exchange listing fees 9,207 277 385 325
Investor relations expense 11,139 4,698 6,429 5,317
Other expenses 16,050 15,246 15,616 15,347
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 879,944 393,685 536,930 438,845
Custodian fee credit (10,642) (2,426) (243) (4,694)
Expense reimbursement -- (54,023) (114,125) --
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 869,302 337,236 422,562 434,151
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,318,144 1,871,615 2,473,655 1,972,280
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 136,221 29,163 (175,187) (348,183)
Forward swaps 101,206 62,818 -- --
Futures (44,426) (13,669) -- --
Change in net unrealized appreciation (depreciation) of:
Investments (4,755,329) (1,831,289) (1,160,172) (2,238,845)
Forward swaps (92,080) (57,153) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (4,654,408) (1,810,130) (1,335,359) (2,587,028)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (717,206) (334,450) (465,067) (360,699)
From accumulated net realized gains (80,090) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (797,296) (334,450) (465,067) (360,699)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ (1,133,560) $ (272,965) $ 673,229 $ (975,447)
===================================================================================================================================
See accompanying notes to financial statements.
70 Nuveen Investments
| Statement of CHANGES in NET ASSETS
CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK)
--------------------------- --------------------------- ---------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,513,886 $ 4,463,982 $ 2,342,463 $ 2,343,257 $ 2,107,759 $ 2,107,281
Net realized gain (loss) from:
Investments (65,422) 298,858 (52,277) 433,225 (53,947) 442,376
Forward swaps -- 487,864 -- 348,636 -- 273,468
Futures -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (3,446,470) (1,365,508) (1,392,610) (796,148) (903,421) (728,130)
Forward swaps -- 47,886 -- 37,677 -- 28,258
Distributions to Preferred shareholders:
From net investment income (772,216) (1,196,691) (377,309) (617,335) (335,215) (540,900)
From accumulated net realized gains (147,930) (49,238) (97,695) (51,129) (99,314) (52,122)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 81,848 2,687,153 422,572 1,698,183 715,862 1,530,231
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,221,068) (3,298,641) (1,722,367) (1,721,069) (1,538,392) (1,556,110)
From accumulated net realized gains (400,689) (154,483) (273,291) (167,071) (288,702) (170,904)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (3,621,757) (3,453,124) (1,995,658) (1,888,140) (1,827,094) (1,727,014)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 56,012 28,119 39,414 15,125 18,857
----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from capital share transactions -- 56,012 28,119 39,414 15,125 18,857
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,539,909) (709,959) (1,544,967) (150,543) (1,096,107) (177,926)
Net assets applicable to Common
shares at the beginning of year 76,441,263 77,151,222 37,873,702 38,024,245 34,188,017 34,365,943
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $ 72,901,354 $ 76,441,263 $ 36,328,735 $ 37,873,702 $ 33,091,910 $ 34,188,017
==================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 474,468 $ (44,979) $ 196,527 $ (39,553) $ 211,796 $ (22,815)
==================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 71
| Statement of CHANGES in NET ASSETS (continued)
CONNECTICUT MASSACHUSETTS MASSACHUSETTS
DIVIDEND ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) DIVIDEND ADVANTAGE (NMB)
--------------------------- --------------------------- --------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,669,187 $ 3,774,921 $ 4,318,144 $ 4,178,667 $ 1,871,615 $ 1,833,775
Net realized gain (loss) from:
Investments (124,826) 142,304 136,221 55,351 29,163 (51,170)
Forward swaps -- 171,871 101,206 113,292 62,818 43,595
Futures -- -- (44,426) -- (13,669) --
Change in net unrealized appreciation
(depreciation) of:
Investments (2,451,332) (1,287,450) (4,755,329) (1,860,524) (1,831,289) (945,603)
Forward swaps -- 3,949 (92,080) 131,277 (57,153) 72,832
Distributions to Preferred shareholders:
From net investment income (720,819) (1,099,727) (717,206) (1,186,015) (334,450) (511,186)
From accumulated net realized gains -- -- (80,090) (28,016) -- (16,392)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 372,210 1,705,868 (1,133,560) 1,404,032 (272,965) 425,851
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,604,243) (2,644,809) (3,084,501) (2,943,779) (1,359,879) (1,328,586)
From accumulated net realized gains -- -- (197,208) (79,074) -- (48,600)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,604,243) (2,644,809) (3,281,709) (3,022,853) (1,359,879) (1,377,186)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 90,750 15,479 15,691 27,520 14,859
----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from capital share transactions -- 90,750 15,479 15,691 27,520 14,859
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,232,033) (848,191) (4,399,790) (1,603,130) (1,605,324) (936,476)
Net assets applicable to Common
shares at the beginning of year 61,476,474 62,324,665 67,720,366 69,323,496 28,135,309 29,071,785
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $ 59,244,441 $ 61,476,474 $ 63,320,576 $ 67,720,366 $ 26,529,985 $ 28,135,309
==================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 191,277 $ (152,848) $ 495,820 $ (20,540) $ 137,815 $ (39,471)
==================================================================================================================================
See accompanying notes to financial statements.
72 Nuveen Investments
INSURED MASSACHUSETTS MISSOURI
TAX-FREE ADVANTAGE (NGX) PREMIUM INCOME (NOM)
--------------------------- ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
5/31/09 5/31/08 5/31/09 5/31/08
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,473,655 $ 2,451,685 $ 1,972,280 $ 2,051,885
Net realized gain (loss) from:
Investments (175,187) 112,230 (348,183) 23,306
Forward swaps -- 41,813 -- --
Futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (1,160,172) (729,499) (2,238,845) (1,458,850)
Forward swaps -- -- -- --
Distributions to Preferred shareholders:
From net investment income (465,067) (703,413) (360,699) (465,017)
From accumulated net realized gains -- -- -- (93,600)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 673,229 1,172,816 (975,447) 57,724
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,808,499) (1,769,589) (1,509,479) (1,506,279)
From accumulated net realized gains -- -- -- (291,322)
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,808,499) (1,769,589) (1,509,479) (1,797,601)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 16,315 12,022 48,910 83,533
------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from capital share transactions 16,315 12,022 48,910 83,533
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (1,118,955) (584,751) (2,436,016) (1,656,344)
Net assets applicable to Common
shares at the beginning of year 38,873,432 39,458,183 31,169,871 32,826,215
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $ 37,754,477 $ 38,873,432 $ 28,733,855 $ 31,169,871
============================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of year $ 129,654 $ (70,435) $ 152,639 $ 50,539
============================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 73
| Notes to FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds covered in this report and their corresponding Common share
stock exchange symbols are Nuveen Connecticut Premium Income Municipal Fund
(NTC), Nuveen Connecticut Dividend Advantage Municipal Fund (NFC), Nuveen
Connecticut Dividend Advantage Municipal Fund 2 (NGK), Nuveen Connecticut
Dividend Advantage Municipal Fund 3 (NGO), Nuveen Massachusetts Premium Income
Municipal Fund (NMT), Nuveen Massachusetts Dividend Advantage Municipal Fund
(NMB), Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX) and
Nuveen Missouri Premium Income Municipal Fund (NOM) (collectively, the "Funds").
