UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7484
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Nuveen Massachusetts Premium Income Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: May 31st
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Date of reporting period: May 31st
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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.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
ANNUAL REPORT May 31, 2003
CONNECTICUT
NTC
NFC
NGK
NGO
MASSACHUSETTS
NMT
NMB
NGX
MISSOURI
NOM
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COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
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(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
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FOLLOW THE STEPS OUTLINED BELOW:
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Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A
WELL-BALANCED PORTFOLIO..... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR
LONG-TERM FINANCIAL GOALS."
Dear
SHAREHOLDER
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with monthly tax-free income and an
attractive total return. For more specific information about the performance of
your Fund, please see the Portfolio Managers' Comments and Performance Overview
sections of this report.
With interest rates at historically low levels, many have begun to wonder
whether interest rates will rise, and whether that possibility should cause them
to adjust their holdings of fixed-income investments. No one knows what the
future will bring, which is why we think a well-balanced portfolio that is
structured and carefully monitored with the help of an investment professional
is an important component in achieving your long-term financial goals. A
well-diversified portfolio may actually help to reduce your overall investment
risk, and we believe that municipal bond investments like your Nuveen Fund can
be important building blocks in a portfolio crafted to perform well through a
variety of market conditions.
I'd also like to direct your attention to the inside front cover of this report,
which explains the quick and easy process to begin receiving Fund reports like
this via e-mail and the internet. Thousands of Nuveen Fund shareholders already
have signed-up, and they are getting their Fund information faster and more
conveniently than ever. I urge you to consider joining them.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
July 15, 2003
1
Nuveen Municipal Closed-End Exchange-Traded Funds
(NTC, NFC, NGK, NGO, NMT, NMB, NGX, NOM)
Portfolio Managers'
COMMENTS
Portfolio managers Paul Brennan, Tom O'Shaughnessy and Rick Huber review
economic and market conditions, key investment strategies and the recent
performance of the Funds. With 12 years of investment experience, Paul has
managed NTC since 1999, NFC since its inception in 2001, NGK and NGO since their
inceptions in 2002, and NMT and NMB since January 2003. Tom, a 20-year veteran
of Nuveen, assumed portfolio management responsibility for NGX at its inception
in November 2002. Rick, who has 18 years of investment experience, took over
management responsibilities for NOM in January 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH PERIOD ENDED MAY 31, 2003?
The underlying economic and market conditions remained similar to those we
discussed in our last shareholder report dated November 30, 2002. We believe the
most influential factors affecting the performance of the U.S. economy and the
municipal market continued to be the sluggish pace of economic growth and
interest rates that remained at 40-year lows. At the same time, continued
geopolitical concerns, centering on the threat of terrorism and the Iraqi
situation, also had an impact during this reporting period.
In the municipal market, the slow economic recovery and the continued lack of
inflationary pressures during the reporting period created conditions that
helped many bonds, and especially higher-rated bonds, perform well. Following a
record $357 billion of new supply in calendar year 2002, municipal issuance
nationwide remained strong during the first five months of 2003, with $145.6
billion in new municipal securities, up 14% over the same period in 2002. Much
of this increase in supply reflects issuance intended to address fiscal problems
facing states and localities as the result of slow economic growth, rising costs
(especially for healthcare and pensions) and sharp declines in tax collections.
Given the relatively low interest rate environment, many states and local
governments have turned to borrowing in order to close budget gaps, fund needed
capital projects and free up cash for operating purposes.
The heavy supply of municipal bonds was met with evidence of continued strong
demand over most of this reporting period, as the record issuance was absorbed
without a significant decline in prices. Both individual and institutional
investors were active buyers.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN CONNECTICUT AND MASSACHUSETTS?
Despite weak employment trends and a heavy debt load, Connecticut remained a
high-wealth state with a diverse economy. Although we saw some growth in the
biopharmaceutical industry, the main drivers of the state's economy--financial
services, insurance and manufacturing--remained weak, with continued layoffs and
job losses. Even with a contraction in the labor force, unemployment continued
to climb, reaching 4.9% in May 2003, up from 4.2% in May 2002 but still well
below the current national average of 6.1%. Connecticut continued to experience
budgetary pressures due mainly to a steep drop in tax collections. In February
2003, the state exhausted its reserves and used a number of one-time resources
to close an $817 million gap in the fiscal 2002 budget. That left Connecticut
with few means to resolve the state's $1 billion deficit for fiscal 2003, with a
larger shortfall ($2 billion) forecast for fiscal 2004. Currently, plans call
for the state to cut its aid to local municipalities and transfer a portion of
the
2
deficit to local governments that rely on state revenues to balance their own
budgets. During the first five months of 2003, Connecticut borrowers issued $2.3
billion in new municipal bonds, up 16% over the same period in 2002. As a result
of these fiscal problems, state-issued GOs were rated Aa2/AA, with a negative
outlook, by both Moody's and Standard & Poor's as of the end of the reporting
period.
Like Connecticut, Massachusetts grappled with budgetary stress resulting from
decreased tax revenues, aggravated by the cut in personal income taxes approved
by voters in 2000. The commonwealth addressed the $2.3 billion shortfall in the
fiscal 2003 budget by cutting expenditures, drawing down on its rainy day fund,
freezing a scheduled tax cut and reinstating taxes on capital gains. The
commonwealth's primary growth drivers remained healthcare, education, financial
services and technology. Although the manufacturing sector continued to shed
jobs, area defense contractors were benefiting from increased federal spending.
Massachusetts' debt burden is among the highest in the nation, largely as the
result of borrowing in connection with the $14.6 billion Central Artery/ Ted
Williams Tunnel (Big Dig), which partially opened in early 2003 and is now
scheduled for completion in May 2005. During the first five months of 2003,
Massachusetts borrowers issued $5.2 billion in municipal bonds, a 16.1% increase
over the same period during 2002. As of May 31, 2003, Moody's rated the
commonwealth Aa2 with a negative outlook, while S&P's rating was AA- with a
stable outlook.
WHAT ABOUT MISSOURI?
The Missouri economy remained weak, with job losses across its diverse industry
base, including construction, wholesale trade, transportation, communications,
utilities and the particularly hard-hit manufacturing sector. Job growth is
expected to remain weak, largely as the result of the state's high exposure to
old-line manufacturing such as automobiles. While Kansas City has become an
attractive center for transportation, communications and technology, the St.
Louis economy continued to perform poorly. In our opinion, Missouri's financial
operations were well managed, and the state continued to maintain adequate
financial flexibility, along with good reserve positions and relatively low debt
levels. Although tax revenues remained soft, the state has been able to build
reserve levels following a series of deep budget cuts. Municipal issuance in the
state for the first five months of 2003 topped $2.2 billion, up 51% over the
same period last year, and at the end of this reporting period both Moody's and
Standard & Poor's retained their Missouri credit ratings of Aaa/AAA,
respectively.
HOW DID THE FUNDS PERFORM OVER THE TWELVE MONTHS ENDED MAY 31, 2003?
Individual results for these Funds, as well as for selected benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
5/31/03 EQUIVALENT3 5/31/03 5/31/03 5/31/03
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NTC 5.15% 7.52% 14.08% 10.36% 15.88%
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NFC 5.14% 7.50% 15.38% 10.36% 15.88%
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NGK 5.24% 7.65% 18.77% 10.36% 15.88%
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NGO 5.17% 7.55% NA -- --
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NMT 5.25% 7.72% 12.02% 10.36% 15.88%
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NMB 5.33% 7.84% 19.74% 10.36% 15.88%
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NGX 5.48% 8.06% NA -- --
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NOM 5.16% 7.64% 13.75% 10.36% 15.88%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman
Brothers Municipal Bond Index, an unleveraged, unmanaged national index
comprising a broad range of investment-grade municipal bonds. Results for
the Lehman index do not reflect any expenses.
2 The total returns of these Funds are compared with the average annualized
return of the 36 funds in the Lipper Other States Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends. It
should be noted that the performance of the Lipper Other States category
represents the overall average of annual returns for funds from 10
different states with a wide variety of economic and municipal market
conditions and investment guidelines, making direct comparisons less
applicable.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 28% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: Connecticut 31.5%, Massachusetts 32%,
and Missouri 32.5%.
3
For the twelve months ended May 31, 2003, all of the Funds in this report with
at least one year of performance history outperformed the national, unleveraged
Lehman Brothers Municipal Bond Index. Their performances were mixed when with
compared with the Lipper Other States Municipal Debt Funds category. While these
Lipper comparisons carry some value, we believe they have limited usefulness
because the Lipper average includes the results of funds from ten difference
states, each with its own unique conditions and circumstances.
The performance of these Funds benefited when compared with the results of the
Lehman Index from their use of leverage, a strategy that can provide the
opportunity for additional income for common shareholders. Most of the Funds
also were helped by their relatively long durations.4 During periods of
declining interest rates, such as we experienced over most of the twelve-month
reporting period, longer duration investments generally would be expected to
outperform shorter duration investments, assuming all other factors were equal.
As of May 31, 2003, the durations of these Funds, with the exception of NTC,
ranged from 8.00 to 12.29, compared with 7.80 for the Lehman index. (Please see
the individual Performance Overview pages for individual Fund durations.)
In addition to leverage and duration, the relative performances of these Nuveen
Funds were influenced by factors including call exposure, portfolio trading
activity and the price movement of specific sectors and holdings. For example,
as of May 31, 2003, NMT held 11% of its portfolio in multifamily housing bonds,
down from 20% at the end of November 2002 but still the largest allocation to
this sector among these eight Funds. NGX and NOM each held smaller positions in
this sector (8% and 7%, respectively). For the twelve months ended May 31, 2003,
the housing sector was one of the poorer performing municipal market sectors, as
measured by Lehman. This was largely due to the fact that the decline in
interest rates led to dramatic growth in mortgage refinancings and increased the
rate of prepayments, which adversely affected both the prices and yields of
housing bonds.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As noted earlier, with short-term interest rates at historically low levels, the
dividend-payment capabilities of these Funds benefited from their use of
leverage. The amount of this benefit is tied in part to the short-term rates the
Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable
the Funds to reduce the amount of income paid to MuniPreferred shareholders,
which potentially can leave more earnings to support common share dividends.
During the twelve months ended May 31, 2003, the continued low level of
short-term interest rates enabled us to implement two dividend increases in NTC
and NMT and one increase in NOM. As of May 2003, NFC and NMB had paid
dependable, attractive dividends for 27 consecutive months, while NGK had
offered shareholders steady dividends for 13 consecutive months. NGO and NGX,
which were introduced in September and November 2002, respectively, declared
their first monthly distributions in November 2002 and January 2003.
Over the course of this reporting period, strong demand and favorable market
conditions helped to boost the share prices and net asset values of
4 Duration is a measure of a fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the fund. References to duration in this commentary are
intended to indicate fund duration unless otherwise noted.
4
these Funds. As of May 31, 2003, NTC, NFC, NMT, NMB, NGX and NOM were trading at
premiums to their common share NAVs, while NGO was trading at virtually the same
level as its NAV. Over the period, the NAV of NGK appreciated more rapidly than
its share price, and this Fund moved from trading at a premium to a discount
(see charts on individual Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED MAY
31, 2003?
Over this twelve-month reporting period, we continued to place strong emphasis
on diversifying the portfolios, enhancing call protection and improving
dividend-paying capabilities. Strategically, our main focus centered on
systematically shortening the Funds' durations, which we believed would enhance
our ability to control the Funds' interest rate risk and produce more consistent
returns over time. Interest rate risk is the risk that the value of a Fund's
portfolio will decline when market interest rates rise (since bond prices move
in the opposite direction of interest rates). The longer the duration of a
Fund's portfolio, the greater its interest rate risk.
In line with our duration strategy as well as the recent steepness of the
municipal yield curve, we concentrated on finding value in the intermediate part
of the yield curve (i.e., bonds that mature in 15 to 20 years), particularly in
the newer Funds with longer durations. In many cases, bonds in this part of the
curve were offering yields similar to those of longer-term bonds but, in our
opinion, had less inherent interest rate risk.
In the older Funds--NTC, NMT, and NOM--larger holdings of bonds priced to
near-term call dates, rather than to their maturities, also served to shorten
the Funds' durations.
In general, the relatively heavy municipal bond issuance in these states created
increased purchase opportunities. We looked for individual issues that we
believed would perform well regardless of the future direction of interest
rates. In Connecticut, which is in the midst of a major capital improvement
program for its state university system, many of the new bonds were either
state-issued debt or education bonds, and we took advantage of attractively
priced offerings in both sectors. Over this reporting period, the Massachusetts
municipal market saw unusually heavy issuance of general obligation debt,
including nearly $1 billion in February 2003. As in Connecticut, this increased
issuance presented some value investing opportunities. Each of the Connecticut
and Massachusetts Funds remained heavily weighted in education bonds, while the
Massachusetts Funds and NOM also had large exposures to healthcare. Education
and healthcare were among the top performing Lehman revenue sectors over this
reporting period.
Each of the Connecticut Funds also has invested a small portion (less than 5%)
of its portfolio in bonds backed by the 1998 master tobacco settlement
agreement. In recent months, the prices of these bonds weakened as the result of
lawsuits involving the major tobacco companies as well as the increased issuance
of such bonds by states planning to use the proceeds to help close budget gaps.
Although the sector as a whole produced negative returns over this reporting
period, tobacco-backed bonds have rebounded somewhat following the April payment
by the Altria Group of $2.6 billion to the 46 states covered by the
5
agreement, as well as by a number of recent legal developments favorable to the
tobacco companies. As of the end of the reporting period, our strategy was to
maintain our tobacco holdings while we continued to regularly evaluate the
situation.
In November 2002, we introduced the Nuveen Insured Massachusetts Tax-Free
Advantage Municipal Fund (NGX), which was fully invested by the end of the
reporting period. As mentioned earlier, the Fund began declaring regular monthly
dividends in January 2003. Although 92% of NGX's portfolio is currently invested
in insured or AAA rated bonds, this Fund can invest up to 20% in uninsured
investment-grade (rated BBB or higher or unrated but judged to be of equivalent
quality) securities, with the goal of enhancing the Fund's dividend-paying
capabilities. In addition, NGX cannot hold any bond whose income is subject to
the federal alternative minimum tax (AMT). Over the past few months, we have
been replacing the Puerto Rico bonds that were purchased during the initial
investment phase last fall with Massachusetts-issued bonds. As of May 31, 2003,
approximately 9% of NGX's portfolio was invested in Puerto Rico securities, a
level that is fairly typical for a new Nuveen state municipal bond fund. We
expect to continue to reduce this percentage through additional purchases of
Massachusetts bonds as attractive opportunities arise.
Given the current geopolitical and economic climate, we believed that
maintaining strong credit quality remained a vital requirement. As of May 31,
2003, each of the non-insured Funds offered excellent credit quality, with
allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 76% to 88%.
As mentioned in the previous paragraph, the insured NGX holds 92% of its
portfolio in AAA rated bonds and another 5% in bonds rated AA. In general, our
weightings in insured and AAA bonds benefited the performance of these Funds
during the past year.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN
PARTICULAR?
We continue to believe the U.S. economy is slowly headed for a recovery, but one
that may take longer and be less robust than some originally anticipated. As a
result, we think that inflation and interest rates should remain relatively low
over the near term.
However, the threat of an eventual rise in interest rates remains, and we intend
to keep a careful watch on the Funds' durations and holdings to modulate
interest rate risk if and when rates do reverse course.
Given the budget situations in these three states, as well as their continued
need for spending on infrastructure, education, and healthcare, we expect to see
continued good levels of issuance. Recently, anticipation of changes to the
national tax code led some to wonder about the new law's potential impact on
tax-exempt investments. The final version of the 2003 tax relief law reduced,
but did not eliminate, taxes on corporate dividends, and, as a result, we do not
expect to see any significant impact on the demand or pricing for tax-exempt
municipal bonds.
Looking at bond call exposure, the five newer Funds currently offer good levels
of call protection, with call exposure ranging from zero to 3% during the
remainder of 2003 and through 2004. The older Funds--NTC, NMT and, to a lesser
degree, NOM -- all mark their ten-year anniversaries in 2003 and have entered
that part of their life cycles
6
typically associated with an increase in bond calls. Over the recently completed
reporting period, we worked to mitigate this call risk and improve the positions
of these three Funds. As of May 31, 2003, the percentage of bonds eligible for
calls during 2003 and 2004 was 15% in NTC and 19% in NMT, down from 18% and 26%,
respectively, six months ago. In NOM, the Fund's current level of call
protection--2% during 2003 and 2004--allowed us to focus on moving some calls
scheduled for 2005 out to 2009-2011. The number of actual calls over the coming
months will depend largely on market interest rates.
In coming months, we plan to continue to closely monitor the budgetary
situations in all three states for any potential impact on credit ratings or
local governments as well as any spillover effect of Medicaid/Medicare issues
into the hospital sector. In NGX specifically, we plan to work on reducing the
Fund's high weighting in general obligation bonds and enhancing this Fund's
diversification. In NOM, because Missouri remains a very high quality issuer, we
plan to continue searching for opportunities to add bonds with lower
investment-grade quality ratings, which are in short supply in this state.
We believe that these Nuveen Funds can continue to serve as attractive sources
of tax-free income, as well as offer considerable portfolio diversification
potential. We remain convinced that these Funds are quality investments that can
continue to benefit shareholders as part of a well-balanced core investment
portfolio.
7
Nuveen Connecticut Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2003
NTC
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 71%
AA 16%
A 4%
BBB 8%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $17.14
--------------------------------------------------
Common Share Net Asset Value $15.56
--------------------------------------------------
Market Yield 5.15%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.15%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.52%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $82,492
--------------------------------------------------
Average Effective Maturity (Years) 18.99
--------------------------------------------------
Leverage-Adjusted Duration 7.60
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.63% 14.08%
--------------------------------------------------
5-Year 7.55% 7.50%
--------------------------------------------------
10-Year 6.85% 6.95%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Education and Civic Organizations 22%
--------------------------------------------------
Tax Obligation/General 17%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Water and Sewer 7%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jun 0.071
Jul 0.071
Aug 0.071
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.0735
Apr 0.0735
May 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/02 16.45
16.52
16.78
16.7
17.56
16.7
17.1
16.7
16.6
17.05
16.95
16.46
16.25
16.31
16.65
16.4
16.56
16.75
16.47
16.15
15.85
15.73
16.12
16.19
16
16.1
16.1
16.14
16.25
16.2
16.7
16.56
16.52
16.48
16.6
16.85
16.56
16.63
16.4
16.27
16.55
16.65
16.51
16.45
16.7
16.36
16.37
16.7
16.85
5/31/03 17.14
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 31.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0127 per share.
