SEMIANNUAL REPORT January 31, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
MICHIGAN
NUM
NMP
NZW
OHIO
NUO
NXI
NBJ
NVJ
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Dear
SHAREHOLDER
Once again, I am pleased to tell you that during the period covered by this
report your Nuveen Fund continued to meet its objective of providing attractive
monthly income free from federal income taxes and, where applicable, state
income taxes. Detailed information on your Fund's performance can be found in
the Portfolio Manager's Comments and on the Performance Overview pages within
this report. Please take the time to read them.
In addition to providing regular tax-free income, we believe that a municipal
bond investment like your Nuveen Fund also may offer opportunities to reduce the
risk of your overall investment portfolio. This is because the prices of
municipal bonds may move differently than the prices of the common stocks,
mutual funds or other investments you may own. Since one part of your portfolio
may be going up when another is going down, portfolio diversification may reduce
your overall risk. Your financial advisor can explain the advantages of
portfolio diversification in more detail. I urge you to contact him or her soon
for more information on this important investment strategy.
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For more than 100 years, Nuveen has specialized in offering quality investments
such as your Nuveen Fund to those seeking to accumulate and preserve wealth. Our
commitment to careful research, constant surveillance and judicious trading by a
seasoned portfolio management team has never been stronger. Our mission
continues to be to assist you and your financial advisor by offering the
investment solutions and services that can help you meet your financial
objectives. We thank you for choosing us as a partner as you work toward that
goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
March 17, 2003
1
Nuveen Municipal Closed-End Exchange-Traded Funds
(NUM, NMP, NZW, NUO, NXI, NBJ, NVJ)
Portfolio Manager's
COMMENTS
Portfolio manager Rick Huber reviews U.S. and state economic conditions, key
investment strategies, and the recent performance of the Michigan and Ohio
Funds. Rick, who has eighteen years of investment management experience, assumed
portfolio management responsibility for NUO and NXI in 2001, and for NBJ and NVJ
upon their inceptions. He assumed management responsibility for the three
Michigan Funds in January 2003.
WHAT WERE THE MAJOR FACTORS AFFECTING THE U.S. ECONOMY AND THE MUNICIPAL MARKET
DURING THIS REPORTING PERIOD?
In a number of ways, economic and market conditions have not changed
significantly since our last shareholder report dated July 31, 2002. The most
influential factors shaping the U.S. economy and the municipal market over this
reporting period continued to be the slow pace of economic growth and the
relatively low levels of interest rates. Geopolitical uncertainty and the
ongoing threat of terrorism also had an economic impact during this period.
In the municipal market, the sluggish economic recovery and lack of inflationary
pressures continued to help many bonds perform well during much of the period
ended January 31, 2003. In calendar year 2002, new municipal supply nationwide
topped $357 billion, increasing 25% over 2001 levels and eclipsing the previous
record of $292 billion set in 1993. This trend continued during January 2003,
with a record $23.4 billion in new supply issued during the month. Demand for
municipal bonds also remained strong, as many individual investors continued to
seek investments offering tax-free income and diversification for their
port-folios. Institutional investors, especially traditional municipal bond
purchasers such as property/casualty insurance companies, also were active
buyers in the municipal market.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN MICHIGAN AND OHIO?
Both Michigan ($9.6 billion, down 4%) and Ohio ($8.5 billion, down 9%) bucked
the national trend in 2002 and experienced a decline in new issue supply from
2001 levels. During January 2003, new issuance in Michigan jumped 142% over
January 2002, to $893 million. Ohio's new issue supply started 2003 much the
same way it ended 2002. Approximately $330 million in new bonds were issued in
Ohio in January 2003, down 19% from January 2002.
On the economic front, the Michigan economy continued to be weak, although
manufacturing job losses have stabilized following an 18-month recession in that
sector. In addition, Michigan's 300 biotechnology companies, supported by the
state's major universities, have created an area of strong growth. However, the
retail trade sector and the office furniture industry in western Michigan
continued to shed jobs, and auto manufacturers and suppliers expect job losses
over the course of 2003 due to projected declines in vehicle sales. Although the
state economy remained overly reliant on the auto industry, the cost of doing
business in Michigan has become more competitive, and the state's industrial
base continued to slowly diversify. Financially, the state faces budget
shortfalls totaling more than $800 million, and closing this gap would largely
deplete the state's $1.2 billion rainy day fund. Given the reduced level of
personal income tax collections, replenishing reserve fund balances could be a
slow process.
2
On the plus side, Michigan's debt position continued to be well managed, the
state's debt burden is low, and pension liabilities are fully funded.
Although Ohio also experienced some stabilization of employment in its
manufacturing sector, the state's economy remained in recession, with continued
job losses in the trade and services industries and a mixed outlook for
financial services. Further constraining Ohio's economic growth was the state's
weak demographic profile, including declining population trends and difficulty
in retaining university graduates. Following shortfalls in tax collections and a
downward revision in revenue projections for the next two years, Ohio's 2003
budget gap stands at $1.9 billion. Relying on one-time resources and the
proceeds from tobacco settlement funds, Ohio has now severely depleted its
reserves, creating concern over the state's ability to achieve a balanced budget
in fiscal 2003 and 2004. Over the longer term, Ohio's well-developed
transportation and distribution industries, central location, and the presence
of numerous corporate head quarters should foster economic recovery in line with
national trends.
Even with their budgetary problems, the credit ratings of the two states
remained intact over the reporting period, although the outlook for
Ohio was rated as negative by both Moody's and Standard & Poor's. Moody's also
maintained a negative outlook for Michigan. As of January 31, 2003, the
Moody's/Standard & Poor's credit ratings, respectively, for Michigan were
Aaa/AAA and for Ohio were Aa1/AA+. Over coming months, we will continue to
closely monitor the budgetary situations in these states for any potential
impact on their credit ratings.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE TWELVE MONTHS ENDED JANUARY 31,
2003?
Individual results for the Michigan and Ohio Funds, as well as certain
benchmarks, are presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
--------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
1/31/03 EQUIVALENT3 1/31/03 1/31/03 1/31/03
--------------------------------------------------------------------------------
NUM 5.94% 8.87% 9.92% 7.46% 9.73%
--------------------------------------------------------------------------------
NMP 6.12% 9.13% 8.52% 7.46% 9.73%
--------------------------------------------------------------------------------
NZW 5.76% 8.60% 12.16% 7.46% 9.73%
--------------------------------------------------------------------------------
NUO 5.82% 8.95% 9.40% 7.46% 10.12%
--------------------------------------------------------------------------------
NXI 5.88% 9.05% 9.75% 7.46% 10.12%
--------------------------------------------------------------------------------
NBJ 6.00% 9.23% 10.98% 7.46% 10.12%
--------------------------------------------------------------------------------
NVJ 5.80% 8.92% NA - -
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the twelve months ended January 31, 2003, all of the Funds in this report
having at least one year of performance history outperformed the unleveraged,
unmanaged Lehman Brothers Municipal Bond Index. Infact, much of this
outperformance can be attributed to the leveraged structure of these Funds,
which has provided the opportunity for additional income for common
shareholders. Many of the Funds also had relatively long leverage-adjusted
durations4 when compared with the 7.91 duration of the Lehman Index (please see
the individual Performance Overview pages for each Fund's duration). A longer
duration generally will help a Fund to perform well during periods of declining
interest rates, as was the case over much of the twelve-month period.
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman
Brothers Municipal Bond Index, an unleveraged national index comprising a
broad range of investment-grade municipal bonds. Results for the Lehman
index do not reflect any expenses.
2 The total returns of the Nuveen Michigan Funds are compared with the
average annualized return of the six Funds in the Lipper Michigan Municipal
Debt Funds category, while the total returns of the Nuveen Ohio Funds are
compared with the average annualized return of the 31 funds in the Lipper
Other States Municipal Debt Funds category. Fund and Lipper returns account
for Fund leverage, Fund expenses and assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report were 33% for Michigan and 35% for Ohio.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. References to duration in this commentary are
intended to indicate Fund duration unless otherwise noted.
3
The three Michigan Funds reported performance that bracketed the Lipper Michigan
Municipal Debt Funds average. These Funds' durations were the primary factor in
their relative over- and underperformance. As of January 31, 2003, NZW had a
relatively long duration of 12.33, while NMP had a relatively short duration of
7.14. As noted earlier, a Fund with a longer duration would have been expected
to outperform a Fund with a shorter duration under the market conditions
prevalent over the twelve months ended January 31, 2003. The Ohio Funds
performed roughly in line with the Lipper Other States category average.
However, direct comparisons between these Funds and this average may have
limited usefulness because Funds from nine other states, each reflecting
specific conditions and market environments, are brought together to calculate
the Other States average.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As the Federal Reserve continued to keep short-term interest rates at
historically low levels, the dividend-payment capabilities of these Funds
benefited from their use of leverage, a strategy that can potentially enhance
the dividends paid to common shareholders. The amount of this benefit is tied in
part to the short-term rates the Funds pay their MuniPreferred(R) shareholders.
Low short-term rates, such as those currently in effect, can enable the Funds to
reduce the amount of dividends they pay preferred shareholders, which can leave
more earnings to support common share dividends.
During the year ended January 31, 2003, the relatively low level of short-term
interest rates enabled us to implement four dividend increases in NMP and NUO,
three in NXI, two in NUM and NBJ, and one in NZW. NVJ, which was introduced in
March 2002, has been paying regular monthly dividends since June 2002.
The share prices of NMP, NZW and NXI finished January 2003 higher than one year
earlier, and NVJ finished the period trading at a price greater than its IPO
price. Share prices of the other three Funds remained relatively flat or fell
modestly over the twelve-months ended January 31, 2003, reflecting the general
weakening of bond prices during October and November 2002. As of January 31,
2003, NUO, NXI and NVJ traded at premiums to their common share net asset
values; while NUM, NMP, NZW and NBJ traded at discounts. (see charts on
individual Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE PERIOD
ENDED JANUARY 31, 2003?
Over the twelve-month period, our strategic focus for all of the Funds continued
to be on diversifying the portfolios, enhancing call protection, and positioning
the Funds more defensively in anticipation of potential changes in the interest
rate environment. Given the recent slope of the municipal yield curve, we sought
to purchase bonds that mature about 20 years from now. Many of these bonds
offered yields similar to those of longer bonds, but we think have less interest
rate risk. The purchase of these long-intermediate bonds helped to moderate the
durations of most of the Funds, making their portfolios less sensitive to
interest rate changes while still allowing them to provide competitive yields
and returns.
4
In addition to an emphasis on strategic positioning and risk reduction, we also
continued to look for individual issues that we believed would perform well
regardless of the future direction of interest rates. For example, we added
several A rated healthcare issues to NUO with the goal of supporting and
potentially enhancing that Fund's dividend-paying capability. While supply in
the Ohio municipal market was generally tight over the past twelve months, the
large number of colleges and universities in the state meant that much of what
issuance there was came from the education sector. In this area, we were able to
draw on the experience of Nuveen research analysts to selectively buy
attractively priced issues, particularly in NXI.
In the current geopolitical and economic climate, maintaining strong credit
quality remains a key strategy. As of January 31, 2003, each of these Funds
continued to offer excellent credit quality, with allocations of bonds rated
AAA/U.S. Guaranteed and AA ranging from 66% to 85%. In general, our weightings
in higher quality and insured bonds benefited the performance of these Funds
during the past year.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS
IN PARTICULAR?
Our outlook for the fixed-income markets remains generally positive. We continue
to believe the U.S. economy is headed for an eventual recovery, but one that may
be less robust and slower to arrive than some are predicting. We expect
inflation and interest rates to remain relatively low over the near term, while
new municipal volume nationally should continue to be strong. Given the budget
deficits faced by these states, we expect to see an increase in issuance of new
municipal debt in both Michigan and Ohio. We think demand for tax-exempt
municipal bonds also should remain solid, as investors continue to look for ways
to generate tax-free income and diversify to reduce their overall investment
risk.
Over the coming months, we will be working to mitigate the effects of potential
bond calls on the performance of NUM, NMP and NUO. Each of these Funds was
introduced about ten years ago, and they are all in that part of their life
cycles when bond calls can begin to increase. In each Fund, we intend to take
advantage of what we anticipate will be increased bond issuance in these states
to reinvest the proceeds of any called bonds in ways that help achieve our
diversity and duration goals. The number of actual calls in each Fund will
depend largely on market interest rates over this period. NZW, NXI, NBJ and NVJ
are all relatively new Funds and do not face any significant call exposure for
several years.
In the months ahead, we will be concentrating on monitoring credit quality,
seeking to enhance dividend-paying capabilities, diversifying holdings, and
moderating durations through the purchase of suitable long-intermediate bonds.
In general, we plan to remain focused on strategies that we believe will add
value for the Funds' shareholders. We believe the attractive tax-free income and
opportunity for portfolio diversification offered by these Funds will continue
to make them a valuable part of investors' long-range financial plans.
5
Nuveen Michigan Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of January 31, 2003
NUM
Pie chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 80%
AA 4%
A 10%
BBB 5%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.45
--------------------------------------------------
Common Share Net Asset Value $15.58
--------------------------------------------------
Market Yield 5.94%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.49%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.87%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $180,924
--------------------------------------------------
Average Effective Maturity (Years) 18.74
--------------------------------------------------
Leverage-Adjusted Duration 10.36
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.26% 9.92%
--------------------------------------------------
5-Year 4.25% 5.98%
--------------------------------------------------
10-Year 6.78% 7.17%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 26%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
Water and Sewer 8%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
2/02 0.0745
3/02 0.0755
4/02 0.0755
5/02 0.0755
6/02 0.0755
7/02 0.0755
8/02 0.0755
9/02 0.0765
10/02 0.0765
11/02 0.0765
12/02 0.0765
1/03 0.0765
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/02 15.54
15.75
15.75
15.68
15.89
15.82
15.7
15.3
15.19
15.24
15.2
15.3
15.3
15.68
15.85
15.69
15.86
16.05
16.15
16.3
16.21
16.25
16.15
16.09
16.2
16.05
16.1
16
15.86
15.62
15.4
15.74
15.66
15.73
15.78
15.8
15.67
15
14.75
15.19
15.15
14.9
14.9
14.98
15.1
14.7
14.75
15.15
15.5
15.25
15.36
15.44
1/31/03 15.45
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 33%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.1030 per share.
6
Nuveen Michigan Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of January 31, 2003
NMP
Pie chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 72%
AA 10%
A 14%
BBB 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.80
--------------------------------------------------
Common Share Net Asset Value $15.69
--------------------------------------------------
Market Yield 6.12%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.74%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.13%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $120,833
--------------------------------------------------
Average Effective Maturity (Years) 15.60
--------------------------------------------------
Leverage-Adjusted Duration 7.14
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.12% 8.52%
--------------------------------------------------
5-Year 5.65% 6.12%
--------------------------------------------------
10-Year 5.76% 6.92%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 19%
--------------------------------------------------
Tax Obligation/Limited 18%
--------------------------------------------------
Healthcare 18%
--------------------------------------------------
Utilities 16%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
2/02 0.071
3/02 0.072
4/02 0.072
5/02 0.072
6/02 0.0735
7/02 0.0735
8/02 0.0735
9/02 0.0745
10/02 0.0745
11/02 0.0745
12/02 0.0755
1/03 0.0755
Line chart:
Share Price Performance
WEEKLY CLOSING PRICE
Past performance is not predictive of future results.
2/1/02 14.66
14.6
14.79
14.7
14.82
14.82
14.8
14.59
14.45
14.4
14.45
14.4
14.31
14.98
15.1
15.03
15.01
15.4
15.1
15.28
15.4
15.55
15.49
15.46
15.23
15.17
15.41
15.34
15.25
15.1
15.15
15.45
15.32
15.25
15.4
15.54
15.25
14.69
14.69
14.86
14.72
14.53
14.49
14.59
14.7
14.58
14.45
14.78
15.06
14.78
14.72
14.65
1/31/03 14.8
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 33%.
7
Nuveen Michigan Dividend Advantage Municipal Fund
Performance
OVERVIEW As of January 31, 2003
NZW
Pie chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 80%
AA 5%
A 10%
BBB 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.70
--------------------------------------------------
Common Share Net Asset Value $14.81
--------------------------------------------------
Market Yield 5.76%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.23%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.60%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $30,494
--------------------------------------------------
Average Effective Maturity (Years) 23.10
--------------------------------------------------
Leverage-Adjusted Duration 12.33
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.99% 12.16%
--------------------------------------------------
Since Inception 3.94% 8.20%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 37%
--------------------------------------------------
Tax Obligation/Limited 20%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Utilities 8%
--------------------------------------------------
Water and Sewer 7%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
2/02 0.0695
3/02 0.0695
4/02 0.0695
5/02 0.0695
6/02 0.0695
7/02 0.0695
8/02 0.0695
9/02 0.0695
10/02 0.0695
11/02 0.0695
12/02 0.0705
1/03 0.0705
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/02 14.22
14.43
14.54
14.66
14.53
14.75
14.63
14.5
14.53
14.2
14.08
14.16
14.15
14.35
14.39
14.45
14.32
14.51
14.82
15
14.85
15
14.85
14.93
14.68
14.86
14.6
14.33
14.28
14.21
14.45
14.6
14.65
14.71
14.71
14.85
14.75
14.85
14.52
15
14.87
14.63
14.35
14.49
14.23
13.9
13.83
13.88
14.15
14.4
14.16
14.38
1/31/03 14.7
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 33%.
8
Nuveen Ohio Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of January 31, 2003
NUO
Pie chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 71%
AA 14%
A 9%
BBB 4%
NR 1%
BB OR LOWER 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.90
--------------------------------------------------
Common Share Net Asset Value $16.56
--------------------------------------------------
Market Yield 5.82%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.31%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.95%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $158,790
--------------------------------------------------
Average Effective Maturity (Years) 17.57
--------------------------------------------------
Leverage-Adjusted Duration 8.39
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 2.57% 9.40%
--------------------------------------------------
5-Year 3.72% 5.75%
--------------------------------------------------
10-Year 7.24% 7.53%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 22%
--------------------------------------------------
U.S. Guaranteed 16%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Housing/Multifamily 10%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
2/02 0.077
3/02 0.0785
4/02 0.0785
5/02 0.0785
6/02 0.0795
7/02 0.0795
8/02 0.0795
9/02 0.081
10/02 0.081
11/02 0.081
12/02 0.082
1/03 0.082
LINE CHART:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/02 17.5
17.4
17.4
17.25
17.45
17.31
16.55
16.69
16.34
16.43
16.49
16.84
17.05
17.38
17.25
17.15
17.32
17.45
17.63
17.6
17.7
18.6
18.65
18.45
18.6
18.4
18.65
18.32
18.1
17.88
17.74
17.95
17.9
17.8
17.9
17.9
17.95
17.01
16.92
16.6
16.5
16.44
16.49
16.75
16.58
16.33
16.63
16.56
16.92
16.8
16.81
16.95
1/31/03 16.9
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 35%.