Common shares of Connecticut Premium Income (NTC) and Massachusetts Premium
Income (NMT) are traded on the New York Stock Exchange while Common shares of
Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK),
Connecticut Dividend Advantage 3 (NGO), Massachusetts Dividend Advantage (NMB),
Insured Massachusetts Tax-Free Advantage (NGX) and Missouri Premium Income (NOM)
are traded on the NYSE Amex (formerly, 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 portfolio of municipal obligations issued by state and
local government authorities within a single state or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. Prices of forward
swap contracts are also provided by an independent pricing service approved by
each Fund's Board of Trustees. Futures contracts are valued using the closing
settlement price, or, in the absence of such a price, at the mean of the bid and
asked prices. When market price quotes are not readily available (which is
usually the case for municipal securities), the pricing service or, in the
absence of a pricing service for a particular investment or derivative
instrument, the Board of Trustees of the Fund, or its designee, may establish
fair value using a wide variety of market data including yields or prices of
investments of comparable quality, type of issue, coupon, maturity and rating,
market quotes or indications of value from security dealers, evaluations of
anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At May 31, 2009, 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.
74 Nuveen Investments
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions 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.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
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 paid by the Funds on each Series is
determined every seven days, pursuant to a dutch auction process overseen by the
auction agent, and is payable at the end of each rate period. As of May 31,
2009, the number of Preferred shares outstanding (excluding Preferred shares
noticed for redemption) 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 -- 690 -- --
Series W -- -- 618 --
Series TH 1,338 -- -- --
Series F -- -- -- 1,131
================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Number of shares:
Series T -- 570 -- --
Series W -- -- 820 --
Series TH 1,360 -- -- 640
Series F -- -- -- --
================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one implication of these auction
failures for Common shareholders is that the Funds' cost of leverage will likely
be higher, at least temporarily, than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future
Nuveen Investments 75
| Notes to FINANCIAL STATEMENTS (continued)
Common share earnings may be lower than they otherwise would have been. As of
May 31, 2009, the aggregate amount of outstanding Preferred Shares redeemed
and/or noticed for redemption by each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed for
redemption, at liquidation value $ 4,850,000 $ 2,250,000 $ 2,050,000 $ 3,725,000
-----------------================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed for
redemption, at liquidation value $ -- $ 750,000 $ -- $ --
====================================================================================================
Effective May 1, 2009, auction participation fees with respect to auctions that
have failed have been reduced from 25 bps (annualized) to 15 bps (annualized).
All auction participants have signed new agreements incorporating this change.
Insurance
Under normal circumstances, Insured Massachusetts Tax-Free Advantage (NGX) will
invest at least 80% of its net assets (as defined in Footnote 7 - Management
Fees and Other Transactions with Affiliates) in municipal securities that are
covered by insurance guaranteeing the timely payment of principal and interest.
For purposes of this 80% test, insurers must have a claims paying ability rated
at least "A" at the time of purchase by at least one independent rating agency.
In addition, the Fund will invest at least 80% of its net assets in municipal
securities that are rated at least "AA" at the time of purchase (based on the
higher of the rating of the insurer, if any, or the underlying security) by at
least one independent rating agency, or are unrated but judged to be of similar
credit quality by Nuveen Asset Management (the "Adviser"), a wholly-owned
subsidiary of Nuveen, or municipal bonds backed by an escrow or trust account
containing sufficient U.S. government or U.S. government agency securities or
U.S. Treasury-issued State and Local Government Series securities to ensure
timely payment of principal and interest. The Fund may also invest up to 20% of
its net assets in municipal securities rated below "AA" (based on the higher
rating of the insurer, if any, or the underlying bond) or are unrated but judged
to be of comparable quality by the Adviser.
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 include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Fund
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds)
76 Nuveen Investments
an inverse floating rate certificate (sometimes referred to as an "inverse
floater") that represents all remaining or residual interest in the trust. The
income received by the inverse floater holder varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the inverse floater holder bears substantially all of the
underlying bond's downside investment risk and also benefits disproportionately
from any potential appreciation of the underlying bond's value. The price of an
inverse floating rate security will be more volatile than that of the underlying
bond because the interest rate is dependent on not only the fixed coupon rate of
the underlying bond but also on the short-term interest paid on the floating
rate certificates, and because the inverse floating rate security essentially
bears the risk of loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (SFAS No.
140) "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities." In such instances, a fixed-rate bond deposited
into a special purpose trust is identified in the Portfolio of Investments as
"(UB) - Underlying bond of an inverse floating rate trust," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and the related interest paid to the holders of the short-term
floating rate certificates is recognized as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the fiscal year ended May 31, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At May 31, 2009, the Funds were not invested in externally-deposited Recourse
Trusts.
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
---------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ --
===================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ --
==================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended May 31, 2009, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------------------------
Average floating rate obligations $ 4,458,674 $ 2,184,038 $ 1,972,353 $ 3,507,126
Average annual interest rate and fees 1.79% 1.80% 1.80% 1.82%
=================================================================================================
Nuveen Investments 77
| Notes to FINANCIAL STATEMENTS (continued)
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------
Average floating rate obligations $ 2,863,000 $ 1,226,918 $ 1,752,740 $ 2,225,000
Average annual interest rate and fees 1.98% 1.98% 1.98% 1.67%
=====================================================================================================
Swap Contracts
Each Fund is authorized to enter into swap contracts consistent with their
investment objectives and policies to reduce, increase or otherwise alter its
risk profile or to alter its portfolio characteristics (i.e. duration, yield
curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Forward interest rate swap transactions are intended to
help the Fund manage its overall interest rate sensitivity, either shorter or
longer, generally to more closely align the Fund's interest rate sensitivity
with that of the broader municipal market. Forward interest rate swap
transactions involve each Fund's agreement with a counterparty to pay, in the
future, a fixed or variable rate payment in exchange for the counterparty paying
the Fund a variable or fixed rate payment, the accruals for which would begin at
a specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date.
The average notional amounts during the fiscal year ended May 31, 2009, were as
follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------
Forward swap contract average notional balance $ -- $ -- $ -- $ --
==========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------
Forward swap contract average notional balance $ 290,000 $ 180,000 $ -- $ --
============================================================================================================
Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further
details on forward swap contract activity.
Futures Contracts
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in order
to gain exposure to, or hedge against changes in interest rates. Upon entering
into a futures contract, a Fund is required to deposit with the broker an amount
of cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
78 Nuveen Investments
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized on
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin, when
applicable.
The average number of futures contracts outstanding during the fiscal year ended
May 31, 2009, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------------------------------
Average number of futures contracts outstanding -- -- -- --
=======================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------
Average number of futures contracts outstanding --* --* -- --
============================================================================================================
* Although the Fund invested in futures contracts during the current fiscal
year, the average number of contracts is calculated based on the
outstanding contracts at the beginning of the fiscal year and at the end
of each fiscal quarter within the current fiscal year. The Fund did not
hold futures contracts at the beginning of the fiscal year or at the end
of any fiscal quarter during the current fiscal year.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further
details on futures contract activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold.
Reciprocally, when each Fund has an unrealized loss, the Funds have instructed
the custodian to pledge assets of the Funds as collateral with a value
approximately equal to the amount of the unrealized loss above a pre-determined
threshold. Collateral pledges are monitored and subsequently adjusted if and
when the valuations fluctuate, either up or down, by at least the predetermined
threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Nuveen Investments 79
| Notes to FINANCIAL STATEMENTS (continued)
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US 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. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.).
