UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09451
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Nuveen Massachusetts Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: May 31
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Date of reporting period: November 30, 2008
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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.
SEMI-ANNUAL REPORT | Nuveen Investments
November 30, 2008 | MUNICIPAL CLOSED-END FUNDS
[PHOTO OF: SMALL CHILD]
NUVEEN CONNECTICUT
PREMIUM INCOME
MUNICIPAL FUND
NTC
NUVEEN CONNECTICUT
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NFC
NUVEEN CONNECTICUT
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NGK
NUVEEN CONNECTICUT
DIVIDEND ADVANTAGE
MUNICIPAL FUND 3
NGO
NUVEEN MASSACHUSETTS
PREMIUM INCOME
MUNICIPAL FUND
NMT
NUVEEN MASSACHUSETTS
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NMB
NUVEEN INSURED
MASSACHUSETTS
TAX-FREE ADVANTAGE
MUNICIPAL FUND
NGX
NUVEEN MISSOURI
PREMIUM INCOME
MUNICIPAL FUND
NOM
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NUVEEN
Investments
Chairman's
LETTER TO SHAREHOLDERS
[PHOTO OF ROBERT P. BREMNER] | Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I write this letter in a time of continued uncertainty about the current state
of the U.S. financial system and pessimism about the future of the global
economy. Many have observed that the conditions that led to the crisis have
built up over time and will complicate and extend the course of recovery. At the
same time, government officials in the U.S. and abroad have implemented a wide
range of programs to restore stability to the financial system and encourage
economic recovery. History teaches us that these efforts will moderate the
extent of the downturn and hasten the inevitable recovery, even though it is
hard to envision that outcome in the current environment.
As you will read in this report, the continuing financial and economic problems
are weighing heavily on asset values for equities and fixed income, and
unfortunately the performance of the Nuveen Funds has been similarly affected. I
hope that you will carefully review the Portfolio Managers' Comments, the Common
Share Dividend and Share Price Information and the Performance Overview sections
of this report. These comments highlight the individual manager's pursuit of
investment strategies that depend on thoroughly researched securities,
diversified portfolio holdings and well established investment disciplines to
achieve your Fund's investment goals. The Fund Board believes that a consistent
focus on long term investment goals provides the basis for successful investment
over time and we monitor your Fund with that objective in mind.
Nuveen continues to work on resolving the auction rate preferred shares
situation, but the unsettled conditions in the credit markets have slowed
progress. Nuveen is actively pursuing a number of solutions, all with the goal
of providing liquidity for preferred shareholders while preserving the potential
benefits of leverage for common shareholders. We appreciate the patience you
have shown as we have worked through the many issues involved. Please consult
the Nuveen website: www.Nuveen.com, for the most recent information.
On behalf of myself and the other members of your Fund's Board, we look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
---------------------------------
Robert P. Bremner
Chairman of the Nuveen Fund Board
January 20, 2009
Portfolio Managers' COMMENTS
Nuveen Investments Municipal Closed-End Funds | NTC, NFC, NGK, NGO,
NMT, NMB, NGX, NOM
Portfolio managers Cathryn Steeves and Scott Romans discuss key investment
strategies and the six-month performance of these eight Nuveen Funds. Cathryn,
who joined Nuveen in 1996, has managed the Connecticut and Massachusetts Funds
since 2006. Scott, who has been with Nuveen since 2000, assumed portfolio
management responsibility for NOM in 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED NOVEMBER 30, 2008?
During this period, stress in the financial and credit markets led to increased
price volatility for many securities, reduced liquidity and a general flight to
quality. In this environment, we took a defensive approach to managing these
Funds, focusing on preserving and enhancing liquidity, managing duration(1) risk
and continuing to invest for the long term.
As events unfolded, we carefully watched the municipal bond market for
attractive purchase opportunities, using a fundamental approach to discover
undervalued sectors and individual credits with the potential to perform well
over the long term. One area of the market that we found attractive during this
period was higher education and we purchased several issues in this sector for
the Connecticut Funds. All of the Connecticut Funds also added general
obligation bonds issued by the state. For all eight Funds, a top priority was
preserving or enhancing liquidity when we found appropriate opportunities to do
so.
To provide liquidity for purchases, we monitored the types of credits and bond
structures that were attractive to the retail market and took advantage of
strong bids to sell such bonds into solid retail demand. This was especially
true in Missouri, where a substantial decline in issuance during this period
meant fewer bonds available in the primary market. Given the market environment,
retail demand was strongest for higher credit quality bonds, especially
tax-backed securities (e.g., state and local general obligation bonds) with
intermediate maturities. Some of the Funds also selectively sold holdings with
shorter durations.
As a key dimension of risk management, we employed a disciplined approach to
duration positioning as an important component of our overall strategy. As part
of this approach, we used inverse floating rate securities(2) in the Connecticut
Funds and NOM throughout the six-month period. We also added inverse floaters to
all three of the Massachusetts Funds during this period. Inverse floaters
typically provide the dual benefit of bringing the Funds' durations closer to
our strategic target and enhancing their income-generation capabilities. NMT and
NMB also invested in certain types of derivative(3) instruments in an effort to
lengthen duration and help us manage common
Certain statements in this report are forward-looking statements. Discussions of
specific investments are for illustration only and are not intended as
recommendations of individual investments. The forward-looking statements and
other views expressed herein are those of the portfolio managers as of the date
of this report. Actual future results or occurrences may differ significantly
from those anticipated in any forward-looking statements and the views expressed
herein are subject to change at any time, due to numerous market and other
factors. The Funds disclaim any obligation to update publicly or revise any
forward-looking statements or views expressed herein.
(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
(2) An inverse floating rate security also known as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this shareholder report.
(3) Each Fund may invest in derivatives instruments such as forwards, futures,
option and swap transactions. For additional information on derivative
instruments in which each Fund was invested during and at the end of the
reporting period, please refer to the Portfolio of Investments, Financial
Statements and Notes to Financial Statements sections of this shareholder
report.
4
share net asset value (NAV) while trying to minimize any negative impact on
income streams or common share dividends over the short term. As of November 30,
2008, we continued to use inverse floaters in all eight of these Funds, while
the derivatives had been removed from NMT and NMB
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Funds, as well as relevant index and peer
group information, are presented in the accompanying table.
Average Annual Total Returns on Common Share Net Asset Value*
For periods ended 11/30/08
Six-Month 1-Year 5-Year 10-Year
Connecticut Funds
NTC -12.29% -11.45% 1.07% 3.81%
NFC -11.13% -9.53% 1.88% N/A
NGK -10.41% -9.27% 1.71% N/A
NGO -11.80% -11.18% 1.18% N/A
Massachusetts Funds
NMT -14.34% -14.29% 0.74% 3.19%
NMB -13.45% -13.76% 0.96% N/A
Missouri Fund
NOM -13.36% -13.93% 0.31% 3.24%
Lipper Other States
Municipal Debt Funds
Average(4) -14.13% -14.38% 0.64% 3.22%
Barclays Capital
Municipal Bond Index(5) - 4.98% -3.61% 2.59% 4.14%
S&P National Municipal
Bond Index(6) -5.48% -4.43% 2.55% N/A
Insured Massachusetts Fund
NGX -10.62% -10.55% 1.81% N/A
Lipper Single-State Insured
Municipal Debt Funds
Average(7) -15.41% -15.55% 0.23% 3.42%
Barclays Capital
Insured Municipal
Bond Index(5) - 5.66% -4.76% 2.43% 4.15%
S&P National Municipal
Bond Index(6) -5.48% -4.43% 2.55% N/A
* Six-month returns are cumulative; returns for one-year, five-year and ten-year
are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(4) The Lipper Other States Municipal Debt Funds Average is calculated using
the returns of all closed-end funds in this category for each period as
follows: 6 months, 46; 1 year, 46; 5 years, 27; and 10 years, 18. The
performance of the Lipper Other States Municipal Debt Funds Average
represents the overall average of returns for funds from ten different
states with a wide variety of municipal market conditions. Fund and Lipper
returns assume reinvestment of dividends.
(5) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds, while the Barclays Capital (formerly
Lehman Brothers) Insured Municipal Bond Index is an unleveraged, unmanaged
national index containing a broad range of insured municipal bonds.
Results for the Lehman indexes do not reflect any expenses.
(6) The Standard & Poor's National Municipal Bond Index is an unleveraged,
market value-weighted index designed to measure the performance of the
investment-grade U.S. municipal bond market.
(7) The Lipper Single-State Insured Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 44; 1 year, 44 funds; 5 years, 44 funds; and 10
years, 24 funds. The performance of the Lipper Single-State Insured
Municipal Debt Funds Average represents the overall average of returns for
funds from eight different states with a wide variety of municipal market
conditions. Fund and Lipper returns assume reinvestment of dividends.
5
For the six months ended November 30, 2008, the cumulative returns on common
share NAV for NTC, NFC, NGK, NGO, NMB and NOM exceeded the average return for
the Lipper Other State Municipal Debt Funds Average, while NMT trailed this
average by a slight margin. At the same time, NGX outperformed the average
return for the Lipper Single-State Insured Municipal Debt Funds Average. The
seven uninsured Funds underperformed the national Barclays Capital and S&P
National Municipal Bond Indexes. NGX lagged the national Barclays Capital
Insured Municipal Bond Index and the S&P National Municipal Bond Index.
Shareholders should note the Lipper Other States Municipal Debt Funds Average
and the Barclay Capital Municipal Bond Index include bonds from states not
covered in this report, which may make direct comparisons between the funds and
these benchmarks less meaningful.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, the use of derivatives, credit
exposure and sector allocations. In addition, the use of leverage was an
important factor affecting each Fund's performance over this period. The impact
of leverage is discussed in more detail on page 7.
Over this period, we saw the yield curve steepen, as interest rates at the short
end of the curve declined and longer rates rose. Given these changes in the
interest rate environment, bonds in the Barclays Capital Municipal Bond Index
with maturities of ten years or less generally outperformed the market as a
whole, with bonds maturing in two to four years benefiting the most. Because
they were less sensitive to interest rate changes, these shorter bonds generally
outperformed credits with longer maturities, with the biggest losses posted by
bonds with the longest maturities (twenty-two years and longer). In general, the
Connecticut and Massachusetts Funds had less exposure to the outperforming short
end of the yield curve than the market as a whole, and more exposure to the
underperforming longer part of the curve. Although this positioning was a net
negative for the performance of these seven Funds, the Funds received positive
contributions from their heavier allocation to bonds with intermediate
maturities, which performed well. In NOM, duration positioning was a relative
positive during this period, due to an underweighting of bonds with the longest
maturities (twelve years and longer) and an overweighting in some of the shorter
maturity categories, especially in bonds maturing in two to four years, which
were the best performers.
As mentioned earlier, all of these Funds used inverse floaters to help bring
their durations closer to our strategic target and enhance income-generation
capabilities. In general, these inverse floaters had a negative impact on
performance. This resulted from the fact that the inverse floaters effectively
increased the Funds' exposure to longer maturity bonds at a time when shorter
maturities were in favor in the market. The derivative instruments used in NMT
and NMB were not in place long enough during this period to have a significant
impact on performance.
6
Credit exposure was also an important factor in performance during these six
months. Because risk-averse investors generally sought higher quality
investments as disruptions in the financial markets deepened, bonds with higher
credit quality typically performed very well. At the same time, as many
investors avoided high-yield securities, bonds rated BBB or below and non-rated
bonds generally posted poor returns. Insured bonds with underlying credits that
were rated BBB or non-rated, originally purchased because of the higher yields
they offered, were disproportionately impacted (compared with bonds with
underlying credits rated AA or A) if the insurer backing the bond was
downgraded. While exposure to lower-rated credits had a negative impact on the
Funds for this period, the six-month performances of NFC, NGK and especially NGX
benefited on a relative basis from their overall higher credit quality.
During this period, pre-refunded bonds(8), which are backed by U.S. Treasury
securities, were one of the top performing segments of the market, due primarily
to their shorter effective maturities, higher credit quality and perceived
safety. Among these Funds, NGX, NFC and NGK had the largest allocations of
pre-refunded bonds as of November 30, 2008. Additional sectors of the market
that generally contributed to the Funds' performances included general
obligation and other tax-backed bonds and water and sewer, electric utilities
and education credits. The Connecticut and Massachusetts Funds, in particular,
benefited relatively from their heavier allocations to the education sector.
This was offset to some degree by their lower allocations to tax-backed credits
as compared to the market as a whole, which lessened the positive contribution
from this sector.
In general, bonds that were lower rated, regardless of sector, posted weak
performance. Revenue bonds as a whole, and the industrial development, health
care and housing sectors in particular, underperformed the general municipal
market. Next to the industrial development revenue sector, zero coupon bonds
were among the worst performing categories in the municipal market. While the
Funds had relatively small exposures to the industrial development revenue
sector, their performances were hurt by their overexposure to the housing
sector. NMT, NMB and NOM also were negatively impacted by their heavier
allocations to the health care sector during this period.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors previously discussed, one of the primary factors
impacting the six-month returns of these Funds relative to the market indexes
was the Funds' use of financial leverage. While leverage offers opportunities to
generate additional income and total returns for common shareholders, the
benefits provided by leveraging are
(8) Pre-refundings, also known as advance refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
7
influenced by the price movements of the bonds in each Fund's portfolio. During
this period, as yields on longer-term bonds rose and their prices
correspondingly fell, declining valuations had a negative effect on performance
that was magnified by the use of leverage. In addition, at various points during
the six-month period, the Funds' borrowing costs were relatively high,
negatively impacting their total returns.
RECENT MARKET DEVELOPMENTS
Beginning in October, the nation's financial institutions and financial
markets--including the municipal bond market--experienced significant turmoil.
Reductions in demand decreased valuations of municipal bonds across all credit
ratings, especially those with lower credit ratings, and this generally reduced
the Funds' common share net asset values. The municipal market is one in which
dealer firms make markets in bonds on a principal basis using their proprietary
capital, and during the recent market turmoil these firms' capital was severely
constrained. As a result, some firms were unwilling to commit their capital to
purchase and to serve as a dealer for municipal bonds. This reduction in dealer
involvement in the market was accompanied by significant net selling pressure by
investors, particularly with respect to lower-rated municipal bonds, as
institutional investors generally removed money from the municipal bond market,
at least in part because of their need to reduce the leveraging of their
municipal investments. This deleveraging was in part driven by the overall
reduction in the amount of financing available for such leverage, the increased
costs of such leverage financing, and the need to reduce leverage levels that
had recently increased due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need
for further deleveraging and a supply overhang (a large amount of new issues
that were postponed) would cause selling pressure to persist for a period of
time. In addition to falling prices, the following market conditions resulted in
greater price volatility of municipal bonds - wider credit spreads (i.e., lower
quality bonds fell in price more than higher quality bonds); significantly
reduced liquidity (i.e., the ability to sell bonds at a price close to their
carrying value), particularly for lower quality bonds; and a lack of price
transparency (i.e., the ability to accurately determine the price at which a
bond would likely trade). Reduced liquidity was most pronounced in mid-October,
although it improved considerably after that period.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. During the period covered by this report, ACA, AMBAC,
8
FGIC, MBIA, RAAI and SYNCORA (formerly XLCA) experienced one or more rating
reductions by at least one or more rating agencies while AGC and FSA received
their first rating reductions by at least one rating agency. At the time this
report was prepared, at least one rating agency has placed each of these
insurers except AGC on "negative outlook" or "negative credit watch," which may
presage one or more rating reductions for such insurer or insurers in the
future. As concern increased about the balance sheets of these insurers, prices
on bonds insured by these companies - especially those bonds with weaker
underlying credits - declined, detracting from the Funds' performance. By the
end of this period, most insured bonds were being valued according to their
fundamentals as if they were uninsured. On the whole, the holdings of all of our
Funds continued to be well diversified not only between insured and uninsured
bonds, but also within the insured bond category. It is important to note that
municipal bonds historically have had a very low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the auction rate preferred shares issued by these Funds
than there were offers to buy. This meant that these auctions "failed to clear"
and that many or all auction rate preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. This decline in liquidity
in auction rate preferred shares did not lower the credit quality of these
shares, and auction rate preferred shareholder unable to sell their shares
received distributions at the "maximum rate" applicable to failed auctions as
calculated in accordance with the pre-established terms of the auction rate
preferred shares. At the time this report was prepared, the Funds' managers
could not predict when future auctions might succeed in attracting sufficient
buyers for the shares offered, if ever. The Funds' managers are working
diligently to refund the auction rate preferred shares, and have made progress
in these efforts (at least for certain funds), but at present there is no
assurance that these efforts will succeed. These developments have generally not
affected the portfolio management or investment policies of these Funds.
However, one implication of these auction failures for common shareholders is
that the Funds' cost of leverage will likely be higher, at least temporarily,
than it otherwise would have been had the auctions continued to be successful.
As a result, the Funds' future common share earnings may be lower than they
otherwise would have been.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the municipal Funds' outstanding auction rate preferred shares, for
which
9
auctions have been failing for several months. This plan included an initial
phase of approximately $1 billion in forty-one Funds. As of November 30, 2008,
none of the Funds included in this shareholder report had issued par redemption
notices for their auction rate preferred shares.
On August 7, 2008, four Nuveen municipal Funds (none of which are included in
this shareholder report) issued par redemption notices for all outstanding
shares of their auction rate preferred shares totaling $569.9 million. These
redemptions were achieved through the issuance of variable rate demand preferred
shares (VRDP) in conjunction with the proceeds from the creation of TOBs.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
10
Common Share
Dividend and Share Price INFORMATION
During the six-month period ended November 30, 2008, there was one dividend
increase in each of the following Funds: NTC, NGO, NMT, NMB and NGX. The
dividends of NFC, NGK and NOM remained stable throughout the reporting period.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Funds NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of November 30, 2008, all of
the Funds in this report had positive UNII balances, based upon our best
estimate, for tax purposes and all of the Fund's in this report except NOM had a
negative UNII balances for financial statement purposes.
The Funds' Board of Trustees approved an open-market share repurchase program on
July 30, 2008, under which each Fund may repurchase up to 10% of its common
shares. As of November 30, 2008 the Funds' have not repurchased any of their
outstanding common shares.
As of November 30, 2008, the Funds' common share prices were trading at premiums
or discounts to their common share NAVs as shown in the accompanying chart:
11/30/08 Six-Month Average
Discount Premium/Discount
NTC -14.98% -5.73%
NFC -8.40% +1.19%
NGK -8.60% -0.32%
NGO -5.27% -4.56%
NMT -15.90% -9.26%
NMB -8.42% -0.75%
NGX -6.91% -0.46%
NOM -3.59% +3.60%
11
NTC Performance OVERVIEW | Nuveen Connecticut Premium Income Municipal Fund as
of November 30, 2008
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 10.39
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.22
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -14.98%
--------------------------------------------------------------------------------
Market Yield 5.77%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.44%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 65,552
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.66
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.94
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -24.42% -12.29%
--------------------------------------------------------------------------------
1-Year -18.51% -11.45%
--------------------------------------------------------------------------------
5-Year -3.52% 1.07%
--------------------------------------------------------------------------------
10-Year 0.79% 3.81%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 25.4%
--------------------------------------------------------------------------------
Tax Obligation/General 15.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.7%
--------------------------------------------------------------------------------
Health Care 10.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 9.2%
--------------------------------------------------------------------------------
Water and Sewer 7.7%
--------------------------------------------------------------------------------
Housing/Single Family 4.7%
--------------------------------------------------------------------------------
Other 12.7%
--------------------------------------------------------------------------------
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 42%
AA 33%
A 11%
BBB 13%
BB or Lower 1%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.052
Jan 0.052
Feb 0.052
Mar 0.049
Apr 0.049
May 0.049
Jun 0.049
Jul 0.049
Aug 0.049
Sep 0.05
Oct 0.05
Nov 0.05
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.53
13.58
13.6
13.55
13.62
13.67
13.56
13.58
13.59
13.59
13.149
13.29
13.02
13.1
13.03
13.06
13.17
13.17
13.33
13.35
13.46
13.81
14.08
14.1
14.14
14.06
13.97
13.9
13.85
13.91
14.003
13.97
13.76
13.93
14.09
13.9601
14.054
14.06
13.99
14.03
13.91
13.87
13.83
13.93
14.03
14.03
14.08
14.14
14.19
13.93
13.53
13.27
13.43
13.39
13.36
13.3
13.452
13.69
13.48
13.44
13.22
13.55
13.65
13.85
13.77
13.86
13.86
13.91
13.82
13.73
13.61
13.22
13.34
13.13
13.1
13.21
13.25
13.33
13.36
13.36
13.29
13.41
13.31
13.38
13.31
13.34
13.33
13.39
13.48
13.4501
13.45
13.37
13.36
13.44
13.41
13.45
13.45
13.52
13.51
13.65
13.58
13.58
13.7
13.97
13.93
14.13
14.17
13.98
13.89
13.95
14.02
14
14.04
14
14.1
14.12
14.13
14.118
14.05
13.95
13.88
13.97
13.97
14.08
14.08
14.06
14.03
14.0899
14.17
14.22
14.156
14.06
13.82
13.5
13.75
13.77
13.68
13.7
13.65
13.68
13.767
13.77
13.63
13.48
13.52
13.54
13.54
13.57
13.572
13.46
13.62
13.66
13.56
13.47
13.46
13.31
13.28
13.33
13.28
13.25
13.33
13.37
13.32
13.32
13.33
13.32
13.35
13.46
13.49
13.4601
13.51
13.56
13.61
13.59
13.8
13.85
13.86
13.87
14.0501
14.04
14.01
13.836
13.76
13.7
13.7
13.82
13.78
13.84
13.84
13.84
13.75
13.74
13.74
13.71
13.77
13.69
13.59
13.48
13.4
13.3
13.17
12.6
12.36
12.67
12.44
12.29
12.45
12.4
12.34
12
11.75
11.74
11.68
11.23
10.51
10.38
10.2
9.18
9.02
10.07
10.22
9.89
9.89
10.25
10.65
10.75
10.99
11.43
11.38
11.4201
11.3
11.6
11.68
11.77
11.59
12.04
12.29
12.15
11.89
11.76
11.85
11.5
11.28
11.072
10.64
10.64
10.95
10.95
10.41
10.45
10.22
10.21
10.39
11/30/08 10.39
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0288 per share.
12
NFC Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal Fund
as of November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 51%
AA 28%
A 10%
BBB 9%
BB or Lower 2%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.0555
Apr 0.0555
May 0.0555
Jun 0.0555
Jul 0.0555
Aug 0.0555
Sep 0.0555
Oct 0.0555
Nov 0.0555
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 14.03
14.29
14.3
14.3
14.13
14.2
14.26
14.13
14
14.03
13.8
13.82
13.7
13.84
13.72
13.84
13.75
13.85
13.88
14.14
14.14
14.33
14.56
14.61
14.68
14.71
14.68
14.64
14.71
14.81
14.8
14.6701
14.85
14.8
14.85
14.78
14.85
14.81
14.55
14.49
14.48
14.84
14.8
14.83
14.85
14.85
14.85
14.85
14.92
14.87
14.59
14.3
14.37
14.28
14.25
14.25
14.24
14.1
14.05
14.01
14.06
14.14
14.27
14.36
14.36
14.6
14.53
14.51
14.32
14.26
14.28
14.02
14.33
14.3
14.26
14.32
14.2
14.2
14.2
14.25
14.24
14.223
14.49
14.31
14.37
14.3001
14.3001
14.32
14.3101
14.3101
14.19
14.25
14.25
14.41
14.45
14.57
14.57
14.57
14.52
14.52
14.52
14.56
14.56
14.61
14.71
14.83
14.52
14.36
14.41
14.88
14.83
14.79
14.755
14.755
14.67
14.79
15.13
15.26
15.22
15.03
15.11
15.21
15.11
14.93
14.93
14.94
15.65
15.841
16.24
16.2
15.57
15.46
15.3
15.25
15.2
15.27
15.12
15.12
15.04
14.67
14.64
14.64
14.4
14.32
14.32
14.32
14.33
14.33
14.46
14.5
14.5
14.76
15
14.83
14.68
14.55
14.55
14.8
14.7
14.64
14.45
14.6
14.53
14.38
14.35
14.35
14.48
14.64
14.8
14.87
15.06
14.87
15.14
15.14
15.33
15.3
15.24
15.3
15.27
15.27
15.1
15.1
15.04
15.04
14.8
14.8
14.81
14.59
14.4
14.4
14.49
14.53
15.16
14.99
14.89
14.8
14.7
14.51
14.52
14.52
14.63
14.94
14.55
14.65
14.65
14.51
14.2501
14.21
14.13
14.0001
14.35
14
13.82
14.46
13.94
13.46
11.14
10.5
9.6
11.44
14.27
14.27
13.32
12.32
11.93
12.56
11.6
12.315
12.15
12.8
11.94
12
11.74
12.05
12.362
12.49
13.06
12.77
12.9
13.02
12.57
12.53
12.5
12.18
12.1
12.1
11.94
11.69
11.42
11.44
11.45
11.49
11.67
11/30/08 11.67
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.67
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.74
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.40%
--------------------------------------------------------------------------------
Market Yield 5.71%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.35%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 32,873
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.86
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.33
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -19.86% -11.13%
--------------------------------------------------------------------------------
1-Year -12.84% -9.53%
--------------------------------------------------------------------------------
5-Year -1.31% 1.88%
--------------------------------------------------------------------------------
Since Inception 2.00% 4.02%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 24.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 21.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.4%
--------------------------------------------------------------------------------
Water and Sewer 8.3%
--------------------------------------------------------------------------------
Tax Obligation/General 7.4%
--------------------------------------------------------------------------------
Health Care 6.8%
--------------------------------------------------------------------------------
Other 14.6%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0664 per share.