8
Nuveen Connecticut Dividend Advantage Municipal Fund
Performance
OVERVIEW As of May 31, 2003
NFC
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 55%
AA 21%
A 9%
BBB 14%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.35
--------------------------------------------------
Common Share Net Asset Value $15.53
--------------------------------------------------
Market Yield 5.14%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.14%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.50%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $39,625
--------------------------------------------------
Average Effective Maturity (Years) 20.63
--------------------------------------------------
Leverage-Adjusted Duration 9.36
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.19% 15.38%
--------------------------------------------------
Since Inception 9.28% 9.45%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 23%
--------------------------------------------------
Education and Civic Organizations 20%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
Water and Sewer 7%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.07
Jul 0.07
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Dec 0.07
Jan 0.07
Feb 0.07
Mar 0.07
Apr 0.07
May 0.07
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/02 15.77
16
16.08
16.05
16
16.41
16.25
15.58
15.82
15.83
16
16.05
15.54
15.6
15.74
15.6
15.7
16
16.1
15.6
15.5
15.51
15.8
15.85
14.93
14.99
15.05
15
15.45
15.7
15.6
15.95
15.76
15.65
15.94
16.1
15.8
15.7
15.69
15.65
15.8
15.7
15.67
15.95
15.88
15.7
15.82
15.96
16
5/31/03 16.35
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 31.5%.
9
Nuveen Connecticut Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of May 31, 2003
NGK
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 67%
AA 21%
A 7%
BBB 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.80
--------------------------------------------------
Common Share Net Asset Value $16.23
--------------------------------------------------
Market Yield 5.24%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.28%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.65%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $37,441
--------------------------------------------------
Average Effective Maturity (Years) 20.21
--------------------------------------------------
Leverage-Adjusted Duration 10.20
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/26/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 11.16% 18.77%
--------------------------------------------------
Since Inception 10.11% 17.19%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 33%
--------------------------------------------------
Education and Civic Organizations 25%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Utilities 8%
--------------------------------------------------
Housing/Single Family 6%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jun 0.069
Jul 0.069
Aug 0.069
Sep 0.069
Oct 0.069
Nov 0.069
Dec 0.069
Jan 0.069
Feb 0.069
Mar 0.069
Apr 0.069
May 0.069
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/02 15.37
15.35
15.8
15.65
15.6
15.75
15.45
15.65
16.15
15.7
15.93
15.9
15.6
15.5
15.38
15.39
15.46
15.58
15.49
14.71
15
15.15
15.3
15.2
15.05
15.1
15.15
15.3
15.3
15.35
15.35
15.55
15.55
15.51
15.55
15.84
15.85
15.6
15.45
15.5
15.68
15.43
15.63
15.96
15.58
15.7
15.6
15.7
15.9
5/31/03 15.8
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 31.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0623 per share.
10
Nuveen Connecticut Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of May 31, 2003
NGO
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 72%
AA 13%
A 8%
BBB 7%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.09
--------------------------------------------------
Common Share Net Asset Value $15.06
--------------------------------------------------
Market Yield 5.17%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.18%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.55%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $65,324
--------------------------------------------------
Average Effective Maturity (Years) 20.84
--------------------------------------------------
Leverage-Adjusted Duration 10.70
--------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 9/26/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 3.71% 8.46%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 30%
--------------------------------------------------
Tax Obligation/Limited 19%
--------------------------------------------------
Education and Civic Organizations 13%
--------------------------------------------------
U.S. Guaranteed 9%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.065
Dec 0.065
Jan 0.065
Feb 0.065
Mar 0.065
Apr 0.065
May 0.065
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/27/02 15
15.06
15.25
15.06
15
15
15.05
14.9
14.65
14.56
14.75
14.6
14.71
14.75
14.85
15.09
15
15
15
14.99
14.8
14.92
14.75
14.96
14.71
14.65
14.88
14.85
14.6
14.7
14.65
15.14
15.05
5/31/03 15.09
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 31.5%.
11
Nuveen Massachusetts Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2003
NMT
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 67%
AA 12%
A 11%
BBB 8%
NR 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.80
--------------------------------------------------
Common Share Net Asset Value $15.30
--------------------------------------------------
Market Yield 5.25%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.29%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.72%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $72,003
--------------------------------------------------
Average Effective Maturity (Years) 17.30
--------------------------------------------------
Leverage-Adjusted Duration 8.44
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.98% 12.02%
--------------------------------------------------
5-Year 5.97% 6.56%
--------------------------------------------------
10-Year 6.78% 6.88%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Education and Civic Organizations 20%
--------------------------------------------------
U.S. Guaranteed 20%
--------------------------------------------------
Tax Obligation/General 15%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Housing/Multifamily 11%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.071
Jul 0.071
Aug 0.071
Sep 0.0725
Oct 0.0725
Nov 0.0725
Dec 0.0735
Jan 0.0735
Feb 0.0735
Mar 0.0735
Apr 0.0735
May 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/02 15.93
16.02
15.75
15.9
16.25
16.43
16.27
16.23
16.4
16.06
15.91
16.12
16.12
16.45
16.63
16.41
16.51
16.76
16.09
15.9
15.38
15.85
15.98
15.94
15.26
15.32
15.54
15.75
15.69
15.52
15.81
15.9
15.85
15.8
16.18
15.94
15.76
15.74
15.92
16.26
16.06
16.06
16.07
15.95
16.12
16.24
16.2
16.23
16.36
5/31/03 16.8
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32%.
12
Nuveen Massachusetts Dividend Advantage Municipal Fund
Performance
OVERVIEW As of May 31, 2003
NMB
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 65%
AA 16%
A 6%
BBB 13%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.45
--------------------------------------------------
Common Share Net Asset Value $16.00
--------------------------------------------------
Market Yield 5.33%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.40%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.84%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $31,134
--------------------------------------------------
Average Effective Maturity (Years) 23.42
--------------------------------------------------
Leverage-Adjusted Duration 9.54
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/31/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 8.76% 19.74%
--------------------------------------------------
Since Inception 9.80% 11.11%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Education and Civic Organizations 19%
--------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Water and Sewer 10%
--------------------------------------------------
U.S.Guaranteed 9%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/02 16.25
16.29
16.68
16.69
17.05
16.75
16.7
16.4
16.95
16.8
16.43
16.39
16.62
16.78
16.73
16.65
16.83
17.22
16.64
16.95
16.61
16.5
16.5
16.45
16.35
16.63
16.55
16.4
16.2
16.35
16.65
16.03
16.1
16.29
16.21
16.27
15.95
16
16.15
16.2
16.19
16.12
16.09
16.29
16.19
16.11
16.27
16.71
16.2
5/31/03 16.45
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32%.
13
Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund
Performance
OVERVIEW As of May 31, 2003
NGX
Pie Chart:
CREDIT QUALITY
Insured 89%
AAA (uninsured) 3%
AA (uninsured) 5%
A (uninsured) 2%
BBB (uninsured) 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.78
--------------------------------------------------
Common Share Net Asset Value $15.25
--------------------------------------------------
Market Yield 5.48%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.61%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.06%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $41,297
--------------------------------------------------
Average Effective Maturity (Years) 23.22
--------------------------------------------------
Leverage-Adjusted Duration 12.29
--------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 11/22/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 7.69% 9.07%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 41%
--------------------------------------------------
Tax Obligation/Limited 15%
--------------------------------------------------
Education and Civic Organizations 13%
--------------------------------------------------
Housing/Multifamily 8%
--------------------------------------------------
Healthcare 8%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.072
Feb 0.072
Mar 0.072
Apr 0.072
May 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/22/02 15.2
15.05
15.15
15.15
15.01
14.92
15
14.4
15
15
15
15.4
15.45
15
15
15.15
15.2
14.82
15.12
15.13
15.4
15.9
15.72
15.6
5/31/03 15.78
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32%.
14
Nuveen Missouri Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2003
NOM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 79%
AA 8%
A 3%
BBB 4%
NR 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.87
--------------------------------------------------
Common Share Net Asset Value $15.40
--------------------------------------------------
Market Yield 5.16%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.17%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.64%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $34,228
--------------------------------------------------
Average Effective Maturity (Years) 14.87
--------------------------------------------------
Leverage-Adjusted Duration 8.00
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.39% 13.75%
--------------------------------------------------
5-Year 9.25% 7.12%
--------------------------------------------------
10-Year 6.65% 6.62%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 19%
--------------------------------------------------
U.S. Guaranteed 17%
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Housing/Multifamily 7%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.0715
Jul 0.0715
Aug 0.0715
Sep 0.0725
Oct 0.0725
Nov 0.0725
Dec 0.0725
Jan 0.0725
Feb 0.0725
Mar 0.0725
Apr 0.0725
May 0.0725
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
6/1/02 15.41
16.4
16.55
16.63
17.05
15.67
15.8
16.45
16.6
16.85
16.65
16.52
5/31/03 16.87
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32.5%.
15
Report of
INDEPENDENT AUDITORS
THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN CONNECTICUT PREMIUM INCOME MUNICIPAL FUND
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN CONNECTICUT DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN 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 as of May 31, 2003, and the related statements of operations, changes in
net assets and the financial highlights for the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 2003, by correspondence with the
custodian and brokers or by other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Nuveen
Connecticut Premium Income Municipal Fund, Nuveen Connecticut Dividend Advantage
Municipal Fund, Nuveen Connecticut Dividend Advantage Municipal Fund 2, Nuveen
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, 2003, and the results of their
operations, changes in their net assets and their financial highlights for the
periods indicated therein in conformity with accounting principles generally
accepted in the United States.
Ernst & Young LLP
Chicago, Illinois
July 11, 2003
16
Nuveen Connecticut Premium Income Municipal Fund (NTC)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8%
$ 1,670 Puerto Rico, The Children's Trust Fund, 5/12 at 100.00 A- $ 1,466,026
Tobacco Settlement Asset-Backed Bonds, Series 2002
Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 32.1%
Connecticut Higher Education Supplemental Loan
Authority, Revenue Bonds, Family Education
Loan Program, 1996 Series A:
1,025 5.800%, 11/15/14 (Alternative Minimum Tax) - AMBAC Insured 11/06 at 102.00 AAA 1,072,181
655 5.875%, 11/15/17 (Alternative Minimum Tax) - AMBAC Insured 11/06 at 102.00 AAA 685,726
705 Connecticut Higher Education Supplemental Loan 11/09 at 102.00 AAA 759,250
Authority, Revenue Bonds, Family Education
Loan Program, 1999 Series A, 6.000%, 11/15/18 (Alternative
Minimum Tax) - AMBAC Insured
940 Connecticut Higher Education Supplemental Loan 11/11 at 100.00 Aaa 1,011,374
Authority, Revenue Bonds, Family Education
Loan Program, 2001 Series A, 5.250%, 11/15/18 (Alternative
Minimum Tax) - MBIA Insured
1,540 Connecticut Health and Educational 7/03 at 102.00 Baa1 1,566,719
Facilities Authority, Revenue Bonds, Quinnipiac College
Issue, Series 1993D, 6.000%, 7/01/23
2,000 Connecticut Health and Educational Facilities 7/06 at 102.00 AAA 2,252,280
Authority, Revenue Bonds, Trinity College Issue,
Series 1996E, 5.875%, 7/01/26 - MBIA Insured
1,500 Connecticut Health and Educational Facilities 7/06 at 102.00 AAA 1,665,660
Authority, Revenue Bonds, Loomis Chaffee
School Issue, Series 1996C, 5.500%, 7/01/16 - MBIA Insured
1,900 Connecticut Health and Educational Facilities 7/08 at 102.00 AAA 2,005,963
Authority, Revenue Bonds, Fairfield University
Issue, Series 1998H, 5.000%, 7/01/23 - MBIA Insured
2,920 Connecticut Health and Educational 7/07 at 102.00 AAA 3,293,994
Facilities Authority, Revenue Bonds, Connecticut College
Issue, Series 1997C-1, 5.500%, 7/01/20 - MBIA Insured
1,250 Connecticut Health and Educational 7/09 at 101.00 AAA 1,347,025
Facilities Authority, Revenue Bonds, Fairfield University,
Series 1999I, 5.250%, 7/01/25 - MBIA Insured
750 Connecticut Health and Educational Facilities 7/09 at 101.00 Aaa 831,585
Authority, Revenue Bonds, Horace Bushnell
Memorial Hall Issue, Series 1999A, 5.625%, 7/01/29 -
MBIA Insured
500 Connecticut Health and Educational Facilities 7/11 at 101.00 AAA 529,505
Authority, Revenue Bonds, Trinity College,
Series 2001G, 5.000%, 7/01/31 - AMBAC Insured
650 Connecticut Health and Educational Facilities 7/11 at 101.00 A2 720,779
Authority, Revenue Bonds, Loomis Chaffee
School, Series 2001D, 5.500%, 7/01/23
450 Connecticut Health and Educational Facilities 3/11 at 101.00 AAA 474,930
Authority, Revenue Bonds, Greenwich Academy,
Series 2001B, 5.000%, 3/01/32 - FSA Insured
2,000 Connecticut Health and Educational 7/12 at 101.00 AA 2,145,020
Facilities Authority, Revenue Bonds, University of Hartford
Issue, 2002 Series E, 5.250%, 7/01/32 - RAAI Insured
1,500 Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Yale University Issue, 7/09 at 100.00 AAA 1,577,730
2002 Series W, 5.125%, 7/01/27
1,500 Connecticut Health and Educational 7/13 at 100.00 AAA 1,584,255
Facilities Authority, Revenue Bonds, Yale University,
Series 2003X-1, 5.000%, 7/01/42
660 Connecticut Health and Educational Facilities 7/13 at 100.00 AAA 698,293
Authority, Revenue Bonds, Brunswick School,
Series 2003B, 5.000%, 7/01/33 - MBIA Insured
1,000 University of Connecticut, Student Fee 11/12 at 101.00 AAA 1,133,660
Revenue Refunding Bonds, Series 2002A, 5.250%,
11/15/19 - FGIC Insured
1,100 University of Connecticut, General 2/13 at 100.00 AAA 1,209,659
Obligation Bonds, Series 2003A, 5.125%, 2/15/21 -
MBIA Insured
17
Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.7%
$ 2,000 Connecticut Health and Educational 7/09 at 101.00 Aaa $ 2,083,640
Facilities Authority Revenue Bonds, Stamford Hospital
Issue, Series 1999G, 5.000%, 7/01/24 - MBIA Insured
1,000 Connecticut Health and Educational 7/07 at 102.00 AAA 1,123,230
Facilities Authority, Revenue Bonds, William W. Backus
Hospital Issue, Series 1997D, 5.750%, 7/01/27 - AMBAC Insured
3,000 Connecticut Health and Educational Facilities 7/07 at 101.00 Aaa 3,104,970
Authority, Revenue Bonds, Middlesex Health
Services Issue, Series 1997H Refunding, 5.125%, 7/01/27 -
MBIA Insured
2,000 Connecticut Health and Educational Facilities 7/10 at 101.00 AA 2,242,240
Authority Revenue Bonds, Eastern Connecticut
Health Network Issue, Series 2000A, 6.000%, 7/01/25 -
RAAI Insured
500 Connecticut Health and Educational 7/12 at 101.00 AA 556,295
Facilities Authority, Revenue Bonds, Bristol Hospital
Issue, 2002 Series B, 5.500%, 7/01/21 - RAAI Insured
2,000 Connecticut Development Authority, Solid 7/05 at 102.00 AAA 2,227,160
Waste Disposal Facilities Revenue Bonds, Pfizer Inc.