Level 3 - Significant unobservable inputs (including management's assumptions
in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of May 31, 2009:
CONNECTICUT PREMIUM INCOME (NTC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 109,782,010 $ -- $ 109,782,010
====================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 55,542,133 $ -- $ 55,542,133
====================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 50,556,665 $ -- $ 50,556,665
====================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 87,037,269 $ -- $ 87,037,269
====================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 96,687,084 $ 457,505 $ 97,144,589
====================================================================================================
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 40,143,611 $ 915,010 $ 41,058,621
====================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 58,485,394 $ -- $ 58,485,394
====================================================================================================
MISSOURI PREMIUM INCOME (NOM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------------------------------------------------------------------------------------------------
Investments $ -- $ 45,061,320 $ -- $ 45,061,320
====================================================================================================
80 Nuveen Investments
The following is a reconciliation of each Fund's Level 3 investments held at the
beginning and end of the measurement period:
MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NMT) (NMB)
LEVEL 3 LEVEL 3
INVESTMENTS INVESTMENTS
-------------------------------------------------------------------------------------------
Balance at beginning of year $ 389,384 $ 778,768
Gains (losses):
Net realized gains (losses) -- --
Net change in unrealized appreciation (depreciation) 68,121 136,242
Net purchases at cost (sales at proceeds) -- --
Net discounts (premiums) -- --
Net transfers in to (out of) at end of period fair value -- --
-------------------------------------------------------------------------------------------
Balance at end of year $ 457,505 $ 915,010
===========================================================================================
Change in net unrealized appreciation (depreciation) of investments presented on
the Statement of Operations includes net unrealized appreciation (depreciation)
related to securities classified as Level 3 at period end as follows:
MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NMT) (NMB)
-------------------------------------------------------------------------------------------
Level 3 net unrealized appreciation (depreciation) $ 68,121 $ 136,242
===========================================================================================
3. Derivative Instruments and Hedging Activities
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 161 (SFAS No. 161) "Disclosures about
Derivative Instruments and Hedging Activities." This standard is intended to
enhance financial statement disclosures for derivative instruments and hedging
activities and enable investors to better understand: a) how and why a fund uses
derivative instruments; b) how derivative instruments are accounted for; and c)
how derivative instruments affect a fund's financial position, results of
operations and cash flows, if any. The Funds record derivative instruments at
fair value with changes in fair value recognized on the Statement of Operations.
Even though the Funds' investments in derivatives may represent economic hedges,
they are considered to be non-hedge transactions for SFAS No. 161 disclosure
purposes. For additional information on the derivative instruments in which each
Fund was invested during and at the end of the reporting period, refer to the
Portfolio of Investments, Financial Statements and Footnote 1 - General
Information and Significant Accounting Policies.
The following tables present the amount of net realized gain (loss) and net
change in unrealized appreciation (depreciation) recognized for the fiscal year
ended May 31, 2009, on derivative instruments, as well as the primary risk
exposure associated with each. The following Funds held derivative instruments
during the fiscal year ended May 31, 2009. None of the Funds had outstanding
derivative contracts at May 31, 2009.
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS
PREMIUM PREMIUM DIVIDEND DIVIDEND
INCOME INCOME ADVANTAGE ADVANTAGE
(NMT) (NMT) (NMB) (NMB)
AMOUNT OF NET REALIZED GAIN (LOSS) FORWARD SWAPS FUTURES FORWARD SWAPS FUTURES
--------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ 101,206 $ (44,426) $ 62,818 $ (13,669)
==================================================================================================
MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NMT) (NMB)
AMOUNT OF CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) FORWARD SWAPS FORWARD SWAPS
--------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ (92,080) $ (57,153)
==================================================================================================
Nuveen Investments 81
| Notes to FINANCIAL STATEMENTS (continued)
4. FUND SHARES
Common Shares
On July 30, 2008, the Funds' Board of Trustees approved an open-market share
repurchase program under which each Fund may repurchase an aggregate of up to
approximately 10% of its outstanding Common shares. Since the inception of this
program, the Funds have not repurchased any of their outstanding Common shares.
Transactions in Common shares were as follows:
CONNECTICUT CONNECTICUT DIVIDEND CONNECTICUT DIVIDEND
PREMIUM INCOME (NTC) ADVANTAGE (NFC) ADVANTAGE 2 (NGK)
-------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08
--------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- 3,915 1,966 2,675 1,051 1,265
==============================================================================================================
CONNECTICUT DIVIDEND MASSACHUSETTS MASSACHUSETTS DIVIDEND
ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) ADVANTAGE (NMB)
-------------------- ---------------------- ----------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08
--------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- 6,503 1,224 1,090 2,066 1,004
==============================================================================================================
INSURED
MASSACHUSETTS TAX-FREE MISSOURI
ADVANTAGE (NGX) PREMIUM INCOME (NOM)
---------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
5/31/09 5/31/08 5/31/09 5/31/08
--------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 1,233 863 3,842 5,970
==============================================================================================================
Preferred Shares
Transactions in Preferred shares were as follows:
CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC)
-------------------------------------- --------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/09 5/31/08 5/31/09 5/31/08
-------------------------------------- --------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series T -- $ -- -- $ -- 90 $ 2,250,000 -- $ --
Series TH 194 4,850,000 -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------
Total 194 $ 4,850,000 -- $ -- 90 $ 2,250,000 -- $ --
===================================================================================================================
82 Nuveen Investments
CONNECTICUT CONNECTICUT
DIVIDEND ADVANTAGE 2 (NGK) DIVIDEND ADVANTAGE 3 (NGO)
-------------------------------------- --------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/09 5/31/08 5/31/09 5/31/08
-------------------------------------- --------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series W 82 $ 2,050,000 -- $ -- -- $ -- -- $ --
Series F -- -- -- -- 149 3,725,000 -- --
-------------------------------------------------------------------------------------------------------------------
Total 82 $ 2,050,000 -- $ -- 149 $ 3,725,000 -- $ --
===================================================================================================================
MASSACHUSETTS
DIVIDEND ADVANTAGE (NMB)
--------------------------------------
YEAR ENDED YEAR ENDED
5/31/09 5/31/08
--------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series T 30 $ 750,000 -- $ --
===================================================================================================================
During the fiscal years ended May 31, 2009 and May 31, 2008, Massachusetts
Premium Income (NMT), Insured Massachusetts Tax-Free Advantage (NGX) and
Missouri Premium Income (NOM) did not have any transactions in their Preferred
shares.
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended May 31, 2009, were as
follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
--------------------------------------------------------------------------------
Purchases $ -- $ -- $ -- $ --
Sales and maturities 4,765,152 1,849,302 1,133,520 5,001,580
================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Purchases $ 985,653 $ 480,326 $ -- $ 753,650
Sales and maturities 4,444,900 2,016,478 2,721,756 4,515,900
================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140, if any. To the extent that differences
arise that are permanent in nature, such amounts are reclassified within the
capital accounts on the Statement of Assets and Liabilities presented in the
annual report, based on their federal tax basis treatment; temporary differences
do not require reclassification. Temporary and permanent differences do not
impact the net asset values of the Funds.