13
NGK Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal Fund
2 as of November 30, 2008
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.80
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.91
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.60%
--------------------------------------------------------------------------------
Market Yield 5.59%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.17%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 29,919
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.80
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.23
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -19.39% -10.41%
--------------------------------------------------------------------------------
1-Year -12.43% -9.27%
--------------------------------------------------------------------------------
5-Year 0.01% 1.71%
--------------------------------------------------------------------------------
Since Inception 1.87% 4.07%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 22.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 20.1%
--------------------------------------------------------------------------------
Tax Obligation/General 14.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.0%
--------------------------------------------------------------------------------
Health Care 8.2%
--------------------------------------------------------------------------------
Water and Sewer 6.6%
--------------------------------------------------------------------------------
Transportation 4.3%
--------------------------------------------------------------------------------
Other 12.8%
--------------------------------------------------------------------------------
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 51%
AA 25%
A 14%
BBB 8%
BB or Lower 2%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Oct 0.055
Nov 0.055
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 14.14
14.1901
14.29
14.13
14.18
14.37
14.28
14.23
14.2
14.24
14.0199
14.039
14.2
14.3
14.082
13.78
13.64
13.72
13.72
13.81
13.98
14.4799
14.46
14.59
14.8
14.79
14.77
14.7
14.9
14.85
14.85
14.82
15
14.8
15.01
14.94
14.78
15.03
14.8
14.8
14.58
14.84
14.92
14.96
14.95
14.95
15.12
15.12
15.07
15.0099
14.4
14.1301
14.43
14.21
14.41
14.41
14.41
14.34
14.3
14.02
13.76
13.82
14.14
14.32
14.21
14.4656
14.71
14.65
14.65
14.7
14.7
14.31
14.22
13.91
13.91
13.91
13.8
13.93
13.93
14.19
14.18
14.17
14.22
14.22
14.21
14.21
14.22
14.28
14.28
14.26
14.26
14.33
14.38
14.4
14.37
14.33
14.41
14.44
14.44
14.44
14.48
14.48
14.52
14.46
14.54
14.72
14.9
14.9
15.08
15.15
14.96
14.89
14.74
14.62
14.62
14.64
15
15
15
14.92
14.92
15.14
15.14
15
15
15.18
15.42
15.78
16.232
16.484
16.18
16.23
16.23
15.64
15.64
15.64
15.24
14.51
14.5079
14.5079
14.45
14.46
14.46
14.401
14.37
14.37
14.78
15.02
15.02
15.02
15.02
15.55
15.8
16.09
15.74
15.47
15.33
15.3
15.3
15.1
15
15.57
15.57
15.32
15.32
15.32
15.32
15.32
15.6
15.42
15.42
15.42
15.9
15.64
15.58
15.47
15.18
15.02
15.02
14.76
14.72
14.76
14.78
14.78
14.82
14.82
14.82
14.97
15
15
14.9301
15.16
15.16
15.03
14.98
14.88
14.82
14.7799
14.7799
14.6
14.82
14.86
14.69
14.69
14.69
14.75
14.75
14.06
13.95
13.2
13
12.6
12.3901
12.06
12.19
11.24
10.83
10.73
8.3
9.45
10.59
10.65
11.08
11.26
11.76
11.9499
12.29
12.29
11.22
11.4
12.1
12.18
12.06
12.06
12.51
12.75
13.23
13.195
12.98
12.88
12.88
12.7899
12.2915
12.29
12.27
12.3
11.69
12.16
11.78
11.51
11.48
11.5
11.8
11/30/08 11.8
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0738 per share.
14
NGO Performance OVERVIEW | Nuveen Connecticut Dividend Advantage Municipal Fund
3 as of November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 41%
AA 32%
A 11%
BBB 14%
BB or Lower 2%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share
Dec 0.0505
Jan 0.0505
Feb 0.0505
Mar 0.0485
Apr 0.0485
May 0.0485
Jun 0.0485
Jul 0.0485
Aug 0.0485
Sep 0.05
Oct 0.05
Nov 0.05
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.4899
13.44
13.5
13.52
13.52
13.42
13.52
13.45
13.45
13.35
13.12
13.39
13.22
13.04
12.63
12.8999
12.7501
12.85
13.15
13.22
13.28
13.4999
13.77
13.9
13.95
13.98
13.98
13.95
13.99
13.86
13.86
13.74
13.82
13.7
13.84
13.7501
13.75
13.78
13.6
13.52
13.56
13.52
13.67
13.65
13.76
13.75
13.728
13.72
13.78
13.78
13.25
12.9
13.16
13.16
13.21
13.11
13.08
13.14
13.0401
12.85
12.75
13.35
12.92
13.22
13.2
13.6999
13.31
13.3
13.3
13.2
13.2301
12.96
12.79
12.83
12.7
12.71
12.7899
12.9
12.92
12.9
13.03
13.1
13.2
13.15
13.2199
13.18
13.07
12.91
13.05
13.07
13
13.05
13.07
13.11
13.178
13.22
13.27
13.31
13.32
13.3
13.35
13.22
13.3
13.25
13.13
13.13
13.22
13.22
13.45
13.52
13.48
13.48
13.54
13.49
13.5
13.5
13.46
13.51
13.51
13.48
13.554
13.58
13.61
13.63
13.63
13.66
13.7
13.8
14.01
13.82
14.014
14.11
13.81
14.02
14.04
14.05
13.88
13.55
13.4701
13.43
13.517
13.55
13.4
13.49
13.6
13.6
13.68
13.57
13.34
13.44
13.32
13.32
13.45
13.35
13.4
13.31
13.25
13.4
13.36
13.71
13.58
13.58
13.58
13.17
13.2
13.2
13.29
13.45
13.4
13.38
13.38
13.366
13.592
13.73
13.73
13.88
13.65
13.49
13.32
13.27
13.26
13.199
13.45
13.35
13.5
13.4
13.4
13.3
13.46
13.46
13.29
13.27
13.25
13.23
13.37
13.37
13.2001
13.2
13.2
13.2
12.99
12.81
12.71
13.02
12.67
12.98
12.52
12.66
12.89
12.12
12.01
12
11.82
12
11.4
10.1501
9.8
9.55
8.7
11.47
11.15
11.15
10.93
11.1
11.4
11.4
11.1
11.38
11.7
11.1901
11.14
10.99
11.438
11.5
11.66
11.66
12.1
12
12
11.73
11.9999
11.58
11.02
10.884
10.856
10.65
10.6
10.5
11.05
11.5
11.29
11.25
11.5
11/30/08 11.5
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.50
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.14
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.27%
--------------------------------------------------------------------------------
Market Yield 5.22%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.63%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 53,004
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.53
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.50
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/26/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -13.62% -11.80%
--------------------------------------------------------------------------------
1-Year -10.24% -11.18%
--------------------------------------------------------------------------------
5-Year 1.48% 1.18%
--------------------------------------------------------------------------------
Since Inception 0.62% 2.17%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 18.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.5%
--------------------------------------------------------------------------------
Tax Obligation/General 15.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.9%
--------------------------------------------------------------------------------
Water and Sewer 9.8%
--------------------------------------------------------------------------------
Long-Term Care 8.0%
--------------------------------------------------------------------------------
Health Care 6.2%
--------------------------------------------------------------------------------
Other 11.9%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
15
NMT Performance OVERVIEW | Nuveen Massachusetts Premium Income Municipal Fund as
of November 30, 2008
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 10.00
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.89
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -15.90%
--------------------------------------------------------------------------------
Market Yield 6.42%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.41%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 56,640
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.41
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.22
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -24.50% -14.34%
--------------------------------------------------------------------------------
1-Year -19.71% -14.29%
--------------------------------------------------------------------------------
5-Year -3.70% 0.74%
--------------------------------------------------------------------------------
10-Year 0.30% 3.19%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 20.2%
--------------------------------------------------------------------------------
Health Care 15.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.1%
--------------------------------------------------------------------------------
Tax Obligation/General 12.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.6%
--------------------------------------------------------------------------------
Water and Sewer 7.7%
--------------------------------------------------------------------------------
Transportation 6.4%
--------------------------------------------------------------------------------
Housing/Multifamily 5.0%
--------------------------------------------------------------------------------
Other 10.2%
--------------------------------------------------------------------------------
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 44%
AA 35%
A 7%
BBB 10%
BB or Lower 1%
N/R 3%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.0515
Apr 0.0515
May 0.0515
Jun 0.0515
Jul 0.0515
Aug 0.0515
Sep 0.0535
Oct 0.0535
Nov 0.0535
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.17
13.25
13.39
13.44
13.25
13.32
13.17
12.96
13.01
13.04
12.92
13.04
12.78
12.72
12.61
12.7918
12.63
12.61
12.67
12.7999
12.89
13.12
13.47
13.51
13.53
13.7
13.7
13.72
13.74
13.73
13.83
13.75
13.79
13.971
13.87
14
13.78
13.82
13.81
13.81
13.93
13.97
13.94
14
14
14
14.09
14.2
14.14
13.73
13.3
13.04
13.296
13.509
13.45
12.98
13.077
13.35
13.29
13.03
13
13
12.95
13.28
13.06
13.08
13.65
13.73
13.672
13.29
13.12
12.94
13
13.33
13.3
13.75
13.65
13.57
13.5
13.45
13.37
13.5
13.38
13.38
13.28
13.4
13.41
13.41
13.408
13.24
13.19
13.18
13.1
13.06
13.08
13.14
13.18
13.24
13.27
13.25
13.26
13.23
13.13
13.13
13.14
13.15
13.35
13.4
13.35
13.35
13.44
13.335
13.29
13.191
13.12
13.3
13.5
13.46
13.41
13.33
13.6
13.69
13.81
13.61
13.61
13.56
13.754
13.838
13.69
13.58
13.52
13.44
13.2
13.2
13.234
13.24
13.26
13.12
13.11
12.74
12.77
12.7
12.806
12.84
12.85
12.83
12.83
12.89
12.89
13.1
12.97
12.93
13.04
12.96
12.961
12.94
13.26
13.21
13.22
13.1301
12.91
12.9
12.89
12.89
13.08
12.71
12.72
12.75
12.83
12.8799
12.85
12.77
12.617
12.76
12.697
12.8
12.88
12.95
13.124
13.124
13.124
13.124
13.142
13.142
13.35
12.89
12.9
12.99
13.01
13.01
13.05
13.03
12.94
13.07
12.9
12.93
12.96
12.91
12.9
12.8
12.97
12.97
12.596
12.58
12.4701
12.5
12.36
12.409
12.42
11.93
11.8231
11.78
11.57
11.5901
10.47
10.66
9.95
9.538
8.82
10
10.027
9.59
9.46
9.62
9.93
10.05
10.25
10.42
10.39
10.89
10.7
10.85
10.5
10.4
10.59
10.8
10.95
10.82
10.88
11
10.9
10.98
10.6
10.4401
10.48
10.0599
9.85
9.75
9.4
9.77
9.61
9.6
10
11/30/08 10
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0166 per share.
16
NMB Performance OVERVIEW | Nuveen Massachusetts Dividend Advantage Municipal
Fund as of November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 44%
AA 31%
A 10%
BBB 11%
BB or Lower 2%
N/R 2%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0565
Jan 0.0565
Feb 0.0565
Mar 0.0565
Apr 0.0565
May 0.0565
Jun 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.058
Oct 0.058
Nov 0.058
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.93
13.95
13.88
13.6499
13.61
13.61
13.66
13.55
13.55
13.5
13.44
13.4
13.37
13.42
13.32
13.31
13.37
13.38
13.48
13.57
13.57
13.77
13.9
13.9
14.07
14.1
14.14
14.24
14.32
14.312
14.37
14.35
14.2799
13.85
14.05
14.04
14.09
14.0399
14.16
14.5
14.48
14.3801
14.38
14.4
14.4
14.4
14.52
14.52
14.48
14.2
13.63
13.5
13.84
13.84
14.03
13.98
13.9899
13.92
13.84
13.81
13.73
13.53
13.5
13.57
13.5999
13.62
13.67
13.93
13.86
14.29
14.29
14.05
13.9185
13.97
14.28
14.28
14.28
14.109
14.109
14.109
14.11
14.21
14.31
14.59
14.5
14.81
14.85
14.85
14.69
14.96
14.96
14.8
14.6
14.7
14.49
14.489
14.489
14.28
14.28
14.2899
14.29
14.39
14.2
14.2
14.16
14.45
14.45
14.42
14.43
14.45
14.38
14.02
14.3
14.15
14.35
14.34
14.15
14.2199
14.11
14.14
14.07
14.25
14.45
14.61
14.61
14.66
14.91
14.91
14.91
14.81
14.81
14.76
14.71
14.71
14.94
14.94
15.15
15
15
14.9563
14.9
14.74
14.74
14.69
14.69
14.36
14.29
14.31
14.31
14.31
14.31
14.21
14.31
14.21
14.21
14.11
14.01
14.01
13.91
14.01
13.95
13.95
14.2
14.25
13.92
13.84
13.84
13.74
13.74
13.71
13.71
13.75
13.59
13.59
13.43
13.48
13.38
13.49
13.45
13.45
13.45
13.5
13.55
13.5
13.51
13.51
13.5
13.5
13.55
13.55
13.5899
13.77
13.67
13.75
13.7
13.89
13.89
13.89
13.81
13.64
13.75
13.6
13.44
13.32
13.3
13.3
13.5
13.5
13.6
12.62
12.86
12.85
12.85
12.85
12.143
12.143
11.83
10.81
8.68
9.32
10.01
10.63
11.8
12.15
11.95
11.95
11.95
12.24
12.24
12.43
12.21
12.43
12.9
12.8
12.8
12.8
12.8
13
13
13.02
13.05
12.94
12.32
13.25
12.55
12.3
11.95
11.01
11
11.01
11.26
11.05
11.0919
11/30/08 11.0919
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.09
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.11
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.42%
--------------------------------------------------------------------------------
Market Yield 6.28%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.21%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 23,746
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.49
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.46
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/30/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -22.05% -13.45%
--------------------------------------------------------------------------------
1-Year -17.12% -13.76%
--------------------------------------------------------------------------------
5-Year -1.50% 0.96%
--------------------------------------------------------------------------------
Since Inception 1.76% 3.78%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 24.6%
-------------------------------------------------------------------------------
Health Care 16.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 10.6%
--------------------------------------------------------------------------------
Tax Obligation/General 9.7%
--------------------------------------------------------------------------------
Water and Sewer 9.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.0%
--------------------------------------------------------------------------------
Housing/Multifamily 7.7%
--------------------------------------------------------------------------------
Other 13.2%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0248 per share.
17
NGX Performance OVERVIEW | Nuveen Insured Massachusetts Tax-Free Advantage
Municipal Fund as of November 30, 2008
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.59
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.45
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.91%
--------------------------------------------------------------------------------
Market Yield 5.75%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.43%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 33,910
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.93
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 14.99
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -15.94% -10.62%
--------------------------------------------------------------------------------
1-Year -12.97% -10.55%
--------------------------------------------------------------------------------
5-Year -1.24% 1.81%
--------------------------------------------------------------------------------
Since Inception 0.64% 2.74%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 25.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 14.8%
--------------------------------------------------------------------------------
Tax Obligation/General 11.3%
--------------------------------------------------------------------------------
Water and Sewer 11.3%
--------------------------------------------------------------------------------
Health Care 8.4%
--------------------------------------------------------------------------------
Housing/Multifamily 6.1%
--------------------------------------------------------------------------------
Other 5.4%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
MBIA 32.9%
--------------------------------------------------------------------------------
AMBAC 21.0%
--------------------------------------------------------------------------------
FGIC 16.3%
--------------------------------------------------------------------------------
FSA 11.4%
--------------------------------------------------------------------------------
AGC 10.2%
--------------------------------------------------------------------------------
SYNCORA 8.2%
--------------------------------------------------------------------------------
[PIE CHART]
Credit Quality (as a % of total investments)(1,2)
Insured 60%
U.S. Guaranteed 26%
GNMA Guaranteed 3%
AAA (Uninsured) 2%
AA (Uninsured) 6%
A (Uninsured) 2%
BBB (Uninsured) 1%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0555
Oct 0.0555
Nov 0.0555
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.97
14.05
13.8
13.55
13.74
13.57
13.54
13.3401
13.26
13.26
13.23
13.3
13.35
13.37
13.31
13.43
13.4899
13.46
13.74
13.76
13.75
13.97
14.33
14.2
14.1
14.07
14.08
14.14
14.24
14.3001
14.56
14.85
14.76
14.548
14.6
14.27
14.2
14.24
14.2
14.2
14.26
14.3
14.34
14.29
14.29
14.24
14.28
14.4
14.92
14.66
14.06
14.2
14.01
14.11
14.17
14.2
14.26
14.33
14.57
14.26
13.69
13.6799
13.55
13.7899
13.9896
14.15
14.1501
14.29
14.28
14.3
14.1799
13.87
14.1
14
13.9088
14.1
13.86
13.86
14.05
14.04
13.8801
13.89
13.89
13.8545
13.9154
13.97
13.89
13.93
14.1001
14.25
14.25
14.13
14.13
14.14
14.06
14.06
14.11
14.07
14.1
14.1
14.05
13.99
13.95
13.96
14
13.94
13.95
13.95
14.25
14.09
14.09
14.1
14.2
14.24
14.2
14.34
14.35
14.369
14.32
14.06
14.04
14.08
14.07
14.14
14.14
14.1
14.25
14.25
14.25
14.17
14.3422
14.3
14.26
14.26
14.17
14.17
14.16
13.85
13.7
14.23
14.119
13.86
13.86
14
14
13.9
13.85
14.07
14.1
14
14
14.07
14.1
13.96
14.04
14
14
14.0001
14.37
14.15
14.186
14.1599
13.88
13.9
13.9
13.7699
13.73
13.85
13.44
13.52
13.52
13.4399
13.42
13.49
13.49
13.52
13.66
13.66
13.8099
13.75
13.95
13.78
13.78
13.7401
13.92
13.92
13.92
13.83
14.17
14.17
14.3
14.36
14.46
14.42
14.55
14.32
14.33
14.2
14.4
14.4
14.18
14.14
13.55
13.51
13.5
13.03
12.72
13.15
13.55
12.2
12.7
12.7
12.9
13.65
12.53
12.46
12.024
12.01
11.06
11.99
11.5
11.5
11
11.705
11.9269
11.9269
12.2
13.21
13.45
13.5001
13.85
13.05
13.02
12.81
12.728
12.81
12.6001
12.52
13.41
13
13.3
13.232
13.34
13
13.1
12.26
11.9
11.13
11.4
11.722
11.75
11.55
11.59
11/30/08 11.59
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) At least 80% of the Fund's net assets (including net assets attributable
to Preferred shares) are invested in municipal securities that are covered
by insurance or backed by an escrow or trust account containing sufficient
U.S. Government or U.S. Government agency securities or U.S.
Treasury-issued State and Local Government Series securities to ensure the
timely payment of principal and interest. See Notes to Financial
Statements, Footnote 1 - Insurance, for more information.
(3) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.8%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
18
NOM Performance OVERVIEW | Nuveen Missouri Premium Income Municipal Fund as of
November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 41%
AA 18%
A 19%
BBB 5%
N/R 17%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Nov 0.0545
[LINE CHART]
Common Share Price Performance -- Weekly Closing Price
12/01/07 14.2
14.17
14.05
14.06
14.04
14
14.19
14.01
13.97
13.9
14.02
13.68
13.62
13.7
13.62
13.75
13.93
14.05
14.1399
14.02
13.96
14.08
14.08
14.2
14.63
14.85
15
15.02
14.95
15
14.83
14.82
14.82
14.82
14.4
14.6
14.6
14.52
14.99
15.08
15.11
15.25
15.35
15.35
15.35
15.35
15.44
15.64
15.64
15.64
15.3
15
15.1
15.1
14.6
14.6
14.08
13.85
13.6
13.35
13.28
13.52
13.44
13.49
13.8
13.65
13.65
13.64
13.5
13.46
13.45
13.44
13.34
13.4
13.5
13.6
13.67
13.67
13.85
13.85
13.77
13.77
13.8
13.8999
13.8999
13.9
13.9
13.9
13.77
13.8
13.8
13.8
13.85
14
14
14
14
14.36
14
13.94
13.95
13.8
13.85
13.85
13.96
14.2
14.04
14.04
13.89
13.82
14.35
14.35
13.96
13.95
13.85
13.98
14.04
14.03
14.3
14.51
14.76
14.92
14.71
14.76
14.76
15.09
14.48
14.48
14.14
14.14
14.15
14.15
13.9
13.99
14.35
14.3
13.91
14.23
14.05
13.59
13.74
13.74
13.74
14
13.9
13.9
13.9
14
14
14
14
13.95
13.95
14
13.7
13.7
13.7
13.7
13.59
13.5
13.5
13.78
13.89
14.09
14.09
13.52
13.55
13.56
13.61
13.7
13.62
13.8
14.3
14.3
14.15
14.4
14.34
14.38
14.16
14.18
13.88
13.88
13.9
13.9
13.9
13.9
13.8799
13.98
13.65
13.65
13.52
13.6
13.7
13.68
13.8
13.8
13.56
13.46
13.46
13.46
13.6501
13.75
13.48
13.8
13.8
13.8
13.8
13
12.2
12.2
12.25
12.3
12.4
12.41
12.252
11.55
11.55
11.55
11.3501
12
12
12
12
11.6
11.25
11.25
11.15
11.29
10.81
12.06
12.07
12.0792
11.52
12.5
12.9
12.7999
12.8
12.3201
12.3201
12.0686
11.7
11.7
11.45
11.6
11.24
11.09
11
10.6
10.5
10.75
10.99
11
11
11/30/08 11
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.00
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.41
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.59%
--------------------------------------------------------------------------------
Market Yield 5.95%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.79%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 26,328
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.38
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.05
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -23.50% -13.36%
--------------------------------------------------------------------------------
1-Year -17.82% -13.93%
--------------------------------------------------------------------------------
5-Year -3.45% 0.31%
--------------------------------------------------------------------------------
10-Year 1.97% 3.24%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.2%
--------------------------------------------------------------------------------
Tax Obligation/General 18.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 18.1%
--------------------------------------------------------------------------------
Health Care 13.5%
--------------------------------------------------------------------------------
Water and Sewer 6.1%
--------------------------------------------------------------------------------
Housing/Multifamily 5.3%
--------------------------------------------------------------------------------
Housing/Single Family 5.2%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Managers'
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.3%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.1265 per share.