Project, 1994 Series, 7.000%, 7/01/25 (Alternative Minimum Tax)
1,500 Puerto Rico Industrial, Tourist, Educational, Medical, 8/05 at 101.50 AAA 1,654,935
and Environmental Control Facilities Financing Authority,
Hospital Revenue Refunding Bonds, FHA-Insured Mortgage,
Dr. Pila Hospital Project, 1995 Series A, 6.125%, 8/01/25
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.1%
1,000 Connecticut Housing Finance Authority, 12/09 at 100.00 AAA 1,072,100
Housing Mortgage Finance Program Bonds, 1999 Series D2,
6.200%, 11/15/41 (Alternative Minimum Tax)
1,000 Waterbury, Connecticut, Housing Authority, 7/03 at 100.00 AAA 1,000,750
Mortgage Refunding Revenue Bonds, Series 1998C,
FHA-Insured Mortgage Loan, Waterbury NSA - II Section 8
Assisted Project, 5.450%, 7/01/23 - AMBAC Insured
835 Waterbury Nonprofit Housing Corporation, 7/03 at 100.00 AAA 836,420
Connecticut, Mortgage Revenue Bonds, FHA-Insured Mortgage
Loan - Fairmont Heights Section 8 Assisted Project,
Series 1993A, 6.500%, 7/01/07 - MBIA Insured
1,905 Willimantic, Connecticut, Housing Authority, 10/05 at 105.00 AAA 2,086,032
Multifamily Housing Revenue Bonds, Series 1995A,
GNMA Collateralized Mortgage Loan - Village Heights
Apartments Project, 8.000%, 10/20/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.7%
3,175 Connecticut Housing Finance Authority, 11/03 at 102.00 AAA 3,244,882
Housing Mortgage Finance Program Bonds, 1993 Series B,
6.200%, 5/15/12
120 Connecticut Housing Finance Authority, 5/10 at 100.00 AAA 130,298
Housing Mortgage Finance Program Bonds, 2000 Series A,
Subseries A-1, 6.000%, 11/15/28
500 Connecticut Housing Finance Authority, Housing 5/10 at 100.00 AAA 521,120
Mortgage Finance Program Bonds, 2001 Series A-1,
5.250%, 11/15/28
350 Connecticut Housing Finance Authority, Housing 5/10 at 100.00 AAA 366,009
Mortgage Finance Program Bonds, 2001 Series A,
Subseries A-2, 5.450%, 5/15/32 (Alternative )
Minimum Tax
1,000 Connecticut Housing Finance Authority, 11/10 at 100.00 AAA 1,040,680
Housing Mortgage Finance Program Bonds, 2001 Series C,
5.300%, 11/15/33 (Alternative Minimum Tax)
995 Connecticut Housing Finance Authority, Housing 5/12 at 100.00 AAA 1,041,377
Mortgage Finance Program Bonds, 2001 Series D,
Subseries D-2, 5.350%, 11/15/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.9%
1,300 Connecticut Health and Educational Facilities 8/08 at 102.00 AAA 1,357,824
Authority, Revenue Bonds, Hebrew Home and Hospital
Issue, Series 1999B, FHA-Insured Mortgage, 5.200%, 8/01/38
615 Connecticut Development Authority, First 9/09 at 102.00 AA 688,050
Mortgage Gross Revenue Health Care Project Refunding
Bonds, Connecticut Baptist Homes, Inc. Project ,1999 Series,
5.500%, 9/01/15 - RAAI Insured
Connecticut Development Authority, Revenue Refunding Bonds,
Duncaster Inc. Project, Series 1999A:
1,000 5.250%, 8/01/19 - RAAI Insured 2/10 at 102.00 AA 1,080,170
1,000 5.375%, 8/01/24 - RAAI Insured 2/10 at 102.00 AA 1,075,120
Connecticut Development Authority, Health Facility Refunding
Revenue Bonds, Alzheimer's Resource Center of Connecticut,
Inc. Project, Series 1994A:
475 6.875%, 8/15/04 No Opt. Call N/R 476,154
1,000 7.000%, 8/15/09 8/04 at 102.00 N/R 1,006,960
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 24.9%
$ 750 Bridgeport, Connecticut, General Obligation Bonds, Series 2002A 8/12 at 100.00 Aaa $ 843,188
Refunding, 5.375%, 8/15/19 - FGIC Insured
Cheshire, Connecticut, General Obligation Bonds, Issue of 1999:
660 5.625%, 10/15/16 10/09 at 101.00 Aa3 768,207
660 5.625%, 10/15/17 10/09 at 101.00 Aa3 768,207
1,000 Connecticut, General Obligation Bonds, 11/09 at 101.00 AA 1,146,470
1999 Series B, 5.500%, 11/01/18
2,000 Connecticut, General Obligation Bonds, 6/12 at 100.00 AA 2,263,800
Series 2002B, 5.500%, 6/15/21
1,500 Connecticut, General Obligation Bonds, 4/12 at 100.00 AA 1,691,565
Series 2002A, 5.375%, 4/15/19
1,650 Connecticut, General Fund Obligation Bonds, 10/04 at 102.00 AA 1,793,022
Issued By Connecticut Development Authority,
1994 Series A, 6.375%, 10/15/14
1,000 Hartford, Connecticut, General Obligation 6/10 at 102.00 AAA 1,128,380
Bonds, 5.500%, 6/15/20 - FGIC Insured
400 Northern Mariana Islands, General Obligation 6/10 at 100.00 A 435,072
Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured
500 Puerto Rico Public Improvement, Refunding General 7/11 at 100.00 AAA 532,050
Obligation Bonds, Series 2001, 5.125%, 7/01/30 - FSA Insured
1,500 Puerto Rico Public Improvement, Refunding No Opt. Call AAA 1,808,775
General Obligation Bonds, 2002 Series A, 5.500%,
7/01/20 - MBIA Insured
Regional School District 16, Towns of Beacon Falls and Prospect,
Connecticut, General Obligation Bonds, Issue of 2000:
350 5.500%, 3/15/18 - FSA Insured 3/10 at 101.00 Aaa 399,774
350 5.625%, 3/15/19 - FSA Insured 3/10 at 101.00 Aaa 402,325
350 Connecticut Regional School District 16, 3/10 at 101.00 Aaa 402,689
General Obligation Bonds, 5.700%, 3/15/20 - FSA Insured
2,105 Stratford, Connecticut, General Obligation 2/12 at 100.00 AAA 2,192,168
Bonds, Series 2002, 4.000%, 2/15/15 - FSA Insured
1,000 Waterbury, Connecticut, General Obligation 4/12 at 100.00 AAA 1,138,550
Bonds, Series 2002A, 5.375%, 4/01/17 - FSA Insured
965 Waterbury, Connecticut, General Obligation Tax 2/09 at 101.00 AA 1,095,960
Revenue Intercept Bonds, 2000 Issue, 6.000%,
2/01/19 - RAAI Insured
1,630 Westport, Connecticut, General Obligation 2/12 at 100.00 Aaa 1,739,047
Bonds, Series 2003, 4.750%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.8%
1,900 Capitol Region Education Council, 10/05 at 102.00 BBB 2,054,204
Connecticut, Bonds, Series 1995, 6.700%, 10/15/10
2,000 Connecticut Health and Educational 7/09 at 102.00 AAA 2,249,480
Facilities Authority, Revenue Bonds, Child Care Facilities
Program, Series 1999C, 5.625%, 7/01/29 - AMBAC Insured
Connecticut, Special Tax Obligation Bonds,
Transportation Infrastructure Purpose, Series 2002B:
2,000 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AAA 2,182,420
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AAA 1,082,930
1,700 Connecticut, Special Tax Obligation Bonds, No Opt. Call AA- 2,117,639
Transportation Infrastructure Purposes, Series 1991B,
6.500%, 10/01/10
2,000 Puerto Rico Municipal Finance Agency, 2002 8/12 at 100.00 AAA 2,220,200
Series A, 5.250%, 8/01/21 - FSA Insured
1,000 Virgin Islands Public Finance Authority 10/10 at 101.00 BBB- 1,152,940
Revenue Bonds, Gross Receipts Taxes Loan Note,
Series 1999A, 6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.0%
750 Connecticut, General Airport Revenue Bonds, 4/11 at 101.00 AAA 776,348
Bradley International Airport, Series 2001A,
5.125%, 10/01/26 (Alternative Minimum Tax) - FGIC Insured
2,075 Connecticut, Airport Revenue Refunding 10/04 at 100.00 AAA 2,243,407
Bonds, Bradley International Airport, Series 1992,
7.650%, 10/01/12 - FGIC Insured
1,000 Hartford, Connecticut, Parking System 7/10 at 100.00 BBB 1,091,710
Revenue Bonds, 2000 Series A, 6.400%, 7/01/20
19
Nuveen Connecticut Premium Income Municipal Fund (NTC) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 8.2%
$ 1,500 Bridgeport, Connecticut, General 7/10 at 101.00 AAA $ 1,840,530
Obligation Bonds, 2000 Series A, 6.000%, 7/15/19 -
FGIC Insured (Pre-refunded to 7/15/10)
1,180 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,325,624
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
40 Connecticut, General Obligation Bonds, 1993 Series E, No Opt. Call AA*** 49,333
6.000%, 3/15/12
1,000 Connecticut, Special Tax Obligation Bonds, 12/09 at 101.00 AAA 1,204,950
Transportation Infrastructure Purposes, Series 1999A,
5.625%, 12/01/19 (Pre-refunded to 12/01/09) - FGIC Insured
1,000 Connecticut, Second Injury Fund Special 1/11 at 101.00 AAA 1,172,600
Assessment Revenue Bonds, Series 2000A, 5.250%,
1/01/14 (Pre-refunded to 1/01/11) - FSA Insured
1,000 Puerto Rico Infrastructure Financing 10/10 at 101.00 AAA 1,133,760
Authority, Special Obligation Bonds, 2000 Series A,
5.500%,10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.7%
1,500 Connecticut Development Authority, Pollution 10/08 at 102.00 A3 1,598,745
Control Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1993A, 5.850%, 9/01/28
2,450 Connecticut Resources Recovery Authority, 11/03 at 101.00 AAA 2,545,526
Resource Recovery Revenue Bonds, American Ref-Fuel
Company of Southeastern Connecticut Project, 1989 Series A,
7.700%, 11/15/11 - MBIA Insured
1,750 Connecticut Resources Recovery Authority, 12/11 at 102.00 Baa2 1,833,213
Corporate Credit Resource Recovery Revenue Bonds,
American Ref-Fuel Company of Southeastern Connecticut,
I Series 1998A, 5.500%, 11/15/15 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid
Waste Revenue Bonds, Wheelabrator Lisbon
Project, Series 1993A:
395 5.500%, 1/01/14 (Alternative Minimum Tax) 7/03 at 102.00 BBB 398,018
1,590 5.500%, 1/01/20 (Alternative Minimum Tax) 7/03 at 102.00 BBB 1,589,396
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.8%
1,400 Connecticut Development Authority, Water 6/03 at 102.00 AAA 1,432,228
Facilities Refunding Revenue Bonds, Bridgeport Hydraulic
Company Project, 1993B Series, 5.500%,
6/01/28 - MBIA Insured
2,500 Connecticut Development Authority, Water 9/06 at 102.00 AAA 2,827,850
Facilities Revenue Bonds, Bridgeport Hydraulic Company
Project, 1996 Series, 6.000%, 9/01/36 (Alternative
Minimum Tax) - AMBAC Insured
1,000 Connecticut, Clean Water Fund Revenue Bonds, 10/11 at 100.00 AAA 1,149,790
Series 2001, 5.500%, 10/01/20
South Central Connecticut Regional Water Authority,
Water System Revenue Bonds, Eighteenth Series 2003A:
1,000 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 1,093,760
1,525 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 1,617,899
------------------------------------------------------------------------------------------------------------------------------------
$ 109,110 Total Long-Term Investments (cost $109,704,467) - 143.7% 118,581,779
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 2,210,275
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.4)% (38,300,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $82,492,054
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
20
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.3%
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 160 5.000%, 5/15/22 5/11 at 100.00 Baa2 $ 157,589
500 5.400%, 5/15/31 5/11 at 100.00 Baa2 442,060
1,270 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa2 1,086,333
Asset-Backed Bonds, 2001 Series B, 5.500%, 5/15/41
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 28.4%
740 Connecticut Higher Educational Supplemental 11/11 at 100.00 Aaa 796,188
Loan Authority, Revenue Bonds, Family Education
Loan Program, 2001 Series A, 5.250%, 11/15/18
(Alternative Minimum Tax) - MBIA Insured
50 Connecticut Health and Educational Facilities 7/08 at 101.00 AA 51,748
Authority Revenue Bonds, Sacred Heart
University Issue, Series E, 5.000%, 7/01/28 -
RAAI Insured
500 Connecticut Health and Educational 7/06 at 102.00 BBB- 522,695
Facilities Authority, Revenue Bonds, University of New
Haven Issue, Series D, 6.700%, 7/01/26
1,500 Connecticut Health and Educational 7/11 at 101.00 AAA 1,588,515
Facilities Authority, Revenue Bonds, Trinity College,
Series 2001G, 5.000%, 7/01/31 - AMBAC Insured
1,000 Connecticut Health and Educational 7/11 at 101.00 A2 1,108,890
Facilities Authority, Revenue Bonds, The Loomis Chaffee
School, Series D, 5.500%, 7/01/23
625 Connecticut Health and Educational Facilities 3/11 at 101.00 AAA 659,625
Authority, Revenue Bonds, Greenwich Academy,
Series 2001B, 5.000%, 3/01/32 - FSA Insured
1,000 Connecticut Health and Educational 7/12 at 101.00 AA 1,072,510
Facilities Authority, Revenue Bonds, University of
Hartford Issue, 2002 Series E, 5.250%, 7/01/32 - RAAI Insured
1,000 Connecticut Health and Educational 7/09 at 100.00 AAA 1,051,820
Facilities Authority, Revenue Bonds, Yale University
Issue, 2002 Series W, 5.125%, 7/01/27
750 Connecticut Health and Educational Facilities 7/13 at 100.00 AAA 792,128
Authority, Revenue Bonds, Yale University,
Series 2003X-1, 5.000%, 7/01/42
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System
Project, Series 1999:
125 5.375%, 2/01/19 2/09 at 101.00 BBB 131,929
270 5.375%, 2/01/29 2/09 at 101.00 BBB 278,532
University of Connecticut, General Obligation Bonds,
2001 Series A:
1,000 4.750%, 4/01/20 4/11 at 101.00 AA 1,054,930
1,000 5.250%, 4/01/20 4/11 at 101.00 AA 1,107,380
1,000 4.750%, 4/01/21 4/11 at 101.00 AA 1,047,350
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 3.1%
125 Connecticut Health and Educational Facilities 7/09 at 101.00 Aaa 130,228
Authority Revenue Bonds, Stamford Hospital
Issue, Series G, 5.000%, 7/01/24 - MBIA Insured
1,000 Connecticut Health and Educational Facilities 7/12 at 101.00 AA 1,089,520
Authority, Revenue Bonds, Bristol Hospital
Issue, 2002 Series B, 5.500%, 7/01/32 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1%
2,000 Housing Authority of Stamford, Connecticut, No Opt. Call BBB+ 2,005,760
Multifamily Housing Revenue Refunding Bonds,
Fairfield Apartments Project, Series 1998,
4.750%, 12/01/28 (Alternative Minimum Tax)
(Mandatory put 12/01/08)
21
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.8%
$ 1,265 Connecticut Housing Finance Authority, Housing Mortgage 5/10 at 100.00 AAA $ 1,318,434
Finance Program Bonds, 2001 Series A-1, 5.250%, 11/15/28
700 Connecticut Housing Finance Authority, Housing Mortgage 5/10 at 100.00 AAA 732,018
Finance Program Bonds, 2001 Series A, Subseries A-2,
5.450%, 5/15/32 (Alternative Minimum Tax)
1,000 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA 1,040,680
Finance Program Bonds, 2001 Series C,
5.300%, 11/15/33 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.9%
250 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 261,123
Revenue Bonds, Health Care, Elim Park Baptist Inc
Project, Series 2003, 5.750%, 12/01/23
500 Connecticut Development Authority, Health Facility Revenue 8/04 at 102.00 N/R 477,610
Refunding Bonds, Alzheimer's Resource Center of
Connecticut, Inc. Project, Series 1994A, 7.250%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.8%
750 Connecticut, General Obligation Bonds, Series 2002B, 6/12 at 100.00 AA 848,925
5.500%, 6/15/21
1,000 Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,127,710
5.375%, 4/15/19
500 East Lyme, Connecticut, General Obligation Bonds, 7/11 at 102.00 Aaa 554,285
5.125%, 7/15/20 - FGIC Insured
700 Farmington, Connecticut, General Obligation 3/11 at 101.00 Aa1 751,695
Bonds, Series 2001, 4.875%, 3/15/20
Hamden, Connecticut, General Obligation Bonds:
640 5.250%, 8/15/18 - MBIA Insured 8/11 at 102.00 AAA 727,174
635 5.000%, 8/15/19 - MBIA Insured 8/11 at 102.00 AAA 703,059
300 5.000%, 8/15/20 - MBIA Insured 8/11 at 102.00 AAA 329,682
1,000 Hartford, Connecticut, General Obligation 1/08 at 102.00 AAA 1,071,430
Bonds, Series 1998, 4.700%, 1/15/15 - FGIC Insured
375 New Haven, Connecticut, General Obligation 2/08 at 101.00 AAA 396,754
Bonds, Series 1999, 4.700%, 2/01/15 - FGIC Insured
1,000 New Haven, Connecticut, General Obligation 11/10 at 101.00 AAA 1,084,820
Bonds, Series 2001A, 5.000%, 11/01/20 - FGIC Insured
250 Northern Mariana Islands, General Obligation 6/10 at 100.00 A 271,920
Bonds, Series 2000A, 6.000%, 6/01/20 - ACA Insured
Norwich, Connecticut, General Obligation Bonds, Series 2001A:
585 5.000%, 4/01/15 - FGIC Insured 4/09 at 100.00 Aaa 653,229
575 5.000%, 4/01/17 - FGIC Insured 4/09 at 100.00 Aaa 637,554
475 5.000%, 4/01/18 - FGIC Insured 4/09 at 100.00 Aaa 524,343
575 5.000%, 4/01/19 - FGIC Insured 4/09 at 100.00 Aaa 630,511
275 5.000%, 4/01/20 - FGIC Insured 4/09 at 100.00 Aaa 299,560
1,000 Waterbury, Connecticut, General Obligation 4/12 at 100.00 AAA 1,138,550
Bonds, Series 2002A, 5.375%, 4/01/17 - FSA Insured
Windsor, Connecticut, General Obligation Bonds:
390 5.000%, 7/15/18 7/09 at 100.00 Aa2 431,106
390 5.000%, 7/15/19 7/09 at 100.00 Aa2 428,162
370 5.000%, 7/15/20 7/09 at 100.00 Aa2 403,455
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.2%
1,000 Connecticut Health and Educational Facilities 7/08 at 105.00 A 1,111,510
Authority, Revenue Bonds, New Opportunities for
Waterbury, Inc. Issue, Series 1998A, 6.750%, 7/01/28
1,475 Connecticut, Special Tax Obligation Bonds, No Opt. Call AAA 1,782,051
Transportation Infrastructure Purposes, 1998 Series B,
5.500%, 11/01/12 - FSA Insured
Connecticut, Certificates of Participation, Juvenile Training
School, Series 2001:
600 5.000%, 12/15/20 12/11 at 101.00 AA- 649,356
1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 1,053,230
500 Virgin Islands Public Finance Authority Revenue 10/08 at 101.00 AA 537,865
and Refunding Bonds, Virgin Islands Matching Fund
Loan Notes, Series 1998A, Senior Lien/Refunding,
5.500%, 10/01/18 - RAAI Insured
750 Virgin Islands Public Finance Authority 10/10 at 101.00 BBB- 871,740
Revenue Bonds, Virgin Islands Gross Receipts Taxes Loan
Note, Series 1999A, 6.375%, 10/01/19
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.5%
$ 2,500 Connecticut, General Airport Revenue Bonds, 4/11 at 101.00 AAA $ 2,587,825
Series 2001A, Bradley International Airport, 5.125%,
10/01/26 (Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.4%
570 Puerto Rico, The Children's Trust Fund, 7/10 at 100.00 AAA 640,344
Tobacco Settlement Asset-Backed Bonds, Series 2000,
5.750%, 7/01/20 (Pre-refunded to 7/01/10)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, 2000 Series A:
1,425 5.500%, 10/01/32 10/10 at 101.00 AAA 1,614,710
1,300 5.500%, 10/01/40 10/10 at 101.00 AAA 1,473,888
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.7%
1,500 Connecticut Development Authority, Pollution 10/08 at 102.00 A3 1,598,745
Control Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1993A, 5.850%, 9/01/28
1,000 Connecticut Resources Recovery Authority, 12/11 at 102.00 Baa2 1,047,550
Corporate Credit Resource Recovery Revenue Bonds,
American Ref-Fuel Company of Southeastern Connecticut,
I Series A, 5.500%, 11/15/15 (Alternative Minimum Tax)
1,000 Eastern Connecticut Resource Recovery 7/03 at 102.00 BBB 1,007,640
Authority, Solid Waste Revenue Bonds, Wheelabrator
Lisbon Project, Series 1993A, 5.500%, 1/01/14
(Alternative Minimum Tax)
1,975 Puerto Rico Electric Power Authority, Power 7/10 at 101.00 AAA 2,155,436
Revenue Bonds, Series 2000HH, 5.250%, 7/01/29 -
FSA Insured
790 Puerto Rico Electric Power Authority, Power 7/05 at 100.00 A- 827,083
Revenue Refunding Bonds, Series 1995Z, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.8%
2,000 Connecticut, Clean Water Fund Revenue Bonds, 10/11 at 100.00 AAA 2,299,580
Series 2001, 5.500%, 10/01/20
South Central Connecticut Regional Water
Authority, Water System Revenue Bonds,
Eighteenth Series 2003A:
750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 820,320
720 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 763,859
------------------------------------------------------------------------------------------------------------------------------------
$ 51,970 Total Long-Term Investments (cost $52,266,608) - 141.0% 55,862,251
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 8.2% 3,262,391
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (19,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $39,624,642
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
23
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0%