9
Nuveen Ohio Dividend Advantage Municipal Fund
Performance
OVERVIEW As of January 31, 2003
NXI
Pie chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 45%
AA 21%
A 19%
BBB 13%
NR 1%
BB OR LOWER 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.50
--------------------------------------------------
Common Share Net Asset Value $14.95
--------------------------------------------------
Market Yield 5.88%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.40%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.05%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $63,097
--------------------------------------------------
Average Effective Maturity (Years) 19.57
--------------------------------------------------
Leverage-Adjusted Duration 9.45
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 8.18% 9.75%
--------------------------------------------------
Since Inception 7.49% 8.30%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 23%
--------------------------------------------------
Education and Civic Organizations 15%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
2/02 0.072
3/02 0.073
4/02 0.073
5/02 0.073
6/02 0.073
7/02 0.073
8/02 0.073
9/02 0.074
10/02 0.074
11/02 0.074
12/02 0.076
1/03 0.076
LINE CHART:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/02 15.1
15
14.82
14.98
15.03
15.19
15.32
15.3
14.92
15.11
14.89
14.85
15.11
15.1
15.17
15.29
15.45
15.4
15.38
15.81
15.39
15.2
15.59
15.36
15.27
15.15
15.15
15.24
15.16
15.24
15.3
15.65
15.83
15.96
15.8
16.1
15.92
15.6
15
14.84
14.87
14.85
14.95
14.91
15.25
15.01
15.25
15.55
15.26
15.33
15.3
15.25
1/31/03 15.5
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 35%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0103 per share.
10
Nuveen Ohio Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of January 31, 2003
NBJ
Pie chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 62%
AA 10%
A 17%
BBB 8%
NR 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.40
--------------------------------------------------
Common Share Net Asset Value $14.76
--------------------------------------------------
Market Yield 6.00%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.57%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.23%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $45,962
--------------------------------------------------
Average Effective Maturity (Years) 21.28
--------------------------------------------------
Leverage-Adjusted Duration 10.97
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 1.70% 10.98%
--------------------------------------------------
Since Inception 2.31% 7.90%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 34%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Transportation 9%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Consumer Staples 8%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
2/02 0.069
3/02 0.069
4/02 0.069
5/02 0.069
6/02 0.069
7/02 0.069
8/02 0.069
9/02 0.07
10/02 0.07
11/02 0.07
12/02 0.072
1/03 0.072
LINE CHART:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
2/1/02 15
14.82
14.78
14.8
14.67
14.74
14.43
14.3
14.1
13.76
14.2
14.24
14.25
14.4
14.47
14.3
14.34
14.35
14.45
14.4
14.56
14.58
14.8
14.9
14.75
14.75
14.7
14.88
14.76
14.95
15
15.15
15.15
15.2
15.39
15.4
15.5
14.7
13.7
13.98
14.26
14.32
14.2
14.09
14.7
14.57
14.5
14.61
15
14.76
14.71
14.9
1/31/03 14.4
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 35%.
11
Nuveen Ohio Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of January 31, 2003
NVJ
PIE CHART:
CREDIT QUALITY
AAA/U.S. GUARANTEED 60%
AA 20%
A 15%
BBB 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.10
--------------------------------------------------
Common Share Net Asset Value $14.96
--------------------------------------------------
Market Yield 5.80%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.29%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.92%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $32,276
--------------------------------------------------
Average Effective Maturity (Years) 19.39
--------------------------------------------------
Leverage-Adjusted Duration 11.52
--------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 3/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 5.54% 9.49%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 32%
--------------------------------------------------
Healthcare 18%
--------------------------------------------------
Education and Civic Organizations 12%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Housing/Single Family 8%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.073
6/02 0.073
7/02 0.073
8/02 0.073
9/02 0.073
10/02 0.073
11/02 0.073
12/02 0.073
1/03 0.073
LINE CHART:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/28/02 15.05
15.03
15.02
15
15.05
15.05
15
15.1
15.23
15.13
15.4
15.45
15.58
15.15
15.33
15.4
15.36
15.36
15.4
15.4
15.27
15.1
15.5
15.5
15.74
15.4
15.22
16
15.56
15.5
15
14.98
14.95
14.85
14.25
14.35
14.95
14.66
14.45
14.83
15.5
14.9
15.03
15.09
1/31/03 15.1
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 35%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0563 per share.
12
Shareholder
MEETING REPORT
The Shareholder Meeting was held in Chicago, Illinois on October 23, 2002.
NUM NMP NZW
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Common Shares Shares Common Shares
Shares Series-TH Series-F Shares Series-M Series-TH Shares Series-W
====================================================================================================================================
Robert P. Bremner
For 10,654,462 2,872 552 6,992,524 814 1,356 2,013,942 640
Withhold 125,953 3 2 82,989 3 6 9,541 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,780,415 2,875 554 7,075,513 817 1,362 2,023,483 640
====================================================================================================================================
Lawrence H. Brown
For 10,645,962 2,853 552 6,990,004 814 1,356 2,013,742 640
Withhold 134,453 22 2 85,509 3 6 9,741 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,780,415 2,875 554 7,075,513 817 1,362 2,023,483 640
====================================================================================================================================
Anne E. Impellizzeri
For 10,640,480 2,853 552 6,987,222 814 1,356 2,013,942 640
Withhold 139,935 22 2 88,291 3 6 9,541 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,780,415 2,875 554 7,075,513 817 1,362 2,023,483 640
====================================================================================================================================
Peter R. Sawers
For 10,636,551 2,853 552 6,991,404 814 1,356 2,013,942 640
Withhold 143,864 22 2 84,109 3 6 9,541 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,780,415 2,875 554 7,075,513 817 1,362 2,023,483 640
====================================================================================================================================
Judith M. Stockdale
For 10,648,381 2,872 552 6,987,972 814 1,356 2,013,942 640
Withhold 132,034 3 2 87,541 3 6 9,541 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,780,415 2,875 554 7,075,513 817 1,362 2,023,483 640
====================================================================================================================================
William J. Schneider
For -- 2,872 552 -- 814 1,356 -- 640
Withhold -- 3 2 -- 3 6 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,875 554 -- 817 1,362 -- 640
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,872 552 -- 814 1,356 -- 640
Withhold -- 3 2 -- 3 6 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,875 554 -- 817 1,362 -- 640
====================================================================================================================================
13
Shareholder
MEETING REPORT (continued)
NUO NXI NBJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares Common Shares
Shares Series-M Series-TH Series-TH2 Shares Series-W Shares Series-F
====================================================================================================================================
Robert P. Bremner
For 8,678,645 648 1,299 889 4,140,564 1,122 3,054,363 835
Withhold 74,790 15 13 17 17,513 27 23,464 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,753,435 663 1,312 906 4,158,077 1,149 3,077,827 835
====================================================================================================================================
Lawrence H. Brown
For 8,678,618 648 1,298 889 4,135,922 1,097 3,043,694 832
Withhold 74,817 15 14 17 22,155 52 34,133 3
------------------------------------------------------------------------------------------------------------------------------------
Total 8,753,435 663 1,312 906 4,158,077 1,149 3,077,827 835
====================================================================================================================================
Anne E. Impellizzeri
For 8,676,243 648 1,298 889 4,138,164 1,097 3,054,363 832
Withhold 77,192 15 14 17 19,913 52 23,464 3
------------------------------------------------------------------------------------------------------------------------------------
Total 8,753,435 663 1,312 906 4,158,077 1,149 3,077,827 835
====================================================================================================================================
Peter R. Sawers
For 8,678,085 648 1,299 889 4,139,322 1,122 3,054,113 835
Withhold 75,350 15 13 17 18,755 27 23,714 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,753,435 663 1,312 906 4,158,077 1,149 3,077,827 835
====================================================================================================================================
Judith M. Stockdale
For 8,672,142 648 1,299 889 4,141,164 1,122 3,054,363 835
Withhold 81,293 15 13 17 16,913 27 23,464 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,753,435 663 1,312 906 4,158,077 1,149 3,077,827 835
====================================================================================================================================
William J. Schneider
For -- 648 1,299 889 -- 1,122 -- 835
Withhold -- 15 13 17 -- 27 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 663 1,312 906 -- 1,149 -- 835
====================================================================================================================================
Timothy R. Schwertfeger
For -- 648 1,299 889 -- 1,122 -- 835
Withhold -- 15 13 17 -- 27 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 663 1,312 906 -- 1,149 -- 835
====================================================================================================================================
14
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 0.6%
$ 1,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 12/03 at 102.00 BBB $ 1,006,100
WMX Technologies, Inc. Project, Series 1993, 6.000%, 12/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8%
3,350 Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A1 3,219,149
Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.6%
1,720 Board of Trustees of Ferris State University, Michigan, General 4/08 at 100.00 AAA 1,730,389
Revenue Bonds, Series 1998, 5.000%, 10/01/23
1,685 Michigan Higher Education Student Facilities Authority, Limited 9/11 at 100.00 Aaa 1,836,987
Obligation Revenue Bonds, Kettering University Refunding,
Series 2001, 5.500%, 9/01/17
1,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 1,617,165
Bonds, 2000 Series XII-T, 5.300%, 9/01/10 (Alternative
Minimum Tax)
1,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 1,016,100
Bonds, 2002 Series XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax)
1,000 Board of Trustees of Oakland University, Michigan, General 5/05 at 102.00 AAA 1,098,160
Revenue Bonds, Series 1995, 5.750%, 5/15/15
Board of Governors of Wayne State University, Michigan, General
Revenue Bonds, Series 1999:
3,430 5.250%, 11/15/19 11/09 at 101.00 AAA 3,605,273
1,000 5.125%, 11/15/29 11/09 at 101.00 AAA 1,011,570
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.6%
2,900 Economic Development Corporation of the City of Dearborn, 11/05 at 102.00 AAA 3,097,461
Michigan, Hospital Revenue Bonds (Oakwood Obligated Group),
Series 1995A, 5.875%, 11/15/25
1,235 City of Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,258,996
Mortgage Hospital Revenue Bonds, Portage Health System,
Inc., Series 1998, 5.450%, 8/01/47
3,500 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 3,534,965
Spectrum Health, Series 2001A, 5.250%, 1/15/21
3,009 Michigan State Hospital Finance Authority, Detroit Medical No Opt. Call Baa2 3,041,454
Center Collateralized Loan, Series 2001, 7.360%, 4/01/07
1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101.00 A 1,049,070
Bonds, Series 1999, OSF Healthcare System, 6.125%, 11/15/19
Michigan State Hospital Finance Authority, Revenue Bonds,
Ascension Health Credit Group,
Series 1999A:
1,000 6.125%, 11/15/23 11/09 at 101.00 AAA 1,098,080
2,500 6.125%, 11/15/26 11/09 at 101.00 AA 2,684,600
1,700 Michigan State Hospital Finance Authority, Revenue and 8/09 at 101.00 AAA 1,823,403
Refunding Bonds, Mercy Health Services Obligated Group,
1999 Series X, 5.750%, 8/15/19
Michigan State Hospital Finance Authority, Hospital Revenue and
Refunding Bonds, Mercy Mount Clemens Corporation Obligated
Group, Series 1999A:
3,385 5.750%, 5/15/17 5/09 at 101.00 AAA 3,646,593
500 5.750%, 5/15/29 5/09 at 101.00 AAA 524,340
2,940 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BBB- 2,446,168
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/28
1,000 Michigan State Hospital Finance Authority, Revenue and 11/09 at 101.00 BBB 957,280
Refunding Bonds, Memorial Healthcare Center Obligated
Group, Series 1999, 5.875%, 11/15/21
1,500 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 1,549,350
and Refunding Bonds, Henry Ford Health System, Series A,
5.625%, 3/01/17 (WI, settling 2/13/03)
15
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 5,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 $ 5,204,400
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
5,500 City of Royal Oak Hospital Finance Authority, Michigan, 11/11 at 100.00 AAA 5,567,100
Hospital Revenue Bonds, William Beaumont Hospital,
Series 2001M, 5.250%, 11/15/31
2,195 Regents of the University of Michigan, Medical Service Plan No Opt. Call AA 1,624,805
Revenue Bonds, Series 1991, 0.000%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.8%
2,675 Michigan State Housing Development Authority, Limited 12/20 at 101.00 AAA 2,788,982
Obligation Multifamily Housing Revenue Bonds, Series 2002A,
Parkview Place Apartments, 5.550%, 12/01/34 (Alternative
Minimum Tax)
1,800 Michigan State Housing Development Authority, Limited 9/15 at 100.00 Aaa 1,811,322
Obligation Multifamily Revenue Bonds, Series 2002, FNMA
Enhanced - Renaissance Apartments, 5.500%, 8/01/35
(Alternative Minimum Tax)
5,250 Michigan State Housing Development Authority, Limited 4/03 at 103.00 AAA 5,423,513
Obligation Revenue Bonds, Parkway Meadows Project,
Series 1991, 6.850%, 10/15/18
5,000 Michigan State Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 5,234,750
Revenue Bonds, 1995 Series B, 6.150%, 10/01/15
4,325 Michigan State Housing Development Authority, Rental Housing 4/09 at 101.00 AAA 4,334,904
Revenue Bonds, 1999 Series A, 5.300%, 10/01/37 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6%
1,000 Michigan State Housing Development Authority, Single Family 1/11 at 100.00 AAA 1,030,570
Mortgage Revenue Bonds, Series 2001, 5.300%, 12/01/16
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5%
2,000 Economic Development Corporation of the Charter Township 7/09 at 101.00 A 1,956,880
of Grand Rapids, Michigan, Limited Obligation Revenue Bonds,
Porter Hills Obligated Group - Cook Valley Estate Project,
Series 1999, 5.450%, 7/01/29
3,300 Michigan State Hospital Finance Authority, Revenue Bonds, 1/07 at 102.00 N/R 3,107,214
Presbyterian Villages of Michigan Obligated Group,
Series 1997, 6.375%, 1/01/25
1,300 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 7/08 at 101.00 A 1,250,314
Porter Hills Presbyterian Village, Series 1998 Refunding,
5.375%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 39.4%
Allegan Public Schools, County of Allegan, State of Michigan,
General Obligation Bonds, Series 2000:
1,850 5.600%, 5/01/20 5/10 at 100.00 AAA 1,988,658
1,435 5.750%, 5/01/30 5/10 at 100.00 AAA 1,534,273
4,200 Anchor Bay School District, Counties of Macomb and St. Clair, 5/11 at 100.00 AAA 4,215,162
State of Michigan, 2001 Refunding Bonds, General
Obligation - Unlimited Tax, 5.000%, 5/01/29
1,000 Anchor Bay School District, Counties of Macomb and 5/12 at 100.00 AAA 1,007,660
St. Clair, State of Michigan, General Obligation Refunding
Bonds, Series 2002, 5.000%, 5/01/25
1,000 Belding Area Schools, Counties of Ionia, Kent and Montcalm, 5/08 at 100.00 AAA 1,004,270
State of Michigan, General Obligation Bonds, Series 1998
Refunding, 5.000%, 5/01/26
1,200 Birmingham, Michigan, General Obligation Bonds, 10/12 at 100.50 AAA 1,245,192
Series 2002, 5.000%, 10/01/20
1,320 Bridgeport Spaulding Community School District, County 5/12 at 100.00 AAA 1,451,908