19
NTC | Nuveen Connecticut Premium Income Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 1,430 Puerto Rico, The Children's Trust Fund, Tobacco Settlement
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 5/12 at 100.00 BBB $ 1,036,750
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 39.9% (25.4% OF TOTAL
INVESTMENTS)
1,595 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AA 1,461,706
Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25
- MBIA Insured
1,050 Connecticut Health and Education Facilities Authority, 7/16 at 100.00 A3 827,285
University of Hartford Revenue Bonds, Series 2006G, 5.250%,
7/01/36 - RAAI Insured
925 Connecticut Health and Educational Facilities Authority, 7/13 at 100.00 AA 890,747
Revenue Bonds, Brunswick School, Series 2003B, 5.000%,
7/01/33 - MBIA Insured
200 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 BBB+ 148,790
Revenue Bonds, Canterbury School, Series 2006B, 5.000%,
7/01/36 - RAAI Insured
305 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 249,063
Revenue Bonds, Chase Collegiate School, Series 2007A,
5.000%, 7/01/27 - RAAI Insured
725 Connecticut Health and Educational Facilities Authority, 1/09 at 102.00 AA 700,908
Revenue Bonds, Fairfield University, Series 1998H, 5.000%,
7/01/23 - MBIA Insured
750 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Baa1 729,908
Revenue Bonds, Horace Bushnell Memorial Hall, Series 1999A,
5.625%, 7/01/29 - MBIA Insured
800 Connecticut Health and Educational Facilities Authority, No Opt. Call A2 843,520
Revenue Bonds, Loomis Chaffee School, Series 2005F, 5.250%,
7/01/19 - AMBAC Insured
270 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AA 222,191
Revenue Bonds, Renbrook School, Series 2007A, 5.000%,
7/01/37 - AMBAC Insured
1,375 Connecticut Health and Educational Facilities Authority, 7/14 at 100.00 AA 1,386,275
Revenue Bonds, Trinity College, Series 2004H, 5.000%,
7/01/21 - MBIA Insured
2,000 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 A3 1,623,100
Revenue Bonds, University of Hartford, Series 2002E, 5.250%,
7/01/32 - RAAI Insured
1,500 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,500,915
Revenue Bonds, Yale University, Series 2002W, 5.125%, 7/01/27
1,500 Connecticut Health and Educational Facilities Authority, 7/13 at 100.00 AAA 1,420,680
Revenue Bonds, Yale University, Series 2003X-1, 5.000%,
7/01/42
3,550 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AAA 3,362,273
Revenue Bonds, Yale University, Series 2007Z-1, 5.000%,
7/01/42
6,150 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AAA 5,872,574
Revenue Bonds, Yale University, Series 2007Z-3, 5.050%,
7/01/42 (UB)
260 Connecticut Higher Education Supplemental Loan Authority, 11/09 at 102.00 AAA 260,816
Revenue Bonds, Family Education Loan Program, Series 1999A,
6.000%, 11/15/18 - AMBAC Insured (Alternative Minimum Tax)
635 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 A2 595,484
Revenue Bonds, Family Education Loan Program, Series 2001A,
5.250%, 11/15/18 - MBIA Insured (Alternative Minimum Tax)
1,000 University of Connecticut, General Obligation Bonds, Series 1/14 at 100.00 AA 1,029,550
2004A, 5.000%, 1/15/18 - MBIA Insured
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,220 University of Connecticut, General Obligation Bonds, Series 2/15 at 100.00 AAA $ 1,284,135
2005A, 5.000%, 2/15/17 - FSA Insured
685 University of Connecticut, General Obligation Bonds, Series 2/16 at 100.00 AA 691,932
2006A, 5.000%, 2/15/23 - FGIC Insured
1,000 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AA 1,032,120
Series 2002A, 5.250%, 11/15/19 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
27,495 Total Education and Civic Organizations 26,133,972
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.7% (10.0% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Bristol Hospital, Series 2002B:
500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 BBB+ 460,855
700 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 BBB+ 535,136
645 Connecticut Health and Educational Facilities Authority, 7/10 at 101.00 BBB+ 541,871
Revenue Bonds, Eastern Connecticut Health Network, Series
2000A, 6.000%, 7/01/25 - RAAI Insured
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Griffin Hospital, Series 2005B:
800 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 A3 717,432
500 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 A3 426,800
385 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 265,908
Revenue Bonds, Hospital For Special Care, Series 2007C,
5.250%, 7/01/32 - RAAI Insured
2,620 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 Aa3 2,367,851
Revenue Bonds, Middlesex Hospital, Series 2006, 5.000%,
7/01/32 - FSA Insured
2,000 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Baa1 1,548,540
Revenue Bonds, Stamford Hospital, Series 1999G, 5.000%,
7/01/24 - MBIA Insured
1,395 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AA 1,143,900
Revenue Bonds, Yale-New Haven Hospital, Series 2006J-1,
5.000%, 7/01/31 - AMBAC Insured
3,000 Connecticut Health and Educational Facilities Authority, 1/09 at 100.50 A3 2,268,150
Revenue Refunding Bonds, Middlesex Health Services, Series
1997H, 5.125%, 7/01/27 - MBIA Insured
----------------------------------------------------------------------------------------------------------------------------------
12,545 Total Health Care 10,276,443
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.6% (1.6% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 12/09 at 100.00 AAA 894,000
Program Bonds, Series 1999D-2, 6.200%, 11/15/41 (Alternative
Minimum Tax)
1,000 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 784,140
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
2,000 Total Housing/Multifamily 1,678,140
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.3% (4.7% OF TOTAL INVESTMENTS)
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2001C:
1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 811,740
500 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 396,575
1,675 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,460,952
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
205 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 159,841
220 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 163,123
2,100 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 1,807,911
Program Bonds, Series 2006D, 4.650%, 11/15/27
----------------------------------------------------------------------------------------------------------------------------------
5,700 Total Housing/Single Family 4,800,142
----------------------------------------------------------------------------------------------------------------------------------
21
NTC | Nuveen Connecticut Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.2% (1.4% OF TOTAL INVESTMENTS)
$ 1,750 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Ba1 $ 1,458,345
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.3% (4.0% OF TOTAL INVESTMENTS)
615 Connecticut Development Authority, First Mortgage Gross Revenue 4/09 at 100.00 BBB- 610,990
Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.700%, 4/01/12
615 Connecticut Development Authority, First Mortgage Gross Revenue 9/09 at 102.00 BBB+ 570,044
Refunding Healthcare Bonds, Connecticut Baptist Homes Inc.,
Series 1999, 5.500%, 9/01/15 - RAAI Insured
Connecticut Development Authority, Revenue Refunding Bonds,
Duncaster Inc., Series 1999A:
1,000 5.250%, 8/01/19 - RAAI Insured 2/10 at 102.00 BBB+ 958,510
1,000 5.375%, 8/01/24 - RAAI Insured 2/10 at 102.00 BBB+ 901,700
1,300 Connecticut Health and Educational Facilities Authority, 2/09 at 102.00 AA 1,104,324
FHA-Insured Mortgage Revenue Bonds, Hebrew Home and
Hospital, Series 1999B, 5.200%, 8/01/38
----------------------------------------------------------------------------------------------------------------------------------
4,530 Total Long-Term Care 4,145,568
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 24.6% (15.6% OF TOTAL INVESTMENTS) 8/12 at 100.00 Baa1 755,198
750 Bridgeport, Connecticut, General Obligation Refunding Bonds,
Series 2002A, 5.375%, 8/15/19 - FGIC Insured
760 Capitol Region Education Council, Connecticut, Revenue Bonds, 4/09 at 100.00 BBB 761,254
Series 1995, 6.700%, 10/15/10
1,110 Connecticut State, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AA 1,119,135
5.000%, 4/01/23 - FGIC Insured
2,000 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 1,958,180
4.750%, 12/15/24
1,300 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 1,315,899
5.000%, 6/01/23 - FSA Insured
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
775 5.000%, 8/01/20 - FSA Insured 8/15 at 100.00 AAA 787,695
525 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 461,438
500 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A 520,585
5.000%, 11/01/17 - AMBAC Insured
500 North Haven, Connecticut, General Obligation Bonds, Series No Opt. Call Aa2 505,935
2006, 5.000%, 7/15/24
1,860 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA 1,711,479
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
Regional School District 16, Beacon Falls and Prospect,
Connecticut, General Obligation Bonds, Series 2000:
350 5.500%, 3/15/18 - FSA Insured 3/10 at 101.00 Aa3 363,353
350 5.625%, 3/15/19 - FSA Insured 3/10 at 101.00 Aa3 363,906
350 5.700%, 3/15/20 - FSA Insured 3/10 at 101.00 Aa3 364,371
1,420 Regional School District 16, Connecticut, General Obligation 3/13 at 101.00 A3 1,518,221
Bonds, Series 2003, 5.000%, 3/15/16 - AMBAC Insured
Suffield, Connecticut, General Obligation Bonds, Series 2005:
465 5.000%, 6/15/17 No Opt. Call AA 505,567
460 5.000%, 6/15/19 No Opt. Call AA 487,747
1,000 5.000%, 6/15/21 No Opt. Call AA 1,034,120
1,500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 1,585,245
2005B, 5.000%, 10/01/18
----------------------------------------------------------------------------------------------------------------------------------
15,975 Total Tax Obligation/General 16,119,328
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.1% (14.7% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Child
Care Facilities Program Revenue Bonds, Series 2006F:
1,300 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 1,171,404
1,000 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 881,770
1,945 Connecticut Health and Educational Facilities Authority, 7/09 at 102.00 A 1,892,893
Revenue Bonds, Child Care Facilities Program, Series 1999C,
5.625%, 7/01/29 - AMBAC Insured
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Connecticut, Special Tax Obligation Transportation
Infrastructure Purpose Bonds, Series 2002B:
$ 2,000 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AA $ 2,004,300
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 980,330
500 Connecticut, Special Tax Obligation Transportation 1/14 at 100.00 AA 495,985
Infrastructure Purpose Bonds, Series 2003B, 5.000%, 1/01/23
- FGIC Insured
1,750 Connecticut, Special Tax Obligation Transportation 8/17 at 100.00 AA 1,716,558
Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%,
8/01/27 - AMBAC Insured
Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue Bonds, Series 2005A:
960 0.000%, 7/01/32 - FGIC Insured No Opt. Call BBB+ 169,046
2,615 0.000%, 7/01/33 - FGIC Insured No Opt. Call BBB+ 426,167
2,000 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 1,931,460
8/01/21 - FSA Insured
2,400 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 2,445,360
8/01/16 - FSA Insured
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AAA 1,037,050
Loan Note, Series 2003, 5.250%, 10/01/19 - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
18,470 Total Tax Obligation/Limited 15,152,323
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.9% (0.6% OF TOTAL INVESTMENTS)
750 Connecticut, General Airport Revenue Bonds, Bradley 4/11 at 101.00 AA 580,868
International Airport, Series 2001A, 5.125%, 10/01/26 - FGIC
Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.5% (9.2% OF TOTAL INVESTMENTS) (4)
50 Connecticut Health and Educational Facilities Authority, 7/10 at 101.00 BBB+ (4) 53,819
Revenue Bonds, Eastern Connecticut Health Network, Series
2000A, 6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured
650 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 N/R (4) 712,556
Revenue Bonds, Loomis Chaffee School, Series 2001D, 5.500%,
7/01/23 (Pre-refunded 7/01/11)
40 Connecticut, General Obligation Bonds, Series 1993E, 6.000%, No Opt. Call AA (4) 44,694
3/15/12 (ETM)
1,500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/12 at 100.00 AA (4) 1,660,650
6/15/21 (Pre-refunded 6/15/12)
600 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 (4) 647,226
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
(Pre-refunded 5/15/11)
1,000 Hartford, Connecticut, Parking System Revenue Bonds, Series 7/10 at 100.00 Baa2 (4) 1,072,250
2000A, 6.400%, 7/01/20 (Pre-refunded 7/01/10)
400 Northern Mariana Islands, General Obligation Bonds, Series 6/10 at 100.00 AAA 425,412
2000A, 6.000%, 6/01/20 (Pre-refunded 6/01/10) - ACA Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 993,970
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
485 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 506,325
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
1,100 University of Connecticut, General Obligation Bonds, Series 2/13 at 100.00 AA (4) 1,212,453
2003A, 5.125%, 2/15/21 (Pre-refunded 2/15/13) - MBIA Insured
1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 1,094,890
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded
10/01/10)
1,000 Waterbury, Connecticut, General Obligation Bonds, Series 2002A, 4/12 at 100.00 AAA 1,098,500
5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
8,825 Total U.S. Guaranteed 9,522,745
----------------------------------------------------------------------------------------------------------------------------------
23
NTC | Nuveen Connecticut Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4% (4.1% OF TOTAL INVESTMENTS)
$ 1,150 Bristol Resource Recovery Facility Operating Committee, No Opt. Call AA $ 1,209,099
Connecticut, Solid Waste Revenue Bonds, Covanta Bristol
Inc., Series 2005, 5.000%, 7/01/12 - AMBAC Insured
1,000 Connecticut Development Authority, Pollution Control Revenue 4/09 at 102.00 Baa1 844,810
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
1,070 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 816,999
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
355 5.500%, 1/01/14 (Alternative Minimum Tax) 1/09 at 100.00 BBB 318,648
1,290 5.500%, 1/01/20 (Alternative Minimum Tax) 1/09 at 100.00 BBB 994,538
---------------------------------------------------------------------------------------------------------------------------------
4,865 Total Utilities 4,184,094
---------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.1% (7.7% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 BBB- 350,025
Bonds, Aquarion Water Company Project, Series 200.7,
5.100%, 9/01/37 - SYNCORA GTY Insured (Alternative Minimum
Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 1,250,779
Series 2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority,
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A:
1,520 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA 1,370,037
2,260 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA 1,968,867
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
1,000 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AA 998,700
1,075 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA 971,940
1,100 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ 1,021,702
Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32
---------------------------------------------------------------------------------------------------------------------------------
8,640 Total Water and Sewer 7,932,050
---------------------------------------------------------------------------------------------------------------------------------
$ 112,975 Total Investments (cost $112,526,520) - 157.2% 103,020,768
=================----------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.7)% (3,075,000)
----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.9% 3,906,611
----------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.4)% (5) (38,300,000)
----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 65,552,379
================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 37.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
24
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 38.2% (24.0% OF TOTAL INVESTMENTS)
$ 795 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AA $ 728,562
Bonds, Quinnipiac University, Series 2007-I, 5.000%,
7/01/25 - MBIA Insured
500 Connecticut Health and Education Facilities Authority, 7/16 at 100.00 A3 393,945
University of Hartford Revenue Bonds, Series 2006G, 5.250%,
7/01/36 - RAAI Insured
100 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 BBB+ 74,395
Revenue Bonds, Canterbury School, Series 2006B, 5.000%,
7/01/36 - RAAI Insured
150 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 122,490
Revenue Bonds, Chase Collegiate School, Series 2007A,
5.000%, 7/01/27 - RAAI Insured
440 Connecticut Health and Educational Facilities Authority, No Opt. Call A2 471,126
Revenue Bonds, Loomis Chaffee School, Series 2005F, 5.250%,
7/01/18 - AMBAC Insured
130 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AA 106,981
Revenue Bonds, Renbrook School, Series 2007A, 5.000%,
7/01/37 - AMBAC Insured
50 Connecticut Health and Educational Facilities Authority, 1/09 at 101.00 A3 40,356
Revenue Bonds, Sacred Heart University, Series 1998E,
5.000%, 7/01/28 - RAAI Insured
350 Connecticut Health and Educational Facilities Authority, 7/14 at 100.00 AA 362,383
Revenue Bonds, Trinity College, Series 2004H, 5.000%,
7/01/17 - MBIA Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 A3 811,550
Revenue Bonds, University of Hartford, Series 2002E,
5.250%, 7/01/32 - RAAI Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,000,610
Revenue Bonds, Yale University, Series 2002W, 5.125%,
7/01/27
500 Connecticut Health and Educational Facilities Authority, 7/13 at 100.00 AAA 473,560
Revenue Bonds, Yale University, Series 2003X-1, 5.000%,
7/01/42
1,800 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AAA 1,704,816
Revenue Bonds, Yale University, Series 2007Z-1, 5.000%,
7/01/42
3,050 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AAA 2,912,415
Revenue Bonds, Yale University, Series 2007Z-3, 5.050%,
7/01/42 (UB)
500 Connecticut Higher Education Supplemental Loan Authority, 11/11 at 100.00 A2 468,885
Revenue Bonds, Family Education Loan Program, Series 2001A,
5.250%, 11/15/18 - MBIA Insured (Alternative Minimum Tax)
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System, Series 1999:
125 5.375%, 2/01/19 2/09 at 101.00 BBB- 105,878
270 5.375%, 2/01/29 2/09 at 101.00 BBB- 195,018
University of Connecticut, General Obligation Bonds, Series
2001A:
1,000 4.750%, 4/01/20 4/11 at 101.00 AA 1,007,560
1,000 4.750%, 4/01/21 - MBIA Insured 4/11 at 101.00 AA 1,003,400
585 University of Connecticut, General Obligation Bonds, Series 2/16 at 100.00 AA 590,920
2006A, 5.000%, 2/15/23 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
13,345 Total Education and Civic Organizations 12,574,850
----------------------------------------------------------------------------------------------------------------------------------
25
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.8% (6.8% OF TOTAL INVESTMENTS)
$ 1,400 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 BBB+ $ 1,070,272
Revenue Bonds, Bristol Hospital, Series 2002B, 5.500%,
7/01/32 - RAAI Insured
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Griffin Hospital, Series 2005B:
500 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 A3 448,395
250 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 A3 213,400
185 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 127,774
Revenue Bonds, Hospital For Special Care, Series 2007C,
5.250%, 7/01/32 - RAAI Insured
60 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 Aa3 54,226
Revenue Bonds, Middlesex Hospital, Series 2006, 5.000%,
7/01/32 - FSA Insured
125 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Baa1 96,784
Revenue Bonds, Stamford Hospital, Series 1999G, 5.000%,
7/01/24 - MBIA Insured
1,870 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AA 1,533,400
Revenue Bonds, Yale-New Haven Hospital, Series 2006J-1,
5.000%, 7/01/31 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,390 Total Health Care 3,544,251
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.7% OF TOTAL INVESTMENTS)
500 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 392,070
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.0% (4.4% OF TOTAL INVESTMENTS)
Connecticut Housing Finance Authority, Housing Mortgage
Finance Program Bonds, Series 2001C:
1,000 5.300%, 11/15/33 (Alternative Minimum Tax) 11/10 at 100.00 AAA 811,740
250 5.450%, 11/15/43 (Alternative Minimum Tax) 11/10 at 100.00 AAA 198,288
800 Connecticut Housing Finance Authority, Housing Mortgage 5/13 at 100.00 AAA 697,768
Finance Program Bonds, Series 2004-A5, 5.050%, 11/15/34
700 Connecticut Housing Finance Authority, Housing Mortgage 5/16 at 100.00 AAA 602,637
Finance Program Bonds, Series 2006D, 4.650%, 11/15/27
-----------------------------------------------------------------------------------------------------------------------------------
2,750 Total Housing/Single Family 2,310,433
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.5% (1.6% OF TOTAL INVESTMENTS)
1,000 Connecticut Resource Recovery Authority, Revenue Bonds,
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax) 12/11 at 102.00 Ba1 833,340
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.6% (1.0% OF TOTAL INVESTMENTS)
300 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 248,817
Revenue Healthcare Bonds, Elim Park Baptist Home Inc.,
Series 2003, 5.750%, 12/01/23
110 Connecticut Development Authority, First Mortgage Gross 4/09 at 100.00 BBB- 99,240
Revenue Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.800%, 4/01/21
250 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 168,345
Revenue Bonds, Alzheimer's Resource Center of Connecticut,
Inc., Series 2007, 5.500%, 8/15/27
-----------------------------------------------------------------------------------------------------------------------------------
660 Total Long-Term Care 516,402
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.9% (7.4% OF TOTAL INVESTMENTS)
560 Connecticut State, General Obligation Bonds, Series 2004C, 4/14 at 100.00 AA 564,609
5.000%, 4/01/23 - FGIC Insured
700 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 685,363
4.750%, 12/15/24
100 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 101,223
5.000%, 6/01/23 - FSA Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Hartford, Connecticut, General Obligation Bonds, Series 2005A:
$ 360 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA $ 363,229
240 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 210,943
400 North Haven, Connecticut, General Obligation Bonds, Series No Opt. Call Aa2 404,748
2006, 5.000%, 7/15/24
Suffield, Connecticut, General Obligation Bonds, Series 2005:
335 5.000%, 6/15/17 No Opt. Call AA 364,225
335 5.000%, 6/15/19 No Opt. Call AA 355,207
810 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 856,032
2005B, 5.000%, 10/01/18
-----------------------------------------------------------------------------------------------------------------------------------
3,840 Total Tax Obligation/General 3,905,579
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.7% (17.4% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority, Child
Care Facilities Program Revenue Bonds, Series 2006F:
650 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 585,702
500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 440,885
1,000 Connecticut Health and Educational Facilities Authority,
Revenue Bonds, New Opportunities for Waterbury Inc., Series 1/09 at 105.00 A 1,015,240
1998A, 6.750%, 7/01/28
Connecticut, Certificates of Participation, Juvenile Training
School, Series 2001:
600 5.000%, 12/15/20 12/11 at 101.00 AA- 605,298
1,000 5.000%, 12/15/30 12/11 at 101.00 AA- 935,340
1,475 Connecticut, Special Tax Obligation Transportation No Opt. Call AAA 1,624,904
Infrastructure Purpose Bonds, Series 1998B, 5.500%,
11/01/12 - FSA Insured
900 Connecticut, Special Tax Obligation Transportation 8/17 at 100.00 AA 882,801
Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%,
8/01/27 - AMBAC Insured
600 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 469,776
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
470 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 82,762
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
1,200 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 1,222,680
8/01/16 - FSA Insured
750 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 758,048
Loan Note, Series 1999A, 6.375%, 10/01/19
500 Virgin Islands Public Finance Authority, Senior Lien Revenue 4/09 at 101.00 A 486,820
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,645 Total Tax Obligation/Limited 9,110,256
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.9% (3.7% OF TOTAL INVESTMENTS)
2,500 Connecticut, General Airport Revenue Bonds, Bradley 4/11 at 101.00 AA 1,936,225
International Airport, Series 2001A, 5.125%, 10/01/26 -
FGIC Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 34.3% (21.5% OF TOTAL INVESTMENTS) (4)
1,000 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 N/R (4) 1,096,240
Revenue Bonds, Loomis Chaffee School, Series 2001D, 5.500%,
7/01/23 (Pre-refunded 7/01/11)
2,000 Connecticut, Clean Water Fund Revenue Bonds, Series 2001, 10/11 at 100.00 AAA 2,188,597
5.500%, 10/01/20 (Pre-refunded 10/01/11)
500 Connecticut, General Obligation Bonds, Series 2002B, 5.500%, 6/12 at 100.00 AA (4) 553,550
6/15/21 (Pre-refunded 6/15/12)
500 East Lyme, Connecticut, General Obligation Bonds, Series 2001, 7/11 at 102.00 Aa3 (4) 548,645
5.125%, 7/15/20 (Pre-refunded 7/15/11) - FGIC Insured
27
NFC | Nuveen Connecticut Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 25 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 Baa3 (4) $ 26,620
500 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 Baa3 (4) 537,165
1,270 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 (4) 1,369,962
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
(Pre-refunded 5/15/11)
220 New Haven, Connecticut, General Obligation Bonds, Series 11/11 at 100.00 A- (4) 234,003
2001A, 5.000%, 11/01/20 (Pre-refunded 11/01/11) - FGIC
Insured
250 Northern Mariana Islands, General Obligation Bonds, Series 6/10 at 100.00 AAA 265,883
2000A, 6.000%, 6/01/20 (Pre-refunded 6/01/10) - ACA Insured
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,425 5.500%, 10/01/32 10/10 at 101.00 AAA 1,424,886
1,300 5.500%, 10/01/40 10/10 at 101.00 AAA 1,292,161
235 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 245,333
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
1,000 Waterbury, Connecticut, General Obligation Bonds, Series 4/12 at 100.00 AAA 1,098,500
2002A, 5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured
370 Windsor, Connecticut, General Obligation Bonds, Series 2001, 7/09 at 100.00 Aa2 (4) 379,076
5.000%, 7/15/20 (Pre-refunded 7/15/09)
-----------------------------------------------------------------------------------------------------------------------------------
10,595 Total U.S. Guaranteed 11,260,621
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.0% (3.2% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Pollution Control Revenue 4/09 at 102.00 Baa1 422,405
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
560 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 427,588
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
900 Eastern Connecticut Resource Recovery Authority, Solid Waste 1/09 at 100.00 BBB 807,840
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A,
5.500%, 1/01/14 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
1,960 Total Utilities 1,657,833
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.2% (8.3% OF TOTAL INVESTMENTS)
255 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 BBB- 178,513
Bonds, Aquarion Water Company Project, Series 200.7,
5.100%, 9/01/37 - SYNCORA GTY Insured (Alternative Minimum
Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 1,250,779
Series 2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority,