At May 31, 2009, 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 $ 103,953,737 $ 52,185,609 $ 46,997,778 $ 83,401,671
================================================================================
Nuveen Investments 83
| Notes to FINANCIAL STATEMENTS (continued)
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-------------------------------------------------------------------------------------------------------------
Cost of investments $ 97,974,505 $ 41,431,316 $ 57,088,720 $ 44,862,412
=============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 2009, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 2,243,737 $ 1,603,734 $ 1,799,056 $ 1,990,266
Depreciation (4,378,961) (2,067,118) (1,699,985) (4,133,594)
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investments $ (2,135,224) $ (463,384) $ 99,071 $ (2,143,328)
=============================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 3,075,838 $ 813,444 $ 1,969,561 $ 1,404,277
Depreciation (6,355,729) (2,236,128) (2,072,872) (3,429,447)
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investments $ (3,279,891) $ (1,422,684) $ (103,311) $ (2,025,170)
=============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at May 31, 2009, the Funds' tax year end, were
as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $ 730,220 $ 305,680 $ 310,005 $ 374,587
Undistributed net ordinary income ** 1,415 3,618 -- 34
Undistributed net long-term capital gains 15,102 -- -- --
==========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $ 706,670 $ 219,824 $ 284,706 $ 259,908
Undistributed net ordinary income ** -- 69,105 -- --
Undistributed net long-term capital gains -- -- -- --
==========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 1, 2009, paid on June 1, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
84 Nuveen Investments
The tax character of distributions paid during the Funds' tax years ended May
31, 2009 and May 31, 2008, 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
2009 (NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 3,972,803 $ 2,099,897 $ 1,866,508 $ 3,322,638
Distributions from net ordinary income ** 487,842 223,136 275,669 --
Distributions from net long-term capital gains**** 60,777 147,900 112,806 --
=================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
2009 (NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 3,759,696 $ 1,690,469 $ 2,271,085 $ 1,871,464
Distributions from net ordinary income ** 123,018 -- -- --
Distributions from net long-term capital gains**** 154,203 -- -- --
=================================================================================================================
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2008 (NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 4,528,844 $ 2,336,458 $ 2,101,642 $ 3,755,918
Distributions from net ordinary income ** -- 5,381 -- 102
Distributions from net long-term capital gains 203,721 218,200 223,026 --
=================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
2008 (NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 4,147,682 $ 1,843,671 $ 2,465,317 $ 1,987,482
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains 107,090 64,958 -- 384,860
=================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
May 31, 2009, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended May 31, 2009.
At May 31, 2009, the Funds' tax year end, the following Funds had unused capital
loss carryforwards available for federal income tax purposes to be applied
against future capital gains, if any. If not applied, the carryforwards will
expire as follows:
INSURED
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS MISSOURI
DIVIDEND DIVIDEND DIVIDEND TAX-FREE PREMIUM
ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE INCOME
(NFC) (NGK) (NGO) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------
Expiration:
May 31, 2013 $ -- $ -- $ 35,642 $ 18,655 $ --
May 31, 2014 -- -- 111,331 427,135 --
May 31, 2015 -- -- 211,213 -- --
May 31, 2017 1,980 443 43,691 215,629 260,982
-----------------------------------------------------------------------------------------------------
Total $ 1,980 $ 443 $ 401,877 $ 661,419 $ 260,982
=====================================================================================================
Nuveen Investments 85
| Notes to FINANCIAL STATEMENTS (continued)
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2008 through May 31, 2009, the Funds' tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
INSURED
CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
DIVIDEND DIVIDEND PREMIUM DIVIDEND TAX-FREE PREMIUM
ADVANTAGE 2 ADVANTAGE 3 INCOME ADVANTAGE ADVANTAGE INCOME
(NGK) (NGO) (NMT) (NMB) (NGX) (NOM)
---------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $ 10,861 $ 15,027 $ 20,890 $ 10,497 $ 24,486 $103,662
===========================================================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
CONNECTICUT PREMIUM INCOME (NTC)
MASSACHUSETTS PREMIUM INCOME (NMT)
MISSOURI PREMIUM INCOME (NOM)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, 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 net assets managed as stated in the following
table. As of May 31, 2009, the complex-level fee rate was .1982%.
86 Nuveen Investments
The complex-level fee schedule is as follows:
COMPLEX-LEVEL EFFECTIVE RATE AT
NET ASSET BREAKPOINT LEVEL (1) BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets, for funds that use financial
leverage, includes assets managed by the Adviser that are attributable to
such financial leverage. For these purposes, financial leverage includes
the funds' use of preferred stock and borrowings and investments in the
residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of
assets held by the TOB trust that has been effectively financed by the
trust's issuance of floating rate securities, subject to an agreement by
the Adviser to limit the amount of such assets for determining managed net
assets in certain circumstances.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
For the first ten years of Connecticut Dividend Advantage's (NFC) and
Massachusetts Dividend Advantage's (NMB) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets, for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage (NFC) and
Massachusetts Dividend Advantage (NMB) for any portion of their fees and
expenses beyond January 31, 2011.
For the first ten years of Connecticut Dividend Advantage 2's (NGK) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets, for fees and expenses in the amounts and for the time periods set
forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
Nuveen Investments 87
| Notes to FINANCIAL STATEMENTS (continued)
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 2 (NGK)
for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Connecticut Dividend Advantage 3's (NGO)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets, for fees and expenses in the amounts and for the time
periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 3 (NGO)
for any portion of its fees and expenses beyond September 30, 2010.
For the first eight years of Insured Massachusetts Tax-Free Advantage's (NGX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets, for fees and expenses in the amounts and for the time
periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Massachusetts Tax-Free Advantage
(NGX) for any portion of its fees and expenses beyond November 30, 2010.
8. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4)
During April 2009, the Financial Accounting Standards Board issued FSP No.
157-4, "Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly." FSP No. 157-4 provides additional guidance for estimating
fair value in accordance with SFAS No. 157, "Fair Value Measurements," when the
volume and level of activity for the asset or liability have significantly
decreased. FSP No. 157-4 also requires additional disaggregation of the current
SFAS No. 157 required disclosures. FSP No. 157-4 is effective for interim and
annual reporting periods ending after June 15, 2009, and shall be applied
prospectively. At this time, management is evaluating the implications of FSP
No. 157-4 and the impact it will have on the financial statement disclosures.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 166 (SFAS No. 166)
During June 2009, the Financial Accounting Standards Board issued SFAS No. 166,
"Accounting for Transfers of Financial Assets -an amendment of SFAS No. 140."
The objective of SFAS No. 166 is to improve the relevance, representational
faithfulness, and comparability of the information that a reporting entity
provides in its financial statements about a transfer of financial assets; the
effects of a transfer on its financial position, financial performance, and cash
flows; and a transferor's continuing involvement, if any, in transferred
financial assets.
88 Nuveen Investments
SFAS No. 166 is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of SFAS No. 166 must be applied to transfers occurring on
or after the effective date. Additionally, the disclosure provisions of SFAS No.
166 should be applied to transfers that occurred both before and after the
effective date of SFAS No. 166. At this time, management is evaluating the
implications of SFAS No. 166 and the impact it will have on the financial
statement amounts and disclosures, if any.