of Saginaw, State of Michigan, General Obligation Bonds,
Series 2002, 5.500%, 5/01/16
1,800 Byron Center Public Schools, County of Kent, State of 11/11 at 100.00 AAA 1,956,690
Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/18
1,000 Charlotte Public Schools, County of Easton, State of Michigan, 5/09 at 100.00 AAA 1,022,080
1999 School Building and Site Bonds, General Obligation -
Unlimited Tax, 5.250%, 5/01/25
1,000 Chippewa Valley Schools, County of Macomb, State of 5/03 at 102.00 AAA 1,006,580
Michigan, General Obligation Bonds, Series 1993,
5.000%, 5/01/21
2,000 Clarkston, Michigan, Community Schools, General 5/07 at 100.00 AAA 2,036,760
Obligation - Unlimited Tax Bonds, Series 1997,
5.250%, 5/01/23
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 School District of the City of Detroit, Wayne County, Michigan, No Opt. Call AAA $ 2,362,140
General Obligation Bonds, Series 2002A, 6.000%, 5/01/19
1,000 East China School District, County of Saint Clair, State of 11/11 at 100.00 AAA 1,075,720
Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/20
1,085 Freeland Community School District, Counties of Saginaw, 5/10 at 100.00 AAA 1,143,362
Midland, and Bay, State of Michigan, School Building and
Sites Bonds, General Obligation - Unlimited Tax,
5.250%, 5/01/19
3,300 Grand Ledge Public Schools, Counties of Eaton, Clinton and 5/05 at 102.00 AAA 3,381,477
Ionia, State of Michigan, 1995 Refunding Bonds,
5.375%, 5/01/24
3,000 Grand Rapids and Kent County Joint Building Authority, No Opt. Call AAA 870,390
Michigan, Devos Place Project, General Obligation - Limited
Tax Bonds, Series 2001, 0.000%, 12/01/26
1,710 Holland Building Authority, Michigan, General Obligation Bonds, 10/11 at 100.00 AAA 1,768,841
Series 2002, 5.000%, 10/01/19
1,500 Huron Valley School District, Counties of Oakland and Livingston, 11/11 at 100.00 AAA 1,637,430
State of Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/17
2,000 Lake Fenton Community Schools, County of Genesee, State of 5/12 at 100.00 AAA 2,018,280
Michigan, General Obligation Bonds, Series 2002,
5.000%, 5/01/24
725 Lake Orion Community School District, County of Oakland, 5/05 at 101.00 AAA 749,454
State of Michigan, 1995 Refunding Bonds, General
Obligation - Unlimited Tax, 5.500%, 5/01/20
1,000 Mancelona Public School District, Michigan, General Obligation 5/06 at 100.00 AAA 1,051,960
Bonds, Series 1997 (Antrim & Kalkaska Counties),
5.200%, 5/01/17
4,300 Montcalm County Building Authority, Michigan, Correctional 5/10 at 100.00 AAA 4,407,715
Facility Improvement General Obligation Bonds, Series 2000,
5.250%, 5/01/25
2,500 Montrose Township School District, Michigan, School Building No Opt. Call AAA 2,906,775
and Site Bonds, Series 1997, 6.000%, 5/01/22
1,000 Muskegon Heights Public Schools, County of Muskegon, State 5/09 at 100.00 AAA 1,002,850
of Michigan, 1999 School Building and Site Bonds, General
Obligation - Unlimited Tax, 5.000%, 5/01/29
1,045 Nice Community School District, Counties of Marquette and 5/04 at 101.00 AAA 1,063,789
Baraga, State of Michigan, 1995 School Building and Site
Bonds, General Obligation - Unlimited Tax, 5.250%, 5/01/20
1,225 North Branch Area Schools, County of Lapeer, State of 5/03 at 101.50 AAA 1,245,433
Michigan, 1993 Refunding Bonds, General Obligation -
Unlimited Tax, 5.375%, 5/01/21
1,625 Northville Public Schools, County of Wayne, State of Michigan, 11/11 at 100.00 AAA 1,743,186
General Obligation Bonds, Series 2001, 5.375%, 5/01/18
Novi Community School District, County of Oakland, State of
Michigan, General Obligation Bonds, Series 2002 Refunding:
1,670 5.000%, 5/01/19 5/12 at 100.00 AAA 1,730,571
830 5.000%, 5/01/20 5/12 at 100.00 AAA 854,410
1,000 Oakland County Building Authority, Michigan, General Obligation 9/11 at 100.00 AAA 1,033,830
Bonds, Series 2002, 5.125%, 9/01/22
1,225 Paw Paw Public Schools, County of Van Buren, State of No Opt. Call AAA 1,279,574
Michigan, General Obligation Refunding Bonds, Series 1998,
5.000%, 5/01/21
4,000 Pinckney Community Schools, Counties of Livingston and 5/07 at 100.00 AAA 4,133,800
Washtenaw, State of Michigan, 1997 School Building and
Site Bonds, General Obligation - Unlimited Tax,
5.500%, 5/01/27
4,200 Commonwealth of Puerto Rico, Public Improvement Refunding No Opt. Call AAA 4,760,574
General Obligation Bonds, 2002 Series A, 5.500%, 7/01/20
685 Reeths-Puffer Schools, County of Muskegon, State of 5/05 at 101.00 AAA 746,417
Michigan, 1995 School Building and Site Refunding Bonds,
5.750%, 5/01/15
1,000 Rochester Community School District, Counties of Oakland 5/10 at 100.00 AAA 1,093,000
and Macomb, State of Michigan, General Obligation Bonds,
Series 2000-I, 5.750%, 5/01/19
2,500 City of Taylor Building Authority, County of Wayne, State 3/10 at 100.00 AAA 2,622,375
of Michigan, Limited Tax General Obligation Bonds,
Series 2000, 5.125%, 3/01/17
1,050 Warren Consolidated Schools, Counties of Macomb and 11/11 at 100.00 AAA 1,122,429
Oakland, State of Michigan, General Obligation Bonds,
Series 2001, 5.375%, 5/01/19
17
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,980 Washtenaw County Building Authority, Michigan, Limited Tax 9/07 at 100.00 AAA $ 2,131,450
General Obligation Bonds, Series 1999, 5.400%, 9/01/17
1,125 Whitehall District Schools, County of Muskegon, State of 11/11 at 100.00 AAA 1,228,073
Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/17
1,725 Williamston Community School District, Michigan, General No Opt. Call AAA 1,895,119
Obligation - Unlimited Tax, Series 1996, 5.500%, 5/01/25
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.8%
1,800 Tax Increment Finance Authority of the City of Dearborn Heights, 10/10 at 100.00 AAA 1,807,272
County of Wayne, State of Michigan, Tax Increment Bonds,
Series 2001-A, General Obligation - Limited Tax, Police and
Courthouse Facility, 5.000%, 10/01/26
1,000 City of Grand Rapids Building Authority, County of Kent, State No Opt. Call AA 1,079,700
of Michigan, Series 1998, General Obligation - Limited Tax
Bonds, 5.000%, 4/01/16
1,145 City of Grand Rapids Building Authority, County of Kent, State 10/11 at 100.00 AAA 1,162,690
of Michigan, Series 2001, General Obligation - Limited Tax
Bonds, 5.125%, 10/01/26
255 Michigan Municipal Bond Authority, Local Government Loan 5/03 at 101.00 A 260,539
Program Revenue Bonds, Revenue Sharing, Series 1992D,
6.650%, 5/01/12
750 State Building Authority, State of Michigan, 1998 Revenue 10/09 at 100.00 AA+ 752,730
Refunding Bonds, Series I Facilities Program,
4.750%, 10/15/21
State of Michigan, Certificates of Participation, 525 Redevco Inc:
2,000 5.500%, 6/01/19 6/10 at 100.00 AAA 2,142,320
2,000 5.500%, 6/01/27 6/10 at 100.00 AAA 2,083,920
1,000 State of Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA 1,052,600
Development Inc., Series 2001, 5.375%, 9/01/21
1,000 State of Michigan, State Trunk Line Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 1,007,330
5.000%, 11/01/25
3,500 State of Michigan, State Trunk Line Refunding Bonds, 10/12 at 100.00 AAA 3,665,970
Series 2002, 5.250%, 10/01/21
1,100 Muskegon County, Michigan, General Obligation - Limited 7/11 at 100.00 AAA 1,107,084
Tax, Wastewater Management System No. 2, Revenue
Bonds, Series 2002, 5.000%, 7/01/26
Puerto Rico Highway and Transportation Authority, Highway
Revenue Bonds, Series Y of 1996:
4,100 5.500%, 7/01/36 7/16 at 100.00 A 4,279,662
2,000 5.000%, 7/01/36 7/16 at 100.00 A 1,956,060
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,157,900
Appropriation Bonds, 2002 Series E, 6.000%, 8/01/26
5,000 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101.00 AAA 5,095,000
Bonds, Detroit Metropolitan Wayne County Airport, General
Obligation - Limited Tax, Series 2001A, 5.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.9%
1,000 Capital Region Airport Authority, Michigan, Revenue Refunding 7/12 at 100.00 AAA 1,012,930
Bonds, Series 2002 Refunding, 5.250%, 7/01/21 (Alternative
Minimum Tax)
3,000 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101.00 AAA 2,959,110
Wayne County Airport, Airport Revenue Bonds, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax)
1,195 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101.00 AAA 1,185,655
Wayne County Airport, Airport Revenue Bonds, Series 1998B,
4.875%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.2%
2,190 Anchor Bay School District, Counties of Macomb and St. Clair, 5/09 at 100.00 AAA 2,559,322
State of Michigan, 1999 School Building and Site Bonds,
Series I, General Obligation - Unlimited Tax, 6.000%, 5/01/29
(Pre-refunded to 5/01/09)
330 Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 368,056
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101.00 AAA 1,167,040
Bonds, Series 1999-A, 5.875%, 7/01/27 (Pre-refunded
to 1/01/10)
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 2,000 City of Detroit, Michigan, Water Supply System Revenue Senior 1/10 at 101.00 AAA $ 2,317,380
Lien Bonds, Series 1999-A, 5.750%, 7/01/26 (Pre-refunded
to 1/01/10)
2,000 East Grand Rapids Public Schools, County of Kent, State of 5/09 at 100.00 AAA 2,337,280
Michigan, 2000 School Building and Site Bonds, General
Obligation - Unlimited Tax, 6.000%, 5/01/29 (Pre-refunded
to 5/01/09)
1,000 Grosse Ile Township School District, Michigan, School 5/07 at 100.00 AAA 1,153,420
Improvement Refunding Bonds, General Obligation,
Series 1996, 6.000%, 5/01/22 (Pre-refunded to 5/01/07)
2,000 Lincoln Park School District, Michigan, General Obligation 5/06 at 101.00 AAA 2,276,460
Bonds, Series 1996, 5.900%, 5/01/26 (Pre-refunded to 5/01/06)
3,460 Michigan State Hospital Finance Authority, Revenue and 5/08 at 101.00 AAA 3,476,539
Refunding Bonds, St. John Health System, Series 1998A,
5.000%, 5/15/28
2,875 Milan Area Schools, Counties of Washtenaw and Monroe, 5/10 at 100.00 AAA 3,324,133
State of Michigan, 2000 School Building and Site Bonds,
General Obligation - Unlimited Tax, Series A, 5.750%, 5/01/24
(Pre-refunded to 5/01/10)
1,125 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101.00 A*** 1,344,071
Revenue Bonds, Series B, 6.000%, 7/01/39 (Pre-refunded
to 7/01/10)
2,100 Romulus Community Schools, County of Wayne, State of 5/09 at 100.00 AAA 2,424,450
Michigan, 1999 School Building and Site Bonds, General
Obligation - Unlimited Tax, 5.750%, 5/01/25
(Pre-refunded to 5/01/09)
4,845 Saginaw-Midland Municipal Water Supply Corporation, 9/04 at 102.00 A2*** 5,364,917
State of Michigan, Water Supply Revenue Bonds, General
Obligation - Limited Tax, Series 1992, 6.875%, 9/01/16
(Pre-refunded to 9/01/04)
2,600 West Bloomfield School District, County Of Oakland, State 5/10 at 100.00 AAA 3,032,926
of Michigan, 2000 School Building and Site Bonds,
General Obligation - Unlimited Tax, 5.900%, 5/01/18
(Pre-refunded to 5/01/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.8%
3,000 Michigan Public Power Agency, Combustion Turbine No. 1 1/12 at 100.00 AAA 3,082,620
Project Revenue Bonds, 2001 Series A, 5.250%, 1/01/27
4,475 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 4,859,761
Revenue Bonds, 2000 Series, 6.000%, 5/01/12
3,630 Michigan Strategic Fund, Limited Obligation Refunding No Opt. Call AAA 4,637,289
Revenue Bonds, Detroit Edison Company, Series 1991BB,
7.000%, 5/01/21
2,000 Michigan Strategic Fund, Limited Obligation Refunding No Opt. Call Aaa 2,146,460
Revenue Bonds, Detroit Edison Company, Series 1995CC
Remarketing, 4.850%, 9/01/30 (Mandatory put 9/01/11)
4,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100.00 A- 4,061,400
Bonds, Detroit Edison Company Pollution Control Bonds,
Collateralized Series 2001C, 5.450%, 9/01/29
1,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102.00 AAA 1,035,490
Bonds, Detroit Edison Company Pollution Control Bonds,
Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax)
400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 416,400
Series HH, 5.250%, 7/01/29
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 1,039,220
Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.5%
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1997-A:
3,000 5.500%, 7/01/20 7/07 at 101.00 AAA 3,147,780
1,730 5.000%, 7/01/22 7/07 at 101.00 AAA 1,747,421
1,500 City of Detroit, Michigan, Sewage System Disposal Revenue No Opt. Call AAA 1,652,610
Bonds, Second Lien Series 20001B, 5.500%, 7/01/29
City of Detroit, Michigan, Water Supply System Senior Lien
Revenue Bonds, Series 2003A:
4,025 5.000%, 7/01/24 7/13 at 100.00 AAA 4,065,532
3,000 5.000%, 7/01/25 7/13 at 100.00 AAA 3,025,350
5,000 City of Detroit, Michigan, Water Supply System Revenue and 7/04 at 102.00 AAA 5,016,150
Refunding Bonds, Series 1993, 5.000%, 7/01/23
19
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
City of Detroit, Michigan, Water Supply System Revenue Senior
Lien Bonds, 2001 Series A:
$ 3,400 5.750%, 7/01/28 7/11 at 101.00 AAA $ 3,692,128
1,500 5.250%, 7/01/33 7/11 at 100.00 AAA 1,531,125
City of Muskegon Heights, County of Muskegon, State of Michigan,
Water Supply System Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 11/10 at 100.00 Aaa 1,101,451
1,160 5.625%, 11/01/30 11/10 at 100.00 Aaa 1,223,150
------------------------------------------------------------------------------------------------------------------------------------
$ 256,239 Total Long-Term Investments (cost $249,952,579) - 147.1% 266,112,867
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.9% 8,811,262
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (94,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $180,924,129
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
20
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.1%
$ 1,370 Michigan Strategic Fund, Limited Obligation Revenue Bonds, 12/03 at 102.00 BBB $ 1,378,357
WMX Technologies, Inc. Project, Series 1993,
6.000%, 12/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.8%
1,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A1 960,940
Asset-Backed Bonds, Series 2002 Refunding,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.5%
2,000 Michigan Higher Education Student Loan Authority, Revenue 9/12 at 100.00 AAA 2,032,200
Bonds, 2002 Series XVII-G, 5.200%, 9/01/20 (Alternative
Minimum Tax)
1,000 Board of Control of Saginaw Valley State University, 7/09 at 100.00 Aaa 1,061,200
Michigan, General Revenue Bonds, Series 1999,
5.625%, 7/01/29
3,500 Board of Governors of Wayne State University, Michigan, 11/09 at 101.00 AAA 3,540,495
General Revenue Bonds, Series 1999, 5.125%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 26.3%
2,050 Economic Development Corporation of the City of Dearborn, 11/05 at 102.00 AAA 2,189,585
Michigan, Hospital Revenue Bonds, Oakwood Obligated
Group, Series 1995A, 5.875%, 11/15/25
2,200 City of Hancock Hospital Finance Authority, Michigan, 8/08 at 100.00 AAA 2,242,746
FHA-Insured Mortgage Hospital Revenue Bonds, Portage
Health System, Inc., Series 1998, 5.450%, 8/01/47
2,500 City of Kalamazoo Hospital Finance Authority, Michigan, 5/06 at 102.00 AAA 2,644,250
Hospital Revenue Refunding and Improvement Bonds,
Bronson Methodist Hospital, Series 1996, 5.750%, 5/15/16
Michigan State Hospital Finance Authority, Revenue and Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
2,000 6.250%, 8/15/13 8/03 at 102.00 BBB- 2,008,200
3,200 6.500%, 8/15/18 8/03 at 102.00 BBB- 3,208,672
4,000 Michigan State Hospital Finance Authority, Hospital 3/03 at 102.00 A1 4,044,640
Revenue and Refunding Bonds, Henry Ford Health System,
Series 1992A, 5.750%, 9/01/17
2,000 Michigan State Hospital Finance Authority, Hospital Revenue 1/05 at 102.00 A+ 2,073,080
and Refunding Bonds, Otsego Memorial Hospital, Series 1995,
6.250%, 1/01/20
2,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/09 at 101.00 AA 2,684,600
Ascension Health Credit Group, Series 1999A, 6.125%, 11/15/26
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/09 at 101.00 AAA 4,194,720
and Refunding Bonds, Mercy Mount Clemens Corporation
Obligated Group, Series 1999A, 5.750%, 5/15/29
500 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A1 503,320
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
1,500 Michigan State Hospital Finance Authority, Hospital Revenue and 3/13 at 100.00 A1 1,549,350
Refunding Bonds, Henry Ford Health System, Series A,
5.625%, 3/01/17 (WI, settling 2/13/03)
4,300 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 4,475,784
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.5%
1,335 Michigan State Housing Development Authority, Multifamily 12/10 at 100.00 AAA 1,380,590
Revenue Bonds, Landings Project, Senior Lien Series 2001A,
5.950%, 12/01/33 (Alternative Minimum Tax)
1,000 Michigan State Housing Development Authority, Limited 4/12 at 102.00 Aaa 1,018,290
Obligation Multifamily Revenue Bonds, Series 2002A,
GNMA Collateralized - Burkshire Pointe Apartments,
5.400%, 10/20/32 (Alternative Minimum Tax)
21
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 500 Michigan State Housing Development Authority, Limited 9/15 at 100.00 Aaa $ 507,840
Obligation Multifamily Revenue Bonds, Series 2002, FNMA
Enhanced - Renaissance Apartments, 5.350%, 8/01/22
(Alternative Minimum Tax)
2,400 Michigan State Housing Development Authority, Limited 4/04 at 103.00 AAA 2,496,720
Obligation Revenue Bonds, Walled Lake Villa Project,
Series 1993, 6.000%, 4/15/18
1,500 Michigan State Housing Development Authority, Limited 10/03 at 103.00 AAA 1,536,315