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A:
720 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA 648,965
1,110 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA 967,010
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 140 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 $ 110,568
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AA 749,025
470 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA 424,941
-----------------------------------------------------------------------------------------------------------------------------------
4,630 Total Water and Sewer 4,329,801
-----------------------------------------------------------------------------------------------------------------------------------
$ 55,815 Total Investments (cost $56,432,776) - 159.3% 52,371,661
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.6)% (1,525,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.6% 1,526,623
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.3)% (5) (19,500,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 32,873,284
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 37.2%.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
29
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7% (1.1% OF TOTAL INVESTMENTS)
$ 720 Puerto Rico, The Children's Trust Fund, Tobacco Settlement
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 5/12 at 100.00 BBB $ 522,000
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 35.7% (22.5% OF TOTAL
INVESTMENTS)
715 Connecticut Health and Education Facilities Authority, 7/17 at 100.00 AA 655,247
Revenue Bonds, Quinnipiac University, Series 2007-I,
5.000%, 7/01/25 - MBIA Insured
500 Connecticut Health and Education Facilities Authority, 7/16 at 100.00 A3 393,945
University of Hartford Revenue Bonds, Series 2006G,
5.250%, 7/01/36 - RAAI Insured
100 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 BBB+ 74,395
Revenue Bonds, Canterbury School, Series 2006B, 5.000%,
7/01/36 - RAAI Insured
135 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 110,241
Revenue Bonds, Chase Collegiate School, Series 2007A,
5.000%, 7/01/27 - RAAI Insured
95 Connecticut Health and Educational Facilities Authority, 1/09 at 102.00 AA 91,843
Revenue Bonds, Fairfield University, Series 1998H, 5.000%,
7/01/23 - MBIA Insured
500 Connecticut Health and Educational Facilities Authority, 7/09 at 100.50 A 496,075
Revenue Bonds, Hopkins School, Series 1998A, 5.000%,
7/01/20 - AMBAC Insured
310 Connecticut Health and Educational Facilities Authority, No Opt. Call A2 326,864
Revenue Bonds, Loomis Chaffee School, Series 2005F,
5.250%, 7/01/19 - AMBAC Insured
120 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AA 98,752
Revenue Bonds, Renbrook School, Series 2007A, 5.000%,
7/01/37 - AMBAC Insured
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, University of Hartford, Series 2002E:
590 5.500%, 7/01/22 - RAAI Insured 7/12 at 101.00 A3 542,487
1,000 5.250%, 7/01/32 - RAAI Insured 7/12 at 101.00 A3 811,550
1,000 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,000,610
Revenue Bonds, Yale University, Series 2002W, 5.125%,
7/01/27
500 Connecticut Health and Educational Facilities Authority, 7/13 at 100.00 AAA 473,560
Revenue Bonds, Yale University, Series 2003X-1, 5.000%,
7/01/42
1,600 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AAA 1,515,392
Revenue Bonds, Yale University, Series 2007Z-1, 5.000%,
7/01/42
2,750 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AAA 2,625,948
Revenue Bonds, Yale University, Series 2007Z-3, 5.050%,
7/01/42 (UB)
University of Connecticut, General Obligation Bonds, Series
2006A:
450 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 469,926
490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 494,959
500 University of Connecticut, Student Fee Revenue Refunding 11/12 at 101.00 AA 506,585
Bonds, Series 2002A, 5.250%, 11/15/22 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,355 Total Education and Civic Organizations 10,688,379
-----------------------------------------------------------------------------------------------------------------------------------
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.9% (8.2% OF TOTAL INVESTMENTS)
$ 300 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 BBB+ $ 229,344
Revenue Bonds, Bristol Hospital, Series 2002B, 5.500%,
7/01/32 - RAAI Insured
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Eastern Connecticut Health Network,
Series 2000A:
20 6.125%, 7/01/20 - RAAI Insured 7/10 at 101.00 BBB+ 18,087
65 6.000%, 7/01/25 - RAAI Insured 7/10 at 101.00 BBB+ 54,607
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Griffin Hospital, Series 2005B:
300 5.000%, 7/01/20 - RAAI Insured 7/15 at 100.00 A3 269,037
300 5.000%, 7/01/23 - RAAI Insured 7/15 at 100.00 A3 256,080
170 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 117,414
Revenue Bonds, Hospital For Special Care, Series 2007C,
5.250%, 7/01/32 - RAAI Insured
1,190 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 Aa3 1,075,474
Revenue Bonds, Middlesex Hospital, Series 2006, 5.000%,
7/01/32 - FSA Insured
1,000 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 BBB+ 864,690
Revenue Bonds, St. Francis Hospital and Medical Center,
Series 2002D, 5.000%, 7/01/22 - RAAI Insured
25 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Baa1 21,970
Revenue Bonds, Stamford Hospital, Series 1999G, 5.000%,
7/01/18 - MBIA Insured
1,170 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AA 959,400
Revenue Bonds, Yale-New Haven Hospital, Series 2006J-1,
5.000%, 7/01/31 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,540 Total Health Care 3,866,103
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
500 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 392,070
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.0% (3.8% OF TOTAL INVESTMENTS)
250 Connecticut Housing Finance Authority, Housing Mortgage 11/10 at 100.00 AAA 198,288
Finance Program Bonds, Series 2001C, 5.450%, 11/15/43
(Alternative Minimum Tax)
700 Connecticut Housing Finance Authority, Housing Mortgage 5/13 at 100.00 AAA 610,547
Finance Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage
Finance Program Bonds, Series 2006-A1:
305 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 237,812
330 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 244,685
600 Connecticut Housing Finance Authority, Housing Mortgage 5/16 at 100.00 AAA 516,546
Finance Program Bonds, Series 2006D, 4.650%, 11/15/27
-----------------------------------------------------------------------------------------------------------------------------------
2,185 Total Housing/Single Family 1,807,878
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.8% (1.8% OF TOTAL INVESTMENTS)
1,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Ba1 833,340
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-II, 5.500%, 11/15/15 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.6% (2.3% OF TOTAL INVESTMENTS)
320 Connecticut Development Authority, First Mortgage Gross 12/11 at 102.00 BBB+ 265,405
Revenue Healthcare Bonds, Elim Park Baptist Home Inc.,
Series 2003, 5.750%, 12/01/23
265 Connecticut Development Authority, First Mortgage Gross 4/09 at 100.00 BBB- 263,272
Revenue Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.700%, 4/01/12
31
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 450 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 A $ 386,010
Revenue Bonds, Village for Families and Children Inc.,
Series 2002A, 5.000%, 7/01/19 - AMBAC Insured
250 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 168,345
Revenue Bonds, Alzheimer's Resource Center of
Connecticut, Inc., Series 2007, 5.500%, 8/15/27
-----------------------------------------------------------------------------------------------------------------------------------
1,285 Total Long-Term Care 1,083,032
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.0% (14.5% OF TOTAL INVESTMENTS)
600 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 587,454
4.750%, 12/15/24
400 Connecticut State, General Obligation Bonds, Series 2006C, 6/16 at 100.00 AAA 404,892
5.000%, 6/01/23 - FSA Insured
Farmington, Connecticut, General Obligation Bonds,
Series 2002:
1,000 5.000%, 9/15/20 9/12 at 101.00 Aa1 1,023,660
1,450 5.000%, 9/15/21 9/12 at 101.00 Aa1 1,462,238
1,305 Hartford County Metropolitan District, Connecticut, General 4/12 at 101.00 AA+ 1,310,377
Obligation Bonds, Series 2002, 5.000%, 4/01/22
Hartford, Connecticut, General Obligation Bonds, Series
2005A:
360 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 363,229
140 4.375%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 123,050
650 New Haven, Connecticut, General Obligation Bonds, Series 11/16 at 100.00 A 676,761
2006, 5.000%, 11/01/17 - AMBAC Insured
400 Suffield, Connecticut, General Obligation Bonds, Series No Opt. Call AA 413,648
2005, 5.000%, 6/15/21
500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 530,720
2005B, 5.000%, 10/01/17
-----------------------------------------------------------------------------------------------------------------------------------
6,805 Total Tax Obligation/General 6,896,029
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.4% (11.0% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority,
Child Care Facilities Program Revenue Bonds, Series 2006F:
575 5.000%, 7/01/31 - AGC Insured 7/16 at 100.00 AAA 518,121
500 5.000%, 7/01/36 - AGC Insured 7/16 at 100.00 AAA 440,885
500 Connecticut, Special Tax Obligation Transportation 10/11 at 100.00 AAA 529,335
Infrastructure Purpose Bonds, Series 2001B, 5.375%,
10/01/13 - FSA Insured
1,625 Connecticut, Special Tax Obligation Transportation 7/12 at 100.00 AAA 1,662,407
Infrastructure Purpose Bonds, Series 2002A, 5.375%,
7/01/20 - FSA Insured
850 Connecticut, Special Tax Obligation Transportation 8/17 at 100.00 AA 833,757
Infrastructure Purpose Revenue Bonds, Series 2007A,
5.000%, 8/01/27 - AMBAC Insured
500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 391,480
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC
Insured
430 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 75,719
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC
Insured
750 Puerto Rico Municipal Finance Agency, Series 2005C, 5.000%, 8/15 at 100.00 AAA 764,175
8/01/16 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,730 Total Tax Obligation/Limited 5,215,879
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.9% (4.3% OF TOTAL INVESTMENTS)
1,950 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call A 2,057,581
Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.9% (20.1% OF TOTAL INVESTMENTS) (4)
$ 2,250 Connecticut Health and Educational Facilities Authority, 11/11 at 100.00 AAA $ 2,434,882
Revenue Bonds, Connecticut State University System,
Series 2002D-2, 5.000%, 11/01/21 (Pre-refunded 11/01/11)
- FSA Insured
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Eastern Connecticut Health Network, Series
2000A:
100 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 BBB+ (4) 107,899
30 6.125%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 BBB+ (4) 32,350
5 6.000%, 7/01/25 (Pre-refunded 7/01/10) - RAAI Insured 7/10 at 101.00 BBB+ (4) 5,382
400 Connecticut Health and Educational Facilities Authority, 3/11 at 101.00 AAA 430,236
Revenue Bonds, Greenwich Academy, Series 2001B, 5.000%,
3/01/32 (Pre-refunded 3/01/11) - FSA Insured
250 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 (4) 269,678
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
(Pre-refunded 5/15/11)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,065,310
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) -
FSA Insured
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,000 5.500%, 10/01/32 10/10 at 101.00 AAA 999,920
2,000 5.500%, 10/01/40 10/10 at 101.00 AAA 1,987,939
1,535 Regional School District 8, Andover, Hebron and Marlborough, 5/11 at 101.00 Aa3 (4) 1,657,124
Connecticut, General Obligation Bonds, Series 2002,
5.000%, 5/01/22 (Pre-refunded 5/01/11) - FSA Insured
500 Waterbury, Connecticut, General Obligation Bonds, Series 4/12 at 100.00 AAA 549,250
2002A, 5.375%, 4/01/17 (Pre-refunded 4/01/12) - FSA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,070 Total U.S. Guaranteed 9,539,970
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.7% (2.9% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, Pollution Control Revenue 4/09 at 102.00 Baa1 422,405
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
470 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 358,869
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
250 5.500%, 1/01/15 (Alternative Minimum Tax) 1/09 at 100.00 BBB 218,823
510 5.500%, 1/01/20 (Alternative Minimum Tax) 1/09 at 100.00 BBB 393,190
-----------------------------------------------------------------------------------------------------------------------------------
1,730 Total Utilities 1,393,287
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.4% (6.6% OF TOTAL INVESTMENTS)
220 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 BBB- 154,011
Bonds, Aquarion Water Company Project, Series 200.7,
5.100%, 9/01/37 - SYNCORA GTY Insured (Alternative
Minimum Tax)
785 Connecticut, State Revolving Fund General Revenue Bonds, 10/13 at 100.00 AAA 828,575
Series 2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority,
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A:
690 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA 621,925
320 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA 278,778
130 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 102,670
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
33
NGK | Nuveen Connecticut Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
$ 750 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AA $ 749,025
410 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA 370,693
------------------------------------------------------------------------------------------------------------------------------------
3,305 Total Water and Sewer 3,105,677
------------------------------------------------------------------------------------------------------------------------------------
$ 50,175 Total Investments (cost $50,635,027) - 158.4% 47,401,225
=================-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.6)% (1,375,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.7% 1,393,085
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.5)% (5) (17,500,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 29,919,310
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 36.9%.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
34
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.1% (2.0% OF TOTAL INVESTMENTS)
$ 2,295 Puerto Rico, The Children's Trust Fund, Tobacco Settlement
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 5/12 at 100.00 BBB $ 1,663,875
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 28.6% (18.6% OF TOTAL
INVESTMENTS)
1,000 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AA 789,230
Bonds, Connecticut College, Series 2007G, 4.500%, 7/01/37 -
MBIA Insured
1,300 Connecticut Health and Education Facilities Authority, Revenue 7/17 at 100.00 AA 1,191,359
Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25
- MBIA Insured
650 Connecticut Health and Education Facilities Authority, 7/16 at 100.00 A3 512,129
University of Hartford Revenue Bonds, Series 2006G, 5.250%,
7/01/36 - RAAI Insured
150 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 BBB+ 111,593
Revenue Bonds, Canterbury School, Series 2006B, 5.000%,
7/01/36 - RAAI Insured
250 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 204,150
Revenue Bonds, Chase Collegiate School, Series 2007A,
5.000%, 7/01/27 - RAAI Insured
400 Connecticut Health and Educational Facilities Authority, No Opt. Call A2 421,760
Revenue Bonds, Loomis Chaffee School, Series 2005F, 5.250%,
7/01/19 - AMBAC Insured
215 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AA 176,930
Revenue Bonds, Renbrook School, Series 2007A, 5.000%,
7/01/37 - AMBAC Insured
750 Connecticut Health and Educational Facilities Authority, 7/12 at 101.00 A3 689,603
Revenue Bonds, University of Hartford, Series 2002E, 5.500%,
7/01/22 - RAAI Insured
1,500 Connecticut Health and Educational Facilities Authority, 7/09 at 100.00 AAA 1,500,915
Revenue Bonds, Yale University, Series 2002W, 5.125%, 7/01/27
3,000 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AAA 2,841,359
Revenue Bonds, Yale University, Series 2007Z-1, 5.000%,
7/01/42
5,050 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 AAA 4,822,195
Revenue Bonds, Yale University, Series 2007Z-3, 5.050%,
7/01/42 (UB)
University of Connecticut, General Obligation Bonds, Series
2006A:
850 5.000%, 2/15/19 - FGIC Insured 2/16 at 100.00 AA 887,638
490 5.000%, 2/15/23 - FGIC Insured 2/16 at 100.00 AA 494,959
500 University of Connecticut, Student Fee Revenue Refunding Bonds, 11/12 at 101.00 AA 506,585
Series 2002A, 5.250%, 11/15/22 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
16,105 Total Education and Civic Organizations 15,150,405
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 9.5% (6.2% OF TOTAL INVESTMENTS)
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Bristol Hospital, Series 2002B:
500 5.500%, 7/01/21 - RAAI Insured 7/12 at 101.00 BBB+ 460,855
600 5.500%, 7/01/32 - RAAI Insured 7/12 at 101.00 BBB+ 458,688
800 Connecticut Health and Educational Facilities Authority, 7/15 at 100.00 A3 717,432
Revenue Bonds, Griffin Hospital, Series 2005B, 5.000%,
7/01/20 - RAAI Insured
310 Connecticut Health and Educational Facilities Authority, 7/17 at 100.00 A3 214,108
Revenue Bonds, Hospital For Special Care, Series 2007C,
5.250%, 7/01/32 - RAAI Insured
35
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,130 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 Aa3 $ 1,925,009
Revenue Bonds, Middlesex Hospital, Series 2006, 5.000%,
7/01/32 - FSA Insured
200 Connecticut Health and Educational Facilities Authority, 7/09 at 101.00 Baa1 175,760
Revenue Bonds, Stamford Hospital, Series 1999G, 5.000%,
7/01/18 - MBIA Insured
1,325 Connecticut Health and Educational Facilities Authority, 7/16 at 100.00 AA 1,086,500
Revenue Bonds, Yale-New Haven Hospital, Series 2006J-1,
5.000%, 7/01/31 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
5,865 Total Health Care 5,038,352
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,000 Connecticut Housing Finance Authority, Multifamily Housing 11/15 at 100.00 AAA 784,140
Mortgage Finance Program Bonds, Series 2006G-2, 4.800%,
11/15/27 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.5% (3.6% OF TOTAL INVESTMENTS)
750 Connecticut Housing Finance Authority, Housing Mortgage Finance 11/10 at 100.00 AAA 594,863
Program Bonds, Series 2001C, 5.450%, 11/15/43 (Alternative
Minimum Tax)
1,300 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/13 at 100.00 AAA 1,133,873
Program Bonds, Series 2004-A5, 5.050%, 11/15/34
Connecticut Housing Finance Authority, Housing Mortgage Finance
Program Bonds, Series 2006-A1:
435 4.700%, 11/15/26 (Alternative Minimum Tax) 11/15 at 100.00 AAA 339,174
465 4.800%, 11/15/31 (Alternative Minimum Tax) 11/15 at 100.00 AAA 344,784
600 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/16 at 100.00 AAA 516,546
Program Bonds, Series 2006D, 4.650%, 11/15/27
----------------------------------------------------------------------------------------------------------------------------------
3,550 Total Housing/Single Family 2,929,240
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.1% (2.0% OF TOTAL INVESTMENTS)
2,000 Connecticut Resource Recovery Authority, Revenue Bonds, 12/11 at 102.00 Ba1 1,666,680
American Ref-Fuel Company of Southeastern Connecticut LP,
Series 1998A-I, 5.500%, 11/15/15 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 12.3% (8.0% OF TOTAL INVESTMENTS)
500 Connecticut Development Authority, First Mortgage Gross Revenue 12/11 at 102.00 BBB+ 414,695
Healthcare Bonds, Elim Park Baptist Home Inc., Series 2003,
5.750%, 12/01/23
495 Connecticut Development Authority, First Mortgage Gross Revenue 4/09 at 100.00 BBB- 491,773
Refunding Healthcare Bonds, Church Homes Inc. -
Congregational Avery Heights, Series 1997, 5.700%, 4/01/12
Connecticut Development Authority, Revenue Bonds, Duncaster
Inc., Series 2002:
650 5.125%, 8/01/22 - RAAI Insured 8/12 at 101.00 BBB+ 584,201
1,025 4.750%, 8/01/32 - RAAI Insured 8/12 at 101.00 BBB+ 777,873
Connecticut Health and Educational Facilities Authority,
Revenue Bonds, Village for Families and Children Inc.,
Series 2002A:
430 5.000%, 7/01/18 - AMBAC Insured 7/12 at 101.00 A 377,884
475 5.000%, 7/01/20 - AMBAC Insured 7/12 at 101.00 A 396,725
260 5.000%, 7/01/23 - AMBAC Insured 7/12 at 101.00 A 204,766
1,000 5.000%, 7/01/32 - AMBAC Insured 7/12 at 101.00 A 697,940
Connecticut Housing Finance Authority, Special Needs Housing
Mortgage Finance Program Special Obligation Bonds, Series
2002SNH-1:
1,000 5.000%, 6/15/22 - AMBAC Insured 6/12 at 101.00 A 944,440
1,500 5.000%, 6/15/32 - AMBAC Insured 6/12 at 101.00 A 1,271,190
500 Connecticut State Development Authority, Health Facilities 8/17 at 100.00 N/R 336,690
Revenue Bonds, Alzheimer's Resource Center of Connecticut,
Inc., Series 2007, 5.500%, 8/15/27
----------------------------------------------------------------------------------------------------------------------------------
7,835 Total Long-Term Care 6,498,177
----------------------------------------------------------------------------------------------------------------------------------
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.2% (15.1% OF TOTAL INVESTMENTS)
Bethel, Connecticut, General Obligation Bonds, Series 2002:
$ 525 5.000%, 11/01/18 - FGIC Insured 11/12 at 100.00 Aa3 $ 537,175
525 5.000%, 11/01/19 - FGIC Insured 11/12 at 100.00 Aa3 533,951
525 5.000%, 11/01/20 - FGIC Insured 11/12 at 100.00 Aa3 530,754
525 5.000%, 11/01/21 - FGIC Insured 11/12 at 100.00 Aa3 528,134
525 5.000%, 11/01/22 - FGIC Insured 11/12 at 100.00 Aa3 522,375
1,200 Connecticut State, General Obligation Bonds, Series 2006A, 12/16 at 100.00 AA 1,174,908
4.750%, 12/15/24
450 Farmington, Connecticut, General Obligation Bonds, Series 2002, 9/12 at 101.00 Aa1 460,647
5.000%, 9/15/20
600 Hartford, Connecticut, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 605,382
5.000%, 8/01/21 - FSA Insured
New Canaan, Connecticut, General Obligation Bonds, Series 2002A:
950 4.500%, 5/01/19 5/11 at 100.00 Aaa 956,631
900 4.600%, 5/01/20 5/11 at 100.00 Aaa 903,924
500 4.700%, 5/01/21 5/11 at 100.00 Aaa 501,540
1,000 New Haven, Connecticut, General Obligation Bonds, Series 2006, 11/16 at 100.00 A 1,041,170
5.000%, 11/01/17 - AMBAC Insured
Southbury, Connecticut, General Obligation Bonds, Series 2002:
500 4.875%, 12/15/20 12/11 at 101.00 Aa3 506,745
500 4.875%, 12/15/21 12/11 at 101.00 Aa3 504,315
500 5.000%, 12/15/22 12/11 at 101.00 Aa3 500,170
Stratford, Connecticut, General Obligation Bonds, Series 2002:
1,375 4.000%, 2/15/19 - FSA Insured 2/12 at 100.00 AAA 1,350,154
630 4.125%, 2/15/20 - FSA Insured 2/12 at 100.00 AAA 612,039
500 West Hartford, Connecticut, General Obligation Bonds, Series 10/15 at 100.00 AAA 528,415
2005B, 5.000%, 10/01/18
----------------------------------------------------------------------------------------------------------------------------------
12,230 Total Tax Obligation/General 12,298,429
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.0% (14.9% OF TOTAL INVESTMENTS)
930 Connecticut Health and Educational Facilities Authority, Child 7/16 at 100.00 AAA 820,046
Care Facilities Program Revenue Bonds, Series 2006F, 5.000%,
7/01/36 - AGC Insured
60 Connecticut, Special Tax Obligation Transportation No Opt. Call AA 65,170
Infrastructure Purpose Bonds, Series 1992B, 6.125%, 9/01/12
Connecticut, Special Tax Obligation Transportation
Infrastructure Purpose Bonds, Series 2002B:
2,810 5.000%, 12/01/20 - AMBAC Insured 12/12 at 100.00 AA 2,816,041
1,000 5.000%, 12/01/21 - AMBAC Insured 12/12 at 100.00 AA 980,330
1,000 5.000%, 12/01/22 - AMBAC Insured 12/12 at 100.00 AA 972,520
500 Connecticut, Special Tax Obligation Transportation
Infrastructure Purpose Bonds, Series 2003B, 5.000%, 1/01/23 - 1/14 at 100.00 AA 495,985
FGIC Insured
1,500 Connecticut, Special Tax Obligation Transportation
Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%, 8/17 at 100.00 AA 1,471,335
8/01/27 - AMBAC Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 782,960
Revenue Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured
Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue Bonds, Series 2005A:
780 0.000%, 7/01/32 - FGIC Insured No Opt. Call BBB+ 137,350
2,120 0.000%, 7/01/33 - FGIC Insured No Opt. Call BBB+ 345,496
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
890 5.250%, 7/01/17 7/12 at 100.00 BBB- 839,368
1,000 5.250%, 7/01/20 7/12 at 100.00 BBB- 900,000
1,045 5.250%, 7/01/21 7/12 at 100.00 BBB- 928,420
750 Virgin Islands Public Finance Authority, Senior Lien Revenue 4/09 at 101.00 BBB 642,000
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/22
----------------------------------------------------------------------------------------------------------------------------------
15,385 Total Tax Obligation/Limited 12,197,021
----------------------------------------------------------------------------------------------------------------------------------
37
NGO | Nuveen Connecticut Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 415 New Haven, Connecticut, Revenue Refunding Bonds, Air Rights No Opt. Call A $ 437,896
Parking Facility, Series 2002, 5.375%, 12/01/15 - AMBAC
Insured
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.8% (15.5% OF TOTAL INVESTMENTS) (4)
500 Bridgeport, Connecticut, General Obligation Bonds, Series 9/13 at 100.00 AAA 558,900
2003A, 5.250%, 9/15/23 (Pre-refunded9/15/13) - FSA Insured
3,100 Connecticut Health and Educational Facilities Authority, 7/11 at 101.00 A (4) 3,359,438
Revenue Bonds, Trinity College, Series 2001G, 5.000%,
7/01/21 (Pre-refunded 7/01/11) - AMBAC Insured
40 New Haven, Connecticut, General Obligation Bonds, Series 2002A, 11/11 at 101.00 A (4) 42,711
5.250%, 11/01/17 - AMBAC Insured (ETM)
3,050 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA 7/10 at 101.00 AAA 3,249,195
Insured
3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,981,909
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,010 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,018,615
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC
Insured (ETM)
195 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 211,362
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
1,100 University of Connecticut, General Obligation Bonds, Series 2/13 at 100.00 AA (4) 1,212,453
2003A, 5.125%, 2/15/21(Pre-refunded 2/15/13) - MBIA Insured
----------------------------------------------------------------------------------------------------------------------------------
11,995 Total U.S. Guaranteed 12,634,583
----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.4% (2.8% OF TOTAL INVESTMENTS)
720 Connecticut Development Authority, Pollution Control Revenue 4/09 at 102.00 Baa1 608,263
Refunding Bonds, Connecticut Light and Power Company, Series
1993A, 5.850%, 9/01/28
860 Connecticut Development Authority, Solid Waste Disposal 11/12 at 100.00 Baa1 656,653
Facilities Revenue Bonds, PSEG Power LLC Project, Series
2007A, 5.750%, 11/01/37 (Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
900 5.500%, 1/01/14 (Alternative Minimum Tax) 1/09 at 100.00 BBB 807,840
305 5.500%, 1/01/20 (Alternative Minimum Tax) 1/09 at 100.00 BBB 235,143
----------------------------------------------------------------------------------------------------------------------------------
2,785 Total Utilities 2,307,899
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.1% (9.8% OF TOTAL INVESTMENTS)
400 Connecticut Development Authority, Water Facility Revenue 9/17 at 100.00 BBB- 280,020
Bonds, Aquarion Water Company Project, Series 200.7, 5.100%,
9/01/37 - SYNCORA GTY Insured (Alternative Minimum Tax)
1,185 Connecticut, State Revolving Fund General Revenue Bonds, Series 10/13 at 100.00 AAA 1,250,779
2003A, 5.000%, 10/01/16
Greater New Haven Water Pollution Control Authority,
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A:
1,230 5.000%, 11/15/30 - MBIA Insured 11/15 at 100.00 AA 1,108,648
640 5.000%, 8/15/35 - MBIA Insured 11/15 at 100.00 AA 557,555
230 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 181,647
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
South Central Connecticut Regional Water Authority, Water