$ 835 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 A- $ 733,013
Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 36.4%
500 Connecticut Health and Educational Facilities 7/06 at 102.00 BBB- 522,695
Authority, Revenue Bonds, University of New
Haven Issue, Series 1996D, 6.700%, 7/01/26
500 Connecticut Health and Educational Facilities 7/08 at 101.00 AAA 534,980
Authority, Revenue Bonds, Hopkins School
Issue, Series 1998A, 5.000%, 7/01/20 - AMBAC Insured
2,000 Connecticut Health and Educational Facilities 7/11 at 101.00 A2 2,140,800
Authority, Revenue Bonds, Loomis Chaffee
School, Series 2001D, 5.250%, 7/01/31
1,000 Connecticut Health and Educational Facilities 3/11 at 101.00 AAA 1,055,400
Authority, Revenue Bonds, Greenwich Academy,
Series 2001B, 5.000%, 3/01/32 - FSA Insured
1,000 Connecticut Health and Educational Facilities 7/12 at 101.00 AA 1,072,510
Authority, Revenue Bonds, University of
Hartford Issue, 2002 Series E, 5.250%, 7/01/32 -
RAAI Insured
2,250 Connecticut Health and Educational Facilities 11/11 at 100.00 AAA 2,396,003
Authority, Revenue Bonds, Connecticut State
University System, 2002 Series D-2,
5.000%, 11/01/21 - FSA Insured
1,000 Connecticut Health and Educational Facilities 7/09 at 100.00 AAA 1,051,820
Authority, Revenue Bonds, Yale University
Issue, 2002 Series W, 5.125%, 7/01/27
750 Connecticut Health and Educational Facilities 7/13 at 100.00 AAA 792,128
Authority, Revenue Bonds, Yale University,
Series 2003X-1, 5.000%, 7/01/42
University of Connecticut, Student Fee Revenue Refunding
Bonds, Series 2002A:
500 5.250%, 11/15/22 - FGIC Insured 11/12 at 101.00 AAA 555,795
2,000 5.000%, 11/15/29 - FGIC Insured 11/12 at 101.00 AAA 2,128,160
1,230 University of Connecticut, General 4/12 at 100.00 AA 1,390,454
Obligation Bonds, Series 2002A, 5.375%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 2.8%
1,000 Connecticut Health and Educational 7/12 at 101.00 AA 1,060,540
Facilities Authority, Revenue Bonds, St. Francis Hospital and
Medical Center, Series 2002D, 5.000%, 7/01/22 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.5%
1,000 Connecticut Housing Finance Authority, 11/11 at 100.00 AAA 1,060,350
Housing Mortgage Finance Program Bonds, 2002 Series A,
Subseries A-1, 5.450%, 11/15/28 - AMBAC Insured
1,000 Connecticut Housing Finance Authority, 11/11 at 100.00 AAA 1,065,210
Housing Mortgage Finance Program Bonds, 2002 Series A,
Subseries A-2, 5.600%, 11/15/28 (Alternative Minimum Tax) -
AMBAC Insured
995 Connecticut Housing Finance Authority, Housing 5/12 at 100.00 AAA 1,041,377
Mortgage Finance Program Bonds, 2001 Series D,
Subseries D-2, 5.350%, 11/15/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2%
450 Connecticut Health and Educational Facilities 7/12 at 101.00 AAA 492,710
Authority, Revenue Bonds, Village for Families and
Children Inc. Issue, Series A, 5.000%, 7/01/19 -
AMBAC Insured
320 Connecticut Development Authority, First 12/11 at 102.00 BBB+ 334,237
Mortgage Gross Revenue Bonds, Health Care, Elim Park
Baptist Inc. Project, Series 2003, 5.750%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 47.2%
1,000 Bridgeport, Connecticut, General Obligation 8/11 at 100.00 AAA 1,131,340
Bonds, Series 2001C, 5.375%, 8/15/18 - FGIC Insured
2,000 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,405,920
5.500%, 12/15/12
1,000 Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,127,710
5.375%, 4/15/19
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,105 Fairfield, Connecticut, General Obligation 4/12 at 100.00 AAA $ 2,360,968
Bonds, Series 2002A, 5.000%, 4/01/16
Farmington, Connecticut, General Obligation Bonds, Series 2002:
1,000 5.000%, 9/15/20 9/12 at 101.00 Aa1 1,100,610
1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,583,966
1,305 Hartford County Metropolitan District, 4/12 at 101.00 AA+ 1,414,007
Connecticut, General Obligation Bonds, Series 2002,
5.000%, 4/01/22
Regional School District No. 008, Towns of Andover,
Hebron, and Marlborough, Tolland County, Connecticut,
General Obligation Bonds, Series 2002:
1,390 5.000%, 5/01/20 - FSA Insured 5/11 at 101.00 Aaa 1,513,919
1,535 5.000%, 5/01/22 - FSA Insured 5/11 at 101.00 Aaa 1,653,272
2,105 Stamford, Connecticut, General Obligation Bonds, 8/12 at 100.00 AAA 2,370,146
Series 2002, 5.000%, 8/15/16
Waterbury, Connecticut, General Obligation Bonds,
Series 2002A:
500 5.375%, 4/01/17 - FSA Insured 4/12 at 100.00 AAA 569,275
400 5.000%, 4/01/20 - FSA Insured 4/12 at 100.00 AAA 431,516
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 6.4%
1,625 Connecticut, Special Tax Obligation Bonds, Transportation 7/12 at 100.00 AAA 1,830,026
Infrastructure Purposes, 2002 Series A, 5.375%, 7/01/20 -
FSA Insured
500 Connecticut, Special Tax Obligation Bonds, Transportation 10/11 at 100.00 AAA 582,975
Infrastructure Purposes, 2001 Series B, 5.375%, 10/01/13 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.3%
1,950 New Haven, Connecticut, Air Rights Parking Facility Revenue 12/12 at 101.00 AAA 2,349,555
Bonds, Series 2002 Refunding, 5.375%, 12/01/15 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.0%
500 Connecticut, Special Tax Obligation Bonds, Transportation 11/07 at 101.00 AAA 570,180
Infrastructure Purposes, 1997 Series A, 5.000%, 11/01/15
(Pre-refunded to 11/01/07) - FSA Insured
East Hartford, Connecticut, General Obligation Bonds,
Series 2002:
750 4.875%, 5/01/20 (Pre-refunded to 5/01/10) - FGIC Insured 5/10 at 100.00 Aaa 791,858
750 5.000%, 5/01/21 (Pre-refunded to 5/01/10) - FGIC Insured 5/10 at 100.00 Aaa 812,160
750 5.000%, 5/01/22 (Pre-refunded to 5/01/10) - FGIC Insured 5/10 at 100.00 Aaa 796,552
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, 2000 Series A:
1,000 5.500%, 10/01/32 10/10 at 101.00 AAA 1,133,130
2,000 5.500%, 10/01/40 10/10 at 101.00 AAA 2,267,520
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.0%
750 Connecticut Development Authority, Pollution 10/08 at 102.00 A3 799,373
Control Revenue Refunding Bonds, Connecticut Light and
Power Company, Series 1993A, 5.850%, 9/01/28
1,000 Connecticut Resources Recovery Authority, Corporate Credit 12/11 at 102.00 Baa2 1,047,550
Resource Recovery Revenue Bonds, America Ref-Fuel
Company of Southeastern Connecticut Project, II Series
1998A, 5.500%, 11/15/15 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
500 5.500%, 1/01/15 (Alternative Minimum Tax) 1/05 at 100.00 BBB 501,930
510 5.500%, 1/01/20 (Alternative Minimum Tax) 7/03 at 102.00 BBB 509,806
1,500 Puerto Rico Electric Power Authority, Power 7/10 at 101.00 AAA 1,637,040
Revenue Bonds, Series 2000HH, 5.250%, 7/01/29 -
FSA Insured
25
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.1%
South Central Connecticut Regional Water Authority,
Water System Revenue Bonds, Eighteenth Series 2003A:
$ 750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA $ 820,320
660 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 700,203
------------------------------------------------------------------------------------------------------------------------------------
$ 49,615 Total Long-Term Investments (cost $49,880,727) - 144.9% 54,241,009
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 700,209
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.7)% (17,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $37,441,218
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
26
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.6%
$ 2,670 Puerto Rico, The Children's Trust Fund, 5/12 at 100.00 A- $ 2,343,886
Tobacco Settlement Asset-Backed Bonds, Series 2002
Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.0%
1,390 Connecticut, Health and Educational 11/12 at 100.00 AAA 1,365,884
Facilities Authority, Revenue Bonds, Connecticut State
University System, Series 2003E, 4.250%, 11/01/27 - FGIC Insured
3,100 Connecticut Health and Educational 7/11 at 101.00 AAA 3,358,261
Facilities Authority, Revenue Bonds, Trinity College,
Series 2001G, 5.000%, 7/01/21 - AMBAC Insured
1,595 Connecticut Health and Educational 11/11 at 100.00 AAA 1,698,500
Facilities Authority, Revenue Bonds, Connecticut State
University System, 2002 Series D-2, 5.000%, 11/01/21 -
FSA Insured
1,500 Connecticut Health and Educational Facilities 7/09 at 100.00 AAA 1,577,730
Authority, Revenue Bonds, Yale University
Issue, 2002 Series W, 5.125%, 7/01/27
2,250 Connecticut Health and Educational Facilities 7/13 at 100.00 AAA 2,376,383
Authority, Revenue Bonds, Yale University,
Series 2003X-1, 5.000%, 7/01/42
500 University of Connecticut, Student Fee Revenue 11/12 at 101.00 AAA 555,795
Refunding Bonds, Series 2002A, 5.250%,
11/15/22 - FGIC Insured
1,350 University of Connecticut, General Obligation 2/13 at 100.00 AAA 1,497,137
Bonds, Series 2003A, 5.125%, 2/15/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 0.9%
500 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 AA 556,295
Revenue Bonds, Bristol Hospital Issue, 2002 Series B,
5.500%, 7/01/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.2%
890 Connecticut Housing Finance Authority, Housing Mortgage 5/08 at 101.50 AAA 936,182
Finance Program Bonds, 1997 Series D, Subseries D-2,
5.450%, 11/15/24
1,000 Connecticut Housing Finance Authority, Housing Mortgage 11/12 at 100.00 AAA 1,041,590
Finance Program Bonds, 2002 Series F, Subseries F-3,
5.250%, 5/15/33 (Alternative Minimum Tax)
2,000 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA 2,090,320
Finance Program Bonds, 2001 Series D, Subseries D-2,
5.150%, 11/15/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 12.0%
Connecticut Housing Finance Authority, Special Needs Housing
Mortgage Finance Program Special Obligation Bonds, Series SNH-1:
1,000 5.000%, 6/15/22 - AMBAC Insured 6/12 at 101.00 AAA 1,074,200
1,500 5.000%, 6/15/32 - AMBAC Insured 6/12 at 101.00 AAA 1,580,025
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Village for Families and
Children Inc. Issue, Series A:
430 5.000%, 7/01/18 - AMBAC Insured 7/12 at 101.00 AAA 474,294
475 5.000%, 7/01/20 - AMBAC Insured 7/12 at 101.00 AAA 516,648
260 5.000%, 7/01/23 - AMBAC Insured 7/12 at 101.00 AAA 278,164
1,000 5.000%, 7/01/32 - AMBAC Insured 7/12 at 101.00 AAA 1,053,830
500 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 522,245
Revenue Bonds, Health Care, Elim Park Baptist Inc. Project,
Series 2003, 5.750%, 12/01/23
Connecticut Development Authority, Revenue Bonds,
Duncaster Inc. Project, Series 2002:
650 5.125%, 8/01/22 - RAAI Insured 8/12 at 101.00 AA 690,827
1,665 4.750%, 8/01/32 - RAAI Insured 8/12 at 101.00 AA 1,674,224
27
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 42.5%
Bethel, Connecticut, General Obligation Bonds, Series 2002:
$ 525 5.000%, 11/01/18 - FGIC Insured 11/12 at 100.00 Aaa $ 579,070
525 5.000%, 11/01/19 - FGIC Insured 11/12 at 100.00 Aaa 575,568
525 5.000%, 11/01/20 - FGIC Insured 11/12 at 100.00 Aaa 571,657
525 5.000%, 11/01/21 - FGIC Insured 11/12 at 100.00 Aaa 567,347
525 5.000%, 11/01/22 - FGIC Insured 11/12 at 100.00 Aaa 564,359
3,510 Bridgeport, Connecticut, General Obligation Bonds, 8/11 at 100.00 AAA 3,971,003
Series 2001C, 5.375%, 8/15/18 - FGIC Insured
2,500 Connecticut, General Obligation Bonds, Series 2002D, 11/12 at 100.00 AA 2,800,850
5.375%, 11/15/21
1,000 Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AA 1,075,980
5.000%, 4/15/21
450 Farmington, Connecticut, General Obligation Bonds, 9/12 at 101.00 Aa1 495,275
Series 2002, 5.000%, 9/15/20
New Canaan, Connecticut, General Obligation Bonds,
Series 2002, Lot A:
950 4.240%, 5/01/18 5/11 at 100.00 Aaa 979,963
950 4.500%, 5/01/19 5/11 at 100.00 Aaa 990,128
900 4.600%, 5/01/20 5/11 at 100.00 Aaa 938,493
500 4.700%, 5/01/21 5/11 at 100.00 Aaa 521,505
755 4.750%, 5/01/22 5/11 at 100.00 Aaa 786,582
1,445 New Haven, Connecticut, General Obligation Bonds, 11/11 at 101.00 AAA 1,645,017
Series 2002A, 5.250%, 11/01/17 - AMBAC Insured
2,250 Puerto Rico Public Improvement, Refunding Series of 2001, 7/11 at 100.00 AAA 2,394,225
General Obligation Bonds, 5.125%, 7/01/30 - FSA Insured
Southbury, Connecticut, General Obligation Bonds,
Series 2002:
500 4.250%, 12/15/14 12/11 at 101.00 Aa3 537,165
500 4.375%, 12/15/15 12/11 at 101.00 Aa3 535,850
500 4.500%, 12/15/16 12/11 at 101.00 Aa3 530,015
500 4.625%, 12/15/17 12/11 at 101.00 Aa3 530,870
500 4.625%, 12/15/18 12/11 at 101.00 Aa3 531,720
500 4.875%, 12/15/19 12/11 at 101.00 Aa3 527,625
500 4.875%, 12/15/20 12/11 at 101.00 Aa3 534,615
500 5.000%, 12/15/21 12/11 at 101.00 Aa3 530,540
500 5.000%, 12/15/22 12/11 at 101.00 Aa3 538,710
Stratford, Connecticut, General Obligation Bonds, Series 2002:
1,445 4.000%, 2/15/18 - FSA Insured 2/12 at 100.00 AAA 1,466,733
1,375 4.000%, 2/15/19 - FSA Insured 2/12 at 100.00 AAA 1,385,505
630 4.125%, 2/15/20 - FSA Insured 2/12 at 100.00 AAA 636,407
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.7%
Connecticut, Special Tax Obligation Bonds, Transportation
Infrastructure Purpose, 2002 Series B:
2,810 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AAA 3,066,300
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AAA 1,082,930
1,000 5.000%, 12/01/22 - AMBAC Insured 12/12 at 100.00 AAA 1,077,180
3,500 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA 3,643,745
Revenue Bonds, Series 1997A, 5.000%, 7/01/28 -
AMBAC Insured
1,000 Puerto Rico Public Buildings Authority, Guaranteed 7/07 at 101.50 AAA 1,042,950
Government Facilities Revenue Bonds, Series 1997B,
5.000%, 7/01/27 - AMBAC Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
890 5.250%, 7/01/17 7/12 at 100.00 A- 977,220
1,000 5.250%, 7/01/20 7/12 at 100.00 A- 1,076,640
1,045 5.250%, 7/01/21 7/12 at 100.00 A- 1,117,763
3,010 Puerto Rico Public Finance Corporation, 1998 Series A Bonds, No Opt. Call AAA 3,453,162
Commonwealth Appropriation Bonds, 5.125%, 6/01/24 -
AMBAC Insured
765 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 815,689
Appropriation Bonds, 2002 Series E, 5.500%, 8/01/29
750 Virgin Islands Public Finance Authority, Revenue and Refunding 10/08 at 101.00 BBB- 772,042
Bonds, Virgin Islands Matching Fund Loan Notes, Series 1998A,
Senior Lien/Refunding, 5.500%, 10/01/22
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.8%
$ 400 Connecticut, Special Tax Obligation Bonds, Transportation 10/11 at 100.00 AAA $ 458,136
Infrastructure Purposes, 2001 Series A, 4.800%, 10/01/18
(Pre-refunded to 10/01/11) - FSA Insured
2,910 Puerto Rico Public Improvement Refunding Bonds, 7/08 at 101.00 AAA 3,355,667
Series 1998B, General Obligation Bonds, 5.000%, 7/01/24
(Pre-refunded to 7/01/08) - MBIA Insured
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,535,040
Obligation Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.6%
720 Connecticut Development Authority, Pollution Control 10/08 at 102.00 A3 767,398
Revenue Refunding Bonds, Connecticut Light and Power
Company, Series 1993A, 5.850%, 9/01/28
2,000 Connecticut Resources Recovery Authority, Corporate Credit 12/11 at 102.00 Baa2 2,095,100
Resource Recovery Revenue Bonds, American Ref-Fuel
Company of Southeastern Connecticut, I Series 1998A,
5.500%, 11/15/15 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
1,000 5.500%, 1/01/14 (Alternative Minimum Tax) 7/03 at 102.00 BBB 1,007,640
1,005 5.500%, 1/01/20 (Alternative Minimum Tax) 7/03 at 102.00 BBB 1,004,618
3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,328,648
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.5%
765 Connecticut Development Authority, Water Facilities Revenue 9/06 at 102.00 A 813,784
Bonds, Bridgeport Hydraulic Company Project ,1996 Series,
6.000%, 9/01/36 (Alternative Minimum Tax)
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
2,050 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AAA 2,242,208
1,140 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AAA 1,209,446
------------------------------------------------------------------------------------------------------------------------------------
$ 87,820 Total Long-Term Investments (cost $89,654,621) - 143.8% 93,948,503
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.2% 3,375,426
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.0)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $65,323,929
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
29
Nuveen Massachusetts Premium Income Municipal Fund (NMT)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.1%
$ 1,500 Boston, Massachusetts, Industrial Development Financing 9/12 at 102.00 Baa3 $ 1,500,165
Authority, Senior Revenue Bonds, Crosstown Center Project,
Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.1%
475 Massachusetts Educational Financing Authority, Education 7/04 at 102.00 AAA 494,489
Loan Revenue Bonds, Issue E, Series 1995, 6.150%, 7/01/10
(Alternative Minimum Tax) - AMBAC Insured
1,730 Massachusetts Educational Financing Authority, Education 1/12 at 100.00 AAA 1,904,125
Loan Revenue Bonds, 2002 Series E, 5.000%, 1/01/13
(Alternative Minimum Tax) - AMBAC Insured
2,090 Massachusetts Development Finance Authority, Revenue No Opt. Call A3 2,444,380
Bonds, Series 1999P, Boston University Refunding,
6.000%, 5/15/29
1,000 Massachusetts Development Finance Authority, Revenue 7/13 at 101.00 BBB 1,010,150
Bonds, Massachusetts College of Pharmacy and Allied
Health Sciences, Series 2003C, 5.750%, 7/01/33
890 Massachusetts Development Finance Agency, Revenue Bonds, 3/09 at 101.00 A 962,642
Curry College Issue, Series A, 6.000%, 3/01/20 - ACA Insured
500 Massachusetts Development Finance Authority, Revenue 9/11 at 101.00 A 540,315
Bonds, Belmont Hills School, Series 2001, 5.375%, 9/01/23
1,500 Massachusetts Health and Educational Facilities Authority, 10/11 at 100.00 AAA 1,613,325
Revenue Bonds, UMASS - Worcester Campus, Series 2001B,
5.250%, 10/01/31 - FGIC Insured
555 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AA+ 600,432
Revenue Bonds, Williams College, Series 2003H,
5.000%, 7/01/21
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Wellesley College, Series 2003H:
500 5.000%, 7/01/26 7/13 at 100.00 AA+ 533,655
1,000 5.000%, 7/01/33 7/13 at 100.00 AA+ 1,060,540
2,645 Massachusetts Industrial Finance Agency, Revenue Bonds, 7/03 at 102.00 Aa1 2,691,578
Whitehead Institute for Biomedical Research - 1993 Issue,
5.125%, 7/01/26
2,300 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 101.00 A 2,364,722
Belmont Hill School Issue, Series 1998, 5.250%, 9/01/28
4,000 New England Education Loan Marketing Corporation, No Opt. Call A3 4,644,720
Massachusetts, Student Loan Revenue Bonds, Series 1992,
Subordinate Issue H, 6.900%, 11/01/09 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.0%
3,000 Massachusetts Health and Educational Facilities Authority, 7/04 at 102.00 AAA 3,158,190
Revenue Bonds, New England Medical Center Hospitals
Issue, Series 1993G-1, 5.375%, 7/01/24 - MBIA Insured
3,000 Massachusetts Health and Educational Facilities Authority, 7/03 at 102.00 AAA 3,069,060
Revenue Bonds, Lahey Clinic Medical Center Issue,
Series 1993B, 5.625%, 7/01/15 - MBIA Insured
600 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 660,882
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.375%, 5/15/19 - FGIC Insured
2,500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 2,694,575
Revenue Bonds, Partners Health Care System Issue,
Series 2001C, 5.750%, 7/01/32
1,395 Massachusetts Health and Educational Facilities Authority, 7/08 at 102.00 AAA 1,440,714
Revenue Bonds, Caregroup Issue, Series A,
5.000%, 7/01/25 - MBIA Insured