Obligation Revenue Bonds, Brenton Village Green Project,
Series 1993, 5.625%, 10/15/18
790 Michigan State Housing Development Authority, Rental 4/03 at 102.00 AAA 806,487
Housing Revenue Bonds, 1993 Series A, 5.875%,10/01/17
Mount Clemens Housing Corporation, Michigan, Multifamily Housing
Refunding Revenue Bonds, Series 1992A (FHA-Insured Mortgage Loan
- Section 8 Assisted Project):
1,000 6.600%, 6/01/13 6/03 at 102.00 AAA 1,024,740
1,500 6.600%, 6/01/22 6/03 at 102.00 AAA 1,536,390
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.7%
1,000 Central Montcalm Public Schools, Counties of Montcalm and 5/09 at 100.00 AAA 1,077,810
Ionia, State of Michigan, 1999 School Building and Site
Bonds, General Obligation - Unlimited Tax, 5.750%, 5/01/24
730 Clarkston Community Schools, County of Oakland, State of 5/03 at 102.00 AAA 752,214
Michigan, 1993 School Building and Site Refunding Bonds,
5.900%, 5/01/16
School District of the City of Detroit, Wayne County, Michigan,
General Obligation Bonds, Series 2002A:
1,415 6.000%, 5/01/20 No Opt. Call AAA 1,666,714
750 6.000%, 5/01/21 No Opt. Call AAA 879,173
650 School District of the City of Detroit, Wayne County, 5/09 at 101.00 AAA 628,420
Michigan, School Building and Site Improvement Bonds,
Unlimited Tax General Obligation Bonds, Series 1998B,
4.750%, 5/01/28
500 School District of the City of Detroit, Wayne County, Michigan, 5/12 at 100.00 AAA 536,475
School Building and Site Improvement Bonds, Unlimited Tax
General Obligation Bonds, Series 2001A, 5.500%, 5/01/21
3,000 Dexter Community Schools, Counties of Washtenaw and 5/03 at 102.00 AAA 3,039,570
Livingston, State of Michigan, 1993 School Building and Site
Refunding Bonds, General Obligation - Unlimited Tax,
5.000%, 5/01/17
1,000 Durand Area Schools, Shiawasee County, Michigan, General 5/07 at 100.00 AAA 1,025,460
Obligation Bonds, Series 1997, 5.375%, 5/01/23
3,815 City of East Lansing Building Authority, Counties of Ingham 4/11 at 100.00 AA 3,968,020
and Clinton, State of Michigan, 2000 Building Authority
Bonds, General Obligation - Unlimited Tax, 5.375%, 4/01/25
1,000 Oxford Area Community School District, Counties of Oakland 11/11 at 100.00 AAA 1,091,620
and Lapeer, State of Michigan, General Obligation Bonds,
Series 2001, 5.500%, 5/01/17
380 Reeths-Puffer Schools, County of Muskegon, State of Michigan, 5/05 at 101.00 AAA 414,071
1995 School Building and Site Refunding Bonds,
5.750%, 5/01/15
1,000 Rochester Community School District, Counties of Oakland 5/10 at 100.00 AAA 1,093,000
and Macomb, State of Michigan, General Obligation Bonds,
Series 2000-I, 5.750%, 5/01/19
1,575 South Lyon Community Schools, Counties of Oakland, 11/12 at 100.00 AAA 1,640,142
Washtenaw, and Livingston, State of Michigan, General
Obligation Bonds, Series 2003, 5.250%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.8%
5,750 City of Detroit Convention Facility, Michigan, Limited Tax 9/03 at 102.00 AAA 5,992,995
Revenue Refunding Bonds, Cobo Hall Expansion Project,
Series 1993, 5.250%, 9/30/12
1,000 City of Detroit Downtown Development Authority, Michigan, 7/08 at 100.00 AAA 973,720
Tax Increment Refunding Bonds, Development Area No. 1
Projects, Series 1998A, 4.750%, 7/01/25
7,000 Detroit/Wayne County Stadium Authority, Wayne County, 2/07 at 102.00 AAA 7,145,390
Michigan, Building Authority Stadium Bonds, Series 1997,
General Obligation - Limited Tax Bonds, 5.250%, 2/01/27
1,500 Michigan State Building Authority, 2000 Revenue Bonds, 10/10 at 100.00 AA+ 1,586,055
Series I, Facilities Program, 5.375%, 10/15/20
Michigan State Building Authority, 2001 Revenue Refunding
Bonds, Series I, Facilities Program:
2,570 5.500%, 10/15/19 10/11 at 100.00 AA+ 2,779,198
6,500 5.000%, 10/15/24 10/11 at 100.00 AA+ 6,556,615
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 State of Michigan, Certificates of Participation, New Center 9/11 at 100.00 AAA $ 1,052,600
Development Inc., Series 2001, 5.375%, 9/01/21
1,500 State of Michigan, Comprehensive Transportation Revenue 11/11 at 100.00 AAA 1,552,005
Bonds, Series 2001A Refunding, 5.000%, 11/01/19
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100.00 A 978,030
Revenue Bonds, Series Y of 1996, 5.000%, 7/01/36
3,615 Saginaw-Midland Municipal Water Supply Corporation, 3/03 at 101.50 A2 3,681,769
Michigan, Water Supply System Revenue Bonds, General
Obligation - Limited Tax Bonds, Series 1993, 5.250%, 9/01/16
(Pre-refunded to 3/01/03)
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.7%
1,000 Puerto Rico Ports Authority, Special Facilities Revenue 6/03 at 102.00 BB- 290,000
Bonds, 1993 Series A, American Airlines, Inc. Project,
6.300%, 6/01/23 (Alternative Minimum Tax)
2,000 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101.00 AAA 1,972,740
Wayne County Airport, Airport Revenue Bonds, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax)
1,000 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101.00 AAA 992,180
Wayne County Airport, Airport Revenue Bonds, Series 1998B,
4.875%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.5%
475 Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 529,777
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101.00 AAA 2,334,080
Bonds, Series 1999-A, 5.875%, 7/01/27 (Pre-refunded
to 1/01/10)
4,000 City of Detroit, Michigan, Water Supply System Revenue 1/10 at 101.00 AAA 4,634,760
Senior Lien Bonds, Series 1999-A, 5.750%, 7/01/26
(Pre-refunded to 1/01/10)
3,000 Board of Regents of Eastern Michigan University, General 12/06 at 101.00 AAA 3,425,040
Revenue Bonds, Series 1997, 5.500%, 6/01/27 (Pre-refunded
to 12/01/06)
2,000 Board of Control of Ferris State University, Michigan, 10/03 at 102.00 AAA 2,108,800
General Revenue Bonds, Series 1993, 6.250%, 10/01/19
(Pre-refunded to 10/01/03)
1,950 Michigan Municipal Bond Authority, State Revolving Fund No Opt. Call AAA 2,027,044
Revenue Bonds, Series 1994, 7.000%, 10/01/03
5,000 Michigan Municipal Bond Authority, State Revolving Fund 10/09 at 101.00 AAA 5,775,250
Revenue Bonds, Drinking Water Revolving Fund Revenue
Bonds, Series 1999, 5.500%, 10/01/21 (Pre-refunded
to 10/01/09)
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/03 at 102.00 AAA 3,101,130
Refunding Bonds, St. John Hospital, Series 1993A,
6.000%, 5/15/13
1,240 Milan Area Schools, Counties of Washtenaw and Monroe, 5/10 at 100.00 AAA 1,423,793
State of Michigan, 2000 School Building and Site Bonds,
General Obligation - Unlimited Tax, Series A, 5.625%, 5/01/16
(Pre-refunded to 5/01/10)
1,100 Commonwealth of Puerto Rico, Public Improvement Refunding 7/07 at 101.50 A-*** 1,283,282
Bonds, Series 1997, General Obligation Bonds,
5.750%, 7/01/17 (Pre-refunded to 7/01/07)
620 Reeths-Puffer Schools, County of Muskegon, State of 5/05 at 101.00 AAA 685,261
Michigan, 1995 School Building and Site Refunding Bonds,
5.750%, 5/01/15 (Pre-refunded to 5/01/05)
1,500 Romulus Community Schools, County of Wayne, State of 5/09 at 100.00 AAA 1,731,750
Michigan, 1999 School Building and Site Bonds, General
Obligation - Unlimited Tax Bonds, 5.750%, 5/01/25
(Pre-refunded to 5/01/09)
2,500 West Bloomfield School District, County of Oakland, State 5/10 at 100.00 AAA 2,900,275
of Michigan, 2000 School Building and Site Bonds, General
Obligation - Unlimited Tax Bonds, 5.800%, 5/01/17
(Pre-refunded to 5/01/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 22.6%
1,000 Michigan Public Power Agency, Combustion Turbine No. 1 1/12 at 100.00 AAA 1,027,540
Project Revenue Bonds, 2001 Series A, 5.250%, 1/01/27
1,000 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 1,085,980
Revenue Bonds, 2000 Series, 6.000%, 5/01/12
23
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,500 Michigan Strategic Fund, Limited Obligation Refunding 6/03 at 102.00 AAA $ 3,626,455
Revenue Bonds, Consumers Power Company Project,
Collateralized Series 1993B, 5.800%, 6/15/10
3,000 Michigan Strategic Fund, Limited Obligation Refunding No Opt. Call Aaa 3,219,690
Revenue Bonds, Detroit Edison Company, Series 1995CC
Remarketing, 4.850%, 9/01/30 (Mandatory put 9/01/11)
5,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/11 at 100.00 A- 5,076,750
Bonds, Detroit Edison Company Pollution Control Bonds,
Collateralized Series 2001C, 5.450%, 9/01/29
1,000 Michigan Strategic Fund, Limited Obligation Refunding 9/09 at 102.00 AAA 1,035,490
Revenue Bonds, Detroit Edison Company Pollution Control
Bonds, Collateralized Series 1999A, 5.550%, 9/01/29
(Alternative Minimum Tax)
County of Monroe, Michigan, Pollution Control Revenue
Bonds, Detroit Edison Company, Series CC-1992:
2,500 6.550%, 6/01/24 (Alternative Minimum Tax) 6/03 at 102.00 AAA 2,589,525
1,500 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 102.00 AAA
6,000 County of Monroe, Michigan, Pollution Control Revenue Bonds, No Opt. Call AAA 6,499,080
Detroit Edison Company, Series A-1994, 6.350%, 12/01/04
(Alternative Minimum Tax)
1,500 Wyandotte, Michigan, Electric Revenue Bonds, Series 2002 10/08 at 101.00 AAA 1,609,635
Refunding, 5.375%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.4%
2,000 City of Detroit, Michigan, Sewage Disposal System Revenue 7/07 at 101.00 AAA 2,098,520
Bonds, Series 1997-A, 5.500%, 7/01/20
3,755 City of Detroit, Michigan, Sewage Disposal System Revenue 7/03 at 102.00 AAA 3,897,352
and Refunding Bonds, Series 1993-A, 5.700%, 7/01/13
1,500 City of Detroit, Michigan, Sewage Disposal System Revenue No Opt. Call AAA 1,652,610
Bonds, Second Lien Series 20001B, 5.500%, 7/01/29
2,700 City of Detroit, Michigan, Water Supply System Revenue Senior 7/11 at 100.00 AAA 2,756,025
Lien Bonds, 2001 Series A, 5.250%, 7/01/33
1,000 City of Grand Rapids, Michigan, Sanitary Sewer System 7/08 at 101.00 AAA 968,030
Improvement and Refunding Revenue Bonds, Series 1998A,
4.750%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 167,235 Total Long-Term Investments (cost $163,614,656) - 144.9% 175,139,926
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 1,692,789
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.3)% (56,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $120,832,715
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
24
Nuveen Michigan Dividend Advantage Municipal Fund (NZW)
Portfolio of
INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.8%
$ 1,150 Michigan Higher Education Facilities Authority, Limited 9/11 at 100.00 Aaa $ 1,157,533
Obligation Revenue Bonds, Kettering University Refunding,
Series 2001, 5.000%, 9/01/26
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.7%
1,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 1,009,990
Spectrum Health, Series 2001A, 5.250%, 1/15/21
1,200 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102.00 Baa3 1,205,388
Bonds, Sinai Hospital Refunding, Series 1995, 6.625%, 1/01/16
600 Michigan State Hospital Finance Authority, Hospital Revenue 5/06 at 102.00 A1 596,862
and Refunding Bonds (Henry Ford Health System),
Series 1995A, 5.250%, 11/15/20
750 Michigan State Hospital Finance Authority, Hospital Revenue 11/11 at 101.00 A1 754,980
Refunding Bonds, Sparrow Obligated Group, Series 2001,
5.625%, 11/15/31
1,800 City of Royal Oak Hospital Finance Authority, Michigan, 11/11 at 100.00 AAA 1,821,960
Hospital Revenue Bonds, William Beaumont Hospital,
Series 2001M, 5.250%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.7%
1,700 Michigan State Housing Development Authority, Limited 8/12 at 102.00 Aaa 1,737,791
Obligation Multifamily Housing Revenue Bonds, GNMA
Collateralized - Cranbrook Apartments, Series 2001A,
5.400%, 2/20/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.2%
1,250 Michigan State Housing Development Authority, Single 1/11 at 100.00 AAA 1,288,213
Family Mortgage Revenue Bonds, Series 2001,
5.300%, 12/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 54.4%
1,000 School District of the City of Detroit, Wayne County, 5/13 at 100.00 AAA 1,050,590
Michigan, General Obligation Bonds, Series 2002A,
5.375%, 5/01/24
1,000 School District of the City of Detroit, Wayne County, 5/09 at 101.00 AAA 966,800
Michigan, School Building and Site Improvement Bonds,
Unlimited Tax General Obligation Bonds, Series 1998B,
4.750%, 5/01/28
1,000 School District of the City of Detroit, Wayne County, 5/12 at 100.00 AAA 1,072,950
Michigan, School Building and Site Improvement Bonds,
Unlimited Tax General Obligation Bonds, Series 2001A,
5.500%, 5/01/21
1,000 School District of the City of Garden City, County of Wayne, 5/11 at 100.00 AAA 1,006,310
State of Michigan, General Obligation Bonds, Series 2001
Refunding, 5.000%, 5/01/26
1,300 Harper Creek Community School District, County of Calhoun, 5/11 at 100.00 AAA 1,314,014
State of Michigan, General Obligation Bonds, Series 2001,
5.125%, 5/01/31
2,200 Huron School District, Counties of Wayne and Monroe, 5/11 at 100.00 AAA 2,290,486
State of Michigan, General Obligation Bonds, Series 2001,
5.375%, 5/01/26
1,500 Huron Valley School District, Counties of Oakland and 11/11 at 100.00 AAA 1,509,180
Livingston, State of Michigan, General Obligation Bonds,
Series 2001, 5.000%, 5/01/27
1,050 Lawton Community Schools, County of Van Buren, State of 11/11 at 100.00 AAA 1,123,217
Michigan, General Obligation Bonds, Series 2001,
5.500%, 5/01/21
1,000 Portland Public Schools, County of Ionia, State of Michigan, 11/11 at 100.00 AAA 1,003,790
General Obligation Bonds, Series 2001, 5.000%, 5/01/29
1,000 Commonwealth of Puerto Rico, Public Improvement General 7/11 at 100.00 A- 997,280
Obligation Bonds of 2002, Series A, 5.125%, 7/01/31
1,000 Rochester Community School District, Counties of Oakland 11/11 at 100.00 AAA 1,063,040
and Macomb, State of Michigan, General Obligation Bonds,
2001 Series II, 5.500%, 5/01/22
500 Warren Building Authority, Michigan, General Obligation - 11/10 at 100.00 AAA 512,705
Limited Tax Bonds, Series 2001, 5.150%, 11/01/22
25
Nuveen Michigan Dividend Advantage Municipal (NZW) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 500 Warren Building Authority, Michigan, General Obligation - 11/10 at 100.00 AAA $ 512,705
Limited Tax Bonds, Series 2001, 5.150%, 11/01/22
Washtenaw County, Michigan, General Obligation - Limited Tax
Bonds, Sylvan Township Water and Wastewater System, Series 2001:
500 5.000%, 5/01/19 5/09 at 100.50 AAA 514,385
800 5.000%, 5/01/20 5/09 at 100.50 AAA 819,072
1,300 Willow Run Community Schools, County of Washtenaw, 5/11 at 100.00 AAA 1,327,664
State of Michigan, General Obligation Bonds, Series 2001,
5.000%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.2%
1,300 City of Grand Rapids Building Authority, County of Kent, State 10/11 at 100.00 AAA 1,320,085
of Michigan, General Obligation - Limited Tax Bonds,
Series 2001, 5.125%, 10/01/26
1,205 State Building Authority, State of Michigan, 2001 Revenue 10/11 at 100.00 AA+ 1,215,496
Refunding Bonds, Series I, Facilities Program, 5.000%, 10/15/24
2,000 State of Michigan, State Trunk Line Fund Bonds, Series 2001A, 11/11 at 100.00 AAA 2,014,660
5.000%, 11/01/25
1,450 Muskegon County, Michigan, General Obligation - 7/11 at 100.00 AAA 1,459,338
Limited Tax Wastewater Management System No. 2 Revenue
Bonds, Series 2002, 5.000%, 7/01/26
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 1,157,900
Appropriation Bonds, 2002 Series E, 6.000%, 8/01/26
1,750 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101.00 AAA 1,743,368
Bonds, Detroit Metropolitan Wayne County Airport, General
Obligation - Limited Tax Bonds, Series 2001A, 5.000%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.7%
1,750 Charter County of Wayne, Michigan, Airport Revenue Bonds, 12/08 at 101.00 AAA 1,726,148
Detroit Metropolitan Wayne County Airport, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.6%
1,000 Michigan Municipal Bond Authority, State Revolving Fund 10/10 at 101.00 AAA 1,179,780
Revenue Bonds, Drinking Water Revolving Fund Revenue
Bonds, Series 2000, 5.875%, 10/01/17 (Pre-refunded
to 10/01/10)
500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 534,595
Obligation Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5%
1,235 Michigan Public Power Agency, Combustion Turbine No. 1 1/12 at 100.00 AAA 1,271,714
Project Revenue Bonds, 2001 Series A, 5.250%, 1/01/24
2,215 Michigan Strategic Fund, Limited Obligation Refunding 9/11 at 100.00 A- 2,249,930
Revenue Bonds, Detroit Edison Company Pollution Control
Project Bonds, Collateralized Series 1999C, Fixed Rate
Conversion, 5.650%, 9/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.2%
1,000 City of Detroit, Michigan, Sewage System Disposal No Opt. Call AAA 1,101,740
Revenue Bonds, Second Lien Series 20001B, 5.500%, 7/01/29
City of Detroit, Michigan, Water Supply System Revenue Senior
Lien Bonds, 2001 Series A:
1,000 5.000%, 7/01/30 7/11 at 100.00 AAA 1,001,660
1,000 5.250%, 7/01/33 7/11 at 100.00 AAA 1,020,750
------------------------------------------------------------------------------------------------------------------------------------
$ 44,005 Total Long-Term Investments (cost $43,838,753) - 148.0% 45,141,364
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 1,352,218
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.5)% (16,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $30,493,582
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
See accompanying notes to financial statements.