System Revenue Bonds, Eighteenth Series 2003A:
2,050 5.000%, 8/01/20 - MBIA Insured 8/13 at 100.00 AA 2,047,335
590 5.000%, 8/01/33 - MBIA Insured 8/13 at 100.00 AA 533,437
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,840 South Central Connecticut Regional Water Authority, Water 8/16 at 100.00 AA $ 1,693,591
System Revenue Bonds, Twentieth Series, 2007A, 5.000%,
8/01/30 - MBIA Insured
350 Stamford, Connecticut, Water Pollution Control System and 11/13 at 100.00 AA+ 325,087
Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32
-----------------------------------------------------------------------------------------------------------------------------------
8,515 Total Water and Sewer 7,978,099
-----------------------------------------------------------------------------------------------------------------------------------
$ 89,975 Total Investments (cost $89,652,224) - 153.9% 81,584,796
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.8)% (2,525,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 11.3% 5,944,697
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.4)% (5) (32,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 53,004,493
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 39.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
39
NMT | Nuveen Massachusetts Premium Income Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.8% (1.1% OF TOTAL INVESTMENTS)
$ 1,445 Boston Industrial Development Financing Authority,
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum
Tax) 9/12 at 102.00 N/R $ 992,657
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 32.5% (20.2% OF TOTAL INVESTMENTS)
1,045 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 AA 915,441
Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37
- MBIA Insured
890 Massachusetts Development Finance Authority, Revenue Bonds, 3/09 at 101.00 BBB 815,827
Curry College, Series 2000A, 6.000%, 3/01/20 - ACA Insured
1,745 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,646,059
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2005D, 5.000%, 7/01/27 - AGC Insured
750 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 AA- 772,523
Milton Academy, Series 2003A, 5.000%, 9/01/19
4,900 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 4,371,829
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC
Insured (UB)
1,090 Massachusetts Development Finance Authority, Revenue Refunding No Opt. Call A2 1,104,116
Bonds, Boston University, Series 1999P, 6.000%, 5/15/29
1,550 Massachusetts Educational Finance Authority, Educational Loan 1/12 at 100.00 AA 1,546,249
Revenue Bonds, Series 2002E, 5.000%, 1/01/13 - AMBAC Insured
(Alternative Minimum Tax)
2,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 2,072,959
Revenue Bonds, Boston College, Series 2003N, 5.250%, 6/01/18
500 Massachusetts Health and Educational Facilities Authority, 3/09 at 100.00 AA 421,685
Revenue Bonds, Hebrew College, Series 1999A,, 4.000%,
7/01/31 (4)
500 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 Aaa 500,790
Revenue Bonds, Wellesley College, Series 2003H, 5.000%,
7/01/26
555 Massachusetts Health and Educational Facilities Authority, 7/13 at 100.00 AAA 562,465
Revenue Bonds, Williams College, Series 2003H, 5.000%, 7/01/21
1,380 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AAA 1,339,925
Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31
500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 A 431,790
Revenue Bonds, Worcester State College, Series 2002, 5.000%,
11/01/32 - AMBAC Insured
1,645 Massachusetts Industrial Finance Agency, Revenue Bonds, 1/09 at 100.00 Aa1 1,595,765
Whitehead Institute for Biomedical Research, Series 1993,
5.125%, 7/01/26
375 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 317,633
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
----------------------------------------------------------------------------------------------------------------------------------
19,425 Total Education and Civic Organizations 18,415,056
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.3% (15.1% OF TOTAL INVESTMENTS)
1,250 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 1,088,213
Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%,
10/01/31
1,000 Massachusetts Health and Educational Facilities Authority, 11/11 at 101.00 BBB+ 683,540
Revenue Bonds, Cape Cod Health Care Inc., Series 2001C,
5.250%, 11/15/31 - RAAI Insured
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Capital Asset Program, Series 1998B-1:
$ 1,800 5.375%, 2/01/26 - MBIA Insured 8/18 at 100.00 AAA $ 1,427,202
770 5.375%, 2/01/28 - MBIA Insured 8/18 at 100.00 AAA 594,248
1,500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 AAA 1,173,270
Revenue Bonds, Capital Asset Program, Series 1998B-2, 5.375%,
2/01/27 - MBIA Insured
1,000 Massachusetts Health and Educational Facilities Authority, 7/12 at 101.00 BBB 887,120
Revenue Bonds, Caritas Christi Obligated Group, Series 2002B,
6.250%, 7/01/22
935 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 BBB+ 634,594
Revenue Bonds, Emerson Hospital, Series 2005E, 5.000%,
8/15/35 - RAAI Insured
1,000 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AA 859,940
Revenue Bonds, Lahey Clinic Medical Center, Series 2005C,
5.000%, 8/15/21 - FGIC Insured
2,000 Massachusetts Health and Educational Facilities Authority, 8/17 at 100.00 A 1,703,460
Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%,
8/15/28
585 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 369,609
Revenue Bonds, Milford Regional Medical Center, Series 2007E,
5.000%, 7/15/32
1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB- 692,890
Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%,
7/01/30
750 Massachusetts Health and Educational Facilities Authority, 1/09 at 100.00 AAA 611,108
Revenue Bonds, New England Medical Center Hospitals, Series
1993G-1, 5.375%, 7/01/24 - MBIA Insured
75 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 70,532
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
5.750%, 7/01/32
375 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 322,751
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.625%, 7/01/32
1,445 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 926,187
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
2,000 Massachusetts State, Health and Educational Facilities 7/17 at 100.00 AA 1,696,800
Authority, Partners HealthCare System Inc., Series 2007G,
5.000%, 7/01/32
----------------------------------------------------------------------------------------------------------------------------------
17,485 Total Health Care 13,741,464
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.1% (5.0% OF TOTAL INVESTMENTS)
1,335 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 1,030,927
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%,
7/20/48
1,830 Massachusetts Development Financing Authority, Assisted Living 12/09 at 102.00 N/R 1,560,276
Revenue Bonds, Prospect House Apartments, Series 1999,
7.000%, 12/01/31
335 Massachusetts Housing Finance Agency, Housing Bonds, Series 6/15 at 100.00 AA- 255,756
2006A, 5.100%, 12/01/37(Alternative Minimum Tax)
500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 6/13 at 100.00 AA- 421,610
Series 2003S, 5.050%, 12/01/23(Alternative Minimum Tax)
355 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 101.00 A 361,042
Revenue Bonds, Series 1999D, 5.500%, 7/01/13 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA Collateralized 5/12 at 103.00 AAA 963,530
Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002,
5.200%, 11/20/22
----------------------------------------------------------------------------------------------------------------------------------
5,355 Total Housing/Multifamily 4,593,141
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.1% (2.0% OF TOTAL INVESTMENTS)
1,500 Massachusetts Housing Finance Agency, Single Family Housing 6/16 at 100.00 AA 1,069,200
Revenue Bonds, Series 2006-126, 4.625%, 6/01/32 (Alternative
Minimum Tax)
985 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 708,048
Revenue Bonds, Series 2008, Trust3145, 12.452%, 12/01/28 (IF)
----------------------------------------------------------------------------------------------------------------------------------
2,485 Total Housing/Single Family 1,777,248
----------------------------------------------------------------------------------------------------------------------------------
41
NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.2% (0.7% OF TOTAL INVESTMENTS)
$ 345 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R $ 297,945
Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series
2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
400 Massachusetts Development Finance Agency, Solid Waste Disposal No Opt. Call BBB 350,644
Revenue Bonds, Waste Management Inc., Series 2003, 5.450%,
6/01/14
----------------------------------------------------------------------------------------------------------------------------------
745 Total Industrials 648,589
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.1% (4.4% OF TOTAL INVESTMENTS)
1,270 Boston, Massachusetts, FHA-Insured Mortgage Revenue Bonds, 4/09 at 105.00 AAA 1,276,985
Deutsches Altenheim Inc., Series 1998A, 6.125%, 10/01/31
1,685 Massachusetts Development Finance Agency, Revenue Bonds, Orchard 10/12 at 102.00 BB- 1,093,279
Cove, Series 2007, 5.250%, 10/01/26
1,500 Massachusetts Development Finance Authority, GNMA Collateralized 3/12 at 105.00 AAA 1,247,745
Assisted Living Facility Revenue Bonds, Arbors at Chicopee,
Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax)
75 Massachusetts Industrial Finance Agency, FHA-Insured Project 2/09 at 100.00 AAA 75,000
Revenue Bonds, Heights Crossing LP, Series 1995, 6.000%,
2/01/15 (Alternative Minimum Tax)
400 Massachusetts Industrial Finance Agency, First Mortgage Revenue 1/11 at 101.00 BBB- 340,396
Bonds, Berkshire Retirement Community, Series 1994B, 4.750%,
7/01/17
----------------------------------------------------------------------------------------------------------------------------------
4,930 Total Long-Term Care 4,033,405
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.3% (12.7% OF TOTAL INVESTMENTS)
500 Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5/15 at 100.00 A1 512,255
5.250%, 5/15/23 - AMBAC Insured
1,250 Boston, Massachusetts, General Obligation Bonds, Series 2005A, 1/15 at 100.00 AA+ 1,322,488
5.000%, 1/01/17
1,000 Fall River, Massachusetts, General Obligation Bonds, Series 2/13 at 101.00 AAA 1,014,950
2003, 5.000%, 2/01/21 - FSA Insured
2,500 Massachusetts Bay Transportation Authority, General Obligation No Opt. Call AAA 2,907,099
Transportation System Bonds, Series 1991A, 7.000%, 3/01/21
1,275 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AA 1,435,816
Series 2001D, 6.000%, 11/01/13 - MBIA Insured
980 Monson, Massachusetts, General Obligation Bonds, Series 2002, 5/12 at 101.00 A3 990,172
5.250%, 5/15/22 - AMBAC Insured
1,260 Norwell, Massachusetts, General Obligation Bonds, Series 2003, No Opt. Call AA+ 1,281,105
5.000%, 11/15/20 - FGIC Insured
1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call Baa3 849,160
Series 2001A, 5.500%, 7/01/29 - FGIC Insured
1,220 Worcester, Massachusetts, General Obligation Bonds, Series 7/15 at 100.00 AA 1,188,634
2005A, 5.000%, 7/01/19 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
10,985 Total Tax Obligation/General 11,501,679
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.4% (9.6% OF TOTAL INVESTMENTS)
210 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 A 209,750
Series 2004, 5.000%, 5/01/26 - AMBAC Insured
385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 403,815
Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21
975 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/18 at 100.00 AAA 967,073
Revenue Bonds, Series 2006, 5.000%, 7/01/26
550 Massachusetts College Building Authority, Project Revenue Bonds, 5/14 at 100.00 AA 560,967
Series 2004A, 5.000%,5/01/19 - MBIA Insured
325 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 AA 294,863
Series 2006A, 5.000%,5/01/31 - AMBAC Insured
1,200 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 1,101,756
Series 2008A, 5.000%,5/01/33 - AGC Insured
1,000 Massachusetts College Building Authority, Project Revenue
Refunding Bonds, Series 2003B, 5.375%, 5/01/23 - SYNCORA GTY No Opt. Call A1 1,004,140
Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,300 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA $ 1,325,818
Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - FSA Insured
540 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call AA 539,973
Series 2005, 5.000%, 1/01/20 - FGIC Insured
1,000 Massachusetts, Special Obligation Refunding Notes, Federal No Opt. Call Aa3 1,082,100
Highway Grant Anticipation Note Program, Series 2003A,
5.000%, 12/15/13 - FSA Insured
240 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 18,660
Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured
1,300 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA 1,220,895
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
----------------------------------------------------------------------------------------------------------------------------------
9,025 Total Tax Obligation/Limited 8,729,810
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.3% (6.4% OF TOTAL INVESTMENTS)
2,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA 1,801,300
5.000%, 7/01/33 - MBIA Insured
1,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 AA 719,680
BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
225 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 A 123,255
Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 - AMBAC
Insured (Alternative Minimum Tax)
4,000 Massachusetts Port Authority, Special Facilities Revenue Bonds, 3/09 at 100.00 AA 3,215,878
US Airways Group Inc., Series 1996A, 5.750%, 9/01/16 - MBIA
Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
7,225 Total Transportation 5,860,113
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.1% (13.1% OF TOTAL INVESTMENTS) (5)
550 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 (5) 593,291
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
(Pre-refunded 5/15/11)
25 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/18 at 100.00 Aa2 (5) 27,214
Revenue Bonds, Series 2006, 5.000%, 7/01/26 (Pre-refunded
7/01/18)
2,500 Massachusetts Development Finance Authority, GNMA Collateralized 10/11 at 105.00 AAA 2,946,649
Revenue Bonds, VOA Concord Assisted Living Inc., Series
2000A, 6.900%, 10/20/41 (Pre-refunded 10/20/11)
500 Massachusetts Development Finance Authority, Revenue Bonds, 9/11 at 101.00 A (5) 547,585
Belmont Hills School, Series 2001, 5.375%, 9/01/23
(Pre-refunded 9/01/11)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (5) 1,145,070
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2003C, 5.750%, 7/01/33 (Pre-refunded 7/01/13)
410 Massachusetts Health and Educational Facilities Authority, 7/21 at 100.00 AAA 425,326
Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25
(Pre-refunded 7/01/21) - MBIA Insured
600 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (5) 654,408
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.375%, 5/15/19 (Pre-refunded 5/15/12) - FGIC Insured
1,925 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AAA 2,117,730
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
5.750%, 7/01/32 (Pre-refunded 7/01/11)
1,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 100.00 A+ (5) 1,082,250
Revenue Bonds, University of Massachusetts - Worcester
Campus, Series 2001B, 5.250%, 10/01/31 (Pre-refunded
10/01/11) - FGIC Insured
620 Massachusetts Port Authority, Revenue Bonds, Series 1982, 1/09 at 100.00 AAA 786,160
13.000%, 7/01/13 (ETM)
1,500 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (5) 1,633,440
Series 2004, 5.250%, 1/01/25(Pre-refunded 1/01/14) - FGIC
Insured
----------------------------------------------------------------------------------------------------------------------------------
10,630 Total U.S. Guaranteed 11,959,123
----------------------------------------------------------------------------------------------------------------------------------
43
NMT | Nuveen Massachusetts Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.2% (2.0% OF TOTAL INVESTMENTS)
$ 1,000 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 AA $ 956,030
Revenue Bonds, SEMass System, Series 2001A, 5.625%, 1/01/16 -
MBIA Insured
1,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 846,970
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
2,000 Total Utilities 1,803,000
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.3% (7.7% OF TOTAL INVESTMENTS)
2,000 Boston Water and Sewerage Commission, Massachusetts, General 11/14 at 100.00 AA 2,008,060
Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25
60 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/13 at 100.00 AAA 60,538
Program Bonds, Series 2003-9, 5.000%, 8/01/22
285 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/14 at 100.00 AAA 282,669
Program Bonds, Series 2004-10, 5.000%, 8/01/26
750 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 656,573
Program Bonds, Series 2005-11, 4.500%, 8/01/29
1,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 825,270
Program Bonds, Series 2006-12, 4.375%, 8/01/31
1,250 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 1,280,800
MWRA Loan Program, Series 2002A, 5.250%, 8/01/20
1,500 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AA 1,440,015
Series 2005A, 5.000%,8/01/28 - MBIA Insured
625 Massachusetts Water Resources Authority, General Revenue Bonds, 8/16 at 100.00 AA 432,500
Series 2006A, 4.000%, 8/01/46
-----------------------------------------------------------------------------------------------------------------------------------
7,470 Total Water and Sewer 6,986,425
-----------------------------------------------------------------------------------------------------------------------------------
$ 99,205 Total Investments (cost $100,871,010) - 160.7% 91,041,710
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.3)% (2,450,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 2,048,649
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.0)% (6) (34,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 56,640,359
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Investment valued at fair value using methods determined in good faith by,
or at the discretion of, the Board of Trustees.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 37.3%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
44
NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 485 Boston Industrial Development Financing Authority, 9/12 at 102.00 N/R $ 333,176
Massachusetts, Senior Revenue Bonds, Crosstown Center
Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum
Tax)
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 40.3% (24.6% OF TOTAL INVESTMENTS)
450 Massachusetts Development Finance Agency, Revenue Bonds, 9/17 at 100.00 AA 394,209
Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37
- MBIA Insured
495 Massachusetts Development Finance Authority, Revenue Bonds, 7/15 at 100.00 AAA 466,934
Massachusetts College of Pharmacy and Allied Health Sciences,
Series 2005D, 5.000%, 7/01/27 - AGC Insured
500 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 AA- 515,015
Milton Academy, Series 2003A, 5.000%, 9/01/19
2,100 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 1,873,641
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC
Insured (UB)
1,000 Massachusetts Development Finance Authority, Revenue Refunding 5/29 at 105.00 A2 960,290
Bonds, Boston University, Series 1999P, 6.000%, 5/15/59
990 Massachusetts Educational Finance Authority, Educational Loan 7/10 at 100.00 AA 959,538
Revenue Bonds, Series 2001E, 5.300%, 1/01/16 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,036,480
Revenue Bonds, Boston College, Series 2003N, 5.250%, 6/01/18
1,000 Massachusetts Health and Educational Facilities Authority, 3/09 at 100.00 AA 843,371
Revenue Bonds, Hebrew College, Series 1999A,, 4.000%,
7/01/31 (4)
2,000 Massachusetts Health and Educational Facilities Authority, 2/11 at 100.00 Aa2 1,950,239
Revenue Bonds, Tufts University, Series 2001I, 5.500%, 2/15/36
590 Massachusetts Health and Educational Facilities Authority, 7/16 at 100.00 AAA 572,866
Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31
----------------------------------------------------------------------------------------------------------------------------------
10,125 Total Education and Civic Organizations 9,572,583
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 27.0% (16.5% OF TOTAL INVESTMENTS)
500 Massachusetts Health and Educational Facilities Authority 1/18 at 100.00 N/R 371,930
Revenue Bonds, Quincy Medical Center Issue, Series A (2008),
6.500%, 1/15/38
500 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 435,285
Revenue Bonds, Berkshire Health System, Series 2001E, 6.250%,
10/01/31
775 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 AAA 614,490
Revenue Bonds, Capital Asset Program, Series 1998B-1, 5.375%,
2/01/26 - MBIA Insured
500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 AAA 391,090
Revenue Bonds, Capital Asset Program, Series 1998B-2, 5.375%,
2/01/27 - MBIA Insured
250 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 BBB 216,458
Revenue Bonds, Caritas Christi Obligated Group, Series 1999A,
5.625%, 7/01/20
295 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A 269,674
Revenue Bonds, Covenant Health Systems Obligated Group,
Series 2002, 6.000%, 7/01/31
315 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 BBB+ 213,794
Revenue Bonds, Emerson Hospital, Series 2005E, 5.000%,
8/15/35 - RAAI Insured
600 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AA 515,964
Revenue Bonds, Lahey Clinic Medical Center, Series 2005C,
5.000%, 8/15/21 - FGIC Insured
45
NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,000 Massachusetts Health and Educational Facilities Authority, 8/17 at 100.00 A $ 851,730
Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%,
8/15/28
290 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 183,225
Revenue Bonds, Milford Regional Medical Center, Series 2007E,
5.000%, 7/15/32
500 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB- 346,445
Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%,
7/01/30
500 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 373,965
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B, 6.375%, 7/01/34
1,000 Massachusetts Health and Educational Facilities Authority, 7/09 at 101.00 AA 985,110
Revenue Bonds, Partners HealthCare System Inc., Series 1999B,
5.125%, 7/01/19
35 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA 32,915
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
5.750%, 7/01/32
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 430,335
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.625%, 7/01/32
285 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 182,674
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
----------------------------------------------------------------------------------------------------------------------------------
7,845 Total Health Care 6,415,084
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.5% (7.7% OF TOTAL INVESTMENTS)
570 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 440,171
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%,
7/20/48
135 Massachusetts Housing Finance Agency, Housing Bonds, Series 6/15 at 100.00 AA- 103,066
2006A, 5.100%, 12/01/37 (Alternative Minimum Tax)
500 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 6/13 at 100.00 AA- 421,610
Series 2003S, 5.050%, 12/01/23 (Alternative Minimum Tax)
1,215 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 A 1,044,742
Revenue Bonds, Series 2001A, 5.850%, 7/01/35 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Somerville Housing Authority, Massachusetts, GNMA Collateralized 5/12 at 103.00 AAA 963,530
Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002,
5.200%, 11/20/22
----------------------------------------------------------------------------------------------------------------------------------
3,420 Total Housing/Multifamily 2,973,119
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.4% (2.1% OF TOTAL INVESTMENTS)
650 Massachusetts Housing 4.625%, 6/01/32 (Alternative Minimum Tax) 6/16 at 100.00 AA 463,320
Finance Agency, Single Family Housing Revenue Bonds, Series
2006-126,
480 Massachusetts Housing Finance Agency, Single Family Housing 6/18 at 100.00 AA 335,093
Revenue Bonds, Series 2008, Trust 3145, 13.437%, 12/01/33 (IF)
----------------------------------------------------------------------------------------------------------------------------------
1,130 Total Housing/Single Family 798,413
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.8% OF TOTAL INVESTMENTS)
160 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 138,178
Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series
2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
200 Massachusetts Development Finance Agency, Solid Waste Disposal No Opt. Call BBB 175,322
Revenue Bonds, Waste Management Inc., Series 2003, 5.450%,
6/01/14
----------------------------------------------------------------------------------------------------------------------------------
360 Total Industrials 313,500
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 8.1% (4.9% OF TOTAL INVESTMENTS)
725 Massachusetts Development Finance Agency, Revenue Bonds, Orchard 10/12 at 102.00 BB- 470,402
Cove, Series 2007, 5.250%, 10/01/26
655 Massachusetts Development Finance Authority, First Mortgage 7/11 at 102.00 BBB- 613,087
Revenue Bonds, Berkshire Retirement Community - Edgecombe
Project, Series 2001A, 6.750%, 7/01/21
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 1,000 Massachusetts Development Finance Authority, GNMA Collateralized 3/12 at 105.00 AAA $ 831,830
Assisted Living Facility Revenue Bonds, Arbors at Chicopee,
Series 2001A, 6.250%, 9/20/42 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
2,380 Total Long-Term Care 1,915,319
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.0% (9.7% OF TOTAL INVESTMENTS)
310 Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5/15 at 100.00 A1 317,598
5.250%, 5/15/23 - AMBAC Insured
2,000 Brookline, Massachusetts, General Obligation Bonds, Series 2000, 4/10 at 101.00 Aaa 2,093,076
5.375%, 4/01/17
440 Fall River, Massachusetts, General Obligation Bonds, Series 2/13 at 101.00 AAA 446,578
2003, 5.000%, 2/01/21 - FSA Insured
500 Norwell, Massachusetts, General Obligation Bonds, Series 2003, No Opt. Call AA+ 508,375
5.000%, 11/15/20 - FGIC Insured
500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call Baa3 424,580
Series 2001A, 5.500%, 7/01/29 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
3,750 Total Tax Obligation/General 3,790,207
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.0% (8.0% OF TOTAL INVESTMENTS)
395 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/14 at 100.00 A 394,530
Series 2004, 5.000%, 5/01/26 - AMBAC Insured
85 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 82,121
Series 2000A, 5.250%, 7/01/30
385 Massachusetts Bay Transportation Authority, Senior Lien Sales No Opt. Call AAA 403,815
Tax Revenue Refunding Bonds, Series 2004C, 5.250%, 7/01/21
230 Massachusetts College Building Authority, Project Revenue Bonds, 5/14 at 100.00 AA 234,586
Series 2004A, 5.000%, 5/01/19 - MBIA Insured
250 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 AA 226,818
Series 2006A, 5.000%, 5/01/31 - AMBAC Insured
550 Massachusetts College Building Authority, Project Revenue Bonds, 5/18 at 100.00 AAA 504,972
Series 2008A, 5.000%, 5/01/33 - AGC Insured
500 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 509,930
Revenue Bonds, Series 2005A, 5.000%, 8/15/20 - FSA Insured
230 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call AA 229,989
Series 2005, 5.000%, 1/01/20 - FGIC Insured
500 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 505,365
Loan Note, Series 1999A, 6.375%, 10/01/19
----------------------------------------------------------------------------------------------------------------------------------
3,125 Total Tax Obligation/Limited 3,092,126
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.2% (0.7% OF TOTAL INVESTMENTS)
400 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/17 at 100.00 AA 287,872
BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.3% (10.6% OF TOTAL INVESTMENTS) (5)