1,000 Massachusetts Health and Educational Facilities Authority, 11/11 at 101.00 AA 1,035,390
Revenue Bonds, Cape Cod Health Care Inc., Series 2001C,
5.250%, 11/15/31 - RAAI Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 2,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ $ 2,109,700
Revenue Bonds, Berkshire Health System Issue, Series 2001E,
6.250%, 10/01/31
1,000 Massachusetts Health and Educational Facilities Authority, 7/12 at 101.00 BBB 964,140
Revenue Bonds, Caritas Christi Obligated Group,
Series 2002B, 6.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.8%
2,500 Massachusetts Development Finance Agency, Revenue Bonds 10/11 at 105.00 AAA 2,915,650
Series 2000A, GNMA Collateralized - VOA Concord Assisted
Living, Inc. Project, 6.900%, 10/20/41
1,970 Massachusetts Development Finance Agency, Assisted Living 12/09 at 102.00 N/R 1,995,118
Revenue Bonds, Prospect House Apartments, Series 1999,
7.000%, 12/01/31
1,500 Massachusetts Development Finance Agency, Assisted Living 3/12 at 105.00 AAA 1,673,970
Facility Revenue Bonds, Arbors at Chicopee Project,
GNMA Collateralized, Series 2001A, 6.250%, 9/20/42
(Alternative Minimum Tax)
195 Massachusetts Housing Finance Agency, Housing Project Revenue 10/03 at 102.00 A+ 199,163
Bonds, 1993 Series A Refunding, 6.300%, 10/01/13
1,460 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 101.00 AAA 1,589,852
Mortgage Revenue Bonds, 1999 Series D, 5.500%, 7/01/13
(Alternative Minimum Tax) - AMBAC Insured
1,865 Massachusetts Housing Finance Agency, Rental Housing 1/05 at 102.00 AAA 1,960,134
Mortgage Revenue Bonds, 1995 Series A, FHA-Insured
Mortgage Loans, 7.350%, 1/01/35 (Alternative Minimum
Tax) - AMBAC Insured
1,000 Somerville Housing Authority, Massachusetts, Mortgage 5/12 at 103.00 AAA 1,071,800
Revenue Bonds, Clarendon Hill Towers Project, GNMA
Collateralized, Series 2002 Refunding, 5.200%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.0%
1,270 Boston, Massachusetts, Revenue Bonds, Deutsches Altenheim, 10/08 at 105.00 AAA 1,404,963
Incorporated Project, FHA-Insured Mortgage, Series 1998A,
6.125%, 10/01/31
2,000 Massachusetts Industrial Finance Agency, Health Care 5/07 at 102.00 A-1 2,052,480
Facilities Revenue Bonds, Series 1997B, Jewish Geriatric
Services Inc. Obligated Group, 5.500%, 5/15/27
805 Massachusetts Industrial Finance Agency, Revenue Bonds, 2/06 at 102.00 AAA 858,227
Heights Crossing Limited Partnership Issue, FHA-Insured
Project, Series 1995, 6.000%, 2/01/15 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.0%
1,000 Fall River, Massachusetts, General Obligation Bonds, 2/13 at 101.00 AAA 1,090,930
Series 2003, 5.000%, 2/01/21 - FSA Insured
2,500 Massachusetts Bay Transportation Authority, General No Opt. Call AAA 3,378,300
Transportation System Bonds, 1991 Series A, 7.000%, 3/01/21
4,275 Massachusetts, General Obligation Bonds, Consolidated Loan No Opt. Call AAA 5,334,815
of 2001 Series D, 6.000%, 11/01/13 - MBIA Insured
1,865 Massachusetts, General Obligation Bonds, Consolidated Loan 1/13 at 100.00 Aa2 1,983,950
of 2003 Series A, 5.000%, 1/01/22
980 Monson, Massachusetts, General Obligation Bonds, 5/12 at 101.00 Aaa 1,081,832
Series 2002, 5.250%, 5/15/22 - AMBAC Insured
1,000 Narragansett Regional School District, Massachusetts, 6/10 at 101.00 Aaa 1,229,840
General Obligation Bonds, Series 2000, 6.500%, 6/01/16 -
AMBAC Insured
1,615 Springfield, Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 1,756,716
Series 2003, State Qualified, 5.250%, 1/15/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 2.5%
1,500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,815,885
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.8%
1,300 Massachusetts Development Finance Agency Revenue Bonds, 6/09 at 101.00 AA 1,482,195
Worcester Redevelopment Authority Issue, Series 1999,
6.000%, 6/01/24 - RAAI Insured
4,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 4,218,680
5.000%, 7/01/33 - MBIA Insured
4,000 Massachusetts Port Authority, Special Facilities Revenue 9/06 at 102.00 AAA 4,225,000
Bonds, US Air Project, Series 1996-A, 5.750%, 9/01/16
(Alternative Minimum Tax) - MBIA Insured
31
Nuveen Massachusetts Premium Income Municipal Fund (NMT) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 28.6%
Barnstable, Massachusetts, General Obligation Bonds:
$ 1,020 5.750%, 9/15/10 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA+*** $ 1,101,590
1,020 5.750%, 9/15/11 (Pre-refunded to 9/15/04) 9/04 at 102.00 AA+*** 1,101,590
4,375 Lowell, Massachusetts, General Obligation State Qualified 11/03 at 102.00 AAA 4,546,413
Bonds, 5.600%, 11/01/12 - FSA Insured (Pre-refunded
to 11/01/03)
1,250 Massachusetts, General Obligation Bonds, Consolidated Loan, 2/10 at 101.00 AAA 1,517,888
Series 2000A, 6.000%, 2/01/14 (Pre-refunded to 2/01/10)
2,500 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 2,802,400
Revenue Bonds, Malden Hospital Issue, FHA-Insured Project,
Series 1982A, 5.000%, 8/01/16
2,000 Massachusetts Health and Educational Facilities Authority, 7/06 at 100.00 Aaa 2,140,220
Revenue Bonds, Daughters of Charity National Health
System - Carney Hospital, Series 1994D, 6.100%, 7/01/14
(Pre-refunded to 7/01/06)
Massachusetts Health and Educational Facilities Authority,
Revenue Refunding Bonds, Youville Hospital Issue, FHA-Insured
Project, Series 1994B:
1,295 6.125%, 2/15/15 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,367,662
1,000 6.000%, 2/15/25 (Pre-refunded to 2/15/04) 2/04 at 102.00 Aa2*** 1,055,230
1,000 Massachusetts Health and Educational Facilities Authority, 2/07 at 102.00 Aa2*** 1,179,810
Revenue Refunding Bonds, Youville Hospital Issue,
FHA-Insured Project, Series 1997A, 6.250%, 2/15/41
(Pre-refunded to 2/15/07)
410 Massachusetts Health and Educational Facilities Authority, 7/08 at 102.00 AAA 459,307
Revenue Bonds, Caregroup Issue, Series A,
5.000%, 7/01/25 - MBIA Insured
1,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 7/03 at 100.00 AAA 1,575,110
13.000%, 7/01/13
1,500 Massachusetts Industrial Finance Agency, Revenue Bonds, 9/08 at 102.00 AAA 1,771,425
Phillips Academy Issue, Series 1993, 5.375%, 9/01/23
(Pre-refunded to 9/01/08)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.8%
1,000 Massachusetts Development Finance Agency, Resource 1/12 at 101.00 AAA 1,137,870
Recovery Revenue Bonds, SEMASS System, Series 2001A,
5.625%, 1/01/16 - MBIA Insured
2,500 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,331,724
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 95,650 Total Long-Term Investments (cost $96,908,287) - 145.7% 104,905,628
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 1,096,963
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.2)% (34,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $72,002,591
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
32
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.6%
$ 500 Boston, Massachusetts, Industrial Development Financing 9/12 at 102.00 Baa3 $ 500,055
Authority, Senior Revenue Bonds, Crosstown Center Project,
Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.4%
1,500 Massachusetts Educational Financing Authority, Educational 7/10 at 100.00 AAA 1,597,890
Loan Revenue Bonds, Issue E, Series 2001,
5.300%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured
2,000 Massachusetts Development Finance Authority, Revenue 5/29 at 105.00 A3 2,331,880
Bonds, Series 1999P, Boston University Refunding,
6.000%, 5/15/59
1,000 Massachusetts Health and Educational Facilities Authority, 10/09 at 101.00 Aaa 1,049,170
Revenue Bonds, Brandeis University, Series 1999J,
5.000%, 10/01/26 - MBIA Insured
2,000 Massachusetts Health and Educational Facilities Authority, 2/11 at 100.00 AA- 2,176,840
Revenue Bonds, Tufts University, Series 2001I,
5.500%, 2/15/36
1,250 University of Massachusetts Building Authority, Project 11/10 at 100.00 AAA 1,378,425
Revenue Bonds, Senior Series 2000-2, 5.250%, 11/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.7%
1,000 Massachusetts Health and Educational Facilities Authority, 7/09 at 101.00 AA- 1,053,370
Revenue Bonds, Partners Health Care System Issue,
Series 1999B, 5.125%, 7/01/19
1,000 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 1,077,830
Revenue Bonds, Partners Health Care System Issue,
Series 2001C, 5.750%, 7/01/32
1,250 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 1,311,213
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.625%, 7/01/32
375 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A- 400,241
Revenue Bonds, Covenant Health Systems Obligated
Group, Series 2002, 6.000%, 7/01/31
1,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 1,054,850
Revenue Bonds, Berkshire Health System Issue,
Series 2001E, 6.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.3%
1,000 Massachusetts Development Finance Agency, Assisted Living 3/12 at 105.00 AAA 1,115,980
Facility Revenue Bonds, Arbors at Chicopee Project, GNMA
Collateralized, Series 2001A, 6.250%, 9/20/42 (Alternative
Minimum Tax)
1,250 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 1,330,125
Mortgage Revenue Bonds, 2001 Series A, 5.850%, 7/01/35
(Alternative Minimum Tax) - AMBAC Insured
1,000 Somerville Housing Authority, Massachusetts, Mortgage Revenue 5/12 at 103.00 AAA 1,071,800
Bonds, Clarendon Hill Towers Project, GNMA Collateralized,
Series 2002 Refunding, 5.200%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.3%
905 Massachusetts Housing Finance Agency, Single Family 12/04 at 102.00 AA 943,508
Housing Revenue Bonds, Series 1994-36,
6.600%,12/01/26 (Alternative Minimum Tax)
1,835 Massachusetts Housing Finance Agency, Single Family 6/10 at 100.00 AAA 1,937,301
Housing Revenue Bonds, Series 2001-82,
5.375%, 12/01/20 (Alternative Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2%
655 Massachusetts Development Finance Agency, First Mortgage 7/11 at 102.00 BBB- 680,820
Revenue Bonds, Edgecombe Project, Series 2001A,
6.750%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.2%
1,000 Boston, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aa2 1,084,050
Series 2001A, 5.000%, 2/01/20
2,000 Brookline, Massachusetts, General Obligation Bonds, 4/10 at 101.00 Aaa 2,290,360
Series 2000, 5.375%, 4/01/17
440 Fall River, Massachusetts, General Obligation Bonds, 2/13 at 101.00 AAA 480,009
Series 2003, 5.000%, 2/01/21 - FSA Insured
33
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,675 Lawrence, Massachusetts, General Obligation Bonds, 2/11 at 100.00 Aaa $ 1,812,652
Series 2001, 5.000%, 2/01/21 - AMBAC Insured
1,020 Massachusetts Bay Transportation Authority, General 3/07 at 101.00 AAA 1,053,884
Transportation System Bonds, 1997 Series A,
5.000%, 3/01/27 - FGIC Insured
750 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call Aa2 895,380
2002 Series D, 5.500%, 8/01/19
500 Springfield, Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 543,875
Series 2003, State Qualified, 5.250%, 1/15/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.0%
1,000 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 1,073,820
Bonds, 2000 Series A, 5.250%, 7/01/30
1,000 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101.00 AAA 1,189,160
6.000%, 8/01/16 - FSA Insured
1,000 Virgin Islands Public Finance Authority, Revenue Bonds, 10/10 at 101.00 BBB- 1,162,320
Virgin Islands Gross Receipts Taxes Loan Note,
Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.2%
2,000 Massachusetts Port Authority, Revenue Bonds, 7/08 at 101.00 AAA 2,066,400
Series 1998-D, 5.000%, 7/01/28 - FGIC Insured
1,000 Massachusetts Port Authority, Special Facilities Revenue 7/07 at 102.00 AAA 1,100,190
Bonds, BOSFUEL Project, Series 1997, 5.500%, 7/01/18
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.4%
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,223,430
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
1,250 Massachusetts, General Obligation Bonds, Consolidated 10/10 at 100.00 AAA 1,510,000
Loan Series 2000C, 5.750%,10/01/19 (Pre-refunded
to 10/01/10)
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,133,760
Obligation Bonds, 2000 Series A, 5.500%,10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.0%
1,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 932,690
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.2%
2,000 Boston Water and Sewer Commission, Massachusetts, 11/08 at 101.00 AAA 2,073,080
General Revenue Bonds, Senior Series, 1998 Series D,
5.000%, 11/01/28 - FGIC Insured
1,750 Massachusetts Water Pollution Abatement Trust, Water 8/09 at 101.00 AAA 2,001,038
Pollution Abatement Revenue Bonds, MWRA Program,
Subordinate Series 1999A, 5.750%, 8/01/29
300 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 342,887
Bonds, 2000 Series A, 5.750%, 8/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 41,205 Total Long-Term Investments (cost $41,619,636) - 144.5% 44,980,283
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.7% 1,154,109
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (15,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $31,134,392
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
34
Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 21.0%
$ 500 Massachusetts Development Finance Authority, Revenue 7/13 at 101.00 BBB $ 543,475
Bonds, Massachusetts College of Pharmacy and
Allied Health Sciences, Series 2003C, 6.375%, 7/01/23
1,195 Massachusetts Development Finance Authority, Revenue Bonds, 5/13 at 101.00 A+ 1,274,217
Lawrence Academy Project, Series 2003, 5.250%, 5/01/25
3,000 Massachusetts Development Finance Authority, Revenue No Opt. Call AAA 3,690,630
Bonds, Series 2002A, WGBH Educational Foundation,
5.750%, 1/01/42 - AMBAC Insured
2,000 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 AAA 2,108,540
Revenue Bonds, Worcester State College, Series 2002,
5.000%, 11/01/32 - AMBAC Insured
1,000 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AA+ 1,057,180
Revenue Bonds, Williams College, Series 2003H,
5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.6%
1,500 Maine Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 1,575,735
Revenue Bonds, Series 2003A, 5.000%, 7/01/32 -
MBIA Insured
2,500 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,599,700
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
1,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 102.00 AAA 1,032,770
Revenue Bonds, Caregroup Issue, Series 1998A,
5.000%, 7/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.9%
1,750 Massachusetts Development Finance Authority, Revenue Bonds, 12/12 at 105.00 AAA 1,965,862
Neville Communities, GNMA Collateral, Series 2002A,
6.000%, 6/20/44
1,265 Massachusetts Housing Finance Agency, Rental Housing 7/12 at 100.00 AAA 1,311,185
Mortgage Revenue Bonds, 2002 Series H, 5.200%, 7/01/42 -
FSA Insured
2,000 Massachusetts Housing Finance Agency, Housing Bonds, 12/12 at 100.00 AA- 2,055,580
2003 Series H, 5.125%, 6/01/43
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 64.4%
1,605 Bridgewater and Raynham Regional School District, 6/12 at 101.00 Aaa 1,756,801
Plymouth County, Massachusetts, General Obligation
Bonds, Series 2003, 5.000%, 6/15/20 - FSA Insured
Fall River, Massachusetts, General Obligation Bonds,
Series 2003:
2,090 5.250%, 2/01/15 - FSA Insured 2/13 at 101.00 AAA 2,443,022
2,140 5.250%, 2/01/16 - FSA Insured 2/13 at 101.00 AAA 2,480,239
Littleton, Massachusetts, General Obligation Bonds,
Series 2003:
1,380 5.000%, 1/15/20 - FGIC Insured 1/13 at 101.00 AAA 1,522,582
1,280 5.000%, 1/15/21 - FGIC Insured 1/13 at 101.00 AAA 1,401,395
1,000 Massachusetts Bay Transportation Authority, General 3/08 at 101.00 AAA 1,085,850
Transportation System Bonds, 1998 Series A,
5.000%, 3/01/18 - MBIA Insured
2,000 Massachusetts, General Obligation Bonds, Consolidated No Opt. Call AAA 2,413,640
Loan of 2002 Series D, 5.500%, 8/01/18 - FGIC Insured
2,000 Massachusetts, General Obligation Bonds, Consolidated No Opt. Call AAA 2,414,640
Loan, Series 2002C, 5.500%, 11/01/15 - MBIA Insured
Maynard, Massachusetts, General Obligation Bonds,
Series 2003:
1,025 5.500%, 2/01/18 - MBIA Insured 2/13 at 101.00 Aaa 1,199,681
1,025 5.500%, 2/01/19 - MBIA Insured 2/13 at 101.00 Aaa 1,191,419
1,250 Northampton, Massachusetts, General Obligation Bonds, 9/12 at 101.00 Aaa 1,374,338
Series 2002, 5.000%, 9/01/19 - MBIA Insured
1,500 Pittsfield, Massachusetts, General Obligation Bonds, 4/12 at 101.00 AAA 1,664,970
Series 2002, 5.000%, 4/15/18 - MBIA Insured
35
Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Puerto Rico Public Improvement, General Obligation Bonds,
Series 2002A:
$ 1,500 5.500%, 7/01/19 - FGIC Insured No Opt. Call AAA $ 1,815,885
500 5.000%, 7/01/32 - FGIC Insured 7/12 at 100.00 AAA 528,970
3,000 Springfield, Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 3,273,210
Series 2003, State Qualified, 5.250%, 1/15/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.0%
2,000 Martha's Vineyard, Massachusetts, Land Bank Revenue Bonds, 5/13 at 100.00 AAA 2,111,200
Series 2002, 5.000%, 5/01/32 - AMBAC Insured
1,500 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 1,579,725
Tax Revenue Bonds, Series 2002A Refunding,
5.000%, 7/01/27 - FGIC Insured
2,790 Massachusetts State College Building Authority, Project 5/13 at 100.00 AAA 3,050,446
Revenue Bonds, Series 2003A Refunding,
5.250%, 5/01/22 - XLCA Insured
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, 2002 Series A:
1,000 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA 1,055,190
1,500 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 1,579,245
500 Puerto Rico Highway and Transportation Authority, 7/12 at 100.00 AAA 528,970
Transportation Revenue Bonds, Series 2002D,
5.000%, 7/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.4%
3,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,172,290
5.000%, 7/01/28 (DD, settling 6/02/03) - MBIA Insured
1,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 1,539,975
System Revenue Bonds, 1997 Series A Senior,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.6%
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,637,040
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,080,340
2002 Series II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.8%
1,000 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 1,171,929
Bonds, Series 2002J, 5.250%, 8/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 58,295 Total Long-Term Investments (cost $61,067,622) - 155.7% 64,287,866
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (6.1)% (2,491,314)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (20,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $41,296,552
====================================================================================================================
At least 80% of the Fund's net assets are invested in
municipal securities that are either covered by
Original Issue Insurance, Secondary Market Insurance
or Portfolio Insurance which ensures the timely
payment of principal and interest. Up to 20% of the
Fund's net assets may be invested in municipal
securities that are (i) either backed by an escrow or
trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the
timely payment of principal and interest), or (ii)
municipal bonds that are rated, at the time of
investment, within the four highest grades (Baa or
BBB or better by Moody's, S&P or Fitch) or unrated
but judged to be of comparable quality by the
Adviser.