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on July 1, 2009, to shareholders of record on
June 15, 2009, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
--------------------------------------------------------------------------------
Dividend per share $ .0535 $ .0570 $ .0590 $ .0510
================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
--------------------------------------------------------------------------------
Dividend per share $ .0610 $ .0600 $ .0565 $ .0545
================================================================================
Nuveen Investments 89
| Financial HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
-------------------------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
-------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ 14.25 $ .84 $ (.66) $ (.14) $ (.03) $ .01
2008 14.39 .83 (.09) (.22) (.01) .51
2007 14.42 .83 .07 (.20) (.01) .69
2006 15.26 .84 (.54) (.14) (.03) .13
2005 14.60 .88 .75 (.09) -- 1.54
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
-------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 14.69 .91 (.55) (.15) (.04) .17
2008 14.76 .91 .01 (.24) (.02) .66
2007 14.75 .92 .04 (.22) -- .74
2006 15.39 .93 (.55) (.17) -- .21
2005 14.56 .95 .86 (.09) -- 1.72
=============================================================================================================
Less Distributions
--------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
-----------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
-----------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ (.60) $ (.07) $ (.67) $ 13.59 $ 13.35
2008 (.62) (.03) (.65) 14.25 14.08
2007 (.65) (.07) (.72) 14.39 14.91
2006 (.75) (.22) (.97) 14.42 13.95
2005 (.87) (.01) (.88) 15.26 15.81
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
-----------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (.67) (.11) (.78) 14.08 13.75
2008 (.67) (.06) (.73) 14.69 14.93
2007 (.73) -- (.73) 14.76 16.37
2006 (.85) -- (.85) 14.75 16.26
2005 (.89) -- (.89) 15.39 15.73
===============================================================================================
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:
2009 $ 34,975 $ 25,000 $ 77,110
2008 38,300 25,000 74,896
2007 38,300 25,000 75,360
2006 38,300 25,000 75,443
2005 38,300 25,000 78,217
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
----------------------------------------------------------------------------------
Year Ended 5/31:
2009 18,000 25,000 75,457
2008 19,500 25,000 73,556
2007 19,500 25,000 73,749
2006 19,500 25,000 73,596
2005 19,500 25,000 75,595
==================================================================================
90 Nuveen Investments
Ratios/Supplemental Data
----------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
----------------- ----------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 .32% .45% $ 72,901 1.43% 1.32% 6.40%
2008 (1.08) 3.60 76,441 1.30 1.27 5.82
2007 12.33 4.79 77,151 1.24 1.24 5.67
2006 (6.00) .88 77,278 1.25 1.25 5.66
2005 15.61 10.82 81,529 1.24 1.24 5.81
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (2.10) 1.50 36,329 1.47 1.36 6.45
2008 (4.10) 4.62 37,874 1.33 1.31 5.90
2007 5.46 5.05 38,024 1.29 1.29 5.78
2006 8.79 1.38 37,905 1.29 1.29 5.70
2005 17.89 12.06 39,464 1.29 1.29 5.81
==================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
-----------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
--------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.43% 1.31% 6.40% --%
2008 1.28 1.26 5.84 22
2007 1.21 1.21 5.69 8
2006 1.23 1.23 5.68 16
2005 1.24 1.24 5.82 12
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
--------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.26 1.15 6.66 --
2008 1.03 1.01 6.20 20
2007 .92 .92 6.16 9
2006 .84 .84 6.14 14
2005 .83 .83 6.27 9
===========================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 91
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
------------------------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ 14.76 $ .91 $ (.43) $ (.14) $ (.04) $ .30
2008 14.85 .91 (.01) (.23) (.02) .65
2007 14.86 .91 .08 (.22) (.01) .76
2006 15.64 .91 (.60) (.17) (.01) .13
2005 15.01 .92 .74 (.09) -- 1.57
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 14.08 .84 (.58) (.17) -- .09
2008 14.30 .87 (.23) (.25) -- .39
2007 14.18 .86 .13 (.23) -- .76
2006 14.78 .84 (.54) (.18) -- .12
2005 13.97 .86 .83 (.10) -- 1.59
==================================================================================================================
Less Distributions
---------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
-------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
-------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ (.66) $ (.12) $ (.78) $ 14.28 $ 14.30
2008 (.67) (.07) (.74) 14.76 15.00
2007 (.73) (.04) (.77) 14.85 16.38
2006 (.83) (.08) (.91) 14.86 16.60
2005 (.87) (.07) (.94) 15.64 15.98
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
-------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (.60) -- (.60) 13.57 13.04
2008 (.61) -- (.61) 14.08 13.63
2007 (.64) -- (.64) 14.30 14.70
2006 (.72) -- (.72) 14.18 14.09
2005 (.78) -- (.78) 14.78 14.54
=================================================================================================
Preferred Shares at End of Period
------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
----------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
----------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ 16,125 $ 25,000 $ 76,305
2008 17,500 25,000 73,840
2007 17,500 25,000 74,094
2006 17,500 25,000 74,074
2005 17,500 25,000 76,579
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
----------------------------------------------------------------------------------
Year Ended 5/31:
2009 30,025 25,000 74,329
2008 32,000 25,000 73,028
2007 32,000 25,000 73,691
2006 32,000 25,000 73,302
2005 32,000 25,000 75,253
==================================================================================
92 Nuveen Investments
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
------------------------ ---------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
-------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.40% 2.52% $ 33,092 1.48% 1.37% 6.31%
2008 (3.63) 4.54 34,188 1.36 1.33 5.79
2007 3.58 5.13 34,366 1.31 1.31 5.60
2006 9.78 .84 34,352 1.29 1.29 5.51
2005 19.92 10.70 36,105 1.28 1.28 5.52
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 .53 .89 59,244 1.43 1.32 6.12
2008 (3.07) 2.79 61,476 1.29 1.27 5.70
2007 9.15 5.42 62,325 1.26 1.26 5.44
2006 1.84 .83 61,826 1.24 1.24 5.30
2005 18.17 11.60 64,324 1.24 1.24 5.40
===============================================================================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
--------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.17% 1.06% 6.62% --%
2008 .98 .95 6.17 23
2007 .85 .85 6.06 12
2006 .83 .83 5.97 11
2005 .82 .82 5.98 12
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
--------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.12 1.01 6.43 --
2008 .86 .84 6.13 24
2007 .76 .76 5.94 15
2006 .74 .74 5.80 9
2005 .76 .76 5.89 9
==================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 93
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
----------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ 14.22 $ .91 $ (.98) $ (.15) $ (.02) $ (.24)
2008 14.56 .88 (.32) (.25) (.01) .30
2007 14.45 .88 .13 (.23) --*** .78
2006 15.10 .88 (.50) (.18) -- .20
2005 14.34 .91 .81 (.08) -- 1.64
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 14.36 .95 (.93) (.17) -- (.15)
2008 14.84 .94 (.45) (.26) (.01) .22
2007 14.83 .93 .08 (.25) -- .76
2006 15.65 .95 (.54) (.17) (.02) .22
2005 14.84 .97 .95 (.08) -- 1.84
============================================================================================================================
Less Distributions
-------------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
-----------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
-----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ (.65) $ (.04) $ (.69) $ 13.29 $ 13.28
2008 (.62) (.02) (.64) 14.22 13.61
2007 (.67) --*** (.67) 14.56 14.33
2006 (.81) (.04) (.85) 14.45 14.35
2005 (.88) -- (.88) 15.10 16.14