1,000 Boston, Massachusetts, General Obligation Bonds, Series 2001A, 2/11 at 100.00 AA+ (5) 1,062,719
5.000%, 2/01/20(Pre-refunded 2/01/11)
1,675 Lawrence, Massachusetts, General Obligation Bonds, Series 2001, 2/11 at 100.00 Aa3 (5) 1,780,055
5.000%, 2/01/21 (Pre-refunded 2/01/11) - AMBAC Insured
125 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 Aa1 (5) 131,988
Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
80 Massachusetts Health and Educational Facilities Authority, 1/12 at 101.00 A (5) 89,414
Revenue Bonds, Covenant Health Systems Obligated Group,
Series 2002, 6.000%, 7/01/31 (Pre-refunded 1/01/12)
215 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AAA 236,526
Revenue Bonds, Partners HealthCare System Inc., Series 2001C,
5.750%, 7/01/32 (Pre-refunded 7/01/11)
47
NMB | Nuveen Massachusetts Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (5) (continued)
$ 750 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (5) $ 816,720
Series 2004, 5.250%, 1/01/25 (Pre-refunded 1/01/14) - FGIC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
3,845 Total U.S. Guaranteed 4,117,422
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.2% (3.8% OF TOTAL INVESTMENTS)
1,070 Massachusetts Development Finance Agency, Resource Recovery 1/12 at 101.00 AA 1,052,784
Revenue Bonds, SEMass System, Series 2001A, 5.625%, 1/01/14 -
MBIA Insured
500 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 423,485
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
1,570 Total Utilities 1,476,269
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.8% (9.7% OF TOTAL INVESTMENTS)
530 Boston Water and Sewerage Commission, Massachusetts, General 11/14 at 100.00 AA 532,136
Revenue Bonds, Senior Series 2004A, 5.000%, 11/01/25
125 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 98,721
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
500 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/15 at 100.00 AAA 437,715
Program Bonds, Series 2005-11, 4.500%, 8/01/29
400 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 330,108
Program Bonds, Series 2006-12, 4.375%, 8/01/31
500 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/12 at 100.00 AAA 512,320
MWRA Loan Program, Series 2002A, 5.250%, 8/01/20
1,405 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 8/09 at 101.00 AAA 1,427,718
MWRA Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29
250 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AA 240,003
Series 2005A, 5.000%, 8/01/28 - MBIA Insured
250 Massachusetts Water Resources Authority, General Revenue Bonds, 8/16 at 100.00 AA 173,000
Series 2006A, 4.000%, 8/01/46
-----------------------------------------------------------------------------------------------------------------------------------
3,960 Total Water and Sewer 3,751,721
-----------------------------------------------------------------------------------------------------------------------------------
$ 42,395 Total Investments (cost $42,904,821) - 163.5% 38,836,811
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.4)% (1,050,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 959,641
-------------------------------------------------------------------------------------===--------------------------
Preferred Shares, at Liquidation Value - (63.2)% (6) (15,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 23,746,452
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Investment valued at fair value using methods determined in good faith by,
or at the discretion of, the Board of Trustees.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 38.6%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
48
NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 24.0% (14.8% OF TOTAL INVESTMENTS)
$ 1,135 Massachusetts Development Finance Agency, Revenue Bonds, Boston 10/15 at 100.00 A $ 944,331
University, Series 2005T-1, 5.000%, 10/01/39 - AMBAC Insured
600 Massachusetts Development Finance Agency, Revenue Bonds,
Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37 9/17 at 100.00 AA 525,612
- MBIA Insured
1,250 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,101,450
Middlesex School, Series 2003, 5.000%, 9/01/33
3,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/18 at 100.00 AAA 2,676,630
Educational Foundation, Series 2008A, 5.000%, 1/01/42 - AGC
Insured (UB)
1,750 Massachusetts Health and Educational Facilities Authority, 6/13 at 100.00 AA- 1,611,330
Revenue Bonds, Boston College, Series 2003N, 5.125%, 6/01/37
1,500 Massachusetts Health and Educational Facilities Authority, 11/12 at 100.00 A 1,295,370
Revenue Bonds, Worcester State College, Series 2002, 5.000%,
11/01/32 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
9,235 Total Education and Civic Organizations 8,154,723
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.6% (8.4% OF TOTAL INVESTMENTS)
600 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 AAA 469,308
Revenue Bonds, Capital Asset Program, Series 1998B-1, 5.375%,
2/01/27 - MBIA Insured
1,500 Massachusetts Health and Educational Facilities Authority, 8/18 at 100.00 AAA 1,157,625
Revenue Bonds, Capital Asset Program, Series 1998B-2, 5.375%,
2/01/28 - MBIA Insured
455 Massachusetts Health and Educational Facilities Authority, 1/09 at 102.00 AA 372,085
Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25
- MBIA Insured
585 Massachusetts Health and Educational Facilities Authority, 7/17 at 100.00 BBB- 369,609
Revenue Bonds, Milford Regional Medical Center, Series 2007E,
5.000%, 7/15/32
200 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB- 138,578
Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%,
7/01/30
2,400 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R 1,930,104
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 - FGIC Insured
250 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 160,240
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
----------------------------------------------------------------------------------------------------------------------------------
5,990 Total Health Care 4,597,549
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.0% (6.1% OF TOTAL INVESTMENTS)
775 Massachusetts Development Finance Authority, Multifamily Housing 7/17 at 100.00 AAA 598,478
Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%,
7/20/48
2,000 Massachusetts Housing Finance Agency, Housing Bonds, Series 12/12 at 100.00 AA- 1,690,420
2003H, 5.125%, 6/01/43
1,265 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/12 at 100.00 AAA 1,087,128
Revenue Bonds, Series 2002H, 5.200%, 7/01/42 - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
4,040 Total Housing/Multifamily 3,376,026
----------------------------------------------------------------------------------------------------------------------------------
49
NGX | Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.0% (3.1% OF TOTAL INVESTMENTS)
$ 1,750 Massachusetts Development Finance Authority, GNMA 12/12 at 105.00 AAA $ 1,709,960
Collateralized Revenue Bonds, Neville Communities, Series
2002A, 6.000%, 6/20/44
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.4% (11.3% OF TOTAL INVESTMENTS)
1,280 Littleton, Massachusetts, General Obligation Bonds, Series 1/13 at 101.00 AA 1,268,454
2003, 5.000%, 1/15/21 - FGIC Insured
1,500 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 1,581,975
Series 2004B, 5.250%, 8/01/21 - FSA Insured
1,705 North Attleborough, Massachusetts, General Obligation Bonds, 7/14 at 101.00 A1 1,859,132
Series 2004, 5.000%, 7/15/15 - FGIC Insured
1,500 Pittsfield, Massachusetts, General Obligation Bonds, Series 4/12 at 101.00 AA 1,515,420
2002, 5.000%, 4/15/18 - MBIA Insured
----------------------------------------------------------------------------------------------------------------------------------
5,985 Total Tax Obligation/General 6,224,981
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.4% (16.9% OF TOTAL INVESTMENTS)
3,000 Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, 5/13 at 100.00 A 2,895,540
Series 2002, 5.000%, 5/01/32 - AMBAC Insured
750 Massachusetts College Building Authority, Project Revenue 5/18 at 100.00 AAA 688,598
Bonds, Series 2008A, 5.000%, 5/01/33 - AGC Insured
2,790 Massachusetts College Building Authority, Project Revenue 5/13 at 100.00 A1 2,706,244
Refunding Bonds, Series 2003A, 5.250%, 5/01/22 - SYNCORA GTY
Insured
Massachusetts Development Finance Authority, Revenue Bonds, 100
Cambridge Street Redevelopment, M/SRBC Project, Series
2002A:
1,475 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AA 1,354,094
1,500 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AA 1,334,055
300 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, No Opt. Call AA 299,985
Series 2005, 5.000%, 1/01/20 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
9,815 Total Tax Obligation/Limited 9,278,516
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.7% (2.3% OF TOTAL INVESTMENTS)
1,000 Massachusetts Port Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA 900,650
5.000%, 7/01/33 - MBIA Insured
500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101.00 AA 368,985
Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 -
AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
1,500 Total Transportation 1,269,635
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 41.9% (25.8% OF TOTAL INVESTMENTS) (4)
2,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 2,179,680
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
500 Massachusetts Development Finance Authority, Revenue Bonds, 7/13 at 101.00 A- (4) 585,980
Massachusetts College of Pharmacy and Allied Health
Sciences, Series 2003C, 6.375%, 7/01/23 (Pre-refunded
7/01/13)
100 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 108,352
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 (Pre-refunded 5/15/12) - FGIC Insured
620 Massachusetts Port Authority, Revenue Bonds, Series 1982, 1/09 at 100.00 AAA 786,160
13.000%, 7/01/13 (ETM)
2,000 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/11 at 100.00 AA (4) 2,127,980
Series 2001D, 5.000%, 11/01/20 (Pre-refunded 11/01/11) -
MBIA Insured
1,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (4) 1,088,960
Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC
Insured
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA $ 1,597,965
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) -
FSA Insured
3,000 Springfield, Massachusetts, General Obligation Bonds, Series 1/13 at 100.00 AA (4) 3,318,031
2003, 5.250%, 1/15/22 (Pre-refunded 1/15/13) - MBIA Insured
2,140 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 A (4) 2,431,618
Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/21
(Pre-refunded 11/01/14) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
12,860 Total U.S. Guaranteed 14,224,726
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.3% (11.3% OF TOTAL INVESTMENTS)
1,900 Lynn Water and Sewer Commission, Massachusetts, General Revenue 12/13 at 100.00 AA 1,640,479
Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA Insured
600 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 495,162
Program Bonds, Series 2006-12, 4.375%, 8/01/31
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, No Opt. Call AAA 1,074,460
Series 2002J, 5.250%, 8/01/19 - FSA Insured
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, 8/13 at 100.00 AA 986,040
Series 2004D, 5.000%, 8/01/24 - MBIA Insured
Massachusetts Water Resources Authority, General Revenue Bonds,
Series 2006A:
1,500 5.000%, 8/01/31 - AMBAC Insured 8/16 at 100.00 AA 1,405,215
125 4.000%, 8/01/46 8/16 at 100.00 AA 86,500
495 Springfield Water and Sewerage Commission, Massachusetts, 7/14 at 100.00 AA 513,662
General Revenue Bonds, Series 2003A, 5.000%, 7/01/16 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,620 Total Water and Sewer 6,201,518
-----------------------------------------------------------------------------------------------------------------------------------
$ 57,795 Total Investments (cost $58,781,914) - 162.3% 55,037,634
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.4)% (1,500,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 872,478
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.5)% (5) (20,500,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,910,112
==================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable
to Preferred shares) are invested in municipal securities that are covered
by insurance or backed by an escrow or trust account containing sufficient
U.S. Government or U.S. Government agency securities or U.S.
Treasury-issued State and Local Government Series securities to ensure the
timely payment of principal and interest. See Notes to Financial
Statements, Footnote 1 - Insurance, for more information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 37.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
51
NOM | Nuveen Missouri Premium Income Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.2% OF TOTAL INVESTMENTS)
$ 1,000 Missouri Development Finance Board, Solid Waste Disposal Revenue No Opt. Call AA- $ 880,180
Bonds, Procter and Gamble Inc., Series 1999, 5.200%, 3/15/29
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.1% (2.6% OF TOTAL INVESTMENTS)
250 Lincoln University, Missouri, Auxillary System Revenue Bonds, 6/17 at 100.00 AAA 215,443
Series 2007, 5.125%, 6/01/37 - AGC Insured
500 Missouri Health and Educational Facilities Authority, Revenue 2/09 at 100.00 A3 485,265
Bonds, St. Louis Priory School, Series 2000, 5.650%, 2/01/25
365 Missouri Health and Educational Facilities Authority, Revenue 4/11 at 100.00 Baa1 368,960
Bonds, Webster University, Series 2001, 5.500%, 4/01/18 -
MBIA Insured
----------------------------------------------------------------------------------------------------------------------------------
1,115 Total Education and Civic Organizations 1,069,668
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 20.7% (13.5% OF TOTAL INVESTMENTS)
710 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 521,687
Missouri, Health Facilities Revenue Bonds, Southeast Missouri
Hospital Association, Series 2007, 5.000%, 6/01/27
480 Cass County, Missouri, Hospital Revenue Bonds, Series 2007, 11/16 at 100.00 N/R 322,512
5.625%, 5/01/38
480 Clinton County Industrial Development Authority, Missouri, 12/17 at 100.00 N/R 275,616
Revenue Bonds, Cameron Regional Medical Center, Series 2007,
5.000%, 12/01/37
750 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 594,075
Facilities Revenue Bonds, Freeman Health System, Series
2004, 5.500%, 2/15/29
500 Missouri Health & Educational Facilities Authority, Saint Lukes 6/11 at 101.00 AAA 490,300
Episcopal- Presbyterian Hospitals Revenue Bonds, Series 2001,
5.250%, 12/01/26 - FSA Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, BJC Health System, Series 2003:
1,500 5.125%, 5/15/25 5/13 at 100.00 AA 1,427,085
1,155 5.250%, 5/15/32 5/13 at 100.00 AA 1,054,781
425 Missouri Health and Educational Facilities Authority, Revenue 2/09 at 100.00 N/R 380,843
Bonds, Lake Regional Health System, Series 1996, 6.500%,
2/15/21
500 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ 394,880
Bonds, Lake Regional Health System, Series 2003, 5.700%,
2/15/34
----------------------------------------------------------------------------------------------------------------------------------
6,500 Total Health Care 5,461,779
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.1% (5.3% OF TOTAL INVESTMENTS)
405 Jefferson County Industrial Development Authority, Missouri, 12/11 at 100.00 N/R 355,594
Multifamily Housing Revenue Bonds, Lakewood Apartments
Project, Series 2001B, 5.750%, 11/01/34 (Mandatory put
11/01/16) (Alternative Minimum Tax)
295 Missouri Housing Development Commission, Multifamily Housing 12/11 at 100.00 AA 299,319
Revenue Bonds, Series 2001II, 5.250%, 12/01/16
500 St. Charles County Industrial Development Authority, Missouri, 4/09 at 101.00 AAA 430,880
FHA-Insured Multifamily Housing Revenue Bonds, Ashwood
Apartments, Series 1998A, 5.600%, 4/01/30 - FSA Insured
(Alternative Minimum Tax)
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 445 St. Louis County Industrial Development Authority, Missouri, 4/09 at 100.00 AAA $ 451,230
GNMA Collateralized Multifamily Housing Revenue Refunding
Bonds, South Summit Apartments, Series 1997A, 5.950%, 4/20/17
600 St. Louis County Industrial Development Authority, Missouri, 4/09 at 100.00 AAA 608,418
GNMA Collateralized Multifamily Housing Revenue Refunding
Bonds, South Summit Apartments, Series 1997B, 6.000%,
10/20/15 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
2,245 Total Housing/Multifamily 2,145,441
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.0% (5.2% OF TOTAL INVESTMENTS)
85 Missouri Housing Development Commission, Single Family Mortgage 3/10 at 100.00 AAA 85,028
Revenue Bonds, Homeownership Loan Program, Series 2000B-1,
6.250%, 3/01/31 (Alternative Minimum Tax)
675 Missouri Housing Development Commission, Single Family Mortgage 3/16 at 104.50 AAA 585,664
Revenue Bonds, Homeownership Loan Program, Series 2006E-1,
5.600%, 3/01/37 (Alternative Minimum Tax)
955 Missouri Housing Development Commission, Single Family Mortgage 9/16 at 100.00 AAA 734,042
Revenue Bonds, Homeownership Loan Program, Series 2007A-1,
4.700%, 9/01/27 (Alternative Minimum Tax)
1,000 Missouri Housing Development Commission, Single Family Mortgage 3/17 at 100.00 AAA 702,740
Revenue Bonds, Homeownership Loan Program, Series 2007C-1,
4.800%, 9/01/38 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
2,715 Total Housing/Single Family 2,107,474
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.2% (4.6% OF TOTAL INVESTMENTS)
1,750 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 1,193,255
Bonds, Lutheran Senior Services - Heisinger Project, Series
2004, 5.500%, 2/01/35
475 Lees Summit Industrial Development Authority, Missouri, Revenue 8/17 at 100.00 N/R 314,464
Bonds, John Knox Village Obligated Group, Series 2007A,
5.125%, 8/15/32
500 St. Louis County Industrial Development Authority, Missouri, 9/17 at 100.00 N/R 377,050
Revenue Bonds, Friendship Village of West County, Series
2007A, 5.500%, 9/01/28
----------------------------------------------------------------------------------------------------------------------------------
2,725 Total Long-Term Care 1,884,769
----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.0% (1.2% OF TOTAL INVESTMENTS)
750 Sugar Creek, Missouri, Industrial Development Revenue Bonds, 6/13 at 101.00 BBB 500,378
Lafarge North America Inc., Series 2003A, 5.650%, 6/01/37
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 29.0% (18.8% OF TOTAL INVESTMENTS)
1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,510,200
Missouri, General Obligation Bonds, Series 2005, 5.250%,
3/01/24 - FSA Insured
500 Jackson County School District R-7, Lees Summit, Missouri, 3/12 at 100.00 AAA 537,015
General Obligation Refunding and Improvement Bonds, Series
2002, 5.250%, 3/01/18 - FSA Insured
500 Missouri School Boards Association, Lease Participation 3/17 at 100.00 AAA 496,475
Certificates, Clay County School District 53 Liberty, Series
2007, 5.250%, 3/01/27 - FSA Insured
1,630 North Kansas City School District, Missouri, General Obligation 3/13 at 100.00 AA+ 1,632,347
Bonds, Series 2003A, 5.000%, 3/01/23
1,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA 920,150
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
2,020 Ritenour Consolidated School District, St. Louis County, No Opt. Call A1 2,250,623
Missouri, General Obligation Bonds, Series 1995, 7.375%,
2/01/12 - FGIC Insured
270 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 276,953
General Obligation Bonds, Series 2004, 5.250%, 3/01/20 - FSA
Insured
----------------------------------------------------------------------------------------------------------------------------------
7,420 Total Tax Obligation/General 7,623,763
----------------------------------------------------------------------------------------------------------------------------------
53
NOM | Nuveen Missouri Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.6% (19.2% OF TOTAL INVESTMENTS)
$ 600 Chesterfield, Missouri, Certificates of Participation, Series 12/15 at 100.00 Aa1 $ 541,098
2005, 5.000%, 12/01/24 - FGIC Insured
80 Cottleville, Missouri, Certificates of Participation, Series 8/14 at 100.00 N/R 63,431
2006, 5.250%, 8/01/31
450 Fenton, Missouri, Tax Increment Revenue Bonds, Gravois Bluffs 4/14 at 100.00 N/R 443,111
Redevelopment Project, Series 2006, 4.500%, 4/01/21
315 Fulton, Missouri, Tax Increment Revenue Bonds, Fulton Commons 6/16 at 100.00 N/R 211,642
Redevelopment Project, Series2006, 5.000%, 6/01/28
475 Kansas City Tax Increment Financing District, Missouri, Tax 6/14 at 102.00 N/R 354,877
Increment Revenue Bonds, Briarcliff West Project, Series
2006A, 5.400%, 6/01/24
415 Missouri Development Finance Board, Independence, 3/16 at 100.00 A+ 355,053
Infrastructure Facilities Revenue Bonds, Crackerneck Creek
Project, Series 2006C, 5.000%, 3/01/28
360 Missouri Development Finance Board, Infrastructure Facilities 6/15 at 100.00 BBB+ 233,305
Revenue Bonds, Branson Landing Project, Series 2005A,
5.000%, 6/01/35
450 Monarch-Chesterfield Levee District, St. Louis County, 3/10 at 101.00 AA 465,278
Missouri, Levee District Improvement Bonds, Series 1999,
5.750%, 3/01/19 - MBIA Insured
500 Osage Beach, Missouri, Tax Increment Revenue Bonds, Prewitts 5/12 at 102.00 N/R 343,415
Point Transportation Development District, Series 2006,
5.000%, 5/01/23
600 Riverside, Missouri, L-385 Levee Redevelopment Plan Tax 5/15 at 100.00 A 521,730
Increment Revenue Bonds, Series 2004, 5.250%, 5/01/20
1,380 Springfield Center City Development Corporation, Missouri, 11/11 at 100.00 A1 1,486,715
Lease Revenue Bonds, Jordan Valley Park Parking Garage,
Series 2002D, 5.000%, 11/01/22 - AMBAC Insured
2,000 Springfield Public Building Corporation, Missouri, Lease 6/10 at 100.00 A 2,072,900
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
6.125%, 6/01/21 - AMBAC Insured
St. Joseph Industrial Development Authority, Missouri, Tax
Increment Bonds, Shoppes at North Village Project,
Series 2005A:
340 5.375%, 11/01/24 11/14 at 100.00 N/R 257,023
400 5.500%, 11/01/27 11/14 at 100.00 N/R 293,232
200 St. Joseph Industrial Development Authority, Missouri, Tax 11/14 at 100.00 N/R 146,616
Increment Bonds, Shoppes at North Village Project,
Series 2005B, 5.500%, 11/01/27
----------------------------------------------------------------------------------------------------------------------------------
8,565 Total Tax Obligation/Limited 7,789,426
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.9% (3.2% OF TOTAL INVESTMENTS)
500 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, 4/11 at 101.00 A 400,850
Kansas City International Airport, Series 2001, 5.000%,
4/01/23 - AMBAC Insured (Alternative Minimum Tax)
1,000 St. Louis Land Clearance Redevelopment Authority, Missouri, 9/09 at 102.00 N/R 896,390
Revenue Refunding and Improvement Bonds, LCRA Parking
Facilities, Series 1999C, 7.000%, 9/01/19
----------------------------------------------------------------------------------------------------------------------------------
1,500 Total Transportation 1,297,240
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.8% (18.1% OF TOTAL INVESTMENTS) (4)
685 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R (4) 772,844
Revenue Bonds, Gravois Bluffs Redevelopment Project, Series
2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12)
2,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- (4) 2,708,424
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28
(Pre-refunded 6/01/11) - AMBAC Insured
1,000 Missouri Health and Educational Facilities Authority, Revenue 12/10 at 101.00 A (4) 1,093,650
Bonds, St. Anthony's Medical Center, Series 2000, 6.250%,
12/01/30 (Pre-refunded 12/01/10)
80 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 89,137
General Obligation Bonds, Series 2004, 5.250%, 3/01/20
(Pre-refunded 3/01/14) - FSA Insured
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 500 St. Louis County, Missouri, GNMA Collateralized Mortgage No Opt. Call N/R (4) $ 530,565
Revenue Bonds, Series 1993D, 5.650%, 7/01/20 (Alternative
Minimum Tax) (ETM)
1,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold 2/12 at 100.00 N/R (4) 1,105,760
Revenue Bonds, Carnahan Courthouse, Series 2002A, 5.750%,
2/15/16 (Pre-refunded 2/15/12) - FGIC Insured
950 Texas County, Missouri, Hospital Revenue Bonds, Texas County 6/10 at 100.00 N/R (4) 1,026,209
Memorial Hospital, Series 2000, 7.250%, 6/15/25
(Pre-refunded 6/15/10)
----------------------------------------------------------------------------------------------------------------------------------
6,715 Total U.S. Guaranteed 7,326,589
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.4% (6.1% OF TOTAL INVESTMENTS)
2,965 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 Aaa 2,087,864
Authority, Water Facility Revenue Bonds, Missouri-American
Water Company, Series 2006, 4.600%, 12/01/36 - AMBAC Insured
(Alternative Minimum Tax) (UB)
350 Missouri Environmental Improvement and Energy Resources No Opt. Call Aaa 389,452
Authority, Water Pollution Control
Revenue Bonds, State Revolving Fund Program - Kansas City
Project, Series 1997C, 6.750%, 1/01/12
-----------------------------------------------------------------------------------------------------------------------------------
3,315 Total Water and Sewer 2,477,316
-----------------------------------------------------------------------------------------------------------------------------------
$ 44,565 Total Investments (cost $44,964,658) - 154.1% 40,564,023
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.5)% (2,225,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 15.2% 3,988,611
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.8)% (5) (16,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 26,327,634
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Managers' Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 39.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
55
| Statement of ASSETS & LIABILITIES November 30, 2008 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
---------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $112,526,520, $56,432,776,
$50,635,027 and $89,652,224, respectively) $ 103,020,768 $ 52,371,661 $ 47,401,225 $ 81,584,796
Cash 2,484,196 146,104 315,875 4,086,344
Receivables:
Interest 1,747,352 790,053 721,989 1,378,659
Investments sold -- 766,427 510,951 750,000
Other assets 9,029 3,060 4,729 687
---------------------------------------------------------------------------------------------------------------------------
Total assets 107,261,345 54,077,305 48,954,769 87,800,486
---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 3,075,000 1,525,000 1,375,000 2,525,000
Payables:
Common share dividends 237,452 131,797 120,287 195,767
Preferred share dividends 5,030 4,229 3,798 9,626
Accrued expenses:
Management fees 56,039 21,714 17,667 34,555
Other 35,445 21,281 18,707 31,045
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,408,966 1,704,021 1,535,459 2,795,993
---------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 38,300,000 19,500,000 17,500,000 32,000,000
---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 65,552,379 $ 32,873,284 $ 29,919,310 $ 53,004,493
===========================================================================================================================
Common shares outstanding 5,363,976 2,580,654 2,317,030 4,365,873
===========================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $ 12.22 $ 12.74 $ 12.91 $ 12.14
===========================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 53,640 $ 25,807 $ 23,170 $ 43,659
Paid-in surplus 74,527,397 36,606,145 32,811,427 61,611,909
Undistributed (Over-distribution of) net investment income (59,542) (60,823) (45,282) (146,085)
Accumulated net realized gain (loss) from investments and
derivative transactions 536,636 363,270 363,797 (437,562)
Net unrealized appreciation (depreciation) of investments and
derivative transactions (9,505,752) (4,061,115) (3,233,802) (8,067,428)
---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 65,552,379 $ 32,873,284 $ 29,919,310 $ 53,004,493
===========================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
===========================================================================================================================
See accompanying notes to financial statements.