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
(DD) Security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
36
Nuveen Missouri Premium Income Municipal Fund (NOM)
Portfolio of
INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.2%
$ 1,000 Missouri State Development Finance Board, Solid Waste Disposal No Opt. Call AA- $ 1,108,570
Revenue Bonds, Procter & Gamble Paper Products Company
Project, Series 1999, 5.200%, 3/15/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2%
1,400 Missouri Health and Educational Facilities Authority, 6/10 at 100.00 Baa2 1,500,982
Educational Facilities Revenue Bonds, Maryville University
of St. Louis Project, Series 2000, 6.750%, 6/15/30
500 Missouri Health and Educational Facilities Authority, 2/08 at 101.00 A3 529,930
Educational Facilities Revenue Bonds, St. Louis Priory
School Project, Series 2000, 5.650%, 2/01/25
365 Missouri Health and Educational Facilities Authority, 4/11 at 100.00 Aaa 416,648
Educational Facilities Revenue Bonds, Webster University,
Series 2001, 5.500%, 4/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.5%
1,800 Johnson County, Missouri, Hospital Revenue Bonds, 6/10 at 100.00 AA 2,017,872
Western Missouri Medical Center Project, Series 2000,
6.000%, 6/01/20 - RAAI Insured
2,500 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 2,666,125
Revenue Bonds, SSM Health Care, Series 2001A,
5.250%, 6/01/28 - AMBAC Insured
500 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AAA 534,570
Health Facilities Revenue Bonds, St. Luke's Episcopal-
Presbyterian Hospitals, Series 2001, 5.250%, 12/01/26 -
FSA Insured
425 Missouri Health and Educational Facilities Authority, Health 2/06 at 102.00 BBB+ 446,199
Facilities Revenue Bonds, Lake of the Ozarks General
Hospital Inc., Series 1996, 6.500%, 2/15/21
1,000 Missouri Health and Educational Facilities Authority, Health 12/10 at 101.00 A 1,077,480
Facilities Revenue Bonds, St. Anthony's Medical Center,
Series 2000, 6.250%, 12/01/30
950 Texas County, Missouri, Hospital Revenue Bonds, Texas County 6/10 at 100.00 N/R 961,932
Memorial Hospital, Series 2000, 7.250%, 6/15/25
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.3%
920 Missouri Housing Development Commission, Multifamily 12/11 at 100.00 AA 1,002,542
Housing Revenue Bonds, 2001 Series II, 5.250%, 12/01/16
1,250 Industrial Development Authority, St. Charles County, 4/08 at 102.00 AAA 1,294,488
Missouri, Multifamily Housing Revenue Bonds, Ashwood
Apartments Project, Series 1998A, 5.600%, 4/01/30
(Alternative Minimum Tax) - FSA Insured
545 Industrial Development Authority, St. Louis County, Missouri, 4/07 at 102.00 AAA 585,510
Multifamily Housing Revenue Refunding Bonds, GNMA
Collateralized - South Summit Apartments Project),
Series 1997A, 5.950%, 4/20/17
600 Industrial Development Authority, St. Louis County, Missouri, 4/07 at 102.00 AAA 638,958
Multifamily Housing Revenue Refunding Bonds, GNMA
Collateralized - South Summit Apartments Project,
Series 1997B, 6.000%, 10/20/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.0%
525 Missouri Housing Development Commission, Single Family 3/06 at 105.00 AAA 547,250
Mortgage Revenue Bonds, Homeownership Loan Program,
1995 Series C, 7.250%, 9/01/26 (Alternative Minimum Tax)
895 Missouri Housing Development Commission, Single Family 9/06 at 105.00 AAA 921,931
Mortgage Revenue Bonds, Homeownership Program,
1996 Series B, 7.550%, 9/01/27 (Alternative Minimum Tax)
545 Missouri Housing Development Commission, Single Family 3/10 at 100.00 AAA 585,521
Mortgage Revenue Bonds, Homeownership Loan Program,
2000 Series B-1, 6.250%, 3/01/31 (Alternative Minimum Tax)
37
Nuveen Missouri Premium Income Municipal Fund (NOM) (continued)
Portfolio of INVESTMENTS May 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.0%
$ 500 Lees Summit Reorganized School District.7, Jackson 3/12 at 100.00 AAA $ 558,855
County, Missouri, General Obligation Bonds, Series 2002
Refunding and Improvement, 5.250%, 3/01/18 - FSA Insured
1,000 Missouri, General Obligation Bonds, Fourth State Building 10/12 at 100.00 AAA 1,113,900
Refunding, Series 2002A, 5.000%, 10/01/18
2,020 Ritenour Consolidated School District, St. Louis County, No Opt. Call AAA 2,635,757
Missouri, General Obligation Bonds, Series 1995,
7.375%, 2/01/12 - FGIC Insured
1,500 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 1,791,135
General Obligation Bonds, Series 1994A Refunding,
7.800%, 3/01/08 - FGIC Insured
1,000 Pattonville R-3 School District, St. Louis County, Missouri, 3/10 at 101.00 AAA 1,169,080
General Obligation Bonds, Series 2000, 5.750%, 3/01/17 -
FGIC Insured
895 Board of Education of St. Louis, Missouri, General Obligation No Opt. Call AAA 1,110,999
Bonds, Series 1993A Refunding, 8.500%, 4/01/07 -
FGIC Insured
625 Reeds Spring Reorganized School District No. R-IV, Stone No Opt. Call AAA 811,281
County, Missouri, General Obligation School Building
Refunding and Improvement Bonds, Series 1995,
7.600%, 3/01/10 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.1%
750 Fenton, Missouri, Tax Increment Bonds, Gravois Bluffs Project, 10/12 at 100.00 N/R 774,683
Series 2002 Refunding and Improvement, 6.125%, 10/01/21
1,000 Land Clearance for Redevelopment Authority, Kansas City, 12/05 at 102.00 AAA 1,120,070
Missouri, Lease Revenue Bonds, Municipal Auditorium and
Muehlebach Hotel Redevelopment Projects, Series 1995A, 5.900%,
12/01/18 - CAP GTY/FSA Insured
2,000 Kansas City, Missouri Development Finance Board, 4/10 at 100.00 AAA 2,298,380
Infrastructure Facilities Revenue Bonds, Midtown
Redevelopment Projects, Series 2000A, 5.750%, 4/01/22 -
MBIA Insured
450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AAA 523,544
Missouri, Levee District Improvement Bonds, Series 1999,
5.750%, 3/01/19 - MBIA Insured
1,000 St. Louis, Missouri, Municipal Finance Corporation, Leasehold 2/12 at 100.00 Aaa 1,174,560
Revenue Bonds, Carnahan Courthouse Project, Series 2002A,
5.750%, 2/15/16 - FGIC Insured
2,000 Springfield, Missouri, Public Building Corporation, 6/10 at 100.00 AAA 2,363,040
Leasehold Revenue Bonds, Jordan Valley Park Projects,
Series 2000A, 6.125%, 6/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7%
500 Kansas City, Missouri, Passenger Facility Charge Revenue 4/11 at 101.00 AAA 517,450
Bonds, Kansas City International Airport, Series 2001,
5.000%, 4/01/23 (Alternative Minimum Tax) - AMBAC Insured
1,000 St. Louis, Missouri, Land Clearance for Redevelopment 9/09 at 102.00 N/R 1,090,650
Authority, Tax Exempt Parking Facility, Revenue Refunding
and Improvement Bonds, LCRA Parking Facilities Project,
Series 1999C, 7.000%, 9/01/19
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.7%
675 Missouri Health and Educational Facilities Authority, Health 2/06 at 102.00 BBB+*** 777,094
Facilities Revenue Bonds, Lake of the Ozarks General
Hospital Inc., Series 1996, 6.500%, 2/15/21 (Pre-refunded
to 2/15/06)
825 Missouri Health and Educational Facilities Authority, 3/10 at 101.00 Aaa 1,000,865
Educational Facilities Revenue Bonds, Washington
University, Series 2000A, 6.000%, 3/01/30 (Pre-refunded
to 3/01/10)
530 Missouri State Environmental Improvement and Energy 7/04 at 102.00 AAA 569,109
Resources Authority, Water Pollution Control Revenue Bonds,
State Revolving Fund Program-- City of Branson Project,
Series 1995A, 6.050%, 7/01/16 (Pre-refunded to 7/01/04) -
FSA Insured
540 Missouri State Environmental Improvement & Energy 1/06 at 101.00 Aaa 606,884
Resources Authority, Water Pollution Control Revenue
Bonds, State Revolving Fund, Multi-Participant Program,
Series 1996D, 5.875%, 1/01/15 (Pre-refunded to 1/01/06)
1,000 St. Charles, Missouri, School District, General Obligation 3/06 at 100.00 AA+*** 1,114,310
Bonds, Series 1996A, 5.625%, 3/01/14 (Pre-refunded
to 3/01/06)
1,000 St. Louis County, Missouri, Certificates of Receipt, GNMA No Opt. Call AAA 1,187,000
Collateralized Mortgage Revenue Bonds, Series 1993D,
5.650%, 7/01/20 (Alternative Minimum Tax)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,275 St. Louis, Missouri, Municipal Finance Corporation, 2/05 at 100.00 AAA $ 1,385,912
Leasehold Revenue Bonds, Series 1992, 6.250%, 2/15/12
(Pre-refunded to 2/15/05) - FGIC Insured
1,600 St. Louis, Missouri, Municipal Finance Corporation, Leasehold 2/06 at 102.00 AAA 1,814,880
Revenue Bonds, City Justice Center Project, Series 1996A,
5.750%, 2/15/11 (Pre-refunded to 2/15/06) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.5%
600 Sikeston, Missouri, Electric System Revenue Refunding Bonds, No Opt. Call AAA 746,040
1996 Series, 6.000%, 6/01/13 - MBIA Insured
2,300 Springfield, Missouri, Public Utilities Board Certificates 12/09 at 100.00 AAA 2,522,065
of Participation, Series 2001, 5.000%, 12/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.4%
350 State Environmental Improvement and Energy Resources No Opt. Call Aaa 446,099
Authority, Missouri, Water Pollution Control Revenue Bonds,
State Revolving Fund Program - City of Kansas City Project,
Series 1997C, 6.750%, 1/01/12
470 State Environmental Improvement and Energy Resources 7/04 at 102.00 AAA 501,767
Authority, Missouri, Water Pollution Control Revenue Bonds,
State Revolving Fund Program - City of Branson Project,
Series 1995A, 6.050%, 7/01/16 - FSA Insured
210 State Environmental Improvement & Energy Resources 1/06 at 101.00 Aaa 232,286
Authority, Missouri, Water Pollution Control Revenue
Bonds, State Revolving Fund, Multi-Participant Program,
Series 1996D, 5.875%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 43,335 Total Long-Term Investments (cost $43,955,915) - 142.6% 48,794,203
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 1,433,359
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.7)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $34,227,562
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
39
Statement of
ASSETS AND LIABILITIES May 31, 2003
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $109,704,467, $52,266,608,
$49,880,727 and $89,654,621, respectively) $118,581,779 $55,862,251 $54,241,009 $93,948,503
Cash 144,204 661,735 114,026 339,219
Receivables:
Interest 1,771,224 691,987 597,134 1,300,261
Investments sold 390,630 1,937,784 5,019 1,807,727
Other assets 9,384 10,376 22,285 6,042
------------------------------------------------------------------------------------------------------------------------------------
Total assets 120,897,221 59,164,133 54,979,473 97,401,752
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees 66,309 17,434 16,194 29,717
Organization and offering costs -- -- -- --
Other 37,177 19,708 20,795 43,285
Preferred share dividends payable 1,681 2,349 1,266 4,821
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 105,167 39,491 38,255 77,823
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 38,300,000 19,500,000 17,500,000 32,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 82,492,054 $39,624,642 $37,441,218 $65,323,929
====================================================================================================================================
Common shares outstanding 5,301,244 2,551,003 2,307,260 4,337,555
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.56 $ 15.53 $ 16.23 $ 15.06
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 53,012 $ 25,510 $ 23,073 $ 43,376
Paid-in surplus 73,534,521 36,138,646 32,684,152 61,211,854
Undistributed (Over-distribution of) net investment income 796,522 245,776 203,941 39,849
Accumulated net realized gain (loss) from investments (769,313) (380,933) 169,770 (265,032)
Net unrealized appreciation of investments 8,877,312 3,595,643 4,360,282 4,293,882
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 82,492,054 $39,624,642 $37,441,218 $65,323,929
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
40
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $96,908,287, $41,619,636
$61,067,622 and $43,955,915, respectively) $104,905,628 $44,980,283 $64,287,866 $48,794,203
Cash -- 167,615 -- 456,111
Receivables:
Interest 1,437,729 686,573 848,806 882,768
Investments sold 10,000 325,000 -- 132,325
Other assets 7,730 9,661 7,529 3,328
------------------------------------------------------------------------------------------------------------------------------------
Total assets 106,361,087 46,169,132 65,144,201 50,268,735
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 264,251 -- 106,748 --
Payable for investments purchased -- -- 3,153,890 --
Accrued expenses:
Management fees 58,187 13,598 17,147 27,556
Organization and offering costs -- -- 13,500 --
Other 34,939 20,093 54,477 12,582
Preferred share dividends payable 1,119 1,049 1,887 1,035
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 358,496 34,740 3,347,649 41,173
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 34,000,000 15,000,000 20,500,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 72,002,591 $31,134,392 $41,296,552 $34,227,562
====================================================================================================================================
Common shares outstanding 4,706,995 1,945,344 2,707,975 2,222,499
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.30 $ 16.00 $ 15.25 $ 15.40
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 47,070 $ 19,453 $ 27,080 $ 22,225
Paid-in surplus 65,270,235 27,524,365 38,129,482 29,865,422
Undistributed (Over-distributed of) net investment income 813,281 190,315 (124,606) 344,130
Accumulated net realized gain (loss) from investments (2,125,336) 39,612 44,352 (842,503)
Net unrealized appreciation of investments 7,997,341 3,360,647 3,220,244 4,838,288
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 72,002,591 $31,134,392 $41,296,552 $34,227,562
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
OPERATIONS Year Ended May 31, 2003
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)*
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,195,536 $2,857,148 $2,552,913 $2,469,506
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 762,454 372,087 342,380 382,242
Preferred shares - auction fees 97,322 50,794 43,082 42,642
Preferred shares - dividend disbursing agent fees 10,000 10,000 10,000 5,425
Shareholders' servicing agent fees and expenses 20,552 1,765 1,898 2,119
Custodian's fees and expenses 41,968 23,175 30,959 21,307
Trustees' fees and expenses 1,597 741 704 942
Professional fees 11,092 6,432 9,414 12,284
Shareholders' reports - printing and mailing expenses 23,132 3,938 11,440 20,405
Stock exchange listing fees 10,479 39 87 164
Investor relations expense 13,450 3,272 4,204 6,895
Other expenses 11,865 8,451 8,263 1,447
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,003,911 480,694 462,431 495,872
Custodian fee credit (6,687) (3,735) (14,647) (11,292)
Expense reimbursement -- (171,732) (158,022) (188,180)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 997,224 305,227 289,762 296,400
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,198,312 2,551,921 2,263,151 2,173,106
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,504,009 (278,778) 325,473 (265,032)
Change in net unrealized appreciation (depreciation) of investments 4,082,959 3,304,347 3,671,087 4,293,882
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 5,586,968 3,025,569 3,996,560 4,028,850
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (358,883) (170,791) (169,519) (163,989)
From accumulated net realized gains from investments -- -- (11,970) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (358,883) (170,791) (181,489) (163,989)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations $10,426,397 $5,406,699 $6,078,222 $6,037,967
====================================================================================================================================
* For the period September 26, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
42
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX)** (NOM)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $5,502,207 $2,269,513 $1,067,617 $2,585,636
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 674,048 286,884 178,382 316,703
Preferred shares - auction fees 85,830 39,073 18,133 39,495
Preferred shares - dividend disbursing agent fees 10,000 10,000 3,699 10,000
Shareholders' servicing agent fees and expenses 11,673 1,150 1,197 8,281
Custodian's fees and expenses 35,347 17,079 8,461 25,342
Trustees' fees and expenses 1,383 477 395 577
Professional fees 13,379 9,735 9,215 9,268
Shareholders' reports - printing and mailing expenses 24,601 3,110 6,315 12,252
Stock exchange listing fees 11,698 285 100 416
Investor relations expense 13,548 2,350 2,348 7,148
Other expenses 12,080 6,630 1,258 9,038
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 893,587 376,773 229,503 438,520
Custodian fee credit (10,776) (2,001) (5,172) (6,623)
Expense reimbursement -- (132,408) (87,819) --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 882,811 242,364 136,512 431,897
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,619,396 2,027,149 931,105 2,153,739
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (16,814) 133,861 44,352 (15,252)
Change in net unrealized appreciation (depreciation) of investments 3,635,536 3,241,102 3,220,244 2,231,265
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 3,618,722 3,374,963 3,264,596 2,216,013
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (315,608) (139,815) (81,083) (161,228)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (315,608) (139,815) (81,083) (161,228)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations $7,922,510 $5,262,297 $4,114,618 $4,208,524
====================================================================================================================================
** For the period November 22, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
43
Statement of
CHANGES IN NET ASSETS
CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC)
------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/03 5/31/02 5/31/03 5/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,198,312 $ 5,259,938 $ 2,551,921 $ 2,549,084
Net realized gain (loss) from investments 1,504,009 544,946 (278,778) (44,913)
Change in net unrealized appreciation
(depreciation) of investments 4,082,959 474,512 3,304,347 840,819
Distributions to Preferred Shareholders:
From net investment income (358,883) (546,694) (170,791) (291,100)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 10,426,397 5,732,702 5,406,699 3,053,890
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,646,089) (4,403,107) (2,140,226) (2,135,321)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (4,646,089) (4,403,107) (2,140,226) (2,135,321)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 384,893 355,425 100,877 60,234
Preferred shares offering costs -- -- 23,986 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 384,893 355,425 124,863 60,234
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 6,165,201 1,685,020 3,391,336 978,803
Net assets applicable to Common
shares at the beginning of period 76,326,853 74,641,833 36,233,306 35,254,503
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $82,492,054 $76,326,853 $39,624,642 $36,233,306
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 796,522 $ 645,815 $ 245,776 $ 6,243
====================================================================================================================================
See accompanying notes to financial statements.