26
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.7%
$ 4,450 Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A1 $ 4,276,183
Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.2%
825 Bowling Green State University, Ohio, General Receipts 6/03 at 100.00 A 839,380
Bonds, Series 1991, 6.700%, 6/01/07
3,665 State of Ohio, Education Loan Revenue Bonds, Series 1997A, 6/07 at 102.00 AAA 3,821,935
Supplemental Student Loan Program, 1997A1,
5.850%, 12/01/19 (Alternative Minimum Tax)
1,000 Ohio Higher Educational Facilities Commission, Revenue 12/04 at 102.00 AAA 1,091,780
Bonds, University of Dayton Project, Series 1994,
5.800%, 12/01/14
1,200 Ohio Higher Educational Facilities Commission, Revenue 9/06 at 101.00 Ba1 1,212,792
Bonds, University of Findlay Project, Series 1996,
6.125%, 9/01/16
1,200 Ohio State University, General Receipts Bonds, Series 2002, 12/12 at 100.00 AA 1,216,764
5.125%, 12/01/31
1,575 Ohio State University, General Receipts Bonds, Series 1992 A1, 6/03 at 102.00 AA 1,611,461
5.875%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.2%
2,675 County of Clermont, Ohio, Hospital Facilities Revenue 7/03 at 102.00 AAA 2,735,776
Refunding Bonds, Series 1993 A, Mercy Health System,
5.875%, 1/01/15
1,000 County of Cuyahoga, Ohio, Hospital Improvement and 2/07 at 102.00 AAA 1,100,750
Refunding Revenue Bonds, Series 1997, MetroHealth System
Project, 5.625%, 2/15/17
1,170 County of Cuyahoga, Ohio, Hospital Facilities Revenue Bonds, 2/03 at 102.00 Aa3 1,194,675
Series 1993, Health Cleveland, Inc., Fairview General
Hospital Project, 6.300%, 8/15/15
2,500 Erie County, Ohio, Hospital Facilities Revenue Bonds, 8/12 at 101.00 A 2,511,775
Firelands Regional Medical Center, Series 2002A,
5.625%, 8/15/32
County of Franklin, Ohio, Hospital Refunding and Improvement
Revenue Bonds, 1996 Series A, Children's Hospital Project:
1,000 5.750%, 11/01/20 11/06 at 101.00 Aa2 1,031,060
1,500 5.875%, 11/01/25 11/06 at 101.00 Aa2 1,540,410
2,500 County of Marion, Ohio, Hospital Refunding and Improvement 5/06 at 102.00 BBB+ 2,645,875
Revenue Bonds, Series 1996, Community Hospital,
6.375%, 5/15/11
2,405 County of Miami, Ohio, Hospital Facilities Revenue 5/06 at 102.00 BBB+ 2,483,235
Refunding and Improvement Bonds, Series 1996A, Upper
Valley Medical Center, 6.250%, 5/15/16
1,500 County of Montgomery, Ohio, Hospital Facilities Revenue 4/06 at 102.00 AAA 1,649,895
Refunding and Improvement Bonds, Series 1996, Kettering
Medical Center, 5.625%, 4/01/16
3,000 County of Montgomery, Ohio, Hospital Facilities Revenue 4/10 at 101.00 BBB+ 3,229,530
Bonds, Series 1999, Kettering Medical Center,
6.750%, 4/01/18
6,000 City of Parma, Ohio, Hospital Improvement and Refunding 11/08 at 101.00 A- 5,878,560
Revenue Bonds, Series 1998, Parma Community Hospital
Association, 5.375%, 11/01/29
2,500 County of Richland, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,610,400
Improvement Bonds, Series 2000B, MedCentral Health
System Obligated Group, 6.375%, 11/15/30
1,500 City of Steubenville, Ohio, Hospital Facilities Revenue 10/10 at 100.00 A3 1,585,095
Refunding and Improvement Bonds, Series 2000, Trinity
Health System, 6.375%, 10/01/20
1,705 County of Tuscarawas, Ohio, Hospital Facilities Revenue 10/11 at 101.00 AA 1,836,831
Bonds, Union Hospital Project, Series 2001, 5.750%, 10/01/21
27
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 14.4%
$ 1,385 County of Clermont, Ohio, Mortgage Revenue Bonds, 8/03 at 103.00 Aaa $ 1,405,263
Series 1994, GNMA Collateralized - S.E.M. Villa II Project,
Series 1994-A, 5.950%, 2/20/30
1,000 Cuyahoga County, Ohio, Mortgage Revenue Bonds, 9/10 at 102.00 Aaa 1,009,080
West Tech Apartments Project, Series 2002A, GNMA
Collateralized, 5.350%, 3/20/33 (Alternative Minimum Tax)
1,435 County of Cuyahoga, Ohio, Multifamily Housing Revenue 6/08 at 105.00 Aaa 1,527,586
Bonds, 1997 Water Street Associates Project,
6.150%, 12/20/26 (Alternative Minimum Tax)
County of Cuyahoga, Ohio, Multifamily Housing Mortgage
Revenue Bonds, 2001 Series A, GNMA Collateralized -
Longwood Phase One Associates L.P. Project:
2,475 5.350%, 1/20/21 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,537,197
2,250 5.450%, 1/20/31 (Alternative Minimum Tax) 7/11 at 102.00 Aaa 2,297,475
1,000 Cuyahoga County, Ohio, Multifamily Revenue Bonds, 9/12 at 102.00 Aaa 1,016,580
Livingston Park GNMA Collateralized, Series 2002A,
5.350%, 9/20/27
985 County of Franklin, Ohio, Multifamily Housing Mortgage 1/05 at 103.00 Aa 995,825
Revenue Bonds, Series 1994A, FHA-Insured Mortgage
Loan - Hamilton Creek Apartments Project, 5.550%, 7/01/24
(Alternative Minimum Tax)
4,060 Lucas Northgate Housing Development Corporation, Ohio, 1/04 at 102.00 Aaa 4,143,880
Mortgage Revenue Refunding Bonds, Series 1999A,
FHA-Insured Mortgage Loan - Northgate Apartments
Section 8 Assisted Project, 6.000%, 7/01/24
3,265 Ohio Housing Finance Agency, Multifamily Housing 12/09 at 100.00 AAA 3,435,825
Revenue Bonds, Timber Lake Apartments Project,
Series 1999C, 6.150%, 12/01/24 (Alternative Minimum Tax)
4,315 Ohio Capital Corporation for Housing Mortgage Revenue 2/09 at 102.00 Aa2 4,521,430
Refunding Bonds, Series 1999G, FHA-Insured Mortgage
Loans - Section 8 Assisted Projects, 5.950%, 2/01/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.2%
2,560 Ohio Housing Finance Agency, Residential Mortgage 9/09 at 100.00 Aaa 2,716,058
Revenue Bonds, 2000 Series A1, Mortgage-Backed
Securities Program, 6.350%, 9/01/31 (Alternative
Minimum Tax)
2,840 Ohio Housing Finance Agency, Residential Mortgage 9/07 at 102.00 Aaa 2,929,176
Revenue Bonds, 1996 Series B-3, Mortgage-Backed
Securities Program, 5.750%, 9/01/28 (Alternative
Minimum Tax)
5,000 Ohio Housing Finance Agency, Residential Mortgage 3/08 at 101.50 AAA 5,097,900
Revenue Bonds, 1998 Series A1, 5.300%, 9/01/19
(Alternative Minimum Tax)
3,955 Ohio Housing Finance Agency, Residential Mortgage 9/08 at 102.00 Aaa 4,010,805
Revenue Bonds, 1997 Series B, Mortgage-Backed
Securities Program, 5.400%, 9/01/29 (Alternative
Minimum Tax)
3,000 Ohio Housing Finance Agency, Residential Mortgage 3/12 at 100.00 Aaa 3,053,280
Revenue Bonds, GNMA Mortgage-Backed Securities
Program, 2002 Series D, 5.400%, 9/01/34 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6%
1,000 County of Marion, Ohio, Health Care Facilities Refunding 11/03 at 102.00 BBB- 1,015,750
and Improvement Revenue Bonds, Series 1993, United
Church Homes, Inc. Project, 6.300%, 11/15/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.2%
1,000 Ansonia Local School District, Darke County, Ohio, General 12/10 at 102.00 Aaa 1,079,100
Obligation Bonds, Series 2000, 5.500%, 12/01/22
1,000 Bay Village City School District, Ohio, General Obligation - 12/10 at 100.00 Aa2 1,008,640
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
Berea City School District, Ohio, School Improvement Bonds,
Series 1993, General Obligation - Unlimited Tax Bonds:
650 7.500%, 12/15/06 12/03 at 102.00 AAA 698,529
680 7.450%, 12/15/07 12/03 at 102.00 AAA 730,476
1,750 Brecksville - Broadview Heights City School District, Ohio, 12/06 at 102.00 AAA 2,045,610
School Improvement Bonds, Series 1996, General
Obligation - Unlimited Tax Bonds, 6.500%, 12/01/16
1,000 Cincinnati City School District, Hamilton County, Ohio, 12/11 at 100.00 AAA 1,093,240
General Obligation Bonds, Series 2001, 5.375%, 12/01/15
2,600 Cincinnati City School District, Hamilton County, Ohio, General 12/12 at 100.00 AAA 2,745,990
Obligation Bonds, Series 2002, 5.250%, 6/01/21
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 City of Dublin, Ohio, Various Purpose Improvement Bonds, 12/10 at 100.00 Aa1 $ 1,027,650
Series 2000A, General Obligation - Unlimited Tax Bonds,
5.000%, 12/01/20
1,300 County of Franklin, Ohio, Refunding Bonds, Series 1993, 12/08 at 102.00 AAA 1,407,432
General Obligation - Limited Tax Bonds, 5.375%, 12/01/20
2,000 Garfield Heights City School District, Cuyahoga County, 12/11 at 100.00 Aaa 2,022,020
Ohio, General Obligation School Improvement Bonds,
Series 2001, 5.000%, 12/15/26
1,000 Hilliard City School District, Ohio, General Obligation Bonds, 12/10 at 101.00 AAA 1,087,710
School Improvement Bonds, Series 2000, 5.750%, 12/01/24
2,000 Lakota Local School District, County of Butler, Ohio, General 6/11 at 100.00 Aaa 2,038,300
Obligation - Unlimited Tax School Improvement and
Refunding Bonds, Series 2001, 5.125%, 12/01/26
1,750 London City School District, Ohio, General Obligation School 12/11 at 100.00 Aaa 1,764,175
Facilities Construction and Improvement Bonds, Series 2001,
5.000%, 12/01/29
2,500 Louisville City School District, Ohio, General Obligation Bonds, 12/11 at 100.00 Aaa 2,520,250
Series 2001, 5.000%, 12/01/29
1,515 Massillon City School District, Ohio, General Obligation Bonds, 12/12 at 100.00 Aaa 1,595,159
Series 2003, 5.250%, 12/01/21
2,335 Milford Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 2,373,481
Obligation Bonds, Series 2001, 5.125%, 12/01/30
1,260 Morgan Local School District, Counties of Morgan, Muskingum, 12/10 at 101.00 AA- 1,373,992
and Washington, Ohio, School Improvement General
Obligation - Unlimited Tax Bonds, Series 2000, 5.750%, 12/01/22
North Canton City School District, Ohio, School Improvement
Bonds, Series 1994, General Obligation - Unlimited Tax Bonds:
650 9.750%, 12/01/03 No Opt. Call AAA 695,773
715 9.700%, 12/01/04 No Opt. Call AAA 821,893
Oak Hills Local School District, Hamilton County, Ohio, General
Obligation Bonds, Series 1997B:
1,025 6.900%, 12/01/11 No Opt. Call AAA 1,271,472
1,090 6.900%, 12/01/12 No Opt. Call AAA 1,362,685
2,720 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 2,742,440
Counties, Ohio, General Obligation Bonds, School Facilities
Construction and Improvement, Series 2001, 5.000%, 12/01/28
1,100 Plain Local School District, Franklin and Licking Counties, 6/12 at 100.00 Aaa 1,209,857
Ohio, General Obligation Bonds, Series 2002, 5.500%, 12/01/17
280 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 314,378
Ohio, General Obligation Bonds, Series 2000, 6.000%, 12/01/20
1,445 Portage County, Ohio, General Obligation Bonds, Series 2001, 12/11 at 100.00 AAA 1,458,988
5.000%, 12/01/27
2,000 Commonwealth of Puerto Rico, Public Improvement Bonds 7/06 at 101.50 A- 2,042,500
of 1996, General Obligation Bonds, 5.400%, 7/01/25
1,000 Revere Local School District, Ohio, School Improvement 12/03 at 102.00 AAA 1,055,900
Bonds, Series 1993, General Obligation - Unlimited Tax
Bonds, 6.000%, 12/01/16
2,830 Springfield Township, Hamilton County, Ohio, Various 12/11 at 100.00 Aa3 2,912,806
Purpose General Obligation - Limited Tax Bonds, Series 2002,
5.250%, 12/01/27
2,000 City of Strongsville, Ohio, General Obligation Bonds, 12/11 at 100.00 Aaa 2,049,380
Series 2001, 5.000%, 12/01/21
70 City of Strongsville, Ohio, Various Purpose Improvement 12/06 at 102.00 Aa2 77,247
Bonds, Series 1996, General Obligation - Limited Tax,
5.950%, 12/01/21
1,000 Upper Arlington City School District, Ohio, General Obligation 12/06 at 101.00 AAA 1,025,860
Bonds, Series 1996, Improvement Bonds, 5.250%, 12/01/22
2,000 Board of Education, Wayne Local School District, County 12/06 at 101.00 AAA 2,266,280
of Warren, Ohio, School Improvement Bonds, Series 1996,
General Obligation - Unlimited Tax, 6.100%, 12/01/24
2,000 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,018,460
Counties, Ohio, Various Purpose General Obligation Bonds,
Series 2001, 5.000%, 12/01/27
1,000 City of Westlake, Ohio, Various Purpose General Obligation 12/08 at 101.00 Aaa 1,095,410
Improvement and Refunding Bonds, Series 1997,
5.550%, 12/01/17
29
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 3.7%
$ 1,250 City of Columbus, Ohio, Tax Increment Financing Bonds, 6/09 at 101.00 AAA $ 1,252,213
Series 1999, Easton Project, 4.875%, 12/01/24
7,000 County of Hamilton, Ohio, Sales Tax Bonds, Subordinate No Opt. Call Aaa 1,882,930
Series B, 0.000%, 12/01/28
New Albany Community Authority, Ohio, Community Facilities
Revenue Bonds, Series 2001B Refunding:
1,000 5.500%, 10/01/15 4/12 at 100.00 AAA 1,106,420
1,000 5.500%, 10/01/17 4/12 at 100.00 AAA 1,096,810
615 State of Ohio Department of Transportation, Certificates of 4/03 at 100.00 AA 615,683
Participation, Rickenbacker Port Authority Improvements,
6.125%, 4/15/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 0.3%
500 County of Franklin, Ohio, Revenue Bonds, Series 1993, Online 4/03 at 100.00 N/R 501,305
Computer Library Center, Incorporated Project, 6.000%, 4/15/13
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.7%
City of Cleveland, Ohio, Airport System Revenue Bonds,
Series 2000A:
1,780 5.250%, 1/01/16 1/10 at 101.00 AAA 1,889,310
3,000 5.000%, 1/01/31 1/10 at 101.00 AAA 3,010,560
3,430 City of Cleveland, Ohio, Parking Facilities Refunding Revenue 9/06 at 102.00 AAA 3,609,320
Bonds, Series 1996, 5.500%, 9/15/22
Columbus Municipal Airport Authority, Ohio, Airport Improvement
Revenue Bonds, Series 1994A, Port Columbus International Airport
Project:
830 5.950%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102.00 AAA 866,860
1,000 6.000%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102.00 AAA 1,052,520
1,500 City of Dayton, Ohio, Special Facilities Revenue Refunding 2/08 at 102.00 BB+ 1,136,220
Bonds, Series 1998A, Emery Air Freight Corporation and
Emery Worldwide Airlines, Inc. - Guarantors,
5.625%, 2/01/18
2,000 State of Ohio, Turnpike Revenue Bonds, 1998 Series A, 5.500%, 2/15/18 No Opt. Call AAA 2,253,080
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.2%
3,065 Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 3,418,456
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,000 City of Cleveland, Ohio, Public Power System First Mortgage 11/04 at 102.00 AAA 2,242,460
Revenue Bonds, Series 1994A, 7.000%,11/15/24
(Pre-refunded to 11/15/04)
3,960 City of Cleveland, Ohio, Waterworks Improvement and 1/06 at 102.00 AAA 4,480,661
Refunding Revenue Bonds, 1st Mortgage Series 1996-H,
5.750%, 1/01/26 (Pre-refunded to 1/01/06)
2,240 County of Franklin, Ohio, First Mortgage Revenue, Series 1979, 6/03 at 103.00 AAA 2,599,072
Online Computer Library Center, Incorporated Project,
7.500%, 6/01/09
1,365 County of Franklin, Ohio, Health Care Facilities Revenue Bonds, 7/03 at 102.00 N/R*** 1,421,798
Series 1993, Ohio Presbyterian Retirement Services,
6.500%, 7/01/23 (Pre-refunded to 7/01/03)
1,505 Greater Cleveland Regional Transit Authority, Ohio, General 12/06 at 101.00 Aaa 1,727,138
Obligation Capital Improvement Bonds, Series 1996,
5.650%, 12/01/16 (Pre-refunded to 12/01/06)
2,100 Lakota Local School District, County of Butler, Ohio, School 12/05 at 100.00 AAA 2,373,819
Improvement General Obligation - Unlimited Tax Bonds,
Series 1994, 6.250%, 12/01/14 (Pre-refunded to 12/01/05)
1,000 City of Newark, Ohio, General Obligation - Limited Tax Water 12/03 at 102.00 AAA 1,060,730
System Improvement Bonds, 6.000%, 12/01/18 (Pre-refunded
to 12/01/03)
3,000 Ohio Building Authority, State Facilities Bonds, Adult 10/03 at 102.00 AA*** 3,160,530
Correctional Building Fund Projects, Series 1993A,
6.125%, 10/01/12 (Pre-refunded to 10/01/03)
2,400 Ohio Higher Educational Facilities Commission, Revenue 12/03 at 102.00 AAA 2,557,656
Bonds, University of Dayton Project, Series 1992,
6.600%, 12/01/17 (Pre-refunded to 12/01/03)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,000 Ohio Water Development Authority, Water Development 6/05 at 102.00 AAA $ 1,121,740
Revenue Bonds, 1995 Fresh Water Series,
5.900%, 12/01/21 (Pre-refunded to 6/01/05)
1,220 Plain Local School District, Franklin and Licking Counties, 6/11 at 100.00 Aaa 1,433,244
Ohio, General Obligation Bonds, Series 2000,
6.000%, 12/01/20 (Pre-refunded to 6/01/11)
1,300 Commonwealth of Puerto Rico, General Obligation Public 7/07 at 101.50 A-*** 1,516,606
Improvement Refunding Bonds, Series 1997,
5.750%, 7/01/17 (Pre-refunded to 7/01/07)
2,800 City of Strongsville, Ohio, Various Purpose General 12/06 at 102.00 Aa2*** 3,269,112
Obligation - Limited Tax Improvement Bonds, Series 1996,
5.950%, 12/01/21 (Pre-refunded to 12/01/06)
1,000 Sylvania City School District, Ohio, General Obligation - 12/05 at 101.00 AAA 1,127,540
Unlimited Tax, Series 1995, 5.800%, 12/01/15
(Pre-refunded to 12/01/05)
3,000 Board of Education, West Clermont Local School District, 12/05 at 100.00 AAA 3,369,570
County of Clermont, Ohio, General Obligation - Unlimited
Tax School Improvement Bonds, Series 1995,
6.000%, 12/01/18 (Pre-refunded to 12/01/05)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.8%
4,000 American Municipal Power Ohio Inc., City of Wadsworth Project, 2/12 at 100.00 Aaa 4,062,440
Electric System Improvement Revenue Bonds, Series 2002,
5.000%, 2/15/22
Ohio Air Quality Development Authority, Revenue Refunding Bonds,
JMG Funding Limited Partnership Project, Series 1994:
2,000 6.375%, 1/01/29 (Alternative Minimum Tax) 10/04 at 102.00 AAA 2,180,240
4,000 6.375%, 4/01/29 (Alternative Minimum Tax) 10/04 at 102.00 AAA 4,360,480
3,000 Ohio Air Quality Development Authority, Revenue Bonds, 4/07 at 102.00 AAA 3,103,860
JMG Funding Limited Partnership Project, Series 1997,
5.625%, 1/01/23 (Alternative Minimum Tax)
2,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,819,380
Revenue Bonds, Bay Shore Power Project, Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.8%
City of Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100.00 AA+ 1,090,920
6,010 5.000%, 12/01/18 6/11 at 100.00 AA+ 6,252,564
3,000 5.000%, 12/01/19 6/11 at 100.00 AA+ 3,104,160
1,000 5.000%, 12/01/20 6/11 at 100.00 AA+ 1,029,110
1,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage No Opt. Call AAA 1,104,460
Refunding Revenue Bonds, Series 1993 G, 5.500%, 1/01/21
1,000 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/08 at 101.00 AAA 1,005,770
Revenue Bonds, Series 1998 I, 5.000%, 1/01/28
40 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/06 at 102.00 AAA 42,670
Revenue Bonds, 1st Mortgage Series 1996 H, 5.750%, 1/01/26
2,110 Hamilton County, Ohio, Sewer System Improvement Revenue 6/10 at 101.00 AAA 2,283,460
Bonds, Series 2000A, Metropolitan Sewer District of Greater
Cincinnati, 5.750%, 12/01/25
31
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 Northeast Ohio Regional Sewer District, Wastewater 11/05 at 101.00 AAA $ 2,192,400
Improvement Revenue Refunding Bonds, Series 1995,
5.600%, 11/15/16
2,000 Southwest Regional Water District, Ohio, Waterworks 12/05 at 101.00 AAA 2,210,280
System Revenue Bonds, Series 1995, 6.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 225,680 Total Long-Term Investments (cost $219,419,756) - 146.0% 231,845,912