56
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $100,871,010, $42,904,821,
$58,781,914 and $44,964,658, respectively) $ 91,041,710 $ 38,836,811 $ 55,037,634 $ 40,564,023
Cash 707,414 402,767 166,026 3,410,545
Receivables:
Interest 1,634,617 699,529 896,897 725,196
Investments sold 15,000 -- -- --
Other assets 7,330 2,983 1,443 8,028
-----------------------------------------------------------------------------------------------------------------------------
Total assets 93,406,071 39,942,090 56,102,000 44,707,792
-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 2,450,000 1,050,000 1,500,000 2,225,000
Payables:
Common share dividends 228,662 108,310 145,677 113,438
Preferred share dividends 4,465 3,253 4,449 2,101
Accrued expenses:
Management fees 49,059 16,110 18,508 22,850
Other 33,526 17,965 23,254 16,769
-----------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,765,712 1,195,638 1,691,888 2,380,158
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 34,000,000 15,000,000 20,500,000 16,000,000
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 56,640,359 $ 23,746,452 $ 33,910,112 $ 26,327,634
=============================================================================================================================
Common shares outstanding 4,763,486 1,961,035 2,723,844 2,308,195
=============================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $ 11.89 $ 12.11 $ 12.45 $ 11.41
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 47,635 $ 19,610 $ 27,238 $ 23,082
Paid-in surplus 66,145,494 27,766,804 38,382,235 30,946,728
Undistributed (Over-distribution of) net investment income (691) (41,058) (93,661) 19,442
Accumulated net realized gain (loss) from investments and
derivative transactions 277,221 69,106 (661,420) (260,983)
Net unrealized appreciation (depreciation) of investments and
derivative transactions (9,829,300) (4,068,010) (3,744,280) (4,400,635)
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 56,640,359 $ 23,746,452 $ 33,910,112 $ 26,327,634
=============================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
=============================================================================================================================
See accompanying notes to financial statements.
57
| Statement of OPERATIONS Six Months Ended November 30, 2008 (Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 2,798,352 $ 1,416,162 $ 1,250,866 $ 2,200,837
-----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 353,911 177,320 159,882 288,855
Preferred shares -- auction fees 47,960 24,418 21,914 40,072
Preferred shares -- dividend disbursing agent fees 5,007 5,014 5,014 5,002
Shareholders' servicing agent fees and expenses 4,394 707 620 661
Interest expense on floating rate obligations 56,569 28,046 25,287 46,452
Custodian's fees and expenses 13,579 8,076 7,687 10,977
Trustees' fees and expenses 1,219 639 580 979
Professional fees 7,538 6,395 6,222 7,465
Shareholders' reports -- printing and mailing expenses 13,855 7,552 6,488 10,543
Stock exchange listing fees 4,619 182 164 309
Investor relations expense 7,399 3,632 3,323 5,952
Other expenses 7,676 7,670 6,534 7,275
-----------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 523,726 269,651 243,715 424,542
Custodian fee credit (2,279) (1,023) (3,991) (6,920)
Expense reimbursement -- (41,504) (49,896) (96,760)
-----------------------------------------------------------------------------------------------------------------------------
Net expenses 521,447 227,124 189,828 320,862
-----------------------------------------------------------------------------------------------------------------------------
Net investment income 2,276,905 1,189,038 1,061,038 1,879,975
-----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 7,147 (7,045) (11,440) (59,506)
Forward swaps -- -- -- --
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (10,881,468) (5,000,070) (4,249,925) (8,419,238)
Forward swaps -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (10,874,321) (5,007,115) (4,261,365) (8,478,744)
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (698,367) (351,172) (319,002) (583,096)
-----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from (698,367) (351,172) (319,002) (583,096)
distributions to Preferred shareholders
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (9,295,783) $ (4,169,249) $ (3,519,329) $ (7,181,865)
=============================================================================================================================
See accompanying notes to financial statements.
58
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 2,593,495 $ 1,116,871 $ 1,462,706 $ 1,241,022
-----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 312,739 132,844 183,946 145,263
Preferred shares -- auction fees 42,576 18,784 25,671 20,036
Preferred shares -- dividend disbursing agent fees 5,011 5,014 5,000 5,007
Shareholders' servicing agent fees and expenses 2,658 318 312 1,761
Interest expense on floating rate obligations 45,187 19,362 27,660 27,732
Custodian's fees and expenses 13,709 8,430 13,167 6,047
Trustees' fees and expenses 999 420 621 444
Professional fees 7,229 5,978 6,204 5,581
Shareholders' reports -- printing and mailing expenses 12,613 6,698 8,329 7,657
Stock exchange listing fees 4,612 139 193 163
Investor relations expense 6,802 2,874 3,919 3,233
Other expenses 7,351 7,456 7,595 6,534
-----------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 461,486 208,317 282,617 229,458
Custodian fee credit (8,298) (2,310) (188) (3,557)
Expense reimbursement -- (31,095) (68,889) --
-----------------------------------------------------------------------------------------------------------------------------
Net expenses 453,188 174,912 213,540 225,901
-----------------------------------------------------------------------------------------------------------------------------
Net investment income 2,140,307 941,959 1,249,166 1,015,121
-----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 159,000 42,447 (150,701) (244,519)
Forward swaps 101,206 62,818 -- --
Futures (44,426) (13,669) -- --
Change in net unrealized appreciation (depreciation) of:
Investments (11,223,556) (4,439,791) (4,801,016) (4,595,010)
Forward swaps (92,080) (57,153) -- --
-----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (11,099,856) (4,405,348) (4,951,717) (4,839,529)
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (619,960) (270,132) (373,688) (291,746)
-----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (619,960) (270,132) (373,688) (291,746)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (9,579,509) $ (3,733,521) $ (4,076,239) $ (4,116,154)
=============================================================================================================================
See accompanying notes to financial statements.
59
| Statement of CHANGES in NET ASSETS(Unaudited)
CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM INCOME (NTC) DIVIDEND ADVANTAGE (NFC) DIVIDEND ADVANTAGE 2 (NGK)
-------------------------- -------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,276,905 $ 4,463,982 $ 1,189,038 $ 2,343,257 $ 1,061,038 $ 2,107,281
Net realized gain (loss) from:
Investments 7,147 298,858 (7,045) 433,225 (11,440) 442,376
Forward swaps -- 487,864 -- 348,636 -- 273,468
Futures -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (10,881,468) (1,365,508) (5,000,070) (796,148) (4,249,925) (728,130)
Forward swaps -- 47,886 -- 37,677 -- 28,258
Distributions to Preferred shareholders:
From net investment income (698,367) (1,196,691) (351,172) (617,335) (319,002) (540,900)
From accumulated net realized gains -- (49,238) -- (51,129) -- (52,122)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations (9,295,783) 2,687,153 (4,169,249) 1,698,183 (3,519,329) 1,530,231
------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,593,101) (3,298,641) (859,136) (1,721,069) (764,503) (1,556,110)
From accumulated net realized gains -- (154,483) -- (167,071) -- (170,904)
------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (1,593,101) (3,453,124) (859,136) (1,888,140) (764,503) (1,727,014)
------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- 56,012 27,967 39,414 15,125 18,857
------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from capital share
transactions -- 56,012 27,967 39,414 15,125 18,857
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (10,888,884) (709,959) (5,000,418) (150,543) (4,268,707) (177,926)
Net assets applicable to Common shares at
the beginning of period 76,441,263 77,151,222 37,873,702 38,024,245 34,188,017 34,365,943
------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at
the end of period $ 65,552,379 $ 76,441,263 $ 32,873,284 $ 37,873,702 $ 29,919,310 $ 34,188,017
==============================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ (59,542) $ (44,979) $ (60,823) $ (39,553) $ (45,282) $ (22,815)
==============================================================================================================================
See accompanying notes to financial statements.
60
CONNECTICUT MASSACHUSETTS PREMIUM MASSACHUSETTS
DIVIDEND ADVANTAGE 3 (NGO) INCOME (NMT) DIVIDEND ADVANTAGE (NMB)
-------------------------- -------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,879,975 $ 3,774,921 $ 2,140,307 $ 4,178,667 $ 941,959 $ 1,833,775
Net realized gain (loss) from:
Investments (59,506) 142,304 159,000 $55,351 42,447 (51,170)
Forward swaps -- 171,871 101,206 113,292 62,818 43,595
Futures -- -- (44,426) -- (13,669) --
Change in net unrealized appreciation
(depreciation) of:
Investments (8,419,238) (1,287,450) (11,223,556) (1,860,524) (4,439,791) (945,603)
Forward swaps -- 3,949 (92,080) 131,277 (57,153) 72,832
Distributions to Preferred
shareholders:
From net investment income (583,096) (1,099,727) (619,960) (1,186,015) (270,132) (511,186)
From accumulated net realized gains -- -- -- (28,016) -- (16,392)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations (7,181,865) 1,705,868 (9,579,509) 1,404,032 (3,733,521) 425,851
------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,290,116) (2,644,809) (1,500,498) (2,943,779) (673,414) (1,328,586)
From accumulated net realized gains -- -- -- (79,074) -- (48,600)
------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (1,290,116) (2,644,809) (1,500,498) (3,022,853) (673,414) (1,377,186)
------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 90,750 -- 15,691 18,078 14,859
------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions -- 90,750 -- 15,691 18,078 14,859
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (8,471,981) (848,191) (11,080,007) (1,603,130) (4,388,857) (936,476)
Net assets applicable to Common
shares at the beginning of period 61,476,474 62,324,665 67,720,366 69,323,496 28,135,309 29,071,785
------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 53,004,493 $ 61,476,474 $ 56,640,359 $ 67,720,366 $ 23,746,452 $ 28,135,309
==============================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ (146,085) $ (152,848) $ (691) $ (20,540) $ (41,058) $ (39,471)
==============================================================================================================================
See accompanying notes to financial statements.
61
| Statement of CHANGES in NET ASSETS (continued) (Unaudited)
INSURED MASSACHUSETTS MISSOURI PREMIUM
TAX-FREE ADVANTAGE (NGX) INCOME (NOM)
-------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08
-------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,249,166 $ 2,451,685 $ 1,015,121 $ 2,051,885
Net realized gain (loss) from:
Investments (150,701) 112,230 (244,519) $23,306
Forward swaps -- 41,813 -- --
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (4,801,016) (729,499) (4,595,010) (1,458,850)
Forward swaps -- -- -- --
Distributions to Preferred shareholders:
From net investment income (373,688) (703,413) (291,746) (465,017)
From accumulated net realized gains -- -- -- (93,600)
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (4,076,239) 1,172,816 (4,116,154) 57,724
-------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (898,704) (1,769,589) (754,472) (1,506,279)
From accumulated net realized gains -- -- -- (291,322)
-------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to Common shareholders (898,704) (1,769,589) (754,472) (1,797,601)
-------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 11,623 12,022 28,389 83,533
-------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 11,623 12,022 28,389 83,533
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (4,963,320) (584,751) (4,842,237) (1,656,344)
Net assets applicable to Common shares at the beginning
of period 38,873,432 39,458,183 31,169,871 32,826,215
-------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of
period $ 33,910,112 $ 38,873,432 $ 26,327,634 $ 31,169,871
===================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ (93,661) $ (70,435) $ 19,442 $ 50,539
===================================================================================================================
See accompanying notes to financial statements.
62
| Notes to FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds covered in this report and their corresponding Common share
stock exchange symbols are Nuveen Connecticut Premium Income Municipal Fund
(NTC), Nuveen Connecticut Dividend Advantage Municipal Fund (NFC), Nuveen
Connecticut Dividend Advantage Municipal Fund 2 (NGK), Nuveen Connecticut
Dividend Advantage Municipal Fund 3 (NGO), Nuveen Massachusetts Premium Income
Municipal Fund (NMT), Nuveen Massachusetts Dividend Advantage Municipal Fund
(NMB), Nuveen Insured Massachusetts Tax-Free Advantage Municipal Fund (NGX) and
Nuveen Missouri Premium Income Municipal Fund (NOM) (collectively, the "Funds").
Common shares of Connecticut Premium Income (NTC) and Massachusetts Premium
Income (NMT) are traded on the New York Stock Exchange while Common shares of
Connecticut Dividend Advantage (NFC), Connecticut Dividend Advantage 2 (NGK),
Connecticut Dividend Advantage 3 (NGO), Massachusetts Dividend Advantage (NMB),
Insured Massachusetts Tax-Free Advantage (NGX) and Missouri Premium Income (NOM)
are traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end management investment
companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes, and in the case of Insured Massachusetts Tax-Free
Advantage (NGX) the alternative minimum tax applicable to individuals, by
investing primarily in a diversified portfolio of municipal obligations issued
by state and local government authorities within a single state or certain U.S.
territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service may establish fair value based on yields or
prices of municipal bonds of comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities dealers, evaluations of
anticipated cash flows or collateral and general market conditions. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Trustees. Futures contracts are valued using
the closing settlement price, or, in the absence of such a price, at the mean of
the bid and asked prices. If the pricing service is unable to supply a price for
an investment or derivative instrument, each Fund may use market quotes provided
by major broker/dealers in such investments. If it is determined that the market
price for an investment or derivative instrument is unavailable or
inappropriate, the Board of Trustees of the Funds, or its designee, may
establish fair value in accordance with procedures established in good faith by
the Board of Trustees. Temporary investments in securities that have variable
rate and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At November 30, 2008, there
were no such outstanding purchase commitments in any of the Funds.
63
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, and in the case of Insured Massachusetts Tax-Free Advantage (NGX)
the alternative minimum tax applicable to individuals, to retain such tax-exempt
status when distributed to shareholders of the Funds. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
Effective November 30, 2007, the Funds adopted Financial Accounting Standards
Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
(FIN 48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended November 30,
2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
64
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one Series. The dividend rate paid by the Funds on each Series is
determined every seven days, pursuant to a dutch auction process overseen by the
auction agent, and is payable at the end of each rate period. As of November 30,
2008, 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 -- -- -- --
================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of these Funds. However, one implication of these auction
failures for Common shareholders is that the Funds' cost of leverage will likely
be higher, at least temporarily, than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may be lower than they otherwise would have been.
On June 11, 2008, Nuveen Investments, Inc. ("Nuveen") announced the Fund Board's
approval of plans to use tender option bonds (TOBs), also known as "floaters" or
floating rate obligations, to refinance a portion of the municipal funds'
outstanding Preferred shares, whose auctions have been failing for several
months. The plan included an initial phase of approximately $1 billion in
forty-one funds. As of November 30, 2008, the Funds had not redeem any of their
outstanding Preferred shares.
Insurance
Under normal circumstances, Insured Massachusetts Tax-Free Advantage (NGX) will
invest at least 80% of its net assets (including net assets attributable to
Preferred shares) in municipal securities that are covered by insurance
guaranteeing the timely payment of principal and interest. For purposes of this
80% test, insurers must have a claims paying ability rated at least "A" at the
time of purchase by at least one independent rating agency. In addition, the
Fund will invest at least 80% of its net assets (including net assets
attributable to Preferred shares) in municipal securities that are rated at
least "AA" at the time of purchase (based on the higher of the rating of the
insurer, if any, or the underlying security) by at least one independent rating
agency, or are unrated but judged to be of similar credit quality by Nuveen
Asset Management (the "Adviser"), a wholly-owned subsidiary of Nuveen, or
municipal bonds backed by an escrow or trust account containing sufficient U.S.
government or U.S. government agency securities or U.S. Treasury-issued State
and Local Government Series securities to ensure timely payment of principal and
interest. The Fund may also invest up to 20% of its net assets (including net
assets attributable to Preferred shares) in municipal securities rated below
"AA" (based on the higher rating of the insurer, if any, or the underlying bond)
or are unrated but judged to be of comparable quality by the Adviser.
65
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Fund's Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Fund
ultimately disposes of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Fund. Accordingly, neither the prices used in determining the market
value of the underlying municipal securities nor the Common share net asset
value of the Fund include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Fund
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (SFAS No.
140) "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited
into a special purpose trust is identified in the Portfolio of Investments as an
"Underlying bond of an inverse floating rate trust", with the Fund accounting
for the short-term floating rate certificates issued by the trust as "Floating
rate obligations" on the Statement of Assets and Liabilities. In addition, the
Fund reflects in Investment Income the entire earnings of the underlying bond
and the related interest paid to the holders of the short-term floating rate
certificates is included as "Interest expense on floating rate obligations" on
the Statement of Operations.
During the six months ended November 30, 2008, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of
66
a Fund's inverse floater investments as a Fund may potentially be liable to
fulfill all amounts owed to holders of the floating rate certificates. At period
end, any such shortfall is included as "Unrealized depreciation on Recourse
Trusts" on the Statement of Assets and Liabilities.
At November 30, 2008, the Funds were not invested in any externally-deposited
Recourse Trusts.
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
---------------------------------------------------------------------------------------------------------
Maximum exposure $ -- $ -- $ -- $ --
=========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
---------------------------------------------------------------------------------------------------------
Maximum exposure $ -- $ -- $ -- $ --
=========================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended November 30, 2008, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
---------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 4,268,421 $ 2,116,279 $ 1,908,082 $ 3,505,033
Average annual interest rate and fees 2.64% 2.64% 2.64% 2.64%
=========================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
---------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 3,273,743 $ 1,402,869 $ 2,004,098 $ 2,225,000
Average annual interest rate and fees 2.75% 2.75% 2.75% 2.49%
=========================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. Massachusetts Premium
Income (NMT) and Massachusetts Dividend Advantage (NMB) were the only Funds
invested in forward interest rate swap transactions during the six months ended
November 30, 2008.
67
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized on
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin, when
applicable. Massachusetts Premium Income (NMT) and Massachusetts Dividend
Advantage (NMB) were the only Funds invested in futures contracts during the six
months ended November 30, 2008.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
68
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of each Fund's fair value measurements as of November
30, 2008:
CONNECTICUT PREMIUM INCOME (NTC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 103,020,768 $ -- $ 103,020,768
========================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 52,371,661 $ -- $ 52,371,661
========================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 47,401,225 $ -- $ 47,401,225
========================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 81,584,796 $ -- $ 81,584,796
========================================================================================================================
MASSACHUSETTS PREMIUM INCOME (NMT) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 90,620,025 $ 421,685 $ 91,041,710
========================================================================================================================
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 37,993,440 $ 843,371 $ 38,836,811
========================================================================================================================
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 55,037,634 $ -- $ 55,037,634
========================================================================================================================
MISSOURI PREMIUM INCOME (NOM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 40,564,023 $ -- $ 40,564,023
========================================================================================================================
The following is a reconciliation of each Fund's Level 3 investments held at the
beginning and end of the measurement period:
MASSACHUSETTS MASSACHUSETTS
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NMT) (NMB)
LEVEL 3 LEVEL 3
INVESTMENTS INVESTMENTS
-----------------------------------------------------------------------------------------------
Balance as of May 31, 2008 $ 389,384 $ 778,768
Gains (losses):
Net realized gains (losses) -- --
Net change in unrealized appreciation (depreciation) 32,301 64,603
Net purchases at cost (sales at proceeds) -- --
Net discounts (premiums) -- --
Net transfers in to (out of) at end of period fair value -- --
-----------------------------------------------------------------------------------------------
Balance as of November 30, 2008 $ 421,685 $ 843,371
===============================================================================================
69
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
3. FUND SHARES
Common Shares
On July 30, 2008, the Funds' Board of Trustees approved an open-market share
repurchase program under which each Fund may repurchase an aggregate of up to
approximately 10% of its outstanding Common shares. The Funds did not repurchase
any of their Common shares during the six months ended November 30, 2008.