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
-----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (.69) -- (.69) 13.52 13.83
2008 (.68) (.02) (.70) 14.36 14.61
2007 (.75) -- (.75) 14.84 16.28
2006 (.85) (.19) (1.04) 14.83 15.53
2005 (.92) (.11) (1.03) 15.65 17.45
=====================================================================================================
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:
2009 $ 34,000 $ 25,000 $ 71,559
2008 34,000 25,000 74,794
2007 34,000 25,000 75,973
2006 34,000 25,000 75,571
2005 34,000 25,000 77,682
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
------------------------------------------------------------------------------------
Year Ended 5/31:
2009 14,250 25,000 71,544
2008 15,000 25,000 71,892
2007 15,000 25,000 73,453
2006 15,000 25,000 73,340
2005 15,000 25,000 75,899
====================================================================================
94 Nuveen Investments
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
-------------------------- -----------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
-------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 3.54% (1.36)% $ 63,321 1.43% 1.34% 7.01%
2008 (.48) 2.08 67,720 1.26 1.26 6.09
2007 4.60 5.47 69,323 1.24 1.24 5.97
2006 (6.14) 1.41 68,776 1.25 1.25 5.98
2005 18.97 11.74 71,648 1.24 1.24 6.15
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (.04) (.70) 26,530 1.54 1.44 7.09
2008 (5.73) 1.55 28,135 1.32 1.32 6.11
2007 10.04 5.14 29,072 1.33 1.33 5.84
2006 (5.23) 1.49 29,004 1.29 1.29 5.79
2005 24.96 12.76 30,539 1.31 1.31 5.83
===============================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
--------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.41% 1.32% 7.02% 1%
2008 1.24 1.24 6.11 14
2007 1.23 1.23 5.98 9
2006 1.24 1.24 6.00 13
2005 1.24 1.24 6.16 18
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
--------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.32 1.22 7.31 1
2008 1.02 1.02 6.42 15
2007 .95 .95 6.21 9
2006 .83 .83 6.24 13
2005 .86 .86 6.28 12
==================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Rounds to less than $.01 per share.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 95
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
-------------------------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ 14.28 $ .91 $ (.50) $ (.17) $ -- $ .24
2008 14.50 .90 (.21) (.26) -- .43
2007 14.39 .90 .08 (.25) -- .73
2006 14.93 .90 (.53) (.20) -- .17
2005 14.04 .92 .90 (.09) -- 1.73
MISSOURI PREMIUM INCOME (NOM)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 13.52 .85 (1.12) (.16) -- (.43)
2008 14.27 .89 (.62) (.20) (.04) .03
2007 14.40 .90 (.08) (.23) --*** .59
2006 15.11 .92 (.51) (.17) (.01) .23
2005 14.37 .94 .77 (.09) -- 1.62
===============================================================================================================================
Less Distributions
--------------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
-------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
-------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ (.66) $ -- $ (.66) $ 13.86 $ 13.15
2008 (.65) -- (.65) 14.28 14.14
2007 (.62) -- (.62) 14.50 14.45
2006 (.71) -- (.71) 14.39 13.43
2005 (.84) -- (.84) 14.93 15.94
MISSOURI PREMIUM INCOME (NOM)
-------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (.65) -- (.65) 12.44 12.90
2008 (.65) (.13) (.78) 13.52 14.76
2007 (.72) --*** (.72) 14.27 16.56
2006 (.84) (.10) (.94) 14.40 16.35
2005 (.88) -- (.88) 15.11 17.90
=============================================================================================================
Preferred Shares at End of Period
--------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
--------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
--------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 $ 20,500 $ 25,000 $ 71,042
2008 20,500 25,000 72,407
2007 20,500 25,000 73,120
2006 20,500 25,000 72,779
2005 20,500 25,000 74,526
MISSOURI PREMIUM INCOME (NOM)
--------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 16,000 25,000 69,897
2008 16,000 25,000 73,703
2007 16,000 25,000 76,291
2006 16,000 25,000 76,460
2005 16,000 25,000 78,468
============================================================================================
96 Nuveen Investments
Ratios/Supplemental Data
-----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
---------------------- ---------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (2.11)% 2.00% $ 37,754 1.47% 1.38% 6.47%
2008 2.49 3.04 38,873 1.29 1.29 5.82
2007 12.49 5.12 39,458 1.28 1.28 5.67
2006 (11.62) 1.20 39,179 1.29 1.29 5.66
2005 20.95 12.62 40,611 1.27 1.27 5.83
MISSOURI PREMIUM INCOME (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (7.83) (2.92) 28,734 1.55 1.42 6.96
2008 (5.74) .26 31,170 1.52 1.31 6.43
2007 5.98 4.17 32,826 1.39 1.30 6.15
2006 (3.53) 1.57 32,934 1.29 1.29 6.20
2005 24.38 11.54 34,219 1.29 1.29 6.29
====================================================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
---------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
---------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
---------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.16% 1.06% 6.78% --%
2008 .84 .84 6.26 13
2007 .77 .77 6.17 6
2006 .79 .79 6.16 5
2005 .79 .79 6.31 2
MISSOURI PREMIUM INCOME (NOM)
---------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 1.53 1.40 6.97 2
2008 1.51 1.30 6.44 5
2007 1.37 1.27 6.18 16
2006 1.27 1.27 6.22 9
2005 1.28 1.28 6.30 17
===============================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Rounds to less than $.01 per share.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 97
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management Consultant;
8/22/40 Chairman of Treasurer and Director, Humanities Council
333 W. Wacker Drive the Board 1997 199 of Washington D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive Board Member 1999 199 1996); Director and Vice Chairman, United
Chicago, IL 60606 Fire Group, a publicly held company; Member
of the Board of Regents for the State of
Iowa University System; Director, Gazette
Companies; Life Trustee of Coe College;
Director, Iowa College Foundation; Member of
the Advisory Council of the Department of
Finance in the Tippie College of Business,
University of Iowa; formerly, Director,
Alliant Energy; formerly, Director, Federal
Reserve Bank of Chicago; formerly, President
and Chief Operating Officer, SCI Financial
Group, Inc., a regional financial services
firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University
3/6/48 of Iowa (since 2006); Director (since 2004)
333 W. Wacker Drive Board Member 2004 199 of Xerox Corporation; Director (since 2005),
Chicago, IL 60606 Beta Gamma Sigma International Honor
Society; formerly, Dean and Distinguished
Professor of Finance, School of Business at
the University of Connecticut (2003-2006);
previously, Senior Vice President and
Director of Research at the Federal Reserve
Bank of Chicago (1995-2003); Director, SS&C
Technologies, Inc. (May 2005-October 2005);
formerly, Director (1997-2007), Credit
Research Center at Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; retired (since 2004) as
333 W. Wacker Drive Board Member 2005 199 Chairman, JPMorgan Fleming Asset Management,
Chicago, IL 60606 President and CEO, Banc One Investment
Advisors Corporation, and President, One
Group Mutual Funds; prior thereto, Executive
Vice President, Banc One Corporation and
Chairman and CEO, Banc One Investment
Management Group; Member, Board of Regents,
Luther College; member of the Wisconsin Bar
Association; member of Board of Directors,
Friends of Boerner Botanical Gardens; member
of Investment Committee, Greater Milwaukee
Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd.,
9/24/44 a real estate investment company; formerly,
333 W. Wacker Drive Board Member 1997 199 Senior Partner and Chief Operating Officer
Chicago, IL 60606 (retired, 2004) of Miller-Valentine Group;
member, University of Dayton Business School
Advisory Council; member, Dayton
Philharmonic Orchestra Association;
formerly, member, Business Advisory Council,
Cleveland Federal Reserve Bank; formerly,
Director, Dayton Development Coalition.