================--------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9%
1,400 University of Toledo, Ohio, General Receipts, Variable Rate VMIG-1 1,400,000
Demand Bonds, Series 2002, 1.350%, 6/01/32+
================--------------------------------------------------------------------------------------------------------------------
$ 1,400 Total Short-Term Investments (cost $1,400,000) 1,400,000
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 2,543,730
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.5)% (77,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $158,789,642
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
32
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.4%
$ 2,225 Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A1 $ 2,138,091
Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.4%
1,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 12/10 at 101.00 AAA 1,056,850
University of Dayton Project, Series 2000, 5.500%, 12/01/25
2,000 Ohio Higher Educational Facilities Commission, Revenue Bonds, 11/11 at 101.00 AA 2,047,780
Denison University Project, Series 2001, 5.200%, 11/01/26
2,650 Ohio Higher Educational Facilities Commission, Revenue 5/12 at 100.00 A2 2,656,599
Bonds, Ohio Northern University Project, Series 2002,
5.000%, 5/01/22
3,150 Student Loan Funding Corporation, Cincinnati, Ohio, Student 7/03 at 100.00 A 3,156,458
Loan Subordinated Revenue Refunding Bonds, Series 1992 D,
6.600%, 7/01/05 (Alternative Minimum Tax)
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101.00 AAA 2,242,840
Series 2001A, 5.750%, 6/01/17
2,735 University of Cincinnati, Ohio, General Receipts Bonds, 6/12 at 100.00 AA 2,942,559
Series 2002F, 5.375%, 6/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.1%
1,300 Akron, Bath and Copley Joint Township Hospital District, 11/03 at 102.00 Baa1 1,282,021
Ohio, Hospital Facilities Revenue Bonds, Series 1993A,
Summa Health System Project, 5.500%, 11/15/13
1,950 County of Lucas, Ohio, Hospital Revenue Bonds, Series 1999, 11/09 at 101.00 AAA 2,021,702
ProMedica Healthcare Obligated Group, 5.375%, 11/15/29
2,500 County of Miami, Ohio, Hospital Facilities Revenue Refunding 5/06 at 102.00 BBB+ 2,536,575
and Improvement Bonds, Series 1996A, Upper Valley
Medical Center, 6.375%, 5/15/26
City of Parma, Ohio, Hospital Improvement and Refunding
Revenue Bonds, Series 1998, Parma Community Hospital
Association:
2,250 5.250%, 11/01/13 11/08 at 101.00 A- 2,327,738
2,000 5.375%, 11/01/29 11/08 at 101.00 A- 1,959,520
1,000 County of Richland, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,044,160
Improvement Bonds, Series 2000B, MedCentral Health
System Obligated Group, 6.375%, 11/15/30
1,500 County of Tuscarawas, Ohio, Hospital Facilities Revenue 10/03 at 102.00 Baa1 1,521,015
Bonds, Series 1993A, Union Hospital Project,
6.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.6%
1,790 Lucas Northgate Housing Development Corporation, Ohio, 1/04 at 102.00 Aaa 1,835,001
Mortgage Revenue Refunding Bonds, FHA-Insured
Mortgage Loan - Northgate Apartments, Section 8 Assisted
Project, Series 1999A, 5.950%, 7/01/19
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage 4/11 at 102.00 Aa2 2,956,981
Loan - Asbury Woods Project, Series 2001A, 5.450%,4/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.8%
1,720 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100.00 Aaa 1,808,322
Bonds, 2000 Series C, Mortgage-Backed Securities
Program, 6.050%, 3/01/32 (Alternative Minimum Tax)
2,095 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100.00 Aaa 2,186,489
Bonds, 2000 Series D, Mortgage-Backed Securities
Program, 5.450%, 9/01/31 (Alternative Minimum Tax)
1,510 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100.00 Aaa 1,602,321
Bonds, Series 2000F, Mortgage-Backed Securities
Program, 5.625%, 9/01/16
1,215 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/12 at 100.00 Aaa 1,236,578
Bonds, GNMA Mortgage-Backed Securities Program,
2002 Series D, 5.400%, 9/01/34 (Alternative Minimum Tax)
33
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.7%
$ 1,000 County of Franklin, Ohio, Health Care Facilities Revenue Bonds, 7/11 at 101.00 BBB $ 1,051,360
Series 2001A, Ohio Presbyterian Retirement Services,
7.125%, 7/01/29
1,970 County of Hamilton, Ohio, Health Care Facilities Improvement 10/08 at 102.00 BBB+ 1,897,307
Revenue Bonds, Series 1999A, Twin Towers Project,
5.750%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.4%
1,440 Bay Village City School District, Ohio, General Obligation - 12/10 at 100.00 Aa2 1,452,442
Unlimited Tax School Improvement Bonds, Series 2001,
5.000%, 12/01/25
1,000 City of Centerville, Ohio, General Obligation - Limited Tax 12/11 at 100.00 Aa3 1,020,080
Bonds, Capital Facilities Improvement, Series 2001,
5.125%, 12/01/26
Jackson City School District, County of Jackson, Ohio, General
Obligation - Unlimited Tax School Improvement Bonds, Series
2001:
880 5.500%, 12/01/22 6/11 at 100.00 Aaa 940,852
935 5.500%, 12/01/23 6/11 at 100.00 Aaa 994,971
2,000 Lakota Local School District, County of Butler, Ohio, 6/11 at 100.00 Aaa 2,038,300
General Obligation - Unlimited Tax School Improvement
and Refunding Bonds, Series 2001, 5.125%, 12/01/26
2,000 Medina City School District, Medina County, Ohio, 12/09 at 100.00 AAA 2,051,420
General Obligation - Unlimited Tax School Building
Construction Bonds, Series 1999, 5.250%, 12/01/28
1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101.00 AAA 1,057,240
Bonds, Series 2000, 5.450%, 12/01/25
1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101.00 AAA 1,921,133
Obligation Bonds, Series 2001, 5.250%, 12/01/25
1,275 Sycamore Community School District, County of Hamilton, 12/09 at 101.00 AAA 1,292,646
Ohio, General Obligation - Unlimited Tax School Improvement
Bonds, Series 1999, 5.000%, 12/01/23
1,485 West Chester Township, Butler County, Ohio, General 11/11 at 101.00 Aaa 1,635,935
Obligation - Limited Tax Various Purpose Refunding Bonds,
Series 2001, 5.500%, 12/01/17
1,000 West Holmes Local School District, Ohio, School Improvement 6/07 at 101.00 AAA 1,036,480
Bonds, Series 1997, 5.375%, 12/01/23
2,500 Westerville City School District, Franklin and Delaware 6/11 at 100.00 AAA 2,523,075
Counties, Ohio, General Obligation Various Purpose
Bonds, Series 2001, 5.000%, 12/01/27
2,965 City of Worthington, Franklin County, Ohio, General 12/11 at 100.00 AA+ 3,144,442
Obligation - Unlimited Tax Various Purpose Bonds,
Series 2001, 5.375%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.0%
2,000 State of Ohio, Higher Education Capital Facilities Bonds, 2/11 at 100.00 AA+ 2,059,120
Series II-2001A, 5.000%, 2/01/20
4,000 Puerto Rico Municipal Finance Agency, 1999 Series A 8/09 at 101.00 AAA 4,605,040
Bonds, 6.000%, 8/01/16
1,400 Virgin Islands Public Finance Authority, Revenue Bonds, 10/10 at 101.00 BBB- 1,553,944
Virgin Islands Gross Receipts Taxes Loan Note, Series 1999A,
6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.0%
2,000 City of Cleveland, Ohio, Airport Special Revenue Bonds, 12/09 at 101.00 B+ 1,243,360
Continental Airlines Inc. Refunding, Series 1999,
5.700%, 12/01/19 (Alternative Minimum Tax)
2,000 State of Ohio, Turnpike Revenue Bonds, 2001A Series, Issued 2/11 at 100.00 AA 2,104,000
by Ohio Turnpike Commission, 5.500%, 2/15/26
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,062,020
Bonds, Series 1992, CSX Transportation Inc. Project,
6.450%, 12/15/21
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.5%
$ 1,440 American Municipal Power Ohio Inc., City of Wadsworth 2/12 at 100.00 Aaa $ 1,536,538
Project, Electric System Improvement Revenue Bonds,
Series 2002, 5.250%, 2/15/17
910 City of Lebanon, Ohio, Electric System Mortgage Revenue 12/10 at 101.00 AAA 990,653
Bonds, Series 2001, 5.500%, 12/01/18
2,000 Ohio Air Quality Development Authority, Revenue Bonds, 6/03 at 102.00 A3 2,024,820
1985 Series A, Columbus Southern Power Company
Project, 6.250%, 12/01/20
2,000 Ohio Air Quality Development Authority, Revenue Refunding Bonds, 9/05 at 102.00 A3 2,026,940
1995 Series, Dayton Power and Light Company Project,
6.100%, 9/01/30
2,000 Ohio Air Quality Development Authority, Revenue Refunding Bonds, 5/09 at 101.00 AAA 2,034,660
Series C, Ohio Power Company Project, 5.150%, 5/01/26
1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 1,535,174
Revenue Refunding Bonds, Series 1999-C, Ohio Edison
Company Project, 5.800%, 6/01/16 (Mandatory put 12/01/04)
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 909,690
Revenue Bonds, Bay Shore Power Project, Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.3%
2,000 City of Akron, Ohio, Sanitary Sewer System Revenue Bonds, 12/06 at 101.00 AAA 2,208,100
Series 1997 Refunding, 5.550%, 12/01/16
1,700 City of Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100.00 AA+ 1,757,170
Series 2001, 5.125%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 89,725 Total Long-Term Investments (cost $89,707,445) - 146.2% 92,268,512
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 1,828,013
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.1)% (31,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $63,096,525
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
35
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ)
Portfolio of
INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 11.3%
$ 2,225 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset- 5/12 at 100.00 A1 $ 2,138,091
Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33
3,000 State of Ohio, Sewage and Solid Waste Disposal Facilities 11/11 at 100.00 A+ 3,033,150
Revenue Bonds, Anheuser-Busch Project, Series 2001,
5.500%, 11/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.0%
1,000 Cincinnati State Technical and Community College, Ohio, 10/13 at 100.00 Aaa 1,006,590
General Receipts Revenue Bonds, Series 2002,
5.000%, 10/01/28
2,050 Ohio Higher Educational Facilities Commission, Revenue 12/11 at 100.00 A3 2,206,456
Bonds, Wittenberg University Project, Series 2001,
5.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.5%
1,860 Akron, Bath and Copley Joint Township Hospital District, Ohio, No Opt. Call Baa1 1,914,349
Hospital Facilities Revenue Bonds, Series 1998A, Summa
Health System Project, 5.000%, 11/15/08
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,000,690
Regional Medical Center, Series 2002A, 5.500%, 8/15/22
1,850 Lorain County, Ohio, Hospital Revenue Refunding and Improvement 10/11 at 101.00 AA- 1,894,326
Bonds, Catholic Healthcare Partners, Series 2001A,
5.400%, 10/01/21
2,000 County of Richland, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 2,088,320
Improvement Bonds, Series 2000B, MedCentral Health
System Obligated Group, 6.375%, 11/15/30
3,670 County of Tuscarawas, Ohio, Hospital Facilities Revenue Bonds, 10/11 at 101.00 AA 3,913,321
Union Hospital Project, Series 2001, 5.750%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.3%
1,000 County of Franklin, Ohio, Multifamily Housing Mortgage 5/12 at 102.00 Aaa 1,039,780
Revenue Bonds, GNMA Collateralized - Agler Project,
Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.5%
2,850 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/10 at 100.00 Aaa 2,901,101
Bonds, Mortgage-Backed Securities Program, Series 2001A,
5.500%, 9/01/34 (Alternative Minimum Tax)
1,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/12 at 100.00 Aaa 1,017,760
Bonds, GNMA Mortgage-Backed Securities Program,
2002 Series D, 5.400%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.1%
2,000 County of Hamilton, Ohio, Health Care Facilities Improvement 10/08 at 102.00 BBB+ 1,879,420
Revenue Bonds, Series 1999A, Twin Towers, 5.800%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 51.2%
1,750 Fairfield City School District, Ohio, General Obligation Bonds, 12/11 at 100.00 AAA 1,872,990
Series 2001 Refunding, 5.375%, 12/01/19
1,000 Greater Cleveland Regional Transit Authority, Ohio, General 12/11 at 100.00 Aaa 1,034,540
Obligation Capital Improvement Bonds, Series 2001A,
5.125%, 12/01/21
2,000 Hamilton Local School District, Franklin County, Ohio, 12/11 at 100.00 AAA 2,016,500
School Facilities Construction and Improvement Bonds,
General Obligation - Unlimited Tax, 5.000%, 12/01/28
Lebanon City School District, Warren County, Ohio, General
Obligation Bonds, Series 2001:
4,000 5.500%, 12/01/21 12/11 at 100.00 AAA 4,299,200
2,000 5.000%, 12/01/29 12/11 at 100.00 AAA 2,016,200
2,420 Lorain County, Ohio, General Obligation - Limited Tax Justice 12/12 at 100.00 Aaa 2,603,460
Center Bonds, Series 2002, 5.500%, 12/01/22
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Medina City School District, Medina County, Ohio, School 12/09 at 100.00 AAA $ 1,025,710
Building Construction Bonds, Series 1999, General
Obligation - Unlimited Tax, 5.250%, 12/01/28
3,000 Milford Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 3,049,440
Obligation Bonds, Series 2001, 5.125%, 12/01/30
1,000 State of Ohio Full Faith and Credit, Common School Capital 9/11 at 100.00 AA+ 1,025,650
Facilities, General Obligation Bonds, Series 2001B,
5.000%, 9/15/21
1,960 Portage County, Ohio, General Obligation Bonds, 12/11 at 100.00 AAA 1,982,893
Series 2001, 5.000%, 12/01/25
1,000 Powell, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,071,710
5.500%, 12/01/25
1,500 City of Strongsville, Ohio, General Obligation Bonds, 12/11 at 100.00 Aaa 1,537,035
Series 2001, 5.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.4%
1,700 City of Hamilton, Butler County, Ohio, One Renaissance Center 11/11 at 101.00 Aaa 1,720,162
Acquisition Limited Tax, General Obligation Bonds,
Series 2001, 5.000%, 11/01/26
1,000 Puerto Rico Highway and Transportation Authority, 7/12 at 100.00 A 1,078,720
Transportation Revenue Bonds, Series E Refunding,
5.750%, 7/01/24
1,000 Summit County Port Authority, Ohio, Revenue Bonds, 12/11 at 100.00 AAA 1,056,110
Civic Theatre Project, Series 2001, 5.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.9%
3,495 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 3,678,522
Series 2000A, 5.250%, 1/01/18
2,000 State of Ohio, Turnpike Revenue Bonds, 1998 Series A, Issued No Opt. Call AAA 2,253,080
by the Ohio Turnpike Commission, 5.500%, 2/15/18
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.8%
2,500 Ohio Air Quality Development Authority, Air Quality 5/09 at 101.00 AAA 2,543,325
Development Revenue Refunding Bonds, Ohio Power
Company Project, Series C, 5.150%, 5/01/26
1,500 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 1,535,175
Revenue Refunding Bonds, Series 1999-C, Ohio Edison
Company Project, 5.800%, 6/01/16 (Mandatory put 12/01/04)
2,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 1,819,380
Revenue Bonds, Bay Shore Power Project, Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.1%
2,000 City of Akron, Ohio, Sanitary Sewer System Revenue Bonds, 12/06 at 101.00 AAA 2,208,100
Series 1997 Refunding, 5.550%, 12/01/16
1,500 Ohio Water Development Authority, Water Development 12/11 at 100.00 AAA 1,533,766
Revenue Bonds, Fresh Water Series 2001A, 5.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 66,830 Total Long-Term Investments (cost $67,302,187) - 150.1% 68,995,022
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 967,292
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.2)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $45,962,314
====================================================================================================================
(1) All percentages shown in the Portfolio of
Investments are based on net assets applicable to
Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
37
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ)
Portfolio of
INVESTMENTS January 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.6%
$ 2,225 Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A1 $ 2,138,091
Asset-Backed Bonds, Series 2002 Refunding,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.0%
1,125 Ohio Higher Educational Facilities Commission, Revenue 5/12 at 100.00 A2 1,239,750
Bonds, Series 2002, Ohio Northern University Project,
5.750%, 5/01/16
2,000 Ohio Higher Educational Facilities Commission, Revenue 10/12 at 100.00 VMIG-1 2,149,560
Bonds, Series 2002B, Case Western Reserve University
Project, 5.500%, 10/01/22
1,000 Ohio State University, General Receipts Bonds, 12/09 at 101.00 AA 1,087,670
Series 1999A, 5.800%, 12/01/29
1,000 Ohio State University, General Receipts Bonds, 12/12 at 100.00 AA 1,013,970
Series 2002, 5.125%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.9%
930 Akron, Bath and Copley Joint Township Hospital District, No Opt. Call Baa1 957,175
Ohio, Hospital Facilities Revenue Bonds, Series 1998A,
Summa Health System Project, 5.000%, 11/15/08
1,000 County of Cuyahoga, Ohio, Hospital Facilities Revenue Bonds, 2/03 at 102.00 Aa3 1,021,090
Series 1993, Health Cleveland, Inc. - Fairview General
Hospital Project, 6.300%, 8/15/15
1,750 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/12 at 101.00 A 1,751,208
Regional Medical Center, Series 2002A, 5.500%, 8/15/22
1,425 County of Montgomery, Ohio, Hospital Facilities Revenue 4/10 at 101.00 BBB+ 1,534,027
Bonds, Series 1999, Kettering Medical Center Network
Obligated Group, 6.750%, 4/01/18
1,000 Montgomery County, Ohio, Revenue Bonds, Catholic Health 9/11 at 100.00 AA 1,082,200
Initiatives, Series 2001, 5.500%, 9/01/12
1,000 City of Parma, Ohio, Hospital Improvement and Refunding 11/08 at 101.00 A- 979,760
Revenue Bonds, Series 1998, Parma Community Hospital
Association, 5.375%, 11/01/29
1,000 County of Richland, Ohio, Hospital Facilities Revenue 11/10 at 101.00 A- 1,044,160
Improvement Bonds, Series 2000B, MedCentral Health
System Obligated Group, 6.375%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.7%
835 Ohio Housing Finance Agency, Residential Mortgage 8/10 at 100.00 Aaa 877,877
Revenue Bonds, 2000 Series C, Mortgage-Backed Securities
Program, 6.050%, 3/01/32 (Alternative Minimum Tax)
1,285 Ohio Housing Finance Agency, Residential Mortgage 8/10 at 100.00 Aaa 1,341,116
Revenue Bonds, 2000 Series D, Mortgage-Backed
Securities Program, 5.450%, 9/01/31 (Alternative
Minimum Tax)
1,460 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100.00 Aaa 1,549,264
Bonds, Series 2000F, Mortgage-Backed Securities Program,
5.625%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 46.5%
320 Bedford, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 325,376
5.000%, 12/01/27