44
CONNECTICUT
CONNECTICUT DIVIDEND MASSACHUSETTS PREMIUM
DIVIDEND ADVANTAGE 2 (NGK) ADVANTAGE 3 (NGO) INCOME (NMT)
----------------------------- ----------------- ---------------------------
FOR THE FOR THE
PERIOD 3/26/02 PERIOD 9/26/02
(COMMENCEMENT (COMMENCEMENT
YEAR ENDED OF OPERATIONS) OF OPERATIONS) YEAR ENDED YEAR ENDED
5/31/03 THROUGH 5/31/02 THROUGH 5/31/03 5/31/03 5/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,263,151 $ 188,643 $ 2,173,106 $ 4,619,396 $ 4,829,981
Net realized gain (loss) from investments 325,473 -- (265,032) (16,814) 511,753
Change in net unrealized appreciation
(depreciation) of investments 3,671,087 689,408 4,293,882 3,635,536 56,519
Distributions to Preferred Shareholders:
From net investment income (169,519) (9,064) (163,989) (315,608) (513,588)
From accumulated net realized gains
from investments (11,970) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 6,078,222 868,987 6,037,967 7,922,510 4,884,665
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,910,300) (159,183) (1,969,268) (4,094,191) (3,887,315)
From accumulated net realized gains from investments (143,733) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,054,033) (159,183) (1,969,268) (4,094,191) (3,887,315)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 32,878,500 61,625,745 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 4,040 -- 290,710 317,813 280,344
Preferred shares offering costs 5,020 (280,610) (761,500) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 9,060 32,597,890 61,154,955 317,813 280,344
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 4,033,249 33,307,694 65,223,654 4,146,132 1,277,694
Net assets applicable to Common
shares at the beginning of period 33,407,969 100,275 100,275 67,856,459 66,578,765
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $37,441,218 $33,407,969 $65,323,929 $72,002,591 $67,856,459
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 203,941 $ 20,396 $ 39,849 $ 813,281 $ 659,569
====================================================================================================================================
See accompanying notes to financial statements.
45
Statement of
CHANGES IN NET ASSETS (continued)
INSURED
MASSACHUSETTS
MASSACHUSETTS TAX-FREE MISSOURI PREMIUM
DIVIDEND ADVANTAGE (NMB) ADVANTAGE (NGX) INCOME (NOM)
----------------------------- ---------------- ---------------------------
FOR THE
PERIOD 11/22/02
(COMMENCEMENT
YEAR ENDED YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED
5/31/03 5/31/02 THROUGH 5/31/03 5/31/03 5/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,027,149 $ 2,001,715 $ 931,105 $ 2,153,739 $ 2,228,230
Net realized gain (loss) from investments 133,861 (68,781) 44,352 (15,252) (29,238)
Change in net unrealized appreciation
(depreciation) of investments 3,241,102 555,011 3,220,244 2,231,265 669,418
Distributions to Preferred Shareholders:
From net investment income (139,815) (238,070) (81,083) (161,228) (283,065)
From accumulated net realized gains from investments -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 5,262,297 2,249,875 4,114,618 4,208,524 2,585,345
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,703,320) (1,701,593) (974,628) (1,919,228) (1,770,473)
From accumulated net realized gains from investments -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common shareholders (1,703,320) (1,701,593) (974,628) (1,919,228) (1,770,473)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 38,596,500 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 31,840 19,714 14,987 318,941 296,123
Preferred shares offering costs 24,400 -- (555,200) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 56,240 19,714 38,056,287 318,941 296,123
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 3,615,217 567,996 41,196,277 2,608,237 1,110,995
Net assets applicable to Common
shares at the beginning of period 27,519,175 26,951,179 100,275 31,619,325 30,508,330
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $31,134,392 $27,519,175 $41,296,552 $34,227,562 $31,619,325
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 190,315 $ 9,113 $ (124,606) $ 344,130 $ 286,262
====================================================================================================================================
See accompanying notes to financial statements.
46
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
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). Connecticut
Premium Income (NTC) and Massachusetts Premium Income (NMT) are traded on the
New York Stock Exchange while Connecticut Dividend Advantage (NFC), Connecticut
Dividend Advantage 2 (NGK), Connecticut Dividend Advantage 3 (NGO),
Massachusetts Dividend Advantage (NMB), Insured Massachusetts Tax-Free Advantage
(NGX) and Missouri Premium Income (NOM) are traded on the American Stock
Exchange. The Funds are registered under the Investment Company Act of 1940, as
amended, as closed-end management investment companies.
Prior to the commencement of operations of Connecticut Dividend Advantage 2
(NGK), Connecticut Dividend Advantage 3 (NGO) and Insured Massachusetts Tax-Free
Advantage (NGX), each Fund had no operations other than those related to
organizational matters, the initial capital contribution of $100,275 per Fund by
Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. (formerly, The John Nuveen Company), and the recording of the
organization expenses ($11,500 per Fund) and their reimbursement by Nuveen
Investments, LLC (formerly, Nuveen Investments), also a wholly owned subsidiary
of Nuveen Investments, Inc.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes, and in the case of Insured Massachusetts Tax-Free
Advantage (NGX) the alternative minimum tax applicable to individuals, by
investing primarily in a diversified portfolio of municipal obligations issued
by state and local government authorities within a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers and general market
conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Trustees of the Funds, or its
designee, may establish a fair value for the security. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At May 31, 2003, Insured
Massachusetts Tax-Free Advantage (NGX) had an outstanding delayed delivery
purchase commitment of $3,153,890. There were no such outstanding purchase
commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
47
Notes to
FINANCIAL STATEMENTS (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, 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. All
monthly tax-exempt income dividends paid during the fiscal year ended May 31,
2003, have been designated Exempt Interest Dividends.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid monthly.
Net realized capital gains and/or market discount from investment transactions,
if any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one Series. The dividend rate on each
Series may change every seven days, as set pursuant to a dutch auction process
by the auction agent, and is payable at or near the end of each rate period. The
number of Preferred shares outstanding for each Fund is as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series T -- 780 -- --
Series W -- -- 700 --
Series TH 1,532 -- -- --
Series F -- -- -- 1,280
=========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series T -- 600 -- --
Series W -- -- 820 --
Series TH 1,360 -- -- 640
Series F -- -- -- --
=========================================================================================================
Effective November 15, 2002, Connecticut Dividend Advantage 3 (NGO) issued 1,280
Series F, $25,000 stated value Preferred shares.
Effective January 17, 2003, Insured Massachusetts Tax-Free Advantage (NGX)
issued 820 Series W, $25,000 stated value Preferred shares.
48
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the period ended May 31, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for Connecticut Dividend
Advantage 2 (NGK), Connecticut Dividend Advantage 3 (NGO) and Insured
Massachusetts Tax-Free Advantage (NGX). Connecticut Dividend Advantage 2's
(NGK), Connecticut Dividend Advantage 3's (NGO) and Insured Massachusetts
Tax-Free Advantage's (NGX) share of Common share offering costs ($69,000,
$129,330 and $81,000, respectively) were recorded as a reduction of the proceeds
from the sale of Common shares.
Costs incurred by Connecticut Dividend Advantage 2 (NGK), Connecticut Dividend
Advantage 3 (NGO) and Insured Massachusetts Tax-Free Advantage (NGX) in
connection with their offering of Preferred shares ($275,590, $761,500 and
$555,200, respectively) were recorded as a reduction to paid-in surplus.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
CONNECTICUT
DIVIDEND
CONNECTICUT CONNECTICUT DIVIDEND CONNECTICUT DIVIDEND ADVANTAGE 3
PREMIUM INCOME (NTC) ADVANTAGE (NFC) ADVANTAGE 2 (NGK) (NGO)
---------------------- ----------------------- ---------------------------- ---------------
FOR THE
FOR THE PERIOD 9/26/02
PERIOD 3/26/02 (COMMENCE-
(COMMENCEMENT MENT OF
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) OPERATIONS)
5/31/03 5/31/02 5/31/03 5/31/02 5/31/03 THROUGH 5/31/02 THROUGH 5/31/03
-------------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 2,300,000 4,311,000
Shares issued to
shareholders
due to
reinvestment of
distributions 23,492 22,147 6,514 3,869 260 -- 19,555
-------------------------------------------------------------------------------------------------------------------
23,492 22,147 6,514 3,869 260 2,300,000 4,330,555
===================================================================================================================
Preferred shares sold -- -- -- -- -- 700 1,280
===================================================================================================================
INSURED
MASSACHUSETTS
TAX-FREE
MASSACHUSETTS MASSACHUSETTS DIVIDEND ADVANTAGE MISSOURI
PREMIUM INCOME (NMT) ADVANTAGE (NMB) (NGX) PREMIUM INCOME (NOM)
----------------------- ------------------------ --------------- ------------------------
FOR THE
PERIOD 11/22/02
(COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED
5/31/03 5/31/02 5/31/03 5/31/02 THROUGH 5/31/03 5/31/03 5/31/02
--------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- 2,700,000 -- --
Shares issued to
shareholders
due to
reinvestment of
distributions 19,972 18,094 2,042 1,301 975 19,544 19,877
--------------------------------------------------------------------------------------------------------------
19,972 18,094 2,042 1,301 2,700,975 19,544 19,877
==============================================================================================================
Preferred shares sold -- -- -- -- 820 -- --
==============================================================================================================
49
Notes to
FINANCIAL STATEMENTS (continued)
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the fiscal year ended May 31, 2003, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)*
----------------------------------------------------------------------------------------------------------
Purchases $27,649,904 $3,810,498 $7,041,642 $104,047,723
Sales and maturities 26,796,567 5,803,571 8,198,031 14,009,849
==========================================================================================================
* For the period September 26, 2002 (commencement of operations) through May
31, 2003.
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX)** (NOM)
----------------------------------------------------------------------------------------------------------
Purchases $19,184,845 $3,665,109 $69,537,855 $7,094,129
Sales and maturities 17,961,280 3,927,053 8,470,430 7,179,314
==========================================================================================================
** For the period November 22, 2002 (commencement of operations) through May
31, 2003.
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At May 31, 2003, the cost of investments were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------
Cost of investments $109,697,221 $52,251,804 $49,874,661 $89,649,335
===========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------
Cost of investments $96,698,292 $41,604,468 $61,067,622 $43,939,133
===========================================================================================================
50
Gross unrealized appreciation and gross unrealized depreciation on investments
at May 31, 2003, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $9,108,257 $3,852,790 $4,446,598 $4,562,713
Depreciation (223,699) (242,343) (80,250) (263,545)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $8,884,558 $3,610,447 $4,366,348 $4,299,168
==========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $8,362,309 $3,375,815 $3,220,244 $4,909,722
Depreciation (154,973) -- -- (54,652)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $8,207,336 $3,375,815 $3,220,244 $4,855,070
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2003, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $1,180,598 $411,892 $358,341 $321,326
Undistributed net ordinary income * -- -- 83,197 --
Undistributed net long-term capital gains -- -- 86,574 --
==========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $944,663 $318,206 $72,254 $489,254
Undistributed net ordinary income * 5,707 -- 44,352 261
Undistributed net long-term capital gains -- 39,612 -- --
==========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal years ended May 31,
2003 and May 31, 2002, 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
2003 (NTC) (NFC) (NGK) (NGO)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $4,914,860 $2,309,669 $2,079,493 $1,846,495
Distributions from net ordinary income * 74,506 -- 124,592 --
Distributions from net long-term
capital gains -- -- 31,111 --
==========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
2003 (NMT) (NMB) (NGX) (NOM)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $4,392,112 $1,843,169 $858,850 $2,071,810
Distributions from net ordinary income * -- -- -- --
Distributions from net long-term
capital gains -- -- -- --
==========================================================================================================
51
Notes to
FINANCIAL STATEMENTS (continued)
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME
2002 (NTC) (NFC) (NGK) (NMT) (NMB) (NOM)
--------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $4,936,883 $2,427,472 $-- $4,408,553 $1,940,760 $2,047,062
Distributions from net
ordinary income * 12,951 -- -- -- -- --
Distributions from net long-term
capital gains -- -- -- -- -- --
==============================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2003, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND DIVIDEND PREMIUM PREMIUM
INCOME ADVANTAGE ADVANTAGE 3 INCOME INCOME
(NTC) (NFC) (NGO) (NMT) (NOM)
-------------------------------------------------------------------------------------------------------------
Expiration year:
2004 $ -- $ -- $ -- $ 828,906 $708,417
2005 593,568 -- -- 195,761 --
2006 -- -- -- -- --
2007 -- -- -- -- --
2008 7,281 -- -- 210,989 57,432
2009 168,464 30,535 -- 718,509 --
2010 -- 42,027 -- -- 6,599
2011 -- -- 172,070 -- --
-------------------------------------------------------------------------------------------------------------
Total $769,313 $72,562 $172,070 $1,954,165 $772,448
=============================================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2002 through May 31, 2003 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen in the following fiscal year:
CONNECTICUT CONNECTICUT MASSACHUSETTS MISSOURI
DIVIDEND DIVIDEND PREMIUM PREMIUM
ADVANTAGE ADVANTAGE 3 INCOME INCOME
(NFC) (NGO) (NMT) (NOM)
----------------------------------------------------------------------------------------------------------
$308,371 $92,962 $171,171 $70,055
==========================================================================================================
52
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Connecticut Premium Income's (NTC), Massachusetts Premium Income's (NMT)
and Missouri Premium Income's (NOM) investment management agreements with the
Adviser, each Fund pays an annual management fee, payable monthly, at the rates
set forth below, which are based upon the average daily net assets (including
net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Connecticut Dividend Advantage's (NFC), Connecticut Dividend Advantage 2's
(NGK), Connecticut Dividend Advantage 3's (NGO), Massachusetts Dividend
Advantage's (NMB) and Insured Massachusetts Tax-Free Advantage's (NGX)
investment management agreements with the Adviser, each Fund pays an annual
management fee, payable monthly, at the rates set forth below, which are based
upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
===============================================================================
For the first ten years of Connecticut Dividend Advantage's (NFC) and
Massachusetts Dividend Advantage's (NMB) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts,
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage (NFC) and
Massachusetts Dividend Advantage (NMB) for any portion of its fees and expenses
beyond January 31, 2011.