98 Nuveen Investments
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board Member 1997 199 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 (since 2006); Commissioner, New York State
333 W. Wacker Drive Board Member 2007 199 Commission on Public Authority Reform (since
Chicago, IL 60606 2005); formerly, Chair, New York Racing
Association Oversight Board (2005-2007).
o TERENCE J. TOTH Director, Legal & General Investment
9/29/59 Management America, Inc. (since 2008);
333 W. Wacker Drive Board Member 2008 199 Managing Partner, Musso Capital Management
Chicago, IL 60606 (since 2008); CEO and President, Northern
Trust Investments (2004-2007); Executive
Vice President, Quantitative Management &
Securities Lending (2004-2007); prior
thereto, various positions with Northern
Trust Company (since 1994); Member: Goodman
Theatre Board (since 2004), Chicago
Fellowship Boards (since 2005), University
of Illinois Leadership Council Board (since
2007) and Catalyst Schools of Chicago Board
(since 2008); formerly, Member: Northern
Trust Mutual Funds Board (2005-2007),
Northern Trust Investments Board
(2004-2007), Northern Trust Japan Board
(2004-2007), Northern Trust Securities Inc.
Board (2003-2007) and Northern Trust Hong
Kong Board (1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007)
6/14/61 and Director (since 1999) of Nuveen
333 W. Wacker Drive Board Member 2008 199 Investments, Inc.; Chief Executive Officer
Chicago, IL 60606 (since 2007) of Nuveen Asset Management,
Nuveen Investments Advisors, Inc. formerly,
President (1999-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3)
Nuveen Investments 99
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 199 Nuveen Investments, LLC; Managing Director,
Chicago, IL 60606 Officer Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management (since
2002) and of Symphony Asset Management LLC,
(since 2003); Vice President and Assistant
Secretary of NWQ Investment Management
Company, LLC. (since 2002), Nuveen
Investments Advisers Inc. (since 2002),
Tradewinds Global Investors, LLC, and Santa
Barbara Asset Management, LLC (since 2006),
Nuveen HydePark Group LLC and Nuveen
Investment Solutions, Inc. (since 2007);
Managing Director (since 2004) and Assistant
Secretary (since 1994) of Nuveen
Investments, Inc.; formerly, Managing
Director (2002-2004), General Counsel
(1998-2004) and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered
Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice President,
333 W. Wacker Drive Vice President 2007 125 U.S. Structured Products of Nuveen
Chicago, IL 60606 Investments, LLC, (since 1999), prior
thereto, Managing Director of Structured
Investments.
o MARK J.P. ANSON President and Executive Director of Nuveen
6/10/59 Investments, Inc. (since 2007); President of
333 W. Wacker Drive Vice President 2009 199 Nuveen Investments Institutional Services
Chicago, IL 60606 Group LLC (since 2007); previously, Chief
Executive Officer of the British Telecom
Pension Scheme (2006-2007) and Chief
Investment Officer of Calpers (1999-2006);
PhD, Chartered Financial Analyst, Chartered
Alternative Investment Analyst, Certified
Public Accountant, Certified Management
Accountant and Certified Internal Auditor.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 125 Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen
6/1/68 Investments, LLC; previously, Portfolio
333 W. Wacker Drive Vice President 2009 199 Manager, Allstate Investments, LLC
Chicago, IL 60606 (1996-2006); Chartered Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of Nuveen
333 W. Wacker Drive and Assistant 2000 199 Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct 2008) of
4/11/64 Nuveen Investments, Inc.; previously, Head
333 W. Wacker Drive Vice President 2009 199 of Institutional Asset Management
Chicago, IL 60606 (2007-2008) of Bear Stearns Asset
Management; Head of Institutional Asset Mgt
(1986-2007) of Bank of NY Mellon; Chartered
Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
10/24/45 Investments, LLC; Managing Director (since
333 W. Wacker Drive Vice President 1998 199 2005) of Nuveen Asset Management; Managing
Chicago, IL 60606 Director (2004-2005), of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3)
100 Nuveen Investments
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive and Controller 1998 199 Investments, LLC; Vice President (since
Chicago, IL 60606 2005) of Nuveen Asset Management; Certified
Public Accountant.
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed
5/7/69 Income (since 2008) of Nuveen Asset
333 W. Wacker Drive Vice President 2009 199 Management; previously, Chairman, President
Chicago, IL 60606 and Chief Executive Officer (2002 - 2007) of
Northern Trust Global Advisors, Inc. and
Chief Executive Officer (2007) of Northern
Trust Global Investments Limited; CPA.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant
333 W. Wacker Drive Officer and 2003 199 Vice President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Vice
President (since 2006) and Assistant
Secretary (since 2008) of Nuveen Asset
Management.
o DAVID J. LAMB Senior Vice President (since 2009),
3/22/63 formerly, Vice President (2000-2009) of
333 W. Wacker Drive Vice President 2000 199 Nuveen Investments, LLC; Vice President
Chicago, IL 60606 (since 2005) of Nuveen Asset Management;
Certified Public Accountant.
o TINA M. LAZAR Senior Vice President (since 2009),
8/27/61 formerly, Vice President of Nuveen
333 W. Wacker Drive Vice President 2002 199 Investments, LLC (1999-2009); Vice President
Chicago, IL 60606 of Nuveen Asset Management (since 2005).
o LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 199 Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen
Investments, Inc.; Vice President (since
2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President
and Assistant Secretary of Nuveen
Investments Advisers Inc. (since 2002); NWQ
Investment Management Company, LLC (since
2002), Symphony Asset Management LLC (since
2003), Tradewinds Global Investors, LLC,
Santa Barbara Asset Management LLC (since
2006) and of Nuveen HydePark Group, LLC and
Nuveen Investment Solutions, Inc. (since
2007); formerly, Vice President and
Assistant Secretary of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly,
3/26/66 Vice President Vice President (2007-2008), Nuveen
333 W. Wacker Drive and Secretary 2007 199 Investments, LLC; Managing Director (since
Chicago, IL 60606 2008), formerly, Vice President, and
Assistant Secretary, Nuveen Asset
Management, and Nuveen Investments Holdings,
Inc.; Vice President (since 2007) and
Assistant Secretary, Nuveen Investment
Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ
Investment Management Company, LLC,
Tradewinds Global Investors LLC, NWQ
Holdings, LLC, Symphony Asset Management
LLC, Santa Barbara Asset Management LLC,
Nuveen HydePark Group, LLC and Nuveen
Investment Solutions, Inc. (since 2007);
prior thereto, Partner, Bell, Boyd & Lloyd
LLP (1997-2007).