2,000 Canal Winchester Local School District, Franklin and Fairfield 12/08 at 102.00 AAA 2,073,100
Counties, Ohio, General Obligation - Unlimited Tax School
Improvement Bonds, Series 1998, 5.300%, 12/01/25
1,475 Eaton City School District, Preble County, Ohio, General 12/12 at 101.00 Aaa 1,648,976
Obligation Bonds, Series 2002, 5.750%, 12/01/21
2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa3 2,097,780
Obligation Bonds, Series 2001, 5.500%, 12/01/28
1,000 Hilliard, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA- 1,061,090
5.375%, 12/01/22
1,270 Lorain, Ohio, General Obligation Bonds, Series 2002, 12/12 at 100.00 Aaa 1,297,775
5.125%, 12/01/26
1,190 Miami East Local School District, Miami County, Ohio, General 12/12 at 100.00 AAA 1,217,608
Obligation Bonds, Series 2002, 5.125%, 12/01/29
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,265 Monroe Local School District, Butler County, Ohio, General No Opt. Call Aaa $ 1,456,546
Obligation Bonds, Series 2002, 5.750%, 12/01/20
1,000 State of Ohio Full Faith and Credit Common School Capital 9/11 at 100.00 AA+ 1,031,390
Facilities, General Obligation Bonds, Series 2001B,
5.000%, 9/15/20
1,535 Pickerington Local School District, Fairfield and Franklin 12/11 at 100.00 AAA 1,617,476
Counties, Ohio, General Obligation Bonds, School Facilities
Construction and Improvement, Series 2001,
5.250%, 12/01/20
1,130 Solon, Ohio, General Obligation Bonds, Series 2002 12/12 at 100.00 AA+ 1,185,878
Refunding and Improvement, 5.000%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.2%
1,250 Ohio Building Authority, State Facilities Bonds, Administrative 4/12 at 100.00 AAA 1,363,063
Building Fund Projects, 2002 Series A, 5.500%, 4/01/18
2,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 2,252,560
Facilities Revenue Bonds, Series 1993L, 5.500%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.3%
1,140 Columbus Municipal Airport Authority, Ohio, Airport Improvement No Opt. Call AAA 1,241,893
Revenue Bonds, Port Columbus International Airport
Project, Series 1998B, 5.250%, 1/01/11
1,550 State of Ohio, Turnpike Revenue Bonds, 1998 Series A, Issued No Opt. Call AAA 1,746,137
by the Ohio Turnpike Commission, 5.500%, 2/15/18
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.0%
1,500 American Municipal Power Ohio Inc., City of Wadsworth 2/12 at 100.00 Aaa 1,600,560
Project, Electric System Improvement Revenue Bonds,
Series 2002, 5.250%, 2/15/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.1%
1,000 City of Akron, Ohio, Sanitary Sewer System Revenue Bonds, 12/06 at 101.00 AAA 1,104,050
Series 1997 Refunding, 5.550%, 12/01/16
1,500 Hamilton County, Ohio, Sewer System Improvement and 12/11 at 100.00 AAA 1,591,830
Refunding Revenue Bonds, 2001 Series A, Metropolitan
Sewer District of Greater Cincinnati, 5.250%, 12/01/18
1,500 Ohio Water Development Authority, Water Development 12/11 at 100.00 AAA 1,533,765
Revenue Bonds, Fresh Water Project, Series 2001A,
5.000%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 44,660 Total Long-Term Investments (cost $45,585,945) - 146.3% 47,213,771
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.8% 1,561,997
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.1)% (16,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $32,275,768
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
See accompanying notes to financial statements.
39
Statement of
ASSETS AND LIABILITIES January 31, 2003 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $266,112,867 $175,139,926 $45,141,364
Temporary investments in short-term securities,
at amortized cost, which approximates market value -- -- --
Cash -- 121,686 839,663
Receivables:
Interest 3,386,258 2,482,622 550,527
Investments sold 9,146,167 830,461 --
Other assets 6,873 1,446 1,153
------------------------------------------------------------------------------------------------------------------------------------
Total assets 278,652,165 178,576,141 46,532,707
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,944,992 -- --
Payable for investments purchased 1,549,350 1,549,350 --
Accrued expenses:
Management fees 150,029 97,222 13,804
Organization and offering costs -- -- 3,709
Other 80,538 94,762 20,648
Preferred share dividends payable 3,127 2,092 964
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,728,036 1,743,426 39,125
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,000,000 56,000,000 16,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $180,924,129 $120,832,715 $30,493,582
====================================================================================================================================
Common shares outstanding 11,610,041 7,699,352 2,058,624
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.58 $ 15.69 $ 14.81
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 116,100 $ 76,994 $ 20,586
Paid-in surplus 162,231,255 107,561,907 29,134,239
Undistributed net investment income 1,776,311 1,360,821 218,245
Accumulated net realized gain (loss) from investments 640,175 307,723 (182,099)
Net unrealized appreciation of investments 16,160,288 11,525,270 1,302,611
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $180,924,129 $120,832,715 $30,493,582
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
40
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $231,845,912 $92,268,512 $68,995,022 $47,213,771
Temporary investments in short-term securities,
at amortized cost, which approximates market value 1,400,000 -- -- --
Cash -- -- 142,770 825,889
Receivables:
Interest 2,838,346 1,277,643 869,605 652,593
Investments sold 45,000 869,411 -- 115,000
Other assets 2,769 4,216 1,054 4,094
------------------------------------------------------------------------------------------------------------------------------------
Total assets 236,132,027 94,419,782 70,008,451 48,811,347
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 53,094 262,564 -- --
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees 128,967 27,971 20,803 14,504
Organization and offering costs -- 2,237 3,709 4,675
Other 157,295 29,380 18,176 15,450
Preferred share dividends payable 3,029 1,105 3,449 950
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 342,385 323,257 46,137 35,579
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 77,000,000 31,000,000 24,000,000 16,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $158,789,642 $63,096,525 $45,962,314 $32,275,768
====================================================================================================================================
Common shares outstanding 9,586,462 4,220,662 3,113,726 2,157,173
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 16.56 $ 14.95 $ 14.76 $ 14.96
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 95,865 $ 42,207 $ 31,137 $ 21,572
Paid-in surplus 145,001,796 59,880,869 44,119,763 30,522,482
Undistributed net investment income 1,430,053 551,438 371,310 60,273
Accumulated net realized gain (loss) from investments (164,228) 60,944 (252,731) 43,615
Net unrealized appreciation of investments 12,426,156 2,561,067 1,692,835 1,627,826
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $158,789,642 $63,096,525 $45,962,314 $32,275,768
====================================================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
OPERATIONS Six Months Ended January 31, 2003 (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $7,246,627 $4,743,018 $1,159,711
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 893,718 577,154 152,087
Preferred shares - auction fees 118,466 70,575 20,164
Preferred shares - dividend disbursing agent fees 10,082 10,082 5,041
Shareholders' servicing agent fees and expenses 20,545 15,011 1,045
Custodian's fees and expenses 39,882 25,694 12,315
Directors'/Trustees' fees and expenses 1,545 1,165 468
Professional fees 6,587 5,657 4,566
Shareholders' reports - printing and mailing expenses 23,571 16,580 4,148
Stock exchange listing fees 8,537 6,098 33
Investor relations expense 16,448 10,890 1,868
Other expenses 13,255 7,496 3,226
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,152,636 746,402 204,961
Custodian fee credit (6,395) (6,588) (2,522)
Expense reimbursement -- -- (70,194)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,146,241 739,814 132,245
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,100,386 4,003,204 1,027,466
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,306,923 527,697 (3,081)
Change in net unrealized appreciation (depreciation)
of investments 900,356 262,905 682,656
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 2,207,279 790,602 679,575
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (477,720) (331,466) (84,067)
From accumulated net realized gains from investments 128,818) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (606,538) (331,466) (84,067)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $7,701,127 $4,462,340 $1,622,974
====================================================================================================================================
See accompanying notes to financial statements.
42
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $6,297,821 $2,478,991 $1,770,679 $1,188,948
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 763,980 308,345 229,197 160,388
Preferred shares - auction fees 97,041 39,068 30,247 20,795
Preferred shares - dividend disbursing agent fees 15,123 5,041 5,041 5,041
Shareholders' servicing agent fees and expenses 21,374 744 998 406
Custodian's fees and expenses 31,275 23,129 16,326 13,755
Directors'/Trustees' fees and expenses 1,642 875 403 377
Professional fees 6,605 4,549 4,618 4,171
Shareholders' reports - printing and mailing expenses 18,513 5,813 6,707 4,604
Stock exchange listing fees 6,098 311 196 --
Investor relations expense 14,674 6,584 4,271 2,224
Other expenses 8,933 3,574 3,952 662
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 985,258 398,033 301,956 212,423
Custodian fee credit (8,640) (4,249) (4,654) (3,352)
Expense reimbursement -- (142,313) (105,783) (74,025)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 976,618 251,471 191,519 135,046
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,321,203 2,227,520 1,579,160 1,053,902
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 468,770 140,466 172,383 191,954
Change in net unrealized appreciation (depreciation)
of investments 1,231,240 190,357 533,298 219,104
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 1,700,010 330,823 705,681 411,058
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (402,487) (176,268) (133,997) (81,118)
From accumulated net realized gains from investments -- (5,459) -- (15,641)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (402,487) (181,727) (133,997) (96,759)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $6,618,726 $2,376,616 $2,150,844 $1,368,201
====================================================================================================================================
See accompanying notes to financial statements.
43
Statement of
CHANGES IN NET ASSETS (Unaudited)
MICHIGAN MICHIGAN MICHIGAN
QUALITY INCOME (NUM) PREMIUM INCOME (NMP) DIVIDEND ADVANTAGE (NZW)
------------------------------ ------------------------------ -------------------------------
FOR THE
PERIOD 9/25/01
(COMMENCEMENT
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS OF OPERATIONS)
ENDED 1/31/03 7/31/02 ENDED 1/31/03 7/31/02 ENDED 1/31/03 THROUGH 7/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,100,386 $ 12,842,247 $ 4,003,204 $ 8,069,853 $ 1,027,466 $ 1,563,572
Net realized gain (loss)
from investments 1,306,923 1,255,918 527,697 509,493 (3,081) (179,018)
Change in net unrealized
appreciation
(depreciation)
of investments 900,356 580,210 262,905 764,121 682,656 620,710
Distributions to
Preferred Shareholders:
From net investment income (477,720) (1,264,782) (331,466) (820,275) (84,067) (139,482)
From accumulated net realized
gains from investments (128,818) (279,535) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations 7,701,127 13,134,058 4,462,340 8,523,192 1,622,974 1,865,782
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,317,403) (10,352,127) (3,449,312) (6,545,391) (862,572) (1,287,427)
From accumulated net realized
gains from investments (1,195,839) (863,646) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions
to Common shareholders (6,513,242) (11,215,773) (3,449,312) (6,545,391) (862,572) (1,287,427)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- 29,319,045
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 105,758 1,048,301 -- 57,829 1,189 7,758
Preferred shares offering costs -- -- -- -- 52,558 (326,000)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from
capital share transactions 105,758 1,048,301 -- 57,829 53,747 29,000,803
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable
to Common shares 1,293,643 2,966,586 1,013,028 2,035,630 814,149 29,579,158
Net assets applicable to Common
shares at the beginning
of period 179,630,486 176,663,900 119,819,687 117,784,057 29,679,433 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $180,924,129 $179,630,486 $120,832,715 $119,819,687 $30,493,582 $29,679,433
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,776,311 $ 1,500,913 $ 1,360,821 $ 1,187,234 $ 218,245 $ 136,663
====================================================================================================================================
See accompanying notes to financial statements.
44
OHIO OHIO OHIO
QUALITY INCOME (NUO) DIVIDEND ADVANTAGE (NXI) DIVIDEND ADVANTAGE 2 (NBJ)
------------------------------ ------------------------------ -------------------------------
FOR THE
PERIOD 9/26/01
(COMMENCEMENT
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS OF OPERATIONS)
ENDED 1/31/03 7/31/02 ENDED 1/31/03 7/31/02 ENDED 1/31/03 THROUGH 7/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,321,203 $ 10,914,004 $ 2,227,520 $ 4,448,330 $ 1,579,160 $ 2,414,558
Net realized gain (loss)
from investments 468,770 1,127,600 140,466 (10,990) 172,383 (425,114)
Change in net unrealized
appreciation
(depreciation) of investments 1,231,240 387,460 190,357 836,808 533,298 1,158,572
Distributions to
Preferred Shareholders:
From net investment income (402,487) (1,205,443) (176,268) (508,862) (133,997) (237,497)
From accumulated net
realized gains
from investments -- -- (5,459) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations 6,618,726 11,223,621 2,376,616 4,765,286 2,150,844 2,910,519
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
COMMON SHAREHOLDERS
From net investment income (4,658,083) (8,853,521) (1,885,834) (3,662,910) (1,317,069) (1,932,880)
From accumulated net
realized gains
from investments -- -- (43,462) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions to
Common shareholders (4,658,083) (8,853,521) (1,929,296) (3,662,910) (1,317,069) (1,932,880)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale
of shares -- -- -- -- -- 44,385,975
Net proceeds from shares
issued to shareholders
due to reinvestment
of distributions 477,645 817,099 62,785 21,725 8,072 17,220
Preferred shares
offering costs -- -- 38,487 -- 47,358 (408,000)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from
capital share transactions 477,645 817,099 101,272 21,725 55,430 43,995,195
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares 2,438,288 3,187,199 548,592 1,124,101 889,205 44,972,834
Net assets applicable
to Common shares
at the beginning of period 156,351,354 153,164,155 62,547,933 61,423,832 45,073,109 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $158,789,642 $156,351,354 $63,096,525 $62,547,933 $45,962,314 $45,073,109
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,430,053 $ 1,162,184 $ 551,438 $ 410,424 $ 371,310 $ 244,181
====================================================================================================================================
See accompanying notes to financial statements.
45
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
OHIO
DIVIDEND ADVANTAGE 3 (NVJ)
-------------------------------
FOR THE
PERIOD 3/27/02
(COMMENCEMENT
SIX MONTHS OF OPERATIONS)
ENDED 1/31/03 THROUGH 7/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,053,902 $ 544,899
Net realized gain (loss) from investments 191,954 (11,350)
Change in net unrealized appreciation
(depreciation) of investments 219,104 1,409,668
Distributions to Preferred Shareholders:
From net investment income (81,118) (41,042)
From accumulated net realized gains
from investments (15,641) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 1,368,201 1,902,175
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (944,928) (472,386)
From accumulated net realized gains
from investments (121,348) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,066,276) (472,386)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 30,734,250
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 2,100 536
Preferred shares offering costs (23,189) (269,918)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (21,089) 30,464,868
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares 280,836 31,894,657
Net assets applicable to Common
shares at the beginning of period 31,994,932 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $32,275,768 $31,994,932
====================================================================================================================================
Undistributed net investment
income at the end of period $ 60,273 $ 31,471
====================================================================================================================================
See accompanying notes to financial statements.
46
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen Michigan Quality Income Municipal
Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP),
Nuveen Michigan Dividend Advantage Municipal Fund (NZW), Nuveen Ohio Quality
Income Municipal Fund, Inc. (NUO), Nuveen Ohio Dividend Advantage Municipal Fund
(NXI), Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) and Nuveen Ohio
Dividend Advantage Municipal Fund 3 (NVJ). Common shares of Michigan Quality
Income (NUM), Michigan Premium Income (NMP) and Ohio Quality Income (NUO) are
traded on the New York Stock Exchange while Common shares of Michigan Dividend
Advantage (NZW), Ohio Dividend Advantage (NXI), Ohio Dividend Advantage 2 (NBJ)
and Ohio Dividend Advantage 3 (NVJ) are traded on the American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940 as closed-end
management investment companies.