For the first ten years of Connecticut Dividend Advantage 2's (NGK) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 2 (NGK)
for any portion of its fees and expenses beyond March 31, 2012.
53
Notes to
FINANCIAL STATEMENTS (continued)
For the first eight years of Connecticut Dividend Advantage 3's (NGO)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts, and for the time periods set
forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 3 (NGO)
for any portion of its fees and expenses beyond September 30, 2010.
For the first eight years of Insured Massachusetts Tax-Free Advantage's (NGX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts, and for the time periods set
forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Massachusetts Tax-Free Advantage
(NGX) for any portion of its fees and expenses beyond November 30, 2010.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on July 1, 2003, to shareholders of record on
June 15, 2003, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0735 $.0715 $.0705 $.0650
=========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0735 $.0745 $.0720 $.0725
=========================================================================================================
54
Financial
HIGHLIGHTS
55
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ------------------------------
Distributions Distributions
from Net from From Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
CONNECTICUT PREMIUM
INCOME (NTC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 $14.46 $ .98 $ 1.07 $(.07) $-- $1.98 $(.88) $-- $(.88)
2002 14.20 1.00 .20 (.10) -- 1.10 (.84) -- (.84)
2001 12.92 1.02 1.32 (.24) -- 2.10 (.82) -- (.82)
2000 14.44 1.06 (1.54) (.22) -- (.70) (.82) -- (.82)
1999 14.49 1.00 (.05) (.20) -- .75 (.80) -- (.80)
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 14.24 1.00 1.19 (.07) -- 2.12 (.84) -- (.84)
2002 13.88 1.00 .31 (.11) -- 1.20 (.84) -- (.84)
2001(a) 14.33 .21 (.23) (.05) -- (.07) (.21) -- (.21)
CONNECTICUT DIVIDEND
ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 14.48 .98 1.74 (.07) (.01) 2.64 (.83) (.06) (.89)
2002(b) 14.33 .08 .30 -- -- .38 (.07) -- (.07)
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(c) 14.33 .51 .93 (.04) -- 1.40 (.46) -- (.46)
====================================================================================================================================
Total Returns
------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===============================================================================
CONNECTICUT PREMIUM
INCOME (NTC)
-------------------------------------------------------------------------------
Year Ended 5/31:
2003 $-- $15.56 $17.1400 12.63% 14.08%
2002 -- 14.46 16.0500 5.01 7.87
2001 -- 14.20 16.1000 25.91 16.57
2000 -- 12.92 13.5000 (14.85) (4.87)
1999 -- 14.44 16.7500 13.50 5.22
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
-------------------------------------------------------------------------------
Year Ended 5/31:
2003 .01 15.53 16.3500 9.19 15.38
2002 -- 14.24 15.7900 8.61 8.81
2001(a) (.17) 13.88 15.3400 3.71 (1.67)
CONNECTICUT DIVIDEND
ADVANTAGE 2 (NGK)
-------------------------------------------------------------------------------
Year Ended 5/31:
2003 -- 16.23 15.8000 11.16 18.77
2002(b) (.16) 14.48 15.0500 .79 1.53
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
-------------------------------------------------------------------------------
Year Ended 5/31:
2003(c) (.21) 15.06 15.0900 3.71 8.46
===============================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==================================================================================================================
CONNECTICUT PREMIUM
INCOME (NTC)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 $82,492 1.27% 6.57% 1.26% 6.58% 23%
2002 76,327 1.34 6.90 1.34 6.91 12
2001 74,642 1.33 7.36 1.31 7.39 8
2000 67,579 1.36 7.87 1.32 7.91 19
1999 75,165 1.32 6.83 1.30 6.84 7
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 39,625 1.27 6.29 .81 6.76 7
2002 36,233 1.38 6.56 .88 7.06 20
2001(a) 35,255 1.22* 4.10* .80* 4.52* 29
CONNECTICUT DIVIDEND
ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 37,441 1.31 5.94 .82 6.43 13
2002(b) 33,408 1.06* 2.90* .73* 3.23* --
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(c) 65,324 1.19* 4.72* .71* 5.20* 18
==================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
============================================================
CONNECTICUT PREMIUM
INCOME (NTC)
------------------------------------------------------------
Year Ended 5/31:
2003 $38,300 $25,000 $78,846
2002 38,300 25,000 74,822
2001 38,300 25,000 73,722
2000 38,300 25,000 69,112
1999 38,300 25,000 74,063
CONNECTICUT DIVIDEND
ADVANTAGE (NFC)
------------------------------------------------------------
Year Ended 5/31:
2003 19,500 25,000 75,801
2002 19,500 25,000 71,453
2001(a) 19,500 25,000 70,198
CONNECTICUT DIVIDEND
ADVANTAGE 2 (NGK)
------------------------------------------------------------
Year Ended 5/31:
2003 17,500 25,000 78,487
2002(b) 17,500 25,000 72,726
CONNECTICUT DIVIDEND
ADVANTAGE 3 (NGO)
------------------------------------------------------------
Year Ended 5/31:
2003(c) 32,000 25,000 76,034
============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period January 26, 2001 (commencement of operations) through May
31, 2001.
(b) For the period March 26, 2002 (commencement of operations) through May 31,
2002.
(c) For the period September 26, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
56-57 spread
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ------------------------------
Distributions Distributions
from Net from From Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MASSACHUSETTS PREMIUM
INCOME (NMT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 $14.48 $ .98 $ .78 $(.07) $-- $1.69 $(.87) $-- $(.87)
2002 14.26 1.03 .13 (.11) -- 1.05 (.83) -- (.83)
2001 13.17 1.05 1.10 (.24) -- 1.91 (.82) -- (.82)
2000 14.72 1.05 (1.54) (.21) -- (.70) (.85) -- (.85)
1999 14.91 1.02 (.16) (.20) -- .66 (.85) -- (.85)
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 14.16 1.04 1.74 (.07) -- 2.71 (.88) -- (.88)
2002 13.88 1.03 .25 (.12) -- 1.16 (.88) -- (.88)
2001(a) 14.33 .24 (.24) (.05) -- (.05) (.22) -- (.22)
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE (NGX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(b) 14.33 .35 1.21 (.03) -- 1.53 (.37) -- (.37)
MISSOURI PREMIUM
INCOME (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 14.35 .97 1.02 (.07) -- 1.92 (.87) -- (.87)
2002 13.97 1.01 .31 (.13) -- 1.19 (.81) -- (.81)
2001 12.77 1.02 1.18 (.26) -- 1.94 (.74) -- (.74)
2000 14.20 .99 (1.39) (.26) -- (.66) (.77) -- (.77)
1999 14.44 .97 (.22) (.22) -- .53 (.77) -- (.77)
====================================================================================================================================
Total Returns
------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
================================================================================
MASSACHUSETTS PREMIUM
INCOME (NMT)
--------------------------------------------------------------------------------
Year Ended 5/31:
2003 $-- $15.30 $16.8000 12.98% 12.02%
2002 -- 14.48 15.7000 8.04 7.51
2001 -- 14.26 15.3300 15.71 14.72
2000 -- 13.17 14.0000 (7.66) (4.79)
1999 -- 14.72 16.0625 2.48 4.47
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
--------------------------------------------------------------------------------
Year Ended 5/31:
2003 .01 16.00 16.4500 8.76 19.74
2002 -- 14.16 15.9500 14.15 8.46
2001(a) (.18) 13.88 14.8000 .13 (1.61)
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE (NGX)
--------------------------------------------------------------------------------
Year Ended 5/31:
2003(b) (.24) 15.25 15.7800 7.69 9.07
MISSOURI PREMIUM
INCOME (NOM)
--------------------------------------------------------------------------------
Year Ended 5/31:
2003 -- 15.40 16.8700 15.39 13.75
2002 -- 14.35 15.4100 14.11 8.65
2001 -- 13.97 14.2500 17.41 15.48
2000 -- 12.77 12.8125 (4.35) (4.63)
1999 -- 14.20 14.1875 5.24 3.64
================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===================================================================================================================
MASSACHUSETTS PREMIUM
INCOME (NMT)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 $72,003 1.28% 6.61% 1.27% 6.63% 18%
2002 67,856 1.31 7.11 1.30 7.12 13
2001 66,579 1.37 7.46 1.35 7.48 14
2000 61,323 1.32 7.71 1.31 7.73 11
1999 68,288 1.30 6.87 1.30 6.88 11
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 31,134 1.29 6.49 .83 6.95 8
2002 27,519 1.47 6.70 .94 7.24 9
2001(a) 26,951 1.28* 4.84* .84* 5.28* 18
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE (NGX)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(b) 41,297 1.14* 4.17* .68* 4.64* 19
MISSOURI PREMIUM
INCOME (NOM)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003 34,228 1.34 6.56 1.32 6.58 15
2002 31,619 1.38 7.08 1.36 7.10 8
2001 30,508 1.39 7.48 1.38 7.50 31
2000 27,701 1.48 7.49 1.47 7.51 23
1999 30,603 1.44 6.72 1.43 6.72 10
===================================================================================================================
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:
2003 $34,000 $25,000 $77,943
2002 34,000 25,000 74,894
2001 34,000 25,000 73,955
2000 34,000 25,000 70,091
1999 34,000 25,000 75,212
MASSACHUSETTS DIVIDEND
ADVANTAGE (NMB)
--------------------------------------------------------------
Year Ended 5/31:
2003 15,000 25,000 76,891
2002 15,000 25,000 70,865
2001(a) 15,000 25,000 69,919
INSURED MASSACHUSETTS
TAX-FREE ADVANTAGE (NGX)
--------------------------------------------------------------
Year Ended 5/31:
2003(b) 20,500 25,000 75,362
MISSOURI PREMIUM
INCOME (NOM)
--------------------------------------------------------------
Year Ended 5/31:
2003 16,000 25,000 78,481
2002 16,000 25,000 74,405
2001 16,000 25,000 72,669
2000 16,000 25,000 68,282
1999 16,000 25,000 72,817
==============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the period January 31, 2001 (commencement of operations) through May
31, 2001.
(b) For the period November 22, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
58-59 spread
Trustees
AND OFFICERS
The management of the Fund, including general supervision of the duties
performed for the Fund under the management agreement between Nuveen Advisory
and the Fund, is the responsibility of the Board of Trustees of the Fund. The
number of trustees of the Fund is currently set at seven. None of the trustees
who are not "interested" persons of the Fund has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the trustees and officers of the Fund, 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 OF
PORTFOLIOS
IN FUND
YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN
AND ADDRESS WITH THE FUND APPOINTED(2) DURING PAST 5 YEARS BY TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
TRUSTEE WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 140
3/28/49 Board and Investments, Inc. and Nuveen Investments, LLC;
333 W. Wacker Drive Trustee Director (since 1992) and Chairman (since 1996) of
Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.; Chairman and Director (since 1997)
of Nuveen Asset Management, Inc.; Director (since 1996)
of Institutional Capital Corporation; Chairman and
Director (since 1999) of Rittenhouse Asset Management,
Inc.; Chairman of Nuveen Investments Advisers Inc.
(since 2002).
TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Trustee 1997 Private Investor and Management Consultant. 122
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Trustee 1993 Retired (since 1989) as Senior Vice President of The 122
7/29/34 Northern Trust Company; Director of the United Way of
333 W. Wacker Drive Highland Park-Highwood (since 2002).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri Trustee 1994 Retired, formerly, Executive Director (since 1998) of 122
1/26/33 Manitoga/The Russel Wright Design Center; prior
333 W. Wacker Drive thereto, President and Chief Executive Officer of
Chicago, IL 60606 Blanton-Peale Institute (since 1990); prior thereto,
Vice President, Metropolitan Life Insurance Co.
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers Trustee 1991 Adjunct Professor of Business and Economics, 122
4/3/33 University of Dubuque, Iowa; formerly (1991-2000)
333 W. Wacker Drive Adjunct Professor, Lake Forest Graduate School of
Forest, Illinois; Management, Lake prior thereto, Executive Director,
Chicago, IL 60606 Towers Perrin Australia, a management consulting firm;
Chartered Financial Analyst; Certified Management
Consultant; Director, Executive Service Corps of
Chicago, a not-for-profit organization.
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Trustee 1997 Senior Partner and Chief Operating Officer, 122
9/24/44 Miller-Valentine Group, Vice President,
333 W. Wacker Drive Miller-Valentine Realty, a development
Chicago, IL 60606 and contract company; Chair, MiamiValley Hospital;
Chair, Miami Valley Economic Development Coalition;
formerly, Member, Community Advisory Board, National
City Bank, Dayton, Ohio and Business Advisory Council,
Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy Donnelley 122
12/29/47 Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive Director, Great Lakes Protection Fund (from 1990
Chicago, IL 60606 to 1994).
60
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN
AND ADDRESS WITH THE FUND APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 140
9/9/56 Administrative and Associate General Counsel, formerly, Vice President
333 W. Wacker Drive Officer and Assistant General Counsel of Nuveen Investments,
Chicago, IL 60606 LLC; Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management, Inc.; Assistant
Secretary of Nuveen Investments, Inc. (since 1994);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General
Counsel and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since May 2003); Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant 140
2/3/66 and Assistant Vice President (since 2000), previously, Associate of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, Assistant 134
11/10/66 Vice President (since 1997), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager of Flagship Financial
Chicago, IL 60606 Inc.; Chartered Financial Analyst and Certified
Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 140
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997);
333 W. Wacker Drive Vice President and Treasurer of Nuveen Investments,
Chicago, IL 60606 Inc. (since 1999); Vice President and Treasurer of
Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp. (since 1999); Vice President and
Treasurer of Nuveen Asset Management, Inc. (since
2002) and of Nuveen Investments Advisers Inc.
(since 2002); Assistant Treasurer of NWQ Investment
Management Company, LLC (since 2002); Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. (since 2001); 140
9/8/54 previously, Vice President of Van Kampen Investment
333 W. Wacker Drive Advisory Corp. (since 1998); Vice President of Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 2002); prior thereto,
Assistant Vice President of Van Kampen Investment
Advisory Corp. (since 1994).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General 140
9/24/64 and Secretary Counsel (since 1998); formerly, Assistant Vice President
333 W. Wacker Drive (since 1998) of Nuveen Investments, LLC; Vice President
Chicago, IL 60606 (since 2002) and Assistant Secretary (since 1998),
formerly Assistant Vice President of Nuveen Advisory
Corp. and Nuveen Institutional Advisory Corp.
61
Trustees
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN
AND ADDRESS WITH THE FUND APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; Vice 140
10/24/45 President (since 1998) of Nuveen Advisory Corp. and
333 W. Wacker Drive Nuveen Institutional Advisory Corp.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 140
3/2/64 LLC; Managing Director (since 2001), formerly Vice
333 W. Wacker Drive President of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc. (since 2001);
Vice President of Nuveen Investment Advisers Inc.
(since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller 140
5/31/54 and Controller (since 1998) of Nuveen Investments, LLC and Vice
333 W. Wacker Drive President and Funds Controller (since 1998) of Nuveen
Chicago, IL 60606 Investments, Inc.; Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 134
7/5/55 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Richard A. Huber Vice President 1997 Vice President of Nuveen Institutional Advisory Corp. 134
3/26/63 (since 1998) and Nuveen Advisory Corp. (since 1997);
333 W. Wacker Drive prior thereto, Vice President and Portfolio Manager of
Chicago, IL 60606 Flagship Financial, Inc.
------------------------------------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 134
8/21/57
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, LLC, 140
3/22/63 previously Assistant Vice President (since 1999); prior
333 W. Wacker Drive thereto, Associate of Nuveen Investments, LLC; Certified
Chicago, IL 60606 Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 140
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1998 Vice President, Assistant Secretary and Assistant 140
7/27/51 and Assistant General Counsel of Nuveen Investments, LLC; Vice
333 W. Wacker Drive Secretary President and Assistant Secretary of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.;
Assistant Secretary of Nuveen Investments, Inc. and
(since 1997) Nuveen Asset Management, Inc.; Vice
President (since 2000), Assistant Secretary and Assistant
General Counsel (since 1998) of Rittenhouse Asset
Management, Inc.; Vice President and Assistant Secretary
of Nuveen Investments Advisers Inc. (since 2002);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002).
62
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN
AND ADDRESS WITH THE FUND APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, 140
7/7/65 LLC; Managing Director (since 1997), formerly Vice
333 W. Wacker Drive President (since 1996) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.; Managing Director
of Nuveen Asset Management, Inc. (since 1999).
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. O'Shaughnessy Vice President 1999 Vice President (since 2002), formerly, Assistant 134
9/4/60 Vice President (since 1998), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and Nuveen 134
7/31/51 Institutional Advisory Corp.; Chartered Financial
333 W. Wacker Drive Analyst.
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of
Nuveen Advisory Corp.
(2) Trustees serve a one-year term until his/her successor is elected. The year
first elected or appointed represents the year in which the Trustee was
first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve a one-year term 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.
63
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
64
Fund
INFORMATION
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period ended May 31, 2003. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
65
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.
Managing $80 billion in assets, Nuveen Investments offers access to
a number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style
equities; Rittenhouse, a leader in growth-style equities; and Symphony, a
leading institutional manager of market-neutral alternative investment
portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
EAN-B-0503D
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's Disclosure Controls and Procedures are
effective, based on our evaluation of such Disclosure Controls and Procedures
as of a date within 90 days of the filing of this report on Form N-CSR.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of our evaluation.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) 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.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Ex-99.CERT Attached hereto.
(c) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Section 906 of the Sarbanes-
Oxley Act of 2002. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Massachusetts Premium Income Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date August 1, 2003
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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 1, 2003
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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 1, 2003
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* Print the name and title of each signing officer under his or her signature.