Transactions in Common shares were as follows:
CONNECTICUT CONNECTICUT DIVIDEND CONNECTICUT DIVIDEND
PREMIUM INCOME (NTC) ADVANTAGE (NFC) ADVANTAGE 2 (NGK)
----------------------------- ------------------------------ -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
-----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of -- 3,915 1,966 2,675 1,051 1,265
distributions
===================================================================================================================================
CONNECTICUT DIVIDEND MASSACHUSETTS MASSACHUSETTS DIVIDEND
ADVANTAGE 3 (NGO) PREMIUM INCOME (NMT) ADVANTAGE (NMB)
----------------------------- ------------------------------ -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
-----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of -- 6,503 -- 1,090 1,346 1,004
distributions
===================================================================================================================================
INSURED
MASSACHUSETTS TAX-FREE MISSOURI
ADVANTAGE (NGX) PREMIUM INCOME (NOM)
------------------------------ -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08
-----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of 886 863 2,175 5,970
distributions
===================================================================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended November 30, 2008, were
as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------------------------
Purchases $ -- $ -- $ -- $ --
Sales and maturities 4,280,153 1,526,595 1,033,520 4,651,580
===================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------------
Purchases $ 985,653 $ 480,326 $ -- $ 551,075
Sales and maturities 4,229,900 1,685,103 2,626,756 3,249,850
===================================================================================================================================
70
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At November 30, 2008, the cost of investments was as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 109,440,499 $ 54,871,840 $ 49,237,278 $ 87,108,115
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 98,346,006 $ 41,821,226 $ 57,281,817 $ 42,723,508
====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2008, were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 776,964 $ 792,311 $ 685,012 $ 680,159
Depreciation (10,271,511) (4,817,399) (3,895,983) (8,728,327)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (9,494,547) $ (4,025,088) $ (3,210,971) $ (8,048,168)
====================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 1,657,033 $ 421,854 $ 1,113,346 $ 1,200,995
Depreciation (11,411,304) (4,456,258) (4,857,514) (5,584,016)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (9,754,271) $ (4,034,404) $ (3,744,168) $ (4,383,021)
====================================================================================================================================
71
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at May 31, 2008, the Funds' last tax year end,
were as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $ 194,231 $ 68,567 $ 75,481 $ 35,434
Undistributed net ordinary income ** 488,906 226,061 275,669 --
Undistributed net long-term capital gains 60,678 147,900 112,806 --
===================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $ 160,328 $ 45,010 $ 82,161 $ 162,256
Undistributed net ordinary income ** 39,566 -- -- --
Undistributed net long-term capital gains 69,077 -- -- --
===================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 1, 2008, paid on June 2, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
May 31, 2008, was designated for purposes of the dividends paid deduction as
follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 4,528,844 $ 2,336,458 $ 2,101,642 $ 3,755,918
Distributions from net ordinary income ** -- 5,381 -- 102
Distributions from net long-term capital gains 203,721 218,200 223,026 --
===================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 4,147,682 $ 1,843,671 $ 2,465,317 $ 1,987,482
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains 107,090 64,958 -- 384,860
===================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
72
At May 31, 2008, the Funds' last tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
INSURED
CONNECTICUT MASSACHUSETTS
DIVIDEND TAX-FREE
ADVANTAGE 3 ADVANTAGE
(NGO) (NGX)
------------------------------------------------------------------------------------------------------------------------------------
Expiration:
May 31, 2013 $ 35,642 $ 18,655
May 31, 2014 111,331 427,135
May 31, 2015 211,213 --
------------------------------------------------------------------------------------------------------------------------------------
Total $ 358,186 $ 445,790
====================================================================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2007 through May 31, 2008, the Funds' last tax year
end, ("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
------------------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $ 47,203 $ 22,492 $ 64,928 $ 16,463
====================================================================================================================================
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
CONNECTICUT PREMIUM INCOME (NTC)
MASSACHUSETTS PREMIUM INCOME (NMT)
MISSOURI PREMIUM INCOME (NOM)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
====================================================================================================================================
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
====================================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the following table.
As of November 30, 2008, the complex-level fee rate was .2000%.
73
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
-------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
=====================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all Nuveen funds,
with such daily net assets to include assets attributable to preferred
stock issued by or borrowings by such funds but to exclude assets
attributable to investments in other Nuveen funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
For the first ten years of Connecticut Dividend Advantage's (NFC) and
Massachusetts Dividend Advantage's (NMB) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (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 their fees and
expenses beyond January 31, 2011.
74
For the first ten years of Connecticut Dividend Advantage 2's (NGK) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
-----------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
=====================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 2 (NGK)
for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Connecticut Dividend Advantage 3's (NGO)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
-----------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
=====================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Connecticut Dividend Advantage 3 (NGO)
for any portion of its fees and expenses beyond September 30, 2010.
For the first eight years of Insured Massachusetts Tax-Free Advantage's (NGX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
-----------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
=====================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Massachusetts Tax-Free Advantage
(NGX) for any portion of its fees and expenses beyond November 30, 2010.
7. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS No. 161)
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of November 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
75
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
8. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 31, 2008, to shareholders of
record on December 15, 2008, as follows:
CONNECTICUT CONNECTICUT CONNECTICUT CONNECTICUT
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NTC) (NFC) (NGK) (NGO)
-----------------------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0500 $ .0555 $ .0550 $ .0500
===================================================================================================================================
INSURED
MASSACHUSETTS MASSACHUSETTS MASSACHUSETTS MISSOURI
PREMIUM DIVIDEND TAX-FREE PREMIUM
INCOME ADVANTAGE ADVANTAGE INCOME
(NMT) (NMB) (NGX) (NOM)
-----------------------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0535 $ .0580 $ .0555 $ .0545
===================================================================================================================================
At the same time, the following Funds declared capital gains and/or ordinary
income distributions as follows:
CONNECTICUT CONNECTICUT CONNECTICUT MASSACHUSETTS
PREMIUM DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 INCOME
(NTC) (NFC) (NGK) (NMT)
-----------------------------------------------------------------------------------------------------------------------------------
Capital gains distribution per share $ .0083 $ .0422 $ .0362 $ .0230
Ordinary income distribution per share* .0664 .0637 .0884 .0184
===================================================================================================================================
* Ordinary income consist of taxable market discount income and net
short-term capital gains, if any.
76
| Financial
| HIGHLIGHTS(Unaudited)
77
| Financial
| HIGHLIGHTS(Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 14.25 $ .42 $ (2.02) $ (.13) $ -- $ (1.73)
2008 14.39 .83 (.09) (.22) (.01) .51
2007 14.42 .83 .07 (.20) (.01) .69
2006 15.26 .84 (.54) (.14) (.03) .13
2005 14.60 .88 .75 (.09) -- 1.54
2004 15.56 .93 (.96) (.05) -- (.08)
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 14.69 .46 (1.94) (.14) -- (1.62)
2008 14.76 .91 .01 (.24) (.02) .66
2007 14.75 .92 .04 (.22) -- .74
2006 15.39 .93 (.55) (.17) -- .21
2005 14.56 .95 .86 (.09) -- 1.72
2004 15.53 .97 (1.00) (.05) -- (.08)
=====================================================================================================================
Less Distributions
------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
----------------------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
----------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ (.30) $ -- $ (.30) $ -- $ 12.22 $ 10.39
2008 (.62) (.03) (.65) -- 14.25 14.08
2007 (.65) (.07) (.72) -- 14.39 14.91
2006 (.75) (.22) (.97) -- 14.42 13.95
2005 (.87) (.01) (.88) -- 15.26 15.81
2004 (.88) -- (.88) -- 14.60 14.47
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
----------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (.33) -- (.33) -- 12.74 11.67
2008 (.67) (.06) (.73) -- 14.69 14.93
2007 (.73) -- (.73) -- 14.76 16.37
2006 (.85) -- (.85) -- 14.75 16.26
2005 (.89) -- (.89) -- 15.39 15.73
2004 (.89) -- (.89) -- 14.56 14.12
==========================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
------------------ ----------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
-------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (24.42)% (12.29)% $ 65,552 1.46*** 1.30%*** 6.32%***
2008 (1.08) 3.60 76,441 1.30 1.27 5.82
2007 12.33 4.79 77,151 1.24 1.24 5.67
2006 (6.00) .88 77,278 1.25 1.25 5.66
2005 15.61 10.82 81,529 1.24 1.24 5.81
2004 (10.80) (.51) 77,725 1.23 1.23 6.16
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (19.86) (11.13) 32,873 1.51*** 1.35*** 6.41***
2008 (4.10) 4.62 37,874 1.33 1.31 5.90
2007 5.46 5.05 38,024 1.29 1.29 5.78
2006 8.79 1.38 37,905 1.29 1.29 5.70
2005 17.89 12.06 39,464 1.29 1.29 5.81
2004 (8.64) (.56) 37,238 1.26 1.26 5.97
===============================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
----------------------------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 1.45*** 1.29%*** 6.33%*** --%
2008 1.28 1.26 5.84 22
2007 1.21 1.21 5.69 8
2006 1.23 1.23 5.68 16
2005 1.24 1.24 5.82 12
2004 1.23 1.23 6.16 15
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 1.27*** 1.11*** 6.65*** --
2008 1.03 1.01 6.20 20
2007 .92 .92 6.16 9
2006 .84 .84 6.14 14
2005 .83 .83 6.27 9
2004 .80 .80 6.44 4
====================================================================================================
Preferred Shares at End of Period
-------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
--------------------------------------------------------------------------------
CONNECTICUT PREMIUM INCOME (NTC)
--------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 38,300 $ 25,000 $ 67,789
2008 38,300 25,000 74,896
2007 38,300 25,000 75,360
2006 38,300 25,000 75,443
2005 38,300 25,000 78,217
2004 38,300 25,000 75,734
CONNECTICUT DIVIDEND ADVANTAGE (NFC)
--------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 19,500 25,000 67,145
2008 19,500 25,000 73,556
2007 19,500 25,000 73,749
2006 19,500 25,000 73,596
2005 19,500 25,000 75,595
2004 19,500 25,000 72,740
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
78-79 spread
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
--------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
-------------------------------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 14.76 $ .46 $ (1.84) $ (.14) $ -- $ (1.52)
2008 14.85 .91 (.01) (.23) (.02) .65
2007 14.86 .91 .08 (.22) (.01) .76
2006 15.64 .91 (.60) (.17) (.01) .13
2005 15.01 .92 .74 (.09) -- 1.57
2004 16.23 .96 (1.13) (.04) (.01) (.22)
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 14.08 .43 (1.94) (.13) -- (1.64)
2008 14.30 .87 (.23) (.25) -- .39
2007 14.18 .86 .13 (.23) -- .76
2006 14.78 .84 (.54) (.18) -- .12
2005 13.97 .86 .83 (.10) -- 1.59
2004 15.06 .88 (1.14) (.05) -- (.31)
=========================================================================================================================
Less Distributions
------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
------------------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ (.33) $ -- $ (.33) $ -- $ 12.91 $ 11.80
2008 (.67) (.07) (.74) -- 14.76 15.00
2007 (.73) (.04) (.77) -- 14.85 16.38
2006 (.83) (.08) (.91) -- 14.86 16.60
2005 (.87) (.07) (.94) -- 15.64 15.98
2004 (.87) (.12) (.99) (.01) 15.01 14.14
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (.30) -- (.30) -- 12.14 11.50
2008 (.61) -- (.61) -- 14.08 13.63
2007 (.64) -- (.64) -- 14.30 14.70
2006 (.72) -- (.72) -- 14.18 14.09
2005 (.78) -- (.78) -- 14.78 14.54
2004 (.78) -- (.78) -- 13.97 13.00
============================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
-------------------- ----------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
--------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (19.39)% (10.41)% $ 29,919 1.51*** 1.35%*** 6.23%***
2008 (3.63) 4.54 34,188 1.36 1.33 5.79
2007 3.58 5.13 34,366 1.31 1.31 5.60
2006 9.78 .84 34,352 1.29 1.29 5.51
2005 19.92 10.70 36,105 1.28 1.28 5.52
2004 (4.65) (1.48) 34,646 1.25 1.25 5.73
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (13.62) (11.80) 53,004 1.46*** 1.30*** 6.12***
2008 (3.07) 2.79 61,476 1.29 1.27 5.70
2007 9.15 5.42 62,325 1.26 1.26 5.44
2006 1.84 .83 61,826 1.24 1.24 5.30
2005 18.17 11.60 64,324 1.24 1.24 5.40
2004 (8.92) (2.08) 60,774 1.24 1.24 5.58
================================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 1.17*** 1.02%*** 6.57%*** --%
2008 .98 .95 6.17 23
2007 .85 .85 6.06 12
2006 .83 .83 5.97 11
2005 .82 .82 5.98 12
2004 .80 .80 6.18 10
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
-----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 1.11*** .95*** 6.48*** --
2008 .86 .84 6.13 24
2007 .76 .76 5.94 15
2006 .74 .74 5.80 9
2005 .76 .76 5.89 9
2004 .74 .74 6.08 14
======================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
--------------------------------------------------------------------------------
CONNECTICUT DIVIDEND ADVANTAGE 2 (NGK)
--------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 17,500 $ 25,000 $ 67,742
2008 17,500 25,000 73,840
2007 17,500 25,000 74,094
2006 17,500 25,000 74,074
2005 17,500 25,000 76,579
2004 17,500 25,000 74,495
CONNECTICUT DIVIDEND ADVANTAGE 3 (NGO)
--------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 32,000 25,000 66,410
2008 32,000 25,000 73,028
2007 32,000 25,000 73,691
2006 32,000 25,000 73,302
2005 32,000 25,000 75,253
2004 32,000 25,000 72,480
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
80-81 spread
| Financial HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
--------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 14.22 $ .45 $ (2.33) $ (.13) $ -- $ (2.01)
2008 14.56 .88 (.32) (.25) (.01) .30
2007 14.45 .88 .13 (.23) --*** .78
2006 15.10 .88 (.50) (.18) -- .20
2005 14.34 .91 .81 (.08) -- 1.64
2004 15.30 .94 (.97) (.05) -- (.08)
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 14.36 .48 (2.25) (.14) -- (1.91)
2008 14.84 .94 (.45) (.26) (.01) .22
2007 14.83 .93 .08 (.25) -- .76
2006 15.65 .95 (.54) (.17) (.02) .22
2005 14.84 .97 .95 (.08) -- 1.84
2004 16.00 1.00 (1.11) (.04) (.01) (.16)
==========================================================================================================================
Less Distributions
--------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
----------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ (.32) $ -- $ (.32) $ -- $ 11.89 $ 10.00
2008 (.62) (.02) (.64) -- 14.22 13.61
2007 (.67) --*** (.67) -- 14.56 14.33
2006 (.81) (.04) (.85) -- 14.45 14.35
2005 (.88) -- (.88) -- 15.10 16.14
2004 (.88) -- (.88) -- 14.34 14.35
----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
----------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (.34) -- (.34) -- 12.11 11.09
2008 (.68) (.02) (.70) -- 14.36 14.61
2007 (.75) -- (.75) -- 14.84 16.28
2006 (.85) (.19) (1.04) -- 14.83 15.53
2005 (.92) (.11) (1.03) -- 15.65 17.45
2004 (.92) (.08) (1.00) -- 14.84 14.88
================================================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
------------------------------ ------------------------------------------------
Ending Net
Based on Assets
Common Applicable Expenses Expenses Net
Based on Share Net to Common Including Excluding Investment
Market Value* Asset Value* Shares (000) Interest++(a) Interest++(a) Income++
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (24.50)% (14.34)% $ 56,640 1.46**** 1.31%**** 6.72%****
2008 (.48) 2.08 67,720 1.26 1.26 6.09
2007 4.60 5.47 69,323 1.24 1.24 5.97
2006 (6.14) 1.41 68,776 1.25 1.25 5.98
2005 18.97 11.74 71,648 1.24 1.24 6.15
2004 (9.51) (.51) 67,806 1.24 1.24 6.37
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (22.05) (13.45) 23,746 1.58**** 1.43**** 6.89****
2008 (5.73) 1.55 28,135 1.32 1.32 6.11
2007 10.04 5.14 29,072 1.33 1.33 5.84
2006 (5.23) 1.49 29,004 1.29 1.29 5.79
2005 24.96 12.76 30,539 1.31 1.31 5.83
2004 (3.74) (1.03) 28,904 1.27 1.27 6.05
===================================================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
--------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
-----------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31: 1.43**** 1.29%**** 6.75%**** 1%
2009(b) 1.24 1.24 6.11 14
2008 1.23 1.23 5.98 9
2007 1.24 1.24 6.00 13
2006 1.24 1.24 6.16 18
2005 1.23 1.23 6.38 22
2004
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 1.33**** 1.18**** 7.14**** 1
2008 1.02 1.02 6.42 15
2007 .95 .95 6.21 9
2006 .83 .83 6.24 13
2005 .86 .86 6.28 12
2004 .81 .81 6.51 26
=============================================================================================================================
Preferred Shares at End of Period
-------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
-------------------------------------------------------------------------------
MASSACHUSETTS PREMIUM INCOME (NMT)
-------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 34,000 $ 25,000 $ 66,647
2008 34,000 25,000 74,794
2007 34,000 25,000 75,973
2006 34,000 25,000 75,571
2005 34,000 25,000 77,682
2004 34,000 25,000 74,857
MASSACHUSETTS DIVIDEND ADVANTAGE (NMB)
-------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 15,000 25,000 64,577
2008 15,000 25,000 71,892
2007 15,000 25,000 73,453
2006 15,000 25,000 73,340
2005 15,000 25,000 75,899
2004 15,000 25,000 73,173
===============================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
82-83 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
----------------------------------------------------------------------------
Distribution Distributio
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
----------------------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 14.28 $ .46 $ (1.82) $ (.14) $ -- $ (1.50)
2008 14.50 .90 (.21) (.26) -- .43
2007 14.39 .90 .08 (.25) -- .73
2006 14.93 .90 (.53) (.20) -- .17
2005 14.04 .92 .90 (.09) -- 1.73
2004 15.25 .94 (1.22) (.06) -- (.34)
MISSOURI PREMIUM INCOME (NOM)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 13.52 .44 (2.09) (.13) -- (1.78)
2008 14.27 .89 (.62) (.20) (.04) .03
2007 14.40 .90 (.08) (.23) --*** .59
2006 15.11 .92 (.51) (.17) (.01) .23
2005 14.37 .94 .77 (.09) -- 1.62
2004 15.40 .96 (1.05) (.06) -- (.15)
============================================================================================================================
Less Distributions
-------------------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
-----------------------------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ (.33) $ -- $ (.33) $ -- $ 12.45 $ 11.59
2008 (.65) -- (.65) -- 14.28 14.14
2007 (.62) -- (.62) -- 14.50 14.45
2006 (.71) -- (.71) -- 14.39 13.43
2005 (.84) -- (.84) -- 14.93 15.94
2004 (.86) (.01) (.87) -- 14.04 13.90
-----------------------------------------------------------------------------------------------------------------------------------
MISSOURI PREMIUM INCOME (NOM)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (.33) -- (.33) -- 11.41 11.00
2008 (.65) (.13) (.78) -- 13.52 14.76
2007 (.72) (.72) -- 14.27 16.56
2006 (.84) (.10) (.94) -- 14.40 16.35
2005 (.88) -- (.88) -- 15.11 17.90
2004 (.88) -- (.88) -- 14.37 15.15
===================================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
--------------------- -----------------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
---------------------------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (15.94)% (10.62)% $ 33,910 1.54**** 1.38%**** 6.41%****
2008 2.49 3.04 38,873 1.29 1.29% 5.82
2007 12.49 5.12 39,458 1.28 1.28 5.67
2006 (11.62) 1.20 39,179 1.29 1.29 5.66
2005 20.95 12.62 40,611 1.27 1.27 5.83
2004 (6.83) (2.18) 38,121 1.28 1.28 5.94
MISSOURI PREMIUM INCOME (NOM)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) (23.50) (13.36) 26,328 1.57**** 1.38**** 6.91****
2008 (5.74) .26 31,170 1.52 1.31 6.43
2007 5.98 4.17 32,826 1.39 1.30 6.15
2006 (3.53) 1.57 32,934 1.29 1.29 6.20
2005 24.38 11.54 34,219 1.29 1.29 6.29
2004 (5.35) (1.00) 32,231 1.27 1.27 6.44
=================================================================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
--------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
----------------------------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 1.16**** 1.01%**** 6.79%**** --%
2008 .84 .84 6.26 13
2007 .77 .77 6.17 6
2006 .79 .79 6.16 5
2005 .79 .79 6.31 2
2004 .75 .75 6.46 97
MISSOURI PREMIUM INCOME (NOM)
----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 1.54**** 1.35**** 6.94**** 1
2008 1.51 1.30 6.44 5
2007 1.37 1.27 6.18 16
2006 1.27 1.27 6.22 9
2005 1.28 1.28 6.30 17
2004 1.26 1.26 6.45 24
======================================================================================================================
Preferred Shares at End of Period
--------------------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
--------------------------------------------------------------------------------------------------
INSURED MASSACHUSETTS TAX-FREE ADVANTAGE (NGX)
--------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) $ 20,500 $ 25,000 $ 66,354
2008 20,500 25,000 72,407
2007 20,500 25,000 73,120
2006 20,500 25,000 72,779
2005 20,500 25,000 74,526
2004 20,500 25,000 71,489
--------------------------------------------------------------------------------------------------
MISSOURI PREMIUM INCOME (NOM)
--------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009(b) 16,000 25,000 66,137
2008 16,000 25,000 73,703
2007 16,000 25,000 76,291
2006 16,000 25,000 76,460
2005 16,000 25,000 78,468
2004 16,000 25,000 75,360
==================================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
84-85 spread
Reinvest Automatically
EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of
tax-free compounding. Just like dividends or distributions in cash, there
may be times when income or capital gains taxes may be payable on
dividends or distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not
ensure a profit, nor does it protect you against loss in a declining
market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total
number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares
at the greater of the net asset value or 95% of the then-current market
price. If the shares are trading at less than net asset value, shares for
your account will be purchased on the open market. If the Plan Agent
begins purchasing Fund shares on the open market while shares are trading
below net asset value, but the Fund's shares subsequently trade at or
above their net asset value before the Plan Agent is able to complete its
purchases, the Plan Agent may cease open-market purchases and may invest
the uninvested portion of the distribution in newly-issued Fund shares at
a price equal to the greater of the shares' net asset value or 95% of the
shares' market value on the last business day immediately prior to the
purchase date. Dividends and distributions received to purchase shares in
the open market will normally be invested shortly after the dividend
payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price 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.
86
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any
time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment
account and cash payment for fractional shares, or cash payment for all
reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You can reinvest whether your shares are registered in your name, or in
the name of a brokerage firm, bank, or other nominee. Ask your investment
advisor if his or her firm will participate on your behalf. Participants
whose shares are registered in the name of one firm may not be able to
transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although the Fund reserves the right to amend the Plan to include a
service charge payable by the participants, there is no direct service
charge to participants in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to
enroll in or withdraw from the Plan, speak with your financial advisor or
call us at (800) 257-8787.
87
NOTES
88
NOTES
89
Glossary of
TERMS USED in this REPORT
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
90
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase and/or redeem shares of its own common or
auction rate preferred stock in the future at such times and in such amounts as
is deemed advisable. No shares were repurchased or redeemed during the period
covered by this report. Any future repurchases and/or redemptions will be
reported to shareholders in the next annual or semi-annual report.
91
Nuveen Investments:
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $134 billion of assets on
September 30, 2008.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices Fund details
Daily financial news
Investor education
Interactive planning tools
ESA-B-1108D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Massachusetts Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: February 6, 2009
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: February 6, 2009
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By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 6, 2009
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