Prior to the commencement of operations of Michigan Dividend Advantage (NZW),
Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ), each Fund
had no operations other than those related to organizational matters, the
initial capital contribution of $100,275 per Fund by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.(formerly, The
John Nuveen Company) and the recording of the organization expenses ($11,500 per
Fund) and their reimbursement by Nuveen Investments, LLC(formerly, Nuveen
Investments), also a wholly owned subsidiary of Nuveen Investments, Inc.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes, by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds or
its designee may establish a fair value for the security. Temporary investments
in securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
January 31, 2003, Michigan Quality Income (NUM) and Michigan Premium Income
(NMP) each had an outstanding when-issued purchase commitment of $1,549,350.
There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
47
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its share holders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Funds.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid monthly.
Net realized capital gains and/or market discount from investment transactions,
if any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common Shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States. Accordingly, temporary
over-distributions as a result of these differences may occur and will be
classified as either distributions in excess of net investment income,
distributions in excess of net realized gains and/or distributions in excess of
net ordinary taxable income from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
-------------------------------------------------------------------------------
Number of shares:
Series M -- 840 --
Series W -- -- 640
Series TH 3,200 1,400 --
Series F 560 -- --
-------------------------------------------------------------------------------
Total 3,760 2,240 640
===============================================================================
48
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
-------------------------------------------------------------------------------
Number of shares:
Series M 680 -- -- --
Series T -- -- -- 660
Series W -- 1,240 -- --
Series TH 1,400 -- -- --
Series TH2 1,000 -- -- --
Series F -- -- 960 --
-------------------------------------------------------------------------------
Total 3,080 1,240 960 660
===============================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended January 31, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all offering costs (other than the
sales load) that exceed $.03 per Common share for Michigan Dividend Advantage
(NZW), Ohio Dividend Advantage 2 (NBJ) and Ohio Dividend Advantage 3 (NVJ).
Michigan Dividend Advantage's (NZW), Ohio Dividend Advantage 2's (NBJ) and Ohio
Dividend Advantage 3's (NVJ) share of offering costs ($61,530, $93,150 and
$64,500, respectively) were recorded as a reduction of the proceeds from the
sale of the common shares.
Costs incurred by Michigan Dividend Advantage (NZW), Ohio Dividend Advantage 2
(NBJ) and Ohio Dividend Advantage 3 (NVJ) in connection with their offering of
Preferred shares ($273,442, $360,642 and $293,107, respectively) were recorded
as a reduction to paid-in surplus.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
MICHIGAN QUALITY MICHIGAN PREMIUM MICHIGAN DIVIDEND
INCOME (NUM) INCOME (NMP) ADVANTAGE (NZW)
------------------------- --------------------------- -----------------------------
FOR THE
PERIOD 9/25/01
(COMMENCE-
MENT OF
OPERATIONS)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS THROUGH
ENDED 1/31/03 7/31/02 ENDED 1/31/03 7/31/02 ENDED 1/31/03 7/31/02
-------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 2,051,000
Shares issued to shareholders
due to reinvestment of
distributions 6,614 68,086 -- 3,743 81 543
-------------------------------------------------------------------------------------------------------------
6,614 68,086 -- 3,743 81 2,051,543
=============================================================================================================
Preferred shares sold -- -- -- -- -- 640
=============================================================================================================
49
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
OHIO QUALITY OHIO DIVIDEND OHIO DIVIDEND
INCOME (NUO) ADVANTAGE (NXI) ADVANTAGE 2 (NBJ)
------------------------- --------------------------- -----------------------------
FOR THE
PERIOD 9/26/01
(COMMENCE-
MENT OF
OPERATIONS)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS THROUGH
ENDED 1/31/03 7/31/02 ENDED 1/31/03 7/31/02 ENDED 1/31/03 7/31/02
-------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 3,105,000
Shares issued to shareholders
due to reinvestment of
distributions 27,622 47,904 4,329 1,425 538 1,188
-------------------------------------------------------------------------------------------------------------
27,622 47,904 4,329 1,425 538 3,106,188
=============================================================================================================
Preferred shares sold -- -- -- -- -- 960
=============================================================================================================
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-----------------------------
FOR THE
PERIOD 3/27/02
(COMMENCE-
MENT OF
OPERATIONS)
SIX MONTHS THROUGH
ENDED 1/31/03 7/31/02
-------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 2,150,000
Shares issued to shareholders
due to reinvestment of
distributions 138 35
-------------------------------------------------------------------------------------------------------------
138 2,150,035
=============================================================================================================
Preferred shares sold -- 660
=============================================================================================================
50
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities during the six months ended January 31,
2003, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $31,123,794 $12,847,684 $1,020,510
Short-term securities 9,500,000 1,000,000 --
Sales and maturities:
Long-term municipal securities 38,308,985 12,213,417 1,616,303
Short-term securities 9,500,000 1,000,000 --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $16,686,378 $4,341,834 $6,375,464 $4,503,152
Short-term securities 12,400,000 -- -- --
Sales and maturities:
Long-term municipal securities 18,522,192 4,976,039 6,388,080 5,425,018
Short-term securities 11,000,000 -- -- --
=========================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At January 31, 2003, the cost of investments were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Cost of investments $249,968,836 $163,321,631 $43,837,588
==========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
----------------------------------------------------------------------------------------------------------
Cost of investments $220,778,956 $89,661,758 $67,295,822 $45,583,803
==========================================================================================================
51
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at January 31, 2003, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $16,969,534 $12,594,622 $1,318,044
Depreciation (825,503) (776,327) (14,268)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $16,144,031 $11,818,295 $1,303,776
==========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,945,796 $3,173,003 $1,919,420 $1,664,240
Depreciation (478,840) (566,249) (220,220) (34,272)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $12,466,956 $2,606,754 $1,699,200 $1,629,968
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at July 31, 2002, the Funds' last fiscal year end, were as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
----------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $2,203,902 $1,306,533 $282,798
Undistributed ordinary income * -- -- --
Undistributed net long-term capital gains 834,829 -- --
==========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
----------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $1,718,741 $668,671 $455,613 $189,341
Undistributed ordinary income * -- -- -- --
Undistributed net long-term capital gains -- -- -- --
==========================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
52
The tax character of distributions paid during the period ended July 31, 2002,
the Funds' last fiscal year end, were designated for purposes of the dividends
paid deduction as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
---------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income $11,598,566 $7,324,052 $1,280,774
Distributions from ordinary income * -- -- --
Distributions from net long-term capital gains 1,143,181 -- --
=========================================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income $10,020,828 $4,172,472 $1,953,596 $355,558
Distributions from ordinary income * -- -- -- --
Distributions from net long-term capital gains -- -- -- --
=========================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At July 31, 2002, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
MICHIGAN OHIO OHIO
PREMIUM QUALITY DIVIDEND
INCOME INCOME ADVANTAGE
(NMP) (NUO) (NXI)
---------------------------------------------------------------------------------------------------------
Expiration year:
2004 $136,711 $291,693 $ --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- 279,929 --
2009 -- 61,376 --
2010 -- -- 836
---------------------------------------------------------------------------------------------------------
Total $136,711 $632,998 $836
=========================================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2001 through July 31, 2002 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen in the following year:
MICHIGAN MICHIGAN OHIO OHIO OHIO
PREMIUM DIVIDEND DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMP) (NZW) (NXI) (NBJ) (NVJ)
---------------------------------------------------------------------------------------------------------
$83,263 $179,018 $29,765 $425,114 $11,350
=========================================================================================================
53
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Michigan Quality Income's (NUM), Michigan Premium Income's (NMP) and Ohio
Quality Income's (NUO) investment management agreements with the Adviser, each
Fund pays an annual management fee, payable monthly, at the rates set forth
below, which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Michigan Dividend Advantage's (NZW), Ohio Dividend Advantage's (NXI), Ohio
Dividend Advantage 2's (NBJ) and Ohio Dividend Advantage 3's (NVJ) investment
management agreements with the Adviser, each Fund pays an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets (including net assets attributable to Preferred shares) of each
Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
For the first ten years of Ohio Dividend Advantage's (NXI) 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,
--------------------------------------------------------------------------------
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 Ohio Dividend Advantage (NXI) for any
portion of its fees and expenses beyond March 31, 2011.
54
For the first ten years of Michigan Dividend Advantage's (NZW) and Ohio Dividend
Advantage 2's (NBJ) 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
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Michigan Dividend Advantage (NZW) and
Ohio Dividend Advantage 2 (NBJ) for any portion of their fees and expenses
beyond September 30, 2011.
For the first ten years of Ohio Dividend Advantage 3's (NVJ) 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 Ohio Dividend Advantage 3 (NVJ) for any
portion of its fees and expenses beyond March 31, 2012.
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 Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid March 3, 2003, to shareholders of record on
February 15, 2003, as follows:
MICHIGAN MICHIGAN MICHIGAN
QUALITY PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE
(NUM) (NMP) (NZW)
--------------------------------------------------------------------------------
Dividend per share $.0765 $.0755 $.0705
================================================================================
OHIO OHIO OHIO OHIO
QUALITY DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NUO) (NXI) (NBJ) (NVJ)
--------------------------------------------------------------------------------
Dividend per share $.0820 $.0760 $.0720 $.0730
================================================================================
55
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MICHIGAN QUALITY
INCOME (NUM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) $15.48 $ .53 $ .18 $(.04) $(.01) $ .66 $(.46) $(.10) $ (.56)
2002 15.32 1.11 .15 (.11) (.02) 1.13 (.90) (.07) (.97)
2001 14.54 1.16 .82 (.29) (.01) 1.68 (.88) (.02) (.90)
2000 15.20 1.19 (.53) (.30) (.02) .34 (.92) (.08) (1.00)
1999 15.91 1.15 (.63) (.21) (.02) .29 (.92) (.06) (.98)
1998 15.95 1.17 (.01) (.24) -- .92 (.95) (.01) (.96)
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) 15.56 .52 .10 (.04) -- .58 (.45) -- (.45)
2002 15.31 1.05 .16 (.11) -- 1.10 (.85) -- (.85)
2001 14.24 1.07 1.07 (.25) -- 1.89 (.82) -- (.82)
2000 14.68 1.07 (.41) (.27) -- .39 (.83) -- (.83)
1999 15.30 1.05 (.64) (.21) -- .20 (.82) -- (.82)
1998 15.14 1.04 .19 (.25) -- .98 (.82) -- (.82)
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) 14.42 .50 .32 (.04) -- .78 (.42) -- (.42)
2002(a) 14.33 .76 .22 (.07) -- .91 (.63) -- (.63)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
====================================================================================
MICHIGAN QUALITY
INCOME (NUM)
------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) $ -- $15.58 $15.4500 (.48)% 4.36%
2002 -- 15.48 16.1000 11.18 7.68
2001 -- 15.32 15.4200 17.11 11.90
2000 -- 14.54 14.0000 (9.92) 2.51
1999 (.02) 15.20 16.6875 2.18 1.62
1998 -- 15.91 17.3125 10.27 5.97
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) -- 15.69 14.8000 (.66) 3.74
2002 -- 15.56 15.3500 10.52 7.40
2001 -- 15.31 14.7100 17.81 13.61
2000 -- 14.24 13.2500 (6.16) 2.95
1999 -- 14.68 15.0625 5.95 1.23
1998 -- 15.30 15.0000 13.74 6.62
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) .03 14.81 14.7000 3.27 5.64
2002(a) (.19) 14.42 14.6500 2.00 5.21
====================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
U to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===============================================================================================================
MICHIGAN QUALITY
INCOME (NUM)
---------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) $180,924 1.25%* 6.63%* 1.25%* 6.64%* 12%
2002 179,630 1.28 7.29 1.27 7.29 19
2001 176,664 1.30 7.79 1.29 7.80 20
2000 167,429 1.29 8.29 1.27 8.31 25
1999 174,591 1.19 7.28 1.19 7.28 21
1998 181,259 1.19 7.35 1.19 7.35 8
MICHIGAN PREMIUM
INCOME (NMP)
---------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) 120,833 1.22* 6.54* 1.21* 6.55* 7
2002 119,820 1.25 6.82 1.24 6.83 9
2001 117,784 1.24 7.24 1.23 7.25 15
2000 109,565 1.29 7.73 1.28 7.74 34
1999 112,851 1.29 6.82 1.28 6.83 9
1998 117,451 1.29 6.87 1.29 6.87 6
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
---------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(b) 30,494 1.34* 6.22* .86* 6.70* 2
2002(a) 29,679 1.35* 6.00* .90* 6.45* 21
===============================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=============================================================
MICHIGAN QUALITY
INCOME (NUM)
-------------------------------------------------------------
Year Ended 7/31:
2003(b) $94,000 $25,000 $73,118
2002 94,000 25,000 72,774
2001 94,000 25,000 71,985
2000 94,000 25,000 69,529
1999 94,000 25,000 71,434
1998 80,000 25,000 81,644
MICHIGAN PREMIUM
INCOME (NMP)
-------------------------------------------------------------
Year Ended 7/31:
2003(b) 56,000 25,000 78,943
2002 56,000 25,000 78,491
2001 56,000 25,000 77,582
2000 56,000 25,000 73,913
1999 56,000 25,000 75,380
1998 56,000 25,000 77,433
MICHIGAN DIVIDEND
ADVANTAGE (NZW)
-------------------------------------------------------------
Year Ended 7/31:
2003(b) 16,000 25,000 72,646
2002(a) 16,000 25,000 71,374
=============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period September 25, 2001 (commencement of operations) through July
31, 2002.
(b) For the six months ended January 31, 2003.
See accompanying notes to financial statements.
56-57 SPREAD
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
OHIO QUALITY
INCOME (NUO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) $16.36 $ .56 $ .17 $(.04) $-- $ .69 $(.49) $ -- $(.49)
2002 16.10 1.14 .18 (.13) -- 1.19 (.93) -- (.93)
2001 15.52 1.20 .56 (.27) -- 1.49 (.91) -- (.91)
2000 16.13 1.21 (.56) (.29) -- .36 (.97) -- (.97)
1999 16.65 1.21 (.51) (.24) -- .46 (.98) -- (.98)
1998 16.57 1.22 .09 (.26) -- 1.05 (.97) -- (.97)
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) 14.83 .53 .08 (.04) -- .57 (.45) (.01) (.46)
2002 14.57 1.06 .19 (.12) -- 1.13 (.87) -- (.87)
2001(a) 14.33 .29 .35 (.04) -- .60 (.22) -- (.22)
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) 14.48 .51 .21 (.04) -- .68 (.42) -- (.42)
2002(b) 14.33 .78 .23 (.08) -- .93 (.62) -- (.62)
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) 14.83 .49 .20 (.04) (.01) .64 (.44) (.06) (.50)
2002(c) 14.33 .25 .65 (.02) -- .88 (.22) -- (.22)
====================================================================================================================================
Total Returns
---------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
====================================================================================
OHIO QUALITY
INCOME (NUO)
------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) $ -- $16.56 $16.9000 (6.62)% 4.23%
2002 -- 16.36 18.6200 17.00 7.63
2001 -- 16.10 16.8000 6.86 9.85
2000 -- 15.52 16.6250 (1.80) 2.50
1999 -- 16.13 18.0000 5.09 2.74
1998 -- 16.65 18.0625 10.14 6.53
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) .01 14.95 15.5000 5.40 3.93
2002 -- 14.83 15.1500 4.48 8.02
2001(a) (.14) 14.57 15.3500 3.77 3.21
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) .02 14.76 14.4000 1.18 4.88
2002(b) (.16) 14.48 14.6500 1.91 5.58
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) (.01) 14.96 15.1000 2.00 4.23
2002(c) (.16) 14.83 15.3000 3.47 5.05
====================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==============================================================================================================
OHIO QUALITY
INCOME (NUO)
--------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) $158,790 1.23%* 6.66%* 1.22%* 6.67%* 7%
2002 156,351 1.26 7.10 1.24 7.12 26
2001 153,164 1.32 7.58 1.30 7.60 15
2000 147,045 1.31 7.88 1.29 7.89 11
1999 151,961 1.26 7.26 1.25 7.27 3
1998 155,940 1.29 7.37 1.29 7.37 9
OHIO DIVIDEND
ADVANTAGE (NXI)
--------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) 63,097 1.25* 6.54* .79* 7.00* 5
2002 62,548 1.24 6.79 .78 7.25 18
2001(a) 61,424 1.15* 5.58* .71* 6.02* 4
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
--------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) 45,962 1.30* 6.34* .83* 6.81* 9
2002(b) 45,073 1.25* 6.12* .80* 6.57* 39
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
--------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2003(d) 32,276 1.30* 5.97* .83* 6.44* 9
2002(c) 31,995 1.22* 4.72* .80* 5.15* 7
==============================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=============================================================
OHIO QUALITY
INCOME (NUO)
-------------------------------------------------------------
Year Ended 7/31:
2003(d) $77,000 $25,000 $76,555
2002 77,000 25,000 75,763
2001 77,000 25,000 74,729
2000 77,000 25,000 72,742
1999 77,000 25,000 74,338
1998 77,000 25,000 75,630
OHIO DIVIDEND
ADVANTAGE (NXI)
-------------------------------------------------------------
Year Ended 7/31:
2003(d) 31,000 25,000 75,884
2002 31,000 25,000 75,442
2001(a) 31,000 25,000 74,535
OHIO DIVIDEND
ADVANTAGE 2 (NBJ)
-------------------------------------------------------------
Year Ended 7/31:
2003(d) 24,000 25,000 72,877
2002(b) 24,000 25,000 71,951
OHIO DIVIDEND
ADVANTAGE 3 (NVJ)
-------------------------------------------------------------
Year Ended 7/31:
2003(d) 16,500 25,000 73,903
2002(c) 16,500 25,000 73,477
=============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 28, 2001 (commencement of operations) through July 31,
2001.
(b) For the period September 26, 2001 (commencement of operations) through July
31, 2002.
(c) For the period March 27, 2002 (commencement of operations) through July 31,
2002.
(d) For the six months ended January 31, 2003.
See accompanying notes to financial statements.
58-59 SPREAD
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distrib utions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
60
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended January 31, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
61
Serving Investors
FOR GENERATIONS
PHOTO OF: John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Logo: NUVEEN Investments
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333 West Wacker Drive o Chicago o Illinois 60606
WWW.NUVEEN.COM
ESA-B-0103D