Nuveen Investments 101
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER Managing Director (since 2007), formerly,
4/10/67 Vice President 2007 199 Vice President (2002-2007) of Nuveen Asset
333 W. Wacker Drive Management and Nuveen Investments, LLC;
Chicago, IL 60606 Chartered Financial Analyst.
o GREGORY MINO Vice President of Nuveen Investments, LLC
1/4/71 Vice President 2009 199 (since 2008); previously, Director
333 W. Wacker Drive (2004-2007) and Executive Director
Chicago, IL 60606 (2007-2008) of UBS Global Asset Management;
previously, Vice President (2000-2003) and
Director (2003-2004) of Merrill Lynch
Investment Managers; Chartered Financial
Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC
8/1/71 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 199 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Associate, Skadden,
Arps, Slate Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC
7/3/62 Vice President (since 2007); prior thereto, Partner,
333 W. Wacker Drive and Assistant 2007 199 Deloitte & Touche USA LLP (2005-2007),
Chicago, IL 60606 Secretary formerly, senior tax manager (2002-2005);
Certified Public Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC
12/21/68 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 199 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Counsel, Vedder Price
P.C. (1997-2007).
(1) Board Members serve three year terms, except for two board members who are
elected by the holders of Preferred Shares. The Board of Trustees is
divided into three classes, Class I, Class II, and Class III, with each
being elected to serve until the third succeeding annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed, except two board
members are elected by the holders of Preferred Shares to serve until the
next annual shareholders' meeting subsequent to its election or thereafter
in each case when its respective successors are duly elected or appointed.
The first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
102 Nuveen Investments
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute performance, fee and expense information for the Funds as
well as comparative performance, fee and expense information for a comparable
peer group of funds, the performance information of recognized and/or customized
benchmarks (as applicable) of the Funds, the profitability of Nuveen for its
advisory activities (which includes its wholly owned subsidiaries other than
Winslow Capital Management, Inc. ("Winslow Capital") which was recently acquired
in December 2008), and other information regarding the organization, personnel,
and services provided by NAM. The Independent Board Members also met quarterly
as well as at other times as the need arose during the year and took into
account the information provided at such meetings and the knowledge gained
therefrom. Prior to approving the renewal of the Advisory Agreements, the
Independent Board Members reviewed the foregoing information with their
independent legal counsel and with management, reviewed materials from
independent legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal counsel in private
sessions without management present. The Independent Board Members considered
the legal advice provided by independent legal counsel and relied upon their
knowledge of NAM, its services and the Funds resulting from their meetings and
other interactions throughout the year and their own business judgment in
determining the factors to be considered in evaluating the
Nuveen Investments 103
Annual Investment Management Agreement Approval Process (continued)
Advisory Agreements. Each Board Member may have accorded different weight to the
various factors in reaching his or her conclusions with respect to a Fund's
Advisory Agreement. The Independent Board Members did not identify any single
factor as all-important or controlling. The Independent Board Members'
considerations were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the Board and its
conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Funds' investment strategies and mandates in seeking to
continue to refine and improve the investment process for the Funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refinancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-
104 Nuveen Investments
end funds through a variety of programs designed to raise investor and analyst
awareness and understanding of closed-end funds. These efforts include
maintaining an investor relations program to timely provide information and
education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining websites; and providing
educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Funds managed by NAM in the
aggregate ranked by peer group and the performance of such Funds, in the
aggregate, relative to their benchmark. This information supplemented the Fund
performance information provided to the Board at each of its quarterly meetings.
In comparing a Fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile
Nuveen Investments 105
Annual Investment Management Agreement Approval Process (continued)
market conditions during the past year, and their impact on various asset
classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider (the "Peer
Universe") and in certain cases, to a more focused subset of funds in the
Peer Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of the Fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members considered, among other things, the differences
in the use and type of leverage compared to the peers. The Independent
Board Members also considered the differences in the states reflected in
the respective Peer Group. In reviewing the fee schedule for a Fund, the
Independent Board Members also considered the fund-level and complex-wide
breakpoint schedules (described in further detail below) and any fee
waivers and reimbursements provided by Nuveen (applicable, in particular,
for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved and the
additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
106 Nuveen Investments
Independent Board Members considered the differences in the product types,
including, but not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Independent Board Members believe such facts justify the
different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business.
Based on its review, the Independent Board Members concluded that Nuveen's
level of profitability for its advisory activities was reasonable in light
of the services provided.
Nuveen Investments 107
Annual Investment Management Agreement Approval Process (continued)
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Funds as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Funds, if any. See Section
E below for additional information on indirect benefits NAM may receive as
a result of its relationship with the Funds. Based on their review of the
overall fee arrangements of each Fund, the Independent Board Members
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members recognized that
the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for Funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
108 Nuveen Investments
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 109
Reinvest Automatically Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End 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
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price
110 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 111
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the invest- ment's actual cumulative performance (including
change in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short- term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportion- ately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
112 Nuveen Investments
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 113
Notes
114 Nuveen Investments
Other Useful Information
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly
from the Securities and Exchange Commission ("SEC"). The SEC may charge a
copying fee for this information. Visit the SEC on-line at http://www.sec.gov or
in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at
(202) 942-8090 for room hours and operation. You may also request Fund
information by sending an e-mail request to publicinfo@sec.gov or by writing to
the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed/noticed for redemption shares of their common and/or preferred
stock as shown in the accompanying table.
Preferred Shares
Common Shares Redeemed and/or
Fund Repurchased Noticed for Redemption
NTC -- 194
NFC -- 90
NGK -- 82
NGO -- 149
NMT -- --
NMB -- 30
NGX -- --
NOM -- --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 115
Nuveen Investments: Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $115 billion of
assets on March 31, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC It's not what you earn,
333 West Wacker Drive it's what you keep.(R)
Chicago, IL 60606
www.nuveen.com
EAN-B-0509D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Massachusetts Dividend Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2009 $ 8,597 $ 0 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2008 $ 8,530 $ 0 $ 500 $ 800
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services for
agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2008 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2009 $ 850 $ 0 $ 0 $ 850
May 31, 2008 $ 1,300 $ 0 $ 0 $ 1,300
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Cathryn P. Steeves Nuveen Massachusetts Dividend Advantage Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Cathryn P. Steeves Registered Investment Company 44 $7.766 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of May 31, 2009. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of May 31, 2009, the
S&P/Investortools Municipal Bond index was comprised of 52,924 securities with
an aggregate current market value of $1,076 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors led by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of May 31, 2009, the portfolio manager
beneficially owned the following dollar range of equity securities issued by the
registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE BENEFICIALLY OWNED
OF EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
NAME OF BENEFICIALLY BY NAM'S MUNICIPAL
PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
----------------------------------------------------------------------------------------------------------------------------
Cathryn P. Steeves Nuveen Massachusetts Dividend Advantage Municipal Fund $0 $10,001-$50,000
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD is currently a portfolio manager for 45 state-specific
municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst
in the healthcare sector. Ms. Steeves has an undergraduate degree from Wake
Forest University as well as an MA, an MPhil and a PhD from Columbia University.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Massachusetts Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: August 6, 2009
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: August 6, 2009
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: August 6, 2